Why invest in emerging markets
We believe exposure to emerging markets should be part of every investor’s basic equity allocation.
We define an emerging market (EM) as a country or economy which is developing rapidly (or has the potential do to so), and which has not yet reached the level of industrialisation and economic maturity of a developed market, but which is substantially easier to invest in than a frontier market. In doing so, we broadly follow the MSCI Emerging Markets classification, which identifies emerging market countries as those highlighted below.
| Latin America (LATAM) | Europe, the Middle East, and Africa (EMEA) | Asia-Pacific (APAC) |
|---|---|---|
| Brazil, Chile, Colombia, Mexico, Peru | Czech Republic, Egypt, Greece, Hungary, Kuwait, Poland, Qatar, Saudi Arabia, South Africa, Turkey, UAE | China, India, Indonesia, Korea, Malaysia, Philippines, Taiwan, Thailand |
Source: MSCI, as of May 2026; map illustrated by mapchart.net
Why invest in Emerging Markets?
Emerging markets are generally considered to have higher growth potential than developed markets as they integrate further into the global economy, attract increasing levels of foreign direct investment (FDI), and grow their GDP. However, they also carry a greater risk, stemming from factors such as currency volatility, political instability, or vulnerability to natural disasters.
While the map above shows the breadth of the opportunity set for investors, some dismiss EM as a disparate and unrelated collection of countries and markets scattered across the globe.
What is it about the region (if it can be called that) that justifies its inclusion in any investor’s portfolio? Why should we be optimistic about the region’s long-term outlook, and how can we best invest in it?
We tackle all of these questions in the articles below.
China's long term future
Growth in intra emerging markets trade
Demographic changes
Why invest in emerging markets now?
How do we invest in the region?
Risk: The Guinness Emerging Markets Equity Income Fund is an equity fund. Investors should be willing and able to assume the risks of equity investing. The value of an investment and the income from it can fall as well as rise as a result of market and currency movement; you may not get back the amount originally invested. The Funds are actively managed with the MSCI Emerging Markets Index used as a comparator benchmark only.
Disclaimer: This insight may provide information about Fund portfolios, including recent activity and performance and may contains facts relating to equity markets and our own interpretation. Any investment decision should take account of the subjectivity of the comments contained in this insight. This insight is provided for information only and all the information contained in it is believed to be reliable but may be inaccurate or incomplete; any opinions stated are honestly held at the time of writing but are not guaranteed. The contents of this insight should not therefore be relied upon. It should not be taken as a recommendation to make an investment in the Funds or to buy or sell individual securities, nor does it constitute an offer for sale.
