Fund of the week: Go for long-term growth in the Brics

The best opportunities in the next 12 months will lie in the larger companies in the Bric markets of Brazil, Russia, India and China, says the manager of this emerging markets fund.

Inflationary pressures, the turmoil in the Middle East and the Japanese earthquake have resulted in a market sell-off that has had a particular impact on emerging markets, says Meera Patel of Hargreaves Lansdown. But the "resulting lower stockmarket levels could present a good entry point for long-term investors".

Last year was the year of the smaller, higher-risk emerging markets, such as Thailand, Peru and Chile. But the best opportunities over the next 12 months lie in the larger companies in the Bric markets of Brazil, Russia, India and China, says Michael Konstantinov, manager of the Allianz RCM Bric Stars fund. In particular, Konstantinov believes Russia will perform well, and the country's 30% weighting in his fund reflects this view. Tensions in the Middle East and a pick-up in US demand means higher energy prices will be around for a while. That's good news for the Russian market, as the country is a significant producer of oil, he says.

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Gazprom9.1
Petroleo Brasileiro6.6
Vale4.7
Lukoil4.2
Sberbank4.0
Infosys3.7
Industrial and Commercial Bank of China2.7
China Construction Bank2.6
Rosneft2.5
Reliance Industries2.4
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