Feeling brave? Then head to the frontier

Investing in frontier stocks is of course risky, says Sarah Moore. But these two markets could hold rewards for the brave.

Investing in countries at an early stage of development is fraught with risk. The path of progress from being an impoverished rural economy to an industrialised, urban, capitalist nation is neither straight nor one-way. Many countries get stuck at one stage or another and some even regress. But the rewards for those who invest early in the success stories can be huge.

That's the appeal of frontier markets countries deemed "less developed" than even emerging markets (such as India or Brazil), due to factors such as demographics, political instability and liquidity (the ease of buying and selling assets).

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Sarah is MoneyWeek's investment editor. She graduated from the University of Southampton with a BA in English and History, before going on to complete a graduate diploma in law at the College of Law in Guildford. She joined MoneyWeek in 2014 and writes on funds, personal finance, pensions and property.