It's time to move beyond emerging market stereotypes, says investment manager Franklin Templeton in a research note. A bet on developing countries once meant buying into politically-volatile markets dependent on cyclical commodities. But today the biggest sector in the MSCI Emerging Markets index is technology. It accounts for 28% of the market.
India is also leading the new tech charge, notes Henny Sender in the Financial Times. The value of the country's e-commerce transactions is just a fraction of that of China's, but a growing middle class means rocketing demand for a wide variety of services and easier ways to pay. The country has plenty of savvy entrepreneurs, although with venture capital playing a big role, "it may still be a while before investors in public markets have a tasty menu to pick from".
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Not all emerging markets are created equal. Materials and energy businesses, once worth 30% of the MSCI index, now make up just 15.7% of it, although that number still goes as high as 27% in nations such as Brazil. Investors will increasingly need to differentiate between emerging markets.
-
How inheritance tax trick is helping families save ‘six-figure sums’Happy to skip a generation to save thousands on inheritance tax? A deed of variation could be the estate planning tool you need.
-
Nationwide: House prices unexpectedly dropped in AugustHouse prices fell by 0.1% in August in a surprise drop, according to Nationwide, as “affordability remains stretched”
