How to avoid the traps of emerging market investment

Emerging markets have staged a strong recovery since the financial crash. But strong economic growth doesn't necessarily mean good returns, says Tom Bulford. Here, he explains why you should be careful when investing in emerging markets.

When it comes to a clash between the objectivity of academics and the vested interests of the City, I know who I believe.

I've been poring overthe last two editions of theCredit Suisse Global Investment Returns Yearbook, the work of Elroy Dimson, Paul Marsh and Mike Staunton of the London Business School. It's as authoritative as usual, and duly debunks one of the many marketing myths directed at unwary investors.

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Tom worked as a fund manager in the City of London and in Hong Kong for over 20 years. As a director with Schroder Investment Management International he was responsible for £2 billion of foreign clients' money, and launched what became Argentina's largest mutual fund. Now working from his home in Oxfordshire, Tom Bulford helps private investors with his premium tipping newsletter, Red Hot Biotech Alert.