Emerging markets set to bounce – and these eight funds will profit

Many developing countries were knocked sideways by Covid-19. But they are now ready to rebound. David Stevenson picks the eight best emerging market funds to buy now.

Man with buffalo
India looks poised to race ahead as the world shakes off Covid-19
(Image credit: © Getty Images)

While the developed world’s stockmarkets have been getting excited about prospects for a post-Covid-19 world, emerging-market stocks have rebounded too in recent weeks. The benchmark MSCI Emerging Markets (EM)Index has gained 8% so far this month; India and Brazil have climbed by 7% and 16% respectively.

Countries such as India, Brazil, Turkey and South Africa might now benefit from a series of tailwinds. Their Covid-19 infection rates – even without a vaccine – are already declining, which leaves their economies in better shape to expand as the developing world also stabilises. Many local stockmarkets are also cheap (especially Russia and Brazil in relative terms)and may be direct beneficiaries of a sudden turnaround in commodity prices.

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David C. Stevenson
Contributor

David Stevenson has been writing the Financial Times Adventurous Investor column for nearly 15 years and is also a regular columnist for Citywire. He writes his own widely read Adventurous Investor SubStack newsletter at davidstevenson.substack.com

David has also had a successful career as a media entrepreneur setting up the big European fintech news and event outfit www.altfi.com as well as www.etfstream.com in the asset management space. 

Before that, he was a founding partner in the Rocket Science Group, a successful corporate comms business. 

David has also written a number of books on investing, funds, ETFs, and stock picking and is currently a non-executive director on a number of stockmarket-listed funds including Gresham House Energy Storage and the Aurora Investment Trust. 

In what remains of his spare time he is a presiding justice on the Southampton magistrates bench.