About Emerging Market Funds
India itself is an emerging market. Adding EM funds gives you exposure to the rapid growth of peer economies like China (Alibaba, Tencent), Taiwan (TSMC), and South Korea (Samsung). These countries have expanding middle classes and massive manufacturing hubs.
Risks & Geopolitics
- Regulatory Risk: Emerging markets, particularly China, face unexpected domestic regulatory changes that can drastically affect stock prices.
- Uncorrelated Growth: EM stock patterns often differ greatly from US patterns, making them excellent diversifiers.