Features of Emerging Markets
Leaders of emerging markets are
willing to undertake the rapid change to a more industrialized
economy to create a better quality of life for their people.
Therefore, these markets are rapidly industrializing and adopting a
free market or mixed economy.
High volatility led by rapid social
change and domestic policy instability.
Increase in both local and foreign
investment (portfolio and direct).
The capital markets are less mature
and don't have a solid track record of foreign direct investment.
Successful rapid growth markets
provide higher-than-average return for investors.