Rplan Survey: Investors Have Been “Taken In” by Emerging Market Hype
UK based online investment platform Rplan.co.uk, which offers retail investors access to over 2,000 funds as well as pre-selected investment portfolios based on levels of risk, has warned that many retail investors “may have been taken in by the market hype” around emerging markets in the past few years and had not fully taken into account the potential volatility. In fact, their platform indicates that roughly 135 emerging market funds were being promoted to retail investors and that 96% of them had the two highest risk rankings of six and seven.
In addition, a survey by Rplan.co.uk showed that 27% of retail investors had more than a fifth of their portfolios in emerging market investments with 6% of retail investors saying they had more than half of their portfolio invested in the asset class. And when financial advisers were asked about their clients, they said that 14% had a quarter or more of their portfolios in emerging market equities and debt.
According to Stuart Dyer, Rplan.co.uk’s CIO:
“Emerging markets have been flavour of the month in the investment world for many years and the marketing literature has really pushed the potential upside here, but there has not been enough focus on the risks involved, which can be substantial. Good examples of this include the crisis between Russia and Ukraine, in the Middle East and in parts of Latin America.”
To read the whole articles, Rplan calls for more focus on emerging market risk and Retail investors and the EM story, go to the websites of FT Adviser and InvestmentEurope, respectively. Or visit Rplan.co.uk.
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- Skerritts’ Merricks: “A Strong Dollar is Rarely a Good Thing for Emerging Markets” (FE Trustnet)
- Why Emerging Markets Are Up to the Stress Test (FP)
- Allocation and Share of Retail Investors in Emerging Market Funds (EM Equity)
- How Much Should You Invest in Emerging Markets? (The Telegraph)
- Its Difficult to Find a Good Emerging Markets Fund (every investor)
- Seven Things to Consider Before Investing in Emerging Markets (AllianceBernstein)
- Coutts CIO: Russian Stocks Now Appear Attractive (FE Trustnet)
- Emerging Market Investing: Remember Demographics and Take a Selective Approach (ThinkAdvisor)