Specifics of investment in emerging markets

Abstract The thesis aim is to examine the most common specifics of emerging markets an investor should take into consideration before making an investment decision. More and more people have started investing their money in financial markets during the pandemic and some of them have even started to look for riskier investing opportunities with a higher return on the investments. Emerging markets can be seen as one of these opportunities. The Thesis consists of the Introduction, Theoretical part, Practical part, Conclusion, and References. The theoretical part consists of the concept of emerging markets, methodology and criteria, common features and characteristics, and emerging market risks. The practical part contains a survey which is aimed at determining the opinion of retail investors on emerging markets, in particular, if it is found a potentially appealing asset to invest in, and the reasons for that. Possible strategies that can be used for investing in emerging markets are examined. A case study - a portfolio specifically developed to be invested in emerging market assets - is also provided as an example in this part with its structure and performance analysis. Portfolio’s particular assets are examined with the explanation of why exactly these assets were selected in the portfolio. Moreover, ETF funds with their advantages as a method of broad diversification and investing in emerging markets are introduced.