The positive effects of diversification in emerging markets

Due to the compelling diversification benefits of investing in emerging markets, global investors are allocating increasing shares of their portfolios to them. Other reasons to invest in emerging markets, also explored in this chapter, show that the upward surge still has legs and could, perhaps, still be in its infancy. Although the risks of such investments are still widely decried, given these markets' risk-adjusted performance over the past ten years, investors who committed funds to them have been kindly rewarded, despite a few temporary performance setbacks and the persisting broad macroeconomic instability troubling the weakest of the markets. Considering their performance in 2017, these stocks keep rolling along, bringing more wealth to those who continue to be invested in them.