Dubai: Considering the sustained economic growth potential of the "Future 7" economies or frontier markets, it makes sense for investors to integrate them into their portfolio.
According to Shailesh Dash, CEO of Al Masah Capital, an individual investor can benefit from capital inflow into economies like Argentina, Egypt, Indonesia, Mexico, South Africa, Turkey and Vietnam.
Risk appetite
However, considering the risks involved, Dash advised that only sophisticated investors and those who have a "reasonable" appetite for risk should venture into these markets.
"These markets can be good valuations plays and professional money managers will actively invest in them, as other emerging markets — the Bric economies — have become too expensive and the Western markets don't offer the same level of returns," Dash told Gulf News.
He cautioned that volatility, multiple risk factors and heavily retail-influenced market movements make them not only enticing but challenging at the same time.
Those interested can put their money in exchange-traded funds (ETFs), if there are being developed for these markets. However, it is prudent to tap an active portfolio manager.
