+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

This Colorful Table Shows Why You Should Diversify Your Emerging Markets Portfolio

Mar 7, 2013, 16:07 IST

If you're lucky, then you might be able to pick the right stocks that'll help you beat the major benchmarks. But most investors who try to be stock pickers end up losing.

Advertisement

The same goes for emerging market investors.

This is why the best strategy may be to invest in a portfolio of countries rather than just one.

Below you'll find US Funds' Periodic Table of Emerging Markets, which ranks the annual stock market returns for various emerging markets.

"Emerging markets, like all investments, can have wide price fluctuations over time," they write. "This table shows the ebb and flow of emerging market countries over the past decade and illustrates the principal of mean reversion — the concept that returns eventually move back toward their mean or average."

Advertisement

Here's the chart:

You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article