Excel Funds’ interest in emerging markets has never been greater, with billions of dollars in profit being generated globally per annum. Emerging markets continue to be an important component of well-diversified portfolios. Investment in emerging markets enhances the economic gains of diversified portfolios, while it does not seem to reduce portfolio return variability and minimum loss.
Emerging Market Balanced Funds offer a way to enter investments that are less volatile than emerging market stocks with the bond component. The balanced funds combine different asset classes – balanced funds will never be the best performing funds, nor will they be the worst performing either. If losses occur, they’ll tend to be relatively modest and the funds are likely to regain any lost ground over a full market cycle.