Investments' Prospects in Emerging Markets: Analysis of the Beliefs and Perceptions of UK Investing Groups

By

[Name of the Subject]

ACKNOWLEDGEMENT

There are many people to whom I owe a heartfelt thank you, as this dissertation would not be possible without them. First and foremost, I would like to thank my family for their love and support throughout my life.

ABSTRACT

The impact of the financial crisis of recent years has disrupted the once exuberant investment activities of private and corporate investors. Developed countries have been affected by the financial crisis to a greater extent. Thus, economies are moving towards investing their money in emerging economies to maximize return on their investments. UK investing groups are more willing to exploit opportunities that prevail in the international market. China, India and Brazil are the nations that have emerged in the recent times and have provided investors with more opportunities to get a greater return for their money and investments.

TABLE OF CONTENT

ACKNOWLEDGEMENT2

CHAPTER 1: INTRODUCTION5

Research Aims6

Research Objectives8

Research Question8

Significance of the Study8

CHAPTER 2: LITERATURE REVIEW10

Opportunities10

Governments with Stronger Balance Sheets11

Higher sales potential11

Risks12

Ways for Investing in Emerging Markets13

Analyzing Emerging Markets13

Investing in emerging markets14

Emerging Markets a Safe Haven with Better Returns - Perception of Investors15

CHAPTER 4: DATA ANALYSIS18

CONCLUSION19

REFERENCES20

CHAPTER 1: INTRODUCTION

With increased globalization there has been a rise in making investments in the international markets. Investors are available with various investment opportunities across national boundaries to get a greater return on their investments (Scott, 1997). There are numerous countries that have emerged in the recent years, allowing investors to get a greater value for their investments (Magee, 2004).

Investing in emerging markets has provided individuals with different opportunities; however, there are various challenges and issues for investing in emerging market. Thus, it is important for the investors to overcome these challenges for minimizing risk associated with their investment and maximizing the return on their investments.

The global financial crisis has created a significant impact on different economies. The economic performance of various countries have been affected by the credit crunch, therefore, these nations have been struggling to overcome the consequences of this economic downturn. Most of the developed economies have also been affected by the financial crisis; however, various other economies have emerged lately that provides investors with numerous investment opportunities and prospects (Scott, 1997).

Over the past 20 years, investors have been able to generate higher return as a result of exposure to the higher risk of emerging markets. They have been able to turn their investment of £1,000 into £4,455 during that time period (Nigh, 1986, 99-106). Although a large proportion of the word market is considered to be developing which three quarter of the world; however, only four out of 170 countries can be classified as emerging market sectors these include Brazil, Russia, China and India (Nigh, 1986, 99-106).

Along with these emerging markets there are also other economies that are providing various investment opportunities. Frontiers markets are countries that are likely to become emerging markets in the future (Neary, 2002, 291-314). In order to determine the frontier market, economies ...