Attraction of Investors Towards Emerging Markets
The emerging markets or the markets in developing countries are likely to attract a larger number of investors when compared to the markets in developed countries.
International stock mutual funds and exchange traded funds are likely to attract the largest amount of investments during this year, according to market surveys and reports.
This could prove to be a very fruitful year for these two branches of investment.
The incomes from these funds contributed to a large percentage of the income incurred during the middle of the previous year.
The income from balanced funds amounted to $7.
5 billion during the middle of the previous year compared to $1.
2 billion in the year before that.
A large amount of losses have been incurred by people who have been trading in money market funds.
But the lion's share of investments is being diverted in the direction of domestic stock funds.
A lot of expert financial analysts have stated that the net inflows from international stock funds and exchange traded funds have created a favorable impression in the minds of investors.
They also state that investors all over the world have no reason to show an additional interest in stocks belonging to US companies.
A shift in the overall choice of investors all over the world is being noticed.
The director of the mutual funds division at Robert W Baird & Co has stated that people are looking for investment options whose performance will not be dependent on the performance of companies in the United States of America.
Previously people used to divert most of their investments into international stocks since they felt it would diversify the risk in their investment.
But the results obtained from investing into emerging markets all over the world have proved to be more fruitful and satisfying.
The losses incurred on investments from emerging markets are 6% when compared to the losses from investments in markets of developed countries which have amounted to 12%.
But one more reason for the positive performance from markets in emerging countries is because people all over the world have started viewing them in a more positive manner.
The main reason for this change in viewpoint is that the countries which have these emerging markets do not have a large accumulation of sovereign debts.
There have been a lot of issues with regard to domestic growth in the United States and this is one of the main reasons as to why investors prefer not to put in their money there.
Exchange traded funds, commodities and alternative funds are some of the other investment options which potential investors all over the world are examining.
The first half of the year has seen a net income of $13 billion from the commodities sector.
The income from alternative funds has amounted to $15 billion in the same time period.
But the picture which has been presented by the US stocks is extremely bleak since the losses incurred by them during the first six months of the year alone have amounted to $19 billion.
Out of this amount, $16.
5 billion has been represented by mutual funds and not exchange traded funds.
Money market funds are the next investment avenue which has exhibited a loss of $490 billion within the first six months.
This is much more compared to the losses of $360 billion which had been incurred during the previous year.
The net losses that were incurred during the year 2009 amounted to 15% of the assets that were available at the end of the year.
In 2008, the net losses amounted to 10.
7% of the assets which were available at the end of the year.
The income from taxable bonds funds has reduced to $135 billion this year when compared to the income of $320 billion when compared to the previous year.
The income from municipal bond funds has reduced from $75.
5 billion in the previous year to $20.
8 billion in this year.
The main reason for this trend has been cited as the fact that people now prefer to save up their money and use it in the event of a financial crisis.
International stock mutual funds and exchange traded funds are likely to attract the largest amount of investments during this year, according to market surveys and reports.
This could prove to be a very fruitful year for these two branches of investment.
The incomes from these funds contributed to a large percentage of the income incurred during the middle of the previous year.
The income from balanced funds amounted to $7.
5 billion during the middle of the previous year compared to $1.
2 billion in the year before that.
A large amount of losses have been incurred by people who have been trading in money market funds.
But the lion's share of investments is being diverted in the direction of domestic stock funds.
A lot of expert financial analysts have stated that the net inflows from international stock funds and exchange traded funds have created a favorable impression in the minds of investors.
They also state that investors all over the world have no reason to show an additional interest in stocks belonging to US companies.
A shift in the overall choice of investors all over the world is being noticed.
The director of the mutual funds division at Robert W Baird & Co has stated that people are looking for investment options whose performance will not be dependent on the performance of companies in the United States of America.
Previously people used to divert most of their investments into international stocks since they felt it would diversify the risk in their investment.
But the results obtained from investing into emerging markets all over the world have proved to be more fruitful and satisfying.
The losses incurred on investments from emerging markets are 6% when compared to the losses from investments in markets of developed countries which have amounted to 12%.
But one more reason for the positive performance from markets in emerging countries is because people all over the world have started viewing them in a more positive manner.
The main reason for this change in viewpoint is that the countries which have these emerging markets do not have a large accumulation of sovereign debts.
There have been a lot of issues with regard to domestic growth in the United States and this is one of the main reasons as to why investors prefer not to put in their money there.
Exchange traded funds, commodities and alternative funds are some of the other investment options which potential investors all over the world are examining.
The first half of the year has seen a net income of $13 billion from the commodities sector.
The income from alternative funds has amounted to $15 billion in the same time period.
But the picture which has been presented by the US stocks is extremely bleak since the losses incurred by them during the first six months of the year alone have amounted to $19 billion.
Out of this amount, $16.
5 billion has been represented by mutual funds and not exchange traded funds.
Money market funds are the next investment avenue which has exhibited a loss of $490 billion within the first six months.
This is much more compared to the losses of $360 billion which had been incurred during the previous year.
The net losses that were incurred during the year 2009 amounted to 15% of the assets that were available at the end of the year.
In 2008, the net losses amounted to 10.
7% of the assets which were available at the end of the year.
The income from taxable bonds funds has reduced to $135 billion this year when compared to the income of $320 billion when compared to the previous year.
The income from municipal bond funds has reduced from $75.
5 billion in the previous year to $20.
8 billion in this year.
The main reason for this trend has been cited as the fact that people now prefer to save up their money and use it in the event of a financial crisis.