A study by HSBC Global Asset Management found that taking a long-term view towards investing in emerging markets reaps rewards, while missing a few days of investment over the past decade could severely diminish returns.
Those invested in the MSCI Global Emerging Markets Index over 10 years would have returned 8.6%, while those absent for the 20 best days would have been hit with a return of -1%.
Missing the 10 best days would have returned 2.2%.
Alex Tarver, global emerging product specialist at HSBC Global Asset Management, admitted there were concerns over slowing global growth and credit issues in emerging markets.
“While there is clear evidence that investors are shying away from emerging markets, this is probably one of the most attractive entry opportunities for investors with a medium to long-term view.
“Volatility is likely to continue in the near term, but it pays to be fully invested rather than trying to time the market.”
TW
