International Finance Corporation ( IFC ), a part of the World Bank Group . Van Agtmael wanted to create an investment fund focused on developing nations but needed a more appealing term than “ Third World Equity Fund ”. Thus , “ Emerging Markets Fund ” was born .
The 1980s : Exploration and Growth During the 1980s , many investors began to see the untapped potential of emerging markets . As the global economy started to integrate , these markets offered the promise of higher returns compared
For instance , emerging markets are leading the way in mobile technology , with higher mobile penetration rates and usage of mobile payment systems than many developed countries . This trend represents vast potential for innovation , particularly for the fintech sector .
Emerging Markets and ESG |
The significance of environmental , |
social , and governance ( ESG ) factors |
is increasingly being recognised |
in |
investment |
decision-making . |
Many |
emerging |
markets |
have |
demonstrated |
a |
robust |
commitment |
to |
sustainability and corporate |
governance |
standards . |
By |
integrating |
ESG |
considerations |
into |
their |
business models , they ’ re not |
only enhancing their attractiveness but also paving the way for sustainable development .
Risks and Rewards of Investing in EMs Investing in emerging markets isn ’ t without its risks . They often experience volatility due to various factors , including economic instability , political uncertainty , and currency fluctuations . However , such risks are typically offset by the potential for higher returns . A well-considered and strategically diversified investment strategy can help investors navigate these challenges effectively .
The Birth of Emerging Market Investments The term “ emerging markets ” was first coined by Antoine van Agtmael in 1981 while working at the
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