Jethro Godi
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Principles behind investors’ consideration of investing in emerging markets
Investment Management and Financial Innovations Volume 21, 2024 Issue #4 pp. 69-78
Views: 98 Downloads: 22 TO CITE АНОТАЦІЯInvestors are showing a growing interest in emerging economies due to several compelling characteristics that make these countries attractive for investment. The objective of this study is to examine the factors that motivate individuals to invest in emerging markets. This study employed a quantitative research methodology, specifically utilizing a survey method and online questionnaires to collect data from asset managers in South Africa due to their investment expertise. This group is specifically for a limited number of investors and/or asset managers who have the ability to provide the required information. Data analysis entailed the application of descriptive statistics. The findings revealed multiple justifications for investing in emerging economies, such as higher returns, risk diversification, capitalizing on emerging markets, expanding prospects, maintaining a well-balanced investment portfolio, hedging money, and ensuring anonymity. Among these arguments, only four are crucial when contemplating investment in emerging economies: augmented returns, risk diversification, capitalizing on emerging markets, and expanding prospects.