Principles behind investors’ consideration of investing in emerging markets
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Author(s)Jethro GodiLink to ORCID Index: https://orcid.org/0000-0001-5871-8507
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DOIhttp://dx.doi.org/10.21511/imfi.21(4).2024.06
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Article InfoVolume 21 2024, Issue #4, pp. 69-78
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8 Downloads
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Creative Commons Attribution 4.0 International License
Investors 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.
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JEL Classification (Paper profile tab)B26, D25, E22, G11
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References33
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Tables1
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Figures1
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- Figure 1. Reasons for making investments in emerging markets
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- Table 1. Descriptive statistics and internal consistency reliabilities
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Z-score vs minimum variance preselection methods for constructing small portfolios
Francesco Cesarone ,
Fabiomassimo Mango ,
Gabriele Sabato
doi: http://dx.doi.org/10.21511/imfi.17(1).2020.06
Investment Management and Financial Innovations Volume 17, 2020 Issue #1 pp. 64-76 Views: 1083 Downloads: 429 TO CITE АНОТАЦІЯSeveral contributions in the literature argue that a significant in-sample risk reduction can be obtained by investing in a relatively small number of assets in an investment universe. Furthermore, selecting small portfolios seems to yield good out-of-sample performances in practice. This analysis provides further evidence that an appropriate preselection of the assets in a market can lead to an improvement in portfolio performance. For preselection, this paper investigates the effectiveness of a minimum variance approach and that of an innovative index (the new Altman Z-score) based on the creditworthiness of the companies. Different classes of portfolio models are examined on real-world data by applying both the minimum variance and the Z-score preselection methods. Preliminary results indicate that the new Altman Z-score preselection provides encouraging out-of-sample performances with respect to those obtained with the minimum variance approach.
