DEFINITION of 'Emerging Market Fund'

A mutual fund or exchange-traded fund that invests the majority of its assets in the financial markets of a single developing country or a group of developing countries. For the most part, these countries are in Eastern Europe, Africa, the Middle East, Latin America, the Far East and Asia.

BREAKING DOWN 'Emerging Market Fund'

A developing country is characterized as being vulnerable to political and economic instability, having low average per-capita income, and of being in the process of building its industrial and commercial base. The "emerging market" label has been adopted by the investment community to identify developing countries with superior growth prospects. The potential for rewarding investment opportunities in this category of fund comes with relatively high risk.

RELATED TERMS
  1. Emerging Market ETF

    An exchange-traded fund that focuses on the stocks of emerging ...
  2. Foreign Fund

    A mutual fund, closed-end fund or exchange-traded fund that invests ...
  3. World Fund

    A mutual fund that invests in securities from several different ...
  4. Single-Country Fund

    A mutual fund that restricts its investment to the assets of ...
  5. Country Fund

    An international mutual fund with a portfolio that consists entirely ...
  6. Developed Economy

    While there is no one, set definition of a developed economy ...
Related Articles
  1. Managing Wealth

    Evaluating Country Risk For International Investing

    Investing overseas begins with determining the risk of the country's investment climate.
  2. Financial Advisor

    Top 3 Latin America Stock Mutual Funds (SLATX, PRLAX)

    Discover information about some of the most popular mutual funds that offer investors exposure to equities of companies in Latin America.
  3. Investing

    Why Country Funds Are So Risky

    High returns come at a price, but country funds may still be a good bet.
  4. Investing

    An Introduction To Emerging Market Bonds

    The rewards associated with this fixed-income asset are significant, but so are the risks.
  5. Investing

    VEIEX: 3 Best Emerging Markets Equity Mutual Funds

    Learn about emerging markets and how your portfolio can benefit from them. Discover three unique high-dividend-paying emerging market mutual funds.
  6. Investing

    3 Mutual Funds with Latin American Exposure

    Learn about three mutual funds that specialize in investing in securities issued by companies domiciled in the emerging markets of Latin America.
  7. Financial Advisor

    Advising FAs: Explaining Mutual Funds to a Client

    More than 80 million people, or half of the households in America, invest in mutual funds. No matter what type of investor you are, there is bound to be a mutual fund that fits your style.
  8. Investing

    African Equities vs. Bonds: Risks and Rewards

    A look at the risks and rewards of exposure to African equities vs. bonds.
  9. Financial Advisor

    Latin America’s Economic Forecast

    After a ten-year run, the economies of Latin America are in a decline. For sustainable, long-term growth, the region needs structural reforms.
RELATED FAQS
  1. Is Brazil a developed country?

    Understand why Brazil's low per capita gross domestic product; high birth and death rates; and subpar living conditions classify ... Read Answer >>
  2. Is Colombia an emerging market economy?

    Learn the definition of an emerging market economy, and understand how Colombia, while not yet developed, meets the standards ... Read Answer >>
  3. How does investing in banks in emerging markets compare to developed countries?

    Explore the similarities and differences between investing in banks in emerging markets versus investing in banks in developed ... Read Answer >>
  4. What is a country ETF?

    Learn about the operational basics of exchange-traded funds (ETFs) and the foreign investment opportunities and advantages ... Read Answer >>
  5. Is Argentina a developed country?

    Learn why Argentina, as of 2015, is not classified as a developed country despite having a qualifying gross domestic product ... Read Answer >>
  6. Is South Korea a developed country?

    Understand the criteria for determining if a country is developed, and learn why South Korea ranks as a developed country ... Read Answer >>
Hot Definitions
  1. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  2. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  3. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  4. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  5. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  6. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
Trading Center