Some conventional investment funds might not be offering people the best returns, it has been claimed.
According to Peter Hicks, executive director of UK retail at Fidelity International, investment funds which only dedicate a small amount of their portfolio to emerging markets are missing out on growth.
He states that these countries have doubled their share of global gross domestic (GDP) product in less than 20 years, something that indicates their investment potential
Mr Hicks said: "Matching the GDP figure of 30 per cent may be too much of a leap but for more adventurous investors, a weighting of ten to 20 per cent might be a more realistic reflection of these economies' stature."
Investments in such countries are not without their risks though and corporate governance standards can be lower than in the West, he added.
Yesterday, Mike Fox trust fund manager at The Co-operative Investments, claimed that rising fuel prices will increase the number of people using public transport.
This means that ethical investments will be boosts as bus companies profit from this trend, he predicted.
Conventional investment funds missing out, expert claims
Conventional investment funds missing out, expert claims
Wed, 09 Jul 2008
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