Many investors are wondering if it’s the right time to add exposure to emerging markets.
With ongoing market uncertainty and the possibility of a recession, investors may be wary to add exposure to riskier segments of the market. Emerging markets look like a ripe opportunity in the medium term; however, a deep recession could cause a tremendous sell off.
However, investors can navigate the risks by investing in an emerging markets strategy focused on providing downside protection. This allows investors to capitalize on the current low valuations while limiting the impacts of a potential recession.
Fidelity Emerging Markets Limited (LON:FEML) is an investment trust that aims to achieve long-term capital growth from an actively managed portfolio made up primarily of securities and financial instruments providing exposure to emerging markets companies, both listed and unlisted.