Chapter 3

Picking Bonds, Stocks, and Mutual Funds in Emerging Markets

In This Chapter

arrow Buying and selling emerging market bonds and stocks

arrow Surveying the wide world of open-end and closed-end mutual funds

arrow Getting a handle on international exchanges

Bonds and stocks are the most traditional investments. They're basic ways for companies to finance their growth, and they're popular with investors in developed markets. Emerging market investors can buy bonds and stocks, too, although they need to know about some differences. As an investor outside of a country, for example, you may not be able to buy bonds and stocks directly, and the risk levels are probably higher than you're used to. Plus, fewer bonds and stocks are available for purchase in emerging markets than in developed ones. But those differences are what help make the markets interesting.

So yes, buying bonds and stocks in emerging markets can be more complicated than buying them in developed markets — but it can also be rewarding.

Still, many investors find that selecting individual stocks and bonds is difficult and may require more money than they have to create a diversified portfolio. After all, you have to have a lot ...

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