Over the next blog entries we will review the characteristics and differences between an investment in an emerging market and one in a developed market. We will focus on Vietnam since this the market we believe is the most interesting to invest in at the present time and that we currently advise on. All the analysis will be done on an independent investor point of view.
We will review these differences in terms of risks of losses, in terms of returns, in terms of administrative ease and in terms of trading.
In terms of risks of losses, we will see that, not surprisingly, investing in an emerging or frontier market involves higher risks than investing in a developed market. Nonetheless it is worth keeping in mind that investing involves taking risks by definition wherever this investment is.
As far as returns are concerned, we will see that the potential returns when investing in an emerging or frontier market are much higher than the ones you could obtain in a developed market such as the US one.
Regarding administrative ease, we will see that, not surprisingly, opening an account and investing in a developed market especially if this market happens to be the one of your own country is much simpler than investing in an emerging or frontier market.
Finally, in terms of trading, we will see that trading in an emerging or frontier market such as Vietnam requires more skills and more work especially in terms of researches than investing in a developed market.