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rish asked in Business & FinanceInvesting · 1 decade ago

Emerging market risk of fidelity investment....................................?

WHICH IS A BIG RISK FOR FIDELITY IN EMERGING MARKET .

IS IT A CURRENCY RISK OR A INTEREST RATE RISK OR ANY OTHER TYPE OF RISK.

HELP ME OUT............................

3 Answers

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  • 1 decade ago
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    Mainly currency risk and sovereign trade deficit. Governments getting overthrown by Coup like in Thailand is also a risk. Communist countries can nationalize any industry.

    By the way USA is at highest risk these days and many emerging markets are lower risk if you care to study them carefully. US dollar is declining against many currencies. So Fidelity in USA is higher risk than many are aware of.

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  • 1 decade ago

    Several risks lie in emerging markets.

    Translation exposure related to currency valuation.

    There could be a change in governmental policies such as a country nationalizing the industry.

    With any new or emerging economy, there is a risk that the firm will fail.

    There can be problems relating to infrastructure such as roads or railways.

    Risk is related to return.

    Source(s): faculty.fuqua.duke.edu/~charvey/Research/.../P50_Risk_in_emerging.pdf -
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  • 1 decade ago

    usually its a currency risk as these economies usually are unable to support their currency in case of callapse, do not have the gold, foreign reserves to support it.

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