Emerging Market Equity Fund

Emerging Market Equity Fund

A mutual fund that invests exclusively in stocks issued by companies in a developing country. Emerging market equity funds may concentrate in a region, such as the Middle East, or in a given industry, such as telecommunications stocks in emerging markets. Emerging market equity funds tend to be volatile, as they are heavily exposed to political risk. However, they offer the possibility of a high return. At least some emerging markets, notably Eastern Europe, experienced high growth in the 1990s. See also: BRIC.