Emerging Market Fund

Emerging Market Fund

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