Asia has some of the most dynamic economies and arguably the greatest growth potential of all geographic regions. It includes China and India, the countries with the world’s largest populations, where growing affluence is driving many areas such as consumer and financial services. While economic growth is not always reflected in stock markets, the ones in this part of the world are growing and becoming more accessible to foreign investors. They include some high-growth and high-quality companies, which good investment teams should be able to seek out. So it is not an area that long-term growth investors can afford to ignore.
But Asian equities are a higher-risk area that includes a number of emerging markets and can be highly volatile, so you should have a long-term investment horizon and high-risk appetite if you invest in this area – especially single-country emerging markets funds.
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