Discuss the potential benefits and dangers of investing in emerging stock markets

BENEFITS AND DANGERS OF INVESTING IN EMERGING STOCK MARKETS
Table of Contents
Introduction    3
Analysis    3
Conclusion    4
References    5
Introduction
The emerging market offers various new investment opportunities along with elevated economic growth which is higher than the expected returns. It is mainly due to the diversification of the portfolio. Yet there are numerous risks which are associated with new investment opportunities in the emerging stock markets which the investors must be aware of before planting to seed their capitals in emerging markets. Since 2000s, emerging stock markets are considered as the hottest investment with new funds which boosts up all the time. Further, if there is high-risk, then there are high rewards on the investment on the stocks. Therefore, it is essential to understand as well as analyse each of the specific risks associated with the emerging markets before making any forms of investment.
Analysis
The biggest advantages of investing in the emerging stock markets are growth and diversification. The emerging market reflects a high potential growth and it is international investments which is considered as a good diversifier for the portfolio investment since economic downturns in one country can be offset by the growth in another (Ameriprise Financial, 2022). The growth in the...