Vad är en tillväxtmarknadsfond? | Nordnet Academy

Summary

A growth market fund is an investment vehicle targeting emerging economies, which are nations on the rise but not yet fully developed. These markets, often referred to as 'Emerging Markets' in English, are commonly tracked by indexes like the MSCI Emerging Markets Index, which includes a significant portion of stocks from China, India, Taiwan, South Korea, and Brazil. While some funds may follow this index, others may have different distributions. Growth market funds are typically index-based, with Asia dominating the investments, but there are also 'Frontier Markets' funds targeting less accessible and more expensive countries like Vietnam, which are actively managed and often come with higher fees.

Takeaways

• 💡 A 'growth market fund' invests in emerging economies that are developing and have the potential to become developed markets.
• 🌏 Developed countries like the USA, Sweden, and Japan are contrasted with growth markets which are still developing.
• 📚 Growth markets are also known as 'Emerging Markets' in English, representing nations on the rise.
• 📈 If a growth market fund is index-based, it often follows the MSCI Emerging Markets Index, which includes a diverse range of developing countries.
• 🇨🇳 25% of the MSCI Emerging Markets Index is made up of Chinese stocks, highlighting China's significant role in such funds.
• 🌍 The index heavily features stocks from China, India, Taiwan, South Korea, and Brazil, which together dominate the index.
• 📊 Some growth market funds may not follow the MSCI index and could have a different distribution of investments.
• 📘 Investors should review the summary of any growth market fund to understand which index it follows and its composition.
• 🌐 Investment in growth market funds is typically in the index they represent, with a focus on Asian markets.
• 🏞️ Frontier markets are a category beyond emerging markets, including countries not classified as either developed or emerging.
• 🗺️ Examples of frontier markets include Vietnam and other nations that may have higher management fees due to their more challenging investment landscape.
• 🔍 Frontier market funds are often actively managed, which may result in higher costs compared to regular growth market funds.

Q & A

What is a growth market fund?

A growth market fund is an investment fund that focuses on emerging markets, which are countries that are developing and have the potential to become developed nations.

What are growth markets?

Growth markets are economies that are currently developing and are on the path to becoming developed nations, but have not yet fully reached that status.

What is another term for growth markets?

Growth markets are also known as 'Emerging Markets' in English.

Which index is commonly followed by index-based growth market funds?

The most commonly followed index by index-based growth market funds is the MSCI Emerging Markets Index.

What is the composition of the MSCI Emerging Markets Index in terms of the portfolio?

25% of the portfolio of the MSCI Emerging Markets Index consists of stocks from China, and three-quarters of it consists of stocks from China, India, Taiwan, South Korea, and Brazil.

How do some growth market funds differ from those that follow the MSCI Emerging Markets Index?

Some growth market funds may follow a different index or have a different distribution of investments, not strictly adhering to the MSCI Emerging Markets Index.

What is Nordnet Tillväxtmarknad Index and how does it relate to growth market funds?

Nordnet Tillväxtmarknad Index is an example of an index fund that is related to growth market funds, indicating that there are various indexes associated with these funds.

Why is it important to look at the summary of the index a growth market fund is investing in?

It is important to review the summary of the index to understand the fund's investment strategy, the countries and companies it includes, and to make informed investment decisions.

What is the general trend observed in growth market funds?

The general trend in growth market funds is that Asian markets, particularly China, India, Taiwan, South Korea, and Brazil, dominate the investments.

What are frontier markets and how do they differ from growth markets?

Frontier markets are countries that are not classified as either developed or emerging markets. They are typically riskier and less accessible than growth markets and are often actively managed funds with higher fees.

Why are frontier market funds often actively managed and have higher fees?

Frontier market funds are actively managed and have higher fees because the countries in these markets can be more challenging and costly to invest in, requiring more research and management.