Today’s low interest rate environment has left investors searching for higher returns. But in a fast-changing world, where should they begin to look? The answer could be emerging markets.
Sources: 1 MSCI, Jan 2020 2Google, Temasek, Bain & Company, Nov 2020. 3Google, Temasek, Bain & Company, Nov 2020. 4MSCI, Nov 2020. 5 National Health Profile, Dec 2018. 6 IBEF, Aug 2020.
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. The investor may not get back the amount originally invested.
Emerging market investments are usually associated with higher investment risk than developed market investments. Therefore, the value of these investments may be unpredictable and subject to greater variation. Note: All figures mentioned in this infographic are in USD.
Southeast Asia (SEA) is quickly emerging as the next digital giant.
Since 2015, the region has added 140 million internet users.
70% of the region's 583 million citizens are now online.
Source: Hootsuite, We are Social (Jan 2019) Google, Temasek, Bain & Company (Nov 2020) For illustrative purposes only.
Sources: 1Worldometer (Jan 2021), 2Bain & Company (March 2019), 3Google, Temasek, Bain & Company (Nov 2020).
Gender diversity has been a historical weak point for Brazilian companies, but female representation has been improving. Brazil surpassed the emerging markets average for the first time in 2020.
Source: Boston Consulting Group (Nov 2018). Totals may not add up to a 100%. For illustrative purposes only.
Source: National Health Profile (Dec 2018) For illustrative purposes only.
Structural scaling up of healthcare. India is working to overcome its historic lag in public health spending
To address this shortfall, India is making investments to provide 500 million people with government-sponsored health insurance.
This scale-up could potentially result in one of the fastest growing healthcare markets in the world.
Source: IBEF (Aug 2020) For illustrative purposes only.
Source: Google, Temasek, Bain & Company (Nov 2020) For illustrative purposes only.
Source: IBEF (Aug 2020) For illustrative purposes only.
Source: IBEF (Aug 2020).
The result of these efforts is a real estate market expected to be worth $1 trillion by 2030. (Source: KPMG, Sept 2018).
Overall, with nearly 30 countries to explore, these opportunities are just a subset of what emerging markets has to offer.
Growth-minded investors may want to give this diverse region a closer look.