Mutual Fund Investment in Emerging Markets : An Overview
International mutual funds are key contributors to the globalization of financial markets and one of the main sources of capital flows to emerging economies. Despite their importance in emerging markets, little is known about their investment alloc...
| Main Authors: | , , |
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| Format: | Journal Article |
| Language: | English en_US |
| Published: |
Washington, DC: World Bank
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2001/05/17737431/mutual-fund-investment-emerging-markets-overview http://hdl.handle.net/10986/17442 |
| Summary: | International mutual funds are key
contributors to the globalization of financial markets and
one of the main sources of capital flows to emerging
economies. Despite their importance in emerging markets,
little is known about their investment allocation and
strategies. This article provides an overview of mutual fund
activity in emerging markets. It describes their size, asset
allocation, and country allocation and then focuses on their
behavior during crises in emerging markets in the 1990s. It
analyzes data at both the fund-manager and fund-investor
levels. Due to large redemptions and injections, funds'
flows are not stable. Withdrawals from emerging markets
during recent crises were large, which is consistent with
the evidence on financial contagion. |
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