PERFORMANCE OF EMERGING MARKET DIVERSIFIED EQUITY FUNDS

Abstract

This paper examines the performance of diversified emerging market funds during the period of January 2000 and November 2011. The emerging market funds provide U.S. investors an alternative to expose their portfolios. Emerging markets differs from developed markets on a wide range of market and economic characteristics, including size, liquidity, and regulation. The results show that diversified emerging market funds generate some significant alphas for their investors during the study period. An analysis of sub-period performance suggests that these funds do not consistently provide excess returns, showing great variations from one period to another

Keywords

• Emerging Markets, Mutual Funds, Diversified Funds

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