Indias Emerging Financial Market: A Flow of Fund Model

Investing in emerging markets is considered very risky. The financial markets of developing countries are typically small, with a short operating history. Emerging markets exist in undeveloped regions of the world, which are very volatile and therefore have great growth potentials but also pose significant risks. Corruption, political instability, illiquidity and currency collapse are just some of the significant risks of emerging regions. Argentina’s economic collapse is the latest example of the risk involved in emerging countries.