The 'Chicken' Approach to Emerging Markets Could Be Just the Ticket
Diversified foreign-stock funds with ample emerging-markets exposure offer a great entry point into developing regions.
Note: This article is part of Morningstar's December 2013 Emerging Markets Week special report.
I often say that if there's a chicken way to do anything in investing, do it. The less you get spooked and jostled around during the investing process, the more likely you are to stick with your plan. That's why I'm a fan of nearly all of the risk-reducing investing ideas in the book: investing in balanced and target-date funds, dollar-cost averaging, and rebalancing. If you cut the volatility risk in your portfolio without greatly diminishing its return potential or paying an arm and a leg (looking at you, alternative funds), I'm all for it.
Christine Benz does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.