Emerging Markets Index of Morgan Stanley's consists of Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Jordan, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey. Some of the Developing countries are known as the emerging markets. Their contribution to the global economy is increasing at a fast pace. Investing in emerging markets is a wise decision as the growth can be witnessed and also have better return on investment for future. It is anticipated that Emerging economies will mature two to three times more rapidly than developed nation like the US, as predicted by International Monetary Fund estimates. Corporate profits incline to grow faster when economic growth is higher (Forbes). Likewise, US companies have done well in the last 12 months is because of their growth in non-US markets. Emerging markets also prove beneficial to investors as they create diversification as they act differently than developed markets. (Forbes).
Russia is one of the emerging markets in the East. However, Russia is not always an investor favorite as it is an emerging market in global oil and gas demand. Russia has tons of both. It is the world's prominent natural gas producer and exporter and has the 8th largest oil reserves in the world. (Forbes) One of the Russian search engine Yandex listed on the New York Stock Exchange is one of the hottest tech IPOs of the year, raising $1.3 billion in the offering. Its listing proved that interest in Russia goes beyond the oil and gas sector. Yandex was ranked ahead of Ebay.com and Microsoft's search engine Bing. "Russia just doesn't sit on fields of oil and gas, but also on fields of mathematicians and scientists," says John T. Connor, fund manager of the Third Millennium Russia fund. (Forbes).
During the recession in 2008, world markets in developed countries experienced downturn but the emerging markets saved the global economy, mainly Brazil, India and China.