Definition
Frontier markets are countries less developed than traditional emerging markets, with smaller economies and less liquid capital markets. Examples include Vietnam, Kenya, and Bangladesh. They offer high growth potential and diversification benefits but carry significant risks including limited liquidity and weaker regulatory frameworks.
Example
A frontier markets fund invests in countries like Nigeria and Sri Lanka, seeking high returns from economies in early development stages.
FAQ
What is Frontier Markets?
Smaller, less developed markets than emerging markets.
Why is Frontier Markets important?
Frontier Markets helps investors evaluate international and make more informed decisions.