Emerging markets garner popularity

Emerging markets are becoming the most popular place for investors with protected investments.

Figures from Barclays Wealth shows merging markets was the underlying investment area to which investors were keenest to gain exposure without putting their capital at risk.

Some 17 per cent of investors polled opted for emerging markets, a dash ahead of property (16.6 per cent), Europe (16 per cent), and UK equities (14.1 per cent).

The remaining sectors were: commodities (10.9 per cent), US equities (10.5 per cent), Eastern Europe (8.6 per cent) and Latin America (6.1 per cent).

Colin Dickie, director of Barclays Wealth, said: "Emerging markets is clearly a key area for protected investment buyers and came out significantly ahead of a number of more mainstream investment options.

"This suggests investors want exposure to the high returns emerging markets has the potential to deliver but remain wary of the area's volatility and diversity."

He added: "There is a lot of market commentary around the use of volatility to manage investment risk, with emerging markets proving an ideal investment area in which to use this technique, in particular with capital protection.

"The research shows there is real demand for this kind of investment and we hope it continues to be as popular as it has been so far."