(Editor's note: TheStreet today named 82 mutual funds and exchange traded funds, or ETFs, winners and runners-up in its second annual awards ceremony. A list of the funds and related articles can be found on the awards page.)
NEW YORK (TheStreet) -- It may be surprising to hear an emerging markets fund manager say "you're better off investing in the S&P 500 Index."
Rajiv Jain said just that.
Jain has been managing the Virtus Emerging Markets Opportunities Fund (HEMZX) since 2006, during which time it has grown from a couple of hundred million to $3.1 billion in assets.The fund won TheStreet's Best Funds 2012 award for the equity emerging markets category, followed by runner-up Aberdeen Emerging Markets. Jain says money managers tout emerging economies -- China, Brazil, India, et al. -- as the best investments. But he views it differently. "We're not making a call on whether emerging markets will do well," says Jain, who advises that investing in emerging markets as a whole isn't a smart strategy. What is good, he says, is buying "domestic consumption." To take advantage of double-digit beer-volume growth in China, invest in Tsingtao Brewery, he says. For chocolates and confectionary delights in India, buy Nestle India. And to cash in on soda and fast-food consumption in those same two countries, pick Coca-Cola (KO) and McDonald's (MCD).
1. To be eligible for consideration, an open-end mutual fund needed at least a three-year history on Dec. 31, 2011, and still be accepting new assets from retail investors; for exchange traded funds, a one-year history. 2. Half of the rating is based on performance metrics, including total return minus expenses, with a weighting to give long-term performance greater emphasis. 3. The other half of the rating is based upon risk metrics, including standard deviation, size of trough-to-peak (drawdown factor), semi-standard deviation and beta. The lower the risk, the better. 4. Top and runner-up funds and ETFs were selected in a variety of categories (funds and ETF were placed in categories via Lipper data). -- Written by Chao Deng in New York. >To contact the writer of this article, click here: Chao Deng. >To follow the writer on Twitter, go to: @chao_deng >To submit a news tip, send an email to: firstname.lastname@example.org.
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