NEW YORK ( TheStreet) -- Brazil may have underperformed other emerging markets so far in 2010, but its strength in natural resources and its relatively young middle class has investors betting that its market will outperform the likes of China, India and other frontier Asian markets.

TheStreet polled readers to find out their preferred investment destination among emerging markets. Options ranged from China, India and Indonesia in the Asian region, to Chile and Brazil in Latin America.

More than 30% voted Brazil as the emerging market most likely to outperform. India ranked second in the hot emerging market list, garnering 22% of the votes. The vote for the third place was evenly split between China and Indonesia. Mexico got the least number of votes.

Money has been flowing into emerging markets as investors seek better growth opportunities and higher yields. In 2010, Indonesia, Thailand and more recently India have been among the best performers in Asia. While Chile has outperformed among Latin American markets on the back of a strong demand for its copper resources, Brazil has lagged behind on concerns that a slowing global recovery would curtail demand for its natural resources.

Still, portfolio managers remain optimistic about Brazil's economy, with its recent underperformance making it a more attractive investment bet. Brazil equity funds attracted about $350 million last week on renewed optimism about China's commodity demand and general investor interest following the successful $70 billion offering from energy major PetroBras ( PBR - Get Report), according to data from EPFR Global.

Brazil is currently in the middle of a presidential election that could see Dilma Rousseff, a former leftist guerrilla and the chosen successor of the outgoing president and his Workers Party, become the country's first female president. Over the weekend, Rousseff won the election by a wide margin but she failed to garner the minimum votes necessary to avoid a runoff with Joe Serra, former governor of Sao Paolo.

A win by Rousseff would likely be cheered by markets as it would likely mean a continuation of current policies that would keep Brazil's 4% economy growth on track.

American Beverages ( ABV), Bank Bradesco ( BBD), Itau Unibanco ( ITUB), Vale ( VALE - Get Report) and PetroBras ( PBR - Get Report) figure among the top-ten emerging market ADRs , featured in TheStreet recently.

The iShares MSCI Brazil Index ( EWZ - Get Report) and Market Vectors Brazil Small-Cap ETF ( BRF - Get Report) are some of the larger ETFs that invest exclusively in Brazil.

-- Written by Shanthi Venkataraman in New York

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