Emerging markets ready to face risk of US policy tightening

BlackRock Investment Institute, for instance, advises investors to stay invested in emerging markets even though there could be bouts of market volatility amid expectations of the Fed unwinding its quantitative easing (QE), or bond-buying, programme and raising interest rates.

AS expectations of US Federal Reserve (Fed) tightening its monetary policy gather pace, so are concerns among investors over a potential repeat of the 2013 taper tantrum that rocked emerging markets (EMs).

Some fund managers, however, reckon investors should not be too worried about it.