"This is about diversification, real diversification," she said. "Within every asset class within equities, you need to be in every geography."
However, attempts to classify emerging markets en masse falls short, she said. Acronyms such as BRICsmay have a catchy ring, but they convey a certain uniformity that doesn't exist. Russia, for instance, is rich in commodities, but has a shrinking population. Meanwhile, Turkey has seen a rise in religious conservatism, but its economy surged 10.2 percent in the first half of the year, the survey said.
And while China takes the investor spotlight, India and Indonesia merit more attention for their "compelling" demographics, commodity wealth, and political and economic systems, according to the survey.
Still, some emerging markets nations, such as Mexico, are "incapable" of hedging their way from economic drivers such as the U.S., added Ian Bremmer, president at the Eurasia Group.
"Mexico is basically a US investment — whether it's remittances, trade, drugs — you're investing in the U.S. if you're investing in Mexico," he said.
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