As investors worry about another flat year for equities, those with a high tolerance for risk may see better returns in emerging markets.
Krishna Memani, chief investment officer at Oppenheimer Funds, tells CNBC's "Power Lunch" Wednesday he sees opportunities there, but you have to be selective.
"We do not view emerging markets as a homogenous investment destination and believe that these markets will become increasingly differentiated in 2016 and beyond," Memani said.
He sees improvements over the next year in Brazil. "Amid a political scandal, high inflation and questionable fiscal policies, Brazil's currency devalued and interest rates climbed significantly in 2015. The next year could be a turning point if a resolution of the scandal allows for improvement in the fiscal situation and slowing growth leads to lower inflation," Memani said.
Another emerging economy that Memani expects to hold up well this year is India.
"With the central bank already easing monetary policy and the government cautiously enacting reforms, India's economy and debt market should continue to outperform," Memani said.
Bernie Williams, chief investment officer at USAA Investment Solutions, thinks it is too early to invest in emerging markets.
"We like emerging markets in the long run because of cheap valuations and their higher economic growth potential. In the shorter term, however, a number of powerful headwinds faced by EMs have persuaded us to maintain a neutral weight," Williams said.