Jon Jacobs

“Chindia”: A Misleading Portfolio Concept

Great point, that lumping the two is more a fund marketing ploy than a credible investment concept. A year or so ago I expressed a similar view about "BRIC", the faddish aggregation (Brazil, Russia, India, China) that became all the rage after a 2005 Goldman Sachs study. Nothing against investing in any or all of those economies; it's just that touting them as a single coherent portfolio makes no sense. If those four truly represent the best destinations among emerging markets, then the intelligent choice would be to invest in EM funds overweight them - not dive into a faddish concept whose portfolio manager is deprived of the flexibility to diversify across emerging markets (or reduce the overweighting to BRIC if/when those markets become overvalued - which the probably are already).