Emerging Markets Less Risky Than Reputed

"Emerging markets have a reputation for volatility that leads many companies to overestimate the risk, causing them to reject good investment opportunities and to underestimate the performance of existing businesses. While individual markets can be highly volatile, research shows that a diversified portfolio of investments in them can have risk levels comparable to - or even below - those of more developed markets.

The take-away

By taking a portfolio approach to investments in emerging markets, companies can diversify away the risk. "

From this McKinsey Quarterly article. (free registration required).