How to Invest in BRIC Mutual Funds

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Investing in BRIC mutual funds, which stands for Brazil, Russia, India and China, means investing in the emerging markets in these countries, where much of the population goes without cars, televisions, better pharmaceuticals and houses. Invest in mutual funds with high potential for growth over the next several years with information from a portfolio manager in this free video on investing.

Part of the Video Series: Investing Tips
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Video Transcript

Do you think bricks are only for your house? Well think a little bit differently. B R I C stands for Brazil, Russia, India and China. Four great growth markets where you can participate in larger than average increases and GDP over the long term. Hi, I'm Roger Groh with Groh Asset Management and today we're here to talk about BRIC funds. Well what makes them so compelling? Have you ever been to Brazil or to China or to India or for that matter, an awful lot of Russia? Well the one thing that they have in common is an awful lot of people don't have the basics of water, food, even electricity and they want it. They want houses, they want cars, they want TVs, they want better pharmaceuticals so they can live longer, they want their kids to have a better education. So the four countries represent really the emerging markets in general where most people have, where most people do not have the basics and want them. Now there might be a significant difference though between Brazil, India, China and Russia. An awful lot of the growth in Russia is tied to the price of oil and gas because by far, that's they're largest export item. If you believe that the price of oil and gas are going to go up rapidly over the next several years, well maybe Russia would be something you would consider. On the other hand, Brazil, India and China represent a picture of where demand is much more spread out and where exports contribute to an awful lot of their GDP. Why exports? Well in the case of India because they're very smart and they've developed a heck of a lot of software that we use around the world. Why China and why Brazil? Because the labor is cheap and if you develop there and export to here, it's more profitable for businesses then manufacturing in the United States. The big thing to watch in any foreign market as much of the share price, is the price of their currency. You could find that the price of the stocks are moving up but the price of their currency relative to the US dollar is declining. So you might thing you're making money when you look in the paper and you see the price of Russian companies or Indian companies or Chinese companies going up, but if the currency's moving against you, well you could end up with a nasty loss. Hope this helps, I'm Roger Groh. Buy BRICs. Thank you for spending a few minutes with me.


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