Once thought of as a risky investment, emerging market bonds and emerging markets funds are currently viewed as high yield markets with less risk than some traditional investments. Emerging markets funds and bonds are based on the country's debt. Essentially, you are investing in the country. These markets were seen in the 1980s as being unreliable because of some disastrous political and economic downturns, but the longer the country has had a global emerging market bond, the more likely it is to be reliable.

But such markets are still not without risk. It's important to work closely with your broker and to do current research. The bonds are based on emerging markets domestic debt so it's important to be aware of recent changes.

1. Current information about global emerging markets bonds is essential for profitable investing.

2. Choose a reliable firm or broker who specializes in emerging market bond funds.

3. Assess risks carefully before you invest in a global emerging markets bond.

Action Steps
The best contacts and resources to help you get it done

Research the emerging market debt fund and countries carefully

Keeping current in emerging market debt research is the key. Emerging market funds are generally more stable than they used to be, but it pays to stay on top of not only the success of the fund but the country's political climate as well.

I recommend: BradyNet has up-to-date information about funds and so does Morningstar. The US Department of State prepares annual commercial guides that have information about individual countries, their political climates and businesses.

Choose a broker or firm that has experience in emerging market bonds

Many firms will claim to have experience in emerging market funds, but choose a firm or broker that has a proven record. Many reliable firms will now offer lower risk packages.

I recommend: AIG Investments is one of the largest funds with a reliable record. For a clear explanation of past performance, check out T. Rowe Price.

Know the risks of emerging markets funds and assess them carefully

Emerging market funds, for the most part, are more reliable than they were in the 1980s. However, they are not without risk, and it's important to do your emerging market debt research. Assess your personal needs and abilities, and weigh them against the risk.

I recommend: FINRA has a handy checklist of considerations along with other information. GE Asset Management has a diversified package that self-adjust according to the market that minimized risk.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Know your personal limits and diversify if necessary.
• •  Understand the emerging markets debt and the risks associated with liquidity and interest fluctuation.
• •  Emerging nations are often more susceptible to political upheavals and natural disasters. Work with your broker to make the decision to weather through a disaster or adjust your emerging market fund.