Along with technology sector funds, emerging markets (EM) focused schemes have been hit hard in stock market meltdown. The main reason behind the sell-off in EM is the rising interest rates in the USA. It has brought back capital to US from EM. Incessant selling by foreign institutional investors, geo-political tensions and fear of recession in many developed nations to whom the emerging economies act as suppliers, has led to a correction in emerging market equities.
EM are known for low per capita income, high rate of consumption growth and young population. These factors make EM long term growth drivers of the global economy and also a good investment destination.