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Focus on EM's fundamentals

The reality of emerging markets is very different from preconceptions, and it pays not to be swayed by over-generalisations.

A screen displaying the transaction volume of the 24-hour Alibaba Singles' Day global shopping festival on Nov 11. Alibaba has the moat of "network effect": it is so widely used - by 12 million merchants and 755 million monthly active users - that it is a fixture in people's lives.

SETTLING for a broad-brush approach towards emerging market equities is far too prevalent. Looking beyond the headlines, and appreciating the fine detail, can give investors a crucial advantage in a sector where over-generalisation often masquerades as analysis.

A common misconception is...