Iran Conflict Triggers Selloff in Emerging Market Funds

Emerging market funds fell this week as the MSCI EM index dropped 6 percent. Investors cut risk exposure amid the Iran conflict as weekly inflows slowed down.

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Insights:

Emerging market equity funds have experienced significant declines this month as geopolitical tensions in Iran prompt investors to reduce their exposure to riskier assets. This shift has positioned these funds among the weakest performers across various asset classes globally.

Plumes of smoke ascend over the skyline of Tehran following a reported blast on March 1. Photo by Majid Asgaripour/WANA
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