Spare cash? Invest Abroad!

It seems that investing in emerging markets is the way to go. With an average of 6% a year income in regards to bonds it is no wonder that many investors are looking overseas.

IOUs provided by companies and Governments are proving to be popular in countries such as the Ivory Coast, Venezuela and Serbia, as they pay out an income until they are cashed in.

Darius McDermott, managing director of Chelsea Financial Services says: 'Emerging market bonds are offering a good yield of about five to six per cent. Their popularity is growing and more funds are launching.'

So let’s take a look at some funds that allow you to lend to up and coming countries:

ThreadNeedle Emerging Market Bond:

This £900m fund is one of the longest established and highest rated out there. It is open to retail investors and ranks in the top 25% for investment performances. Ideal for those looking to invest in Russia, Mexico, Venezuela, Turkey and Brazil.

Investec Emerging Markets Local Currency Debt

Yielding just over 6% annually, this £2b fund holds bonds issued by countries in their own currencies. Ideal for those looking to invest in Indonesia, Turkey, Brazil, Russia and Mexico.

Baillie Gifford Emerging Markets Bond

This £250m fund has been running for the past four years and produces above average returns over both 1 and 3 years.  Ideal for those looking to invest in Poland, South Africa, Malaysia, Russia and Mexico.

Standard Life Emerging Market Debt

The new kid on the block and run by Richard House, previous manager of ThreadNeedle, this fund invests in hard currency rather than local currency debt. It focuses on countries with strong economic prospects such as Chile and Venezuela.

Aberdeen Emerging Market Bond

Running since March 2011 and currently ranked as the top-performing global bond fund of the last year, this £40m fund provides an eclectic mix of local and hard currency bonds. Ideal for those looking to invest in Lithuania, The Ivory Coast, Serbia and many more.