How a Top Advisor Uses BRIC Funds

However, the Class A versions of both these funds have high front-end loads for $50,000 purchases (GBRIX, 4.75 percent; TABRX, 4.50 percent) and management expenses much higher than their industry averages.

The Class C shares eliminate the front-end loads, but have management expenses fees in the area of 2.8 percent, which are very high.

Therefore, the mutual fund I would suggest for this individual would be the T Rowe Price Emerging Market's Stock Fund (PRMSX).

Currently, the fund has almost 53 percent of its exposure to the BRIC countries, as well as exposure to South Korea, Mexico, etc. The fund has a long track record (it was initiated in 1995), has a management expenses fee (1.32 percent) that's much lower than its category average and contains no loads.

The T. Rowe Price Emerging Markets Stock Fund has 3-, 5- and 10-year average returns of -4.35 percent, 11.25 percent and 8.86 percent, respectively, roughly in line with its competitors.

Although it has slipped recently in terms of return and Morningstar ranking, Morningstar analyst William Samuel Rocco has recently commented that "those results were definitely an anomaly."

The fund has a large and experienced management team.

As far as allocation is considered, I would limit an aggressive, long-term orientated investor's exposure to the emerging-markets portion of her portfolio to the area of 10 percent.

Given the uncertainty surrounding world equity markets today, I would even suggest the individual consider dollar cost averaging into this fund over the next 12 months, possibly allocating an even $12,500 every 3 months to smooth out purchase prices, while keeping the remaining balance in a money market or Treasury bill fund until fully invested.