Investing in frontier markets can be an enticing proposition for the adventurous investor looking to diversify their portfolio with potentially high-growth opportunities. With $100,000 at your disposal, you can take a more substantial position in these markets than you could with a smaller sum, providing you with the potential for significant returns. Nevertheless, such investments come with higher risks due to political instability, lower market liquidity, and less transparency. Here we explore some of the best frontier markets for investors to consider.

Vietnam: A rapidly growing economy and increasing industrialization make Vietnam a top contender among frontier markets. The government’s commitment to economic reforms and the country’s strategic position as a manufacturing hub for international companies are positive indicators for investors.

Bangladesh: With a burgeoning middle class and an expanding retail sector, Bangladesh offers attractive prospects in consumer goods and financial services. The country’s GDP growth has been consistently high, supported by its textile exports and remittances from overseas workers.

Nigeria: Despite its political uncertainties and reliance on oil exports, Nigeria possesses a wealth of natural resources and a large, youthful population that suggest long-term growth potential. Sectors such as agriculture, telecommunications, and fintech present interesting investment opportunities.

Kazakhstan: Rich in natural resources like oil, gas, and minerals, Kazakhstan is central Asia’s largest economy. Its “Belt and Road” initiative involvement could significantly boost economic activity. Investments in energy production and infrastructure could be particularly rewarding.

Kenya: As a hub for technology innovation — notably mobile payments — Kenya is an attractive frontier market with a diverse economy that includes strong agricultural and services sectors. Urbanization and infrastructure development are fueling growth in various industries.

Sri Lanka: Following political turmoil and economic stressors, Sri Lanka might be considered contrarian play. Those who see past the immediate challenges may find opportunities in tourism, real estate development, and export-oriented manufacturing once stability returns.

When investing in these markets, it is essential to conduct thorough research or use the expertise of fund managers specializing in these regions. Exchange-traded funds (ETFs), mutual funds focused on frontier markets, or direct investments in local companies (where possible) are common strategies to gain exposure.

The key is to maintain a balanced perspective on risk versus reward while keeping abreast of geopolitical developments that may impact your investment. Finding the right entry points into these markets—and knowing when to exit—is critical to capitalizing on their potential while mitigating risks involved with investing in frontier economies. Remember that diversification within your investment portfolio can help manage risk; thus spreading your $100K across multiple frontier markets or sectors could be wise rather than concentrating it in one area.