Wu said that in Japan, corporate restructuring could have a major impact on some of the structural issues that have harmed the market over the past decade.
"Careful stock selection is important, but some blue chip names show excellent value and growth prospects," she said. "The fragile economy makes smaller companies more risky, but overall we remain positive on the Japanese restructuring play."
Emerging markets is another sector that most money managers are upbeat about.
"Emerging markets, including Asia, Latin America and Eastern Europe, will see their equity markets more active this year," said Linda Lue (
Lue also noted that original equipment manufacturing is on the rise. As developed countries seek out cheaper sources of labor and resources, developing nations will benefit through faster growth. Cited as an example was DRAM production in Taiwan and South Korea.
"Based on our research, for conservative investors, Baring recommends 40 percent in global emerging equity markets and 30 percent for Asian [except Japan] and European equity markets, respectively," Lue said.
"For more aggressive investors, Baring recommends 30 percent in global emerging markets, 25 percent each for Asia [except Japan] and Europe, and 20 percent for Japan."
As to which fund is the best one, it goes without saying that a one-year track performance is definitely not the best measure. Normally, at least three years' of performance should be used as a gauge.
Investment advisors say one should always choose a fund with the longest track record, although past performance is not an indicator of future results.
For foreign residents, Jardine Fleming suggests four offshore Taiwan equity funds -- the Schroder Taiwan Fund, New Taipei Fund, Formosa Growth Fund and Taiwan Opportunities Fund.
According to Jardine Fleming, these funds have an excellent track record in performing in bull and bear markets.
However, these funds have not be authorized by the local regulatory agency and were not ranked by S&P Micropal.
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