The MSCI index is a series of global equity indexes that serve as benchmarks for stock market performance across different regions and market segments. Investors use them to track and compare investment returns.
MSCI classifies countries as emerging markets based on economic development, market size, liquidity, and accessibility to foreign investors. This classification affects global investment flows into these markets.
Investors follow MSCI indexes because they provide standardized benchmarks for global markets, help in asset allocation decisions, and many investment funds use them as performance references.