How to spread your Isa investment around the world We asked the experts to summarise the prospects for the major overseas markets and to name their favourite funds. "I think the US is an exciting story at the moment," says Darius McDermott of Chelsea Financial Services, which operates a fund supermarket. The shale gas story gives US businesses a cost advantage and bodes well for infrastructure, job growth and therefore consumer spending. The housing market is beginning to take off again, banks are lending and you've got 're-shoring' - businesses returning their operations from emerging markets. Mr McDermott's picks include Axa Framlington American Growth, which has "consistently outperformed." He also likes a new fund, CF Miton US Opportunities. It has a bias towards small and mid caps and freedom of mandate, so it can invest for the long term. For investors who don't think an active fund is worthwhile in the US, Philippa Gee of Philippa Gee Wealth Management picked two index trackers. One, the HSBC American Index fund, tracks the broadly based S&P 500 index and has a low charge of 0.25pc. Her other pick, Vanguard US Equity Index, is even more broadly based - it aims to track the S&P Total Market index, which consists of more than 3,700 shares. Emerging markets Recent returns have been disappointing, which could be attractive for contrarian investors. "Emerging markets have struggled since the financial crisis and have been outpaced by their developed rivals," Mr McDermott says. But there's a lot of opportunity and they should do very well as sentiment improves. Among his picks is M&G Global Emerging Markets, managed by Matthew Vaight, who has been at the company for 17 years. "He has a consistent track record and does well in rising and falling markets," Mr McDermott says. He also likes JPM's Emerging Markets Income fund. This is relatively new but is run by Richard Titherington, who has a lot of experience in the field and a good track record. An investment trust, JP Morgan Emerging Markets, is among Ms Gee's choices. She says: "This gives you access to emerging markets via an investment trust, which some investors prefer." Many investors swear by investment trusts, which tend to have lower charges than their unit trust or Oeic (open-ended investment company) rivals. They can be traded on the stock market instantly, so you know what the price is - if you buy or sell a unit trust, you typically discover the price at the next trading point the following day. Investment trusts - sometimes called "closed-ended" funds - can also trade out of line with the value of assets they own, so investors can potentially pick up underlying shares for less than market value. JP Morgan's Emerging Markets trust trades at a discount of 10.5pc to the value of its net assets. Investment trusts can also trade at a premium. They can borrow to invest, making them potentially more risky than "open-ended" unit trusts and Oeics. Ms Gee's other pick is the Vanguard Emerging Markets Stock Index, which tracks the FTSE Emerging Transition index and has low charges: an initial fee of 0.25pc and an ongoing charge of 0.55pc. China Chinese stocks "remain cheap," according to Mr McDermott. But just because valuations are cheap, it doesn't mean they can't get cheaper, of course. He warns: "China is one of the highest-risk markets and there is lots of corruption, so investors should be aware of the risks." Mr McDermott says investors prepared to stomach the risks should consider Invesco Perpetual Hong Kong & China and First State China Growth, an offshore fund, adding that both had "good teams, processes and track records." If you want to broaden the investment focus slightly, Jennifer Stammers of Premier Wealth Management recommends the Newton Asian Income fund. Europe The instinctive reaction to the turmoil in the eurozone is to write it off. But it is this attitude that depresses prices - often to well below their fair level. And Europe is home to many companies that export to the rest of the world, where demand has held up much better. "Europe was the bestperforming developed market last year and its smaller companies did extremely well, once again proving companies can still flourish in low-growth environments," says Mr McDermott who, along with Ms Stammers, also picks the Jupiter European fund. "This fund has recently been promoted to Chelsea's 'core selection' list," he adds. It's a concentrated portfolio focusing on mid-caps. He also backs Threadneedle European Select. Japan Japan has had many false dawns but there are real signs it is on the brink of a fresh start. A new government is determined to force the central bank to print enough money to force the currency down and reinvigorate its many excellent exporters. Some recommend a "currency hedged" fund so investors gain from the expected improvement in share prices without losing from the depreciation of the yen. Events could, as always, derail this optimistic outlook. Mr McDermott says Japan is his "contrarian pick for 2013." The stock market enjoyed a new year rally but is "still very good value - possibly the most undervalued market of all." He recommends Jupiter's Japan Income fund, whose focus on income and dividends makes it "more defensive than some other Japanese equity funds - but dividends are doing very well in Japan." Another of his picks is GLG Japan Core Alpha, which follows a large-cap value strategy. Ms Gee tips Axa Framlington Japan Smaller Companies, but adds: "I would urge caution on investing in Japan, but if you consider it you should go for maximum risk, using the small-cap approach which this fund provides." An alternative is Jupiter Japan Income, which is available with a total ongoing charge of 1pc. 'Frontier' markets The greatest rewards - and the greatest risks - come from these newcomers. "The sector does need a good stock-picking manager with a well resourced team who can identify the winners," Mr McDermott says. I'm not too keen on Africa at the moment. He picks Baring Asean Frontiers and Fidelity Emerging Europe, Middle East and Africa; Ms Gee went for Aberdeen European Frontiers. "You are taking on even more risk here," she says. With high holdings currently in Russia and Turkey there is considerable volatility but despite that, the fund has been well run. Tell us your story. Email money@telegraph.co.uk