In the current global market mayhem, while the developed and emerging equity markets have shown lackluster performance, the frontier markets have fared much better and emerged as safe havens to the spooky investors.

Battered by the subprime crisis, most equity markets across the globe are reeling under extreme bearishness and witnessing frequent bouts of sell-offs. Despite these upheavals, there are a handful of markets, officially called frontier markets, that are least impacted. These frontier markets, which have so far not been in the investment radar, are now providing shelter to trepid investors. Since these frontier markets are loosely correlated with the S&P 500, they have been able to post impressive gains at a time when developed and the emerging markets have suffered.

Now these comparatively young and thinly-traded frontier markets, with no large capital inflows and less volatility, have started attracting investors' attention. Sensing the potential of these markets, even the leading investment bank Merrill Lynch has launched a new Merrill Lynch Frontier Index to provide investors with exposure to 50 largest and most liquid stocks on the frontiers. Many investors are now withdrawing from the Wall Street and mooring in the safe harbors of frontier markets.

In recent times, there has been much excitement over the success of the emerging markets, but somewhere down the investment street, a deep fad for the frontier markets was also building up. According to investment pundits, when the global credit market turmoil started taking its toll on the emerging markets, frontier markets remained relatively unscathed and emerged as the best investment hubs of the world.

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