Meet the New Frontier

Q: What are "frontier" funds? — J.V., Sacramento, Calif.

A: They're mutual funds focused on investing in certain parts of the world. You've probably heard of "emerging markets." Well, emerging markets funds these days are typically heavily invested in companies in Brazil, Russia, India and China (sometimes referred to as "BRIC" countries). Those are rapidly growing economies, unlike the slower and steadier economies of the more developed world (think Japan, Europe and the U.S.)

For those who'd like their portfolios exposed to countries that are not quite as developed as the BRIC ones, enter the newfangled frontier funds. They're invested in smaller, often riskier economies, such as Qatar, Lebanon, Poland, Peru, Kazakhstan and Namibia.

Be careful with these funds — they tend to charge relatively high fees, and they're likely to be rather volatile. Many of the nations they're invested in aren't too stable, after all.

Q: How much personal liability insurance do I need?

— D.E., Columbus, I nd.

A: To answer that question, ask yourself how much you have to lose if you're sued. Add up the value of your home, your belongings and your financial assets. Tack on some more for the cost of legal defense. (In some cases, your insurance company might provide a lawyer.) You want to be sure that a lawsuit won't wipe you out or cause severe financial strain.

If your total assets are substantial, ask your insurance company about an "umbrella" personal liability policy. They're critical for more and more of us these days. Umbrella policies generally offer much more liability coverage ($1 million or more) at much lower premiums than individual policies such as homeowner's, renter's and automobile insurance. Learn much more at www.fool. com/insurancecenter and www.iii.org.

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