While the rest of the world deliberates China’s growth prospects, Russia’s potential ability to export energy and India’s fast-growing middle class, one area that has seemingly lost a bit attention is Brazil. And not “just” Brazil but the whole Latin America region which is extremely well positioned to reward investors with huge returns.

Of course, the notion that Latin America could provide huge returns is nothing new. This topic has been explored, picked apart and applauded over the last few decades. This region, after all, shares the same ideologies that we share here; democracy (forced or otherwise) and capitalism (concentrated or otherwise). Latin America has the characteristics all big domestic investors want to see!

Although the terms democracy and capitalism are used, they may not be the same flavor we enjoy here. But when it comes to investing, this should matter very little provided the country or countries in question deliver on their promises. And Latin American companies have done just that — many of them, as it turns out are backed by domestic dollars or other “valuable” nation’s dollars, such as China which has just invested a surprisingly considerable amount in Venezuela in what was essentially an oil futures contract.

But Venezuela aside, here are some of the key characteristics that make this area such an attractive area of the world for one to invest:

1. Cheap Labor. Like China and India, Latin American offers an extremely competitive labor force at rates that make their goods attractive. Like a lot of less expensive labor forces throughout the world, however, quality is often sub-standard when compared to domestic levels.

2. Proximity to the Unites States. Unlike China and India which involve longer-haul transportation of goods manufactured there, goods manufactured or assembled in this area require less transportation expenses. This results in greater margins for the vendor, which is also important.

3. Resources. Latin America has plenty of resources, including those mentioned above about Venezuela’s oil. With so many resources available at their disposal, Latin America can provide sustainable commodities to the world’s most demanding countries.

As an added bonus, Latin America is a huge tourist destination area. This makes for a huge inflow of cash, allowing the economy to grow even when natural GDP or other internal measurements of growth seem to lack the vigor one might want to see.

Overall, however, Latin America has proven to be extremely profitable. With a banking system that rivals the Swiss system, favorable climate for commodities and good energy reserves, Latin America offers plenty of opportunities. Investing in this part of the world makes sense for those with the risk tolerance and the right appetite for returns.

–> Have you considered Small Cap Funds? The MutualFundSite.org reviews this sector of mutual funds on a monthly basis.

Chris has more than 17 years of financial services experience. He is currently the Fund Advisor for the Mutual Fund Site. He also manages a website about Shipping Crate options at ShippingCrate.org.