Nearly a quarter of investors polled plan to invest in frontier markets such as Africa and Vietnam in 2011, which marks a 52 per cent increase on 2010.
Moreover, 41 per cent of investors expect to invest their ISAs in established emerging markets this year, while 38 per cent plan to invest in natural resources and commodities.
Rebecca O’Keeffe, head of investment at Interactive Investor, said: "Our investors have been investing in established emerging markets and commodities funds for over five years, generating significant returns."
"Whilst many will continue to invest in these areas, some have already started to look at newer opportunities – fundamentally following the principle that it is better to look for future performance rather than relying on past performance."
Financial Express data shows the MSCI Vietnam index has lost investors money in the last three years, significantly underperforming both MSCI Emerging Markets and MSCI AC World, with more volatility.
Performance of indices over 3-yrs
Source: Financial Express Analytics
Some fund managers, including Premier Asset Management’s Fen Sung, believe the country is likely to perform better in the medium-term, and will benefit from China’s continued development.
Interactive Investor's research also suggests that two thirds of investors plan to invest in UK companies this coming year, up from 60 per cent in 2010.
O’Keeffe believes UK companies will always be a prominent part of UK portfolios, but thinks it is notable that investors are branching out in order to maximise returns.
"Alongside the fanfare around new investment hotspots, the majority of retail investors realise that a balanced portfolio, with the potential for a decent return, may well include UK companies," she added.
"The fact that investors know UK companies well cannot be ignored. They recognise the names, read about them regularly – many probably buy or use their products and services."
"That familiarity undoubtedly brings a level of reassurance, which is why they form the bedrock of the majority of UK investment ISA portfolios."
"But the overall picture here is that investors are much savvier about the opportunities. Ten years ago, the average ISA investor would probably have held a UK-only fund."
"These figures show that they are now increasingly willing to explore new areas to diversify their portfolio," she finished.