China’s efforts to rein in inflation only underline the determination of the powers that be to see that its growth story remains unaffected by price pressures. Emerging virtually unscathed from the recent global economic crisis, its economy has been boosted by higher government spending and sufficient liquidity injected into its banking system. A strong market at home and large inflows of foreign capital make it one of the most alluring investment destinations. Mutual funds focusing on China significantly reduce the risks involved while harnessing its economic strength.
Below we will share with you 5 top rated China funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect the fund to outperform its peers in the future. To view the Zacks Rank and past performance of all China funds, then click here.
Fidelity China Region (FHKCX) seeks capital growth over the long term. The fund invests heavily in securities issued by companies from Hong Kong, Taiwan and China. It may also seek out investments with economic linkages to the region. The fund returned 17.26% over the last one year period and has a five year annualized return of 15.76%.
The China mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.03% compared to a category average of 1.97%.
Aberdeen China Opportunities A (GOPAX) invests at least 80% of its assets to purchase securities of companies from China, including Hong Kong. The fund invests in companies regardless of market capitalization. It focuses on acquiring common and preferred stock and related convertible securities. The fund returned 24.3% over the last one year period.
The fund manager is Flavia Cheong and he has managed this China fund since 2009.
Guinness Atkinson China & Hong Kong (ICHKX) seeks capital appreciation. It invests in companies traded on the Hong Kong and Chinese exchanges. It also purchases securities of companies who derive at least half of their revenues from operations in China. The fund has a five year annualized return of 18.42%.
The China fund has a minimum initial investment of $5,000 and an expense ratio of 1.58% compared to a category average of 1.97%.
Dreyfus Greater China A (DPCAX) primarily invests in companies listed on exchanges in Greater China, which includes Hong Kong and Taiwan. It also purchases stocks in firms which derive half their revenues from this region. It may also invest in derivatives, futures, options and forward contracts. The fund has a ten year annualized return of 18.23%.
As of October 2010, this China fund held 58 issues, with 5.26% of its total assets invested in AviChina Industry & Technology Co. Ltd.
ProFunds UltraChina (UGPIX) seeks to match the daily performance of the Bank of New York Mellon China Select ADR Index It invests the majority of its assets in securities which are similar to those included in this Index. The fund may use leveraged and sampling techniques to fulfill its stated investment objective. It is a no-load fund.
The fund returned 18.12% in the last one year period.
To view the Zacks Rank and past performance of all China funds, then click here.
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By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds/mutualfund/
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