Since the fourth quarter of 2012, China’s growth rate has declined gradually. In light of recent efforts to bring about reforms and control liquidity, the Chinese economy is expected to be back on track sooner rather than later. Although leading economic indicators have declined in comparison with previous year, they have maintained an upward momentum on a month over month basis. In the long run, investing in China is a good bet, especially in comparison with the rest of the Asian economies.
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, investors can click here to see the complete list of funds.
Invesco China A (AACFX) invests heavily in a wide range of securities which provide significant exposure to China. The fund focusses on investing in common and preferred stock, depository receipts and participation notes. It may invest virtually all its assets in foreign securities. The China mutual fund returned 14.13% over the last one year period.
The China mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.80% compared to a category average of 1.80%.
EP China A (EPHCX) seeks capital growth on a long-term basis. A majority of its assets are invested in publicly traded companies which are non-U.S. dollar denominated and are related to China’s economy. The fund may also focus on dividend yielding stocks. The China mutual fund returned 21.66% over the last one year period.
The fund manager is Russell E. Hoss and he has managed this China mutual fund since 2009.
Fidelity China Region (FHKCX) invests heavily in equity securities of companies whose principal operations occur in the Greater China Region. This area includes Hong Kong, China and Taiwan. The China mutual fund returned 23.22% over the last one year period.
The China mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.98% compared to a category average of 1.80%.
Dreyfus Greater China A (DPCAX) seeks capital growth on a long term basis. 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 China mutual fund returned 24.47% over the last one year period.
As of July 2013, this China mutual fund held 36 issues, with 6.66% of its total assets invested in Tencent Holdings Ltd.
John Hancock Greater China Opportunities A (JCOAX) invests a majority of its assets to purchase securities of companies from China, including Hong Kong. The fund may invest a minimum of 5% of its assets in individual companies. A maximum of 20% of its assets may be invested in companies which are located outside China. The China mutual fund returned 23.52% over the last one year period.
The fund manager is Kai-Kong Chay and he has managed this China mutual fund since 2011.
To view the Zacks Rank and past performance of all China funds, investors can click here to see the complete list of funds.
About Zacks Mutual Fund Rank
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