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. 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.
Fidelity Advisor China Region A (FHKAX) seeks long-term capital appreciation. The fund invests a lion’s share in companies based in Greater China. The fund invests a maximum of 35% of its assets in industries that account for over 20% of the Hong Kong, Taiwanese and Chinese market. The China mutual fund has a one year annualized return of 17.90%.
Bobby Bao is the fund manager and has managed the fund since 2000.
Dreyfus Greater China A (DPCAX) seeks capital growth on a long term basis. The fund 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 has a one year annualized return of 14.85%.
As of December 2013, this China mutual fund held 35 issues, with 7.30% of its total assets invested in Tencent Holdings 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. The China mutual fund returned 40.19% in the last one year period.
The fund manager is Alexander V. Ilyasov and he has managed this China mutual fund since 2009.
Templeton China World Fund Class A (TCWAX) invests the majority of its assets in Chinese companies. The fund invests in ADRs, European and Global Depositary Receipts. It invests in companies of all sizes as well as small cap companies. The China mutual fund returned -0.09% over the last one year period.
As of September 2013, this China mutual fund held 70 issues, with 9.02% of its total assets invested in Dairy Farm International Holdings Ltd.
Oberweis China Opportunities (OBCHX) invests a large share of its assets in companies which possess the ability to grow their market value over time. The fund focusses on acquiring Chinese securities. It may purchase equity linked certificates which provide exposure to foreign shares, The China mutual fund returned 59.11% in the last one year period.
The China mutual fund has a minimum initial investment of $1,000 and an expense ratio of 2.15% compared to a category average of 1.78%.
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.
Read the analyst report on FHKAX
Read the analyst report on DPCAX
Read the analyst report on UGPIX
Read the analyst report on TCWAX
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