AltSince 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.
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 focuses on acquiring Chinese securities. It may purchase equity linked certificates which provide exposure to foreign shares. The China mutual fund returned 24.28% in the last one year period.
The China mutual fund has a minimum initial investment of $1,000 and an expense ratio of 2.07% compared to a category average of 1.78%.
Fidelity Advisor China Region A (FHKAX) seeks long-term capital appreciation. The fund invests a lion’s share of its assets 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 returned 6.38% in the last one year period.
As of March 2014, this fund held 84 issues with 9.05% of its total assets invested in Tencent Holdings.
Fidelity China Region (FHKCX) invests a large share of its assets in equity securities of companies whose principal operations occur in the Greater China Region. A maximum of 35% is invested in industries that account for over 20% of Hong Kong, Taiwanese, and Chinese market. The China mutual fund returned 4.15% over the last one year period.
The fund manager is Bobby Bao and he has managed this China mutual fund since 2011.
John Hancock Greater China Opportunities A (JCOAX) seeks capital growth over long run. It invests a major portion of its assets in companies which have their presence in Greater China. 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 3.92% over the last one year period.
The China mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.74% compared to a category average of 1.78%.
ProFunds UltraChina Investor (UGPIX) seeks to return two times 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 China mutual fund has a one year annualized return of 33.11%.
Alexander V. Ilyasov is the fund manager and has managed this fund since 2009.
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.
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