China has always been the growth leader among Asian economies. Since the start of 2013, economic indicators have shown that the growth in the world’s second largest economy has slowed down. But other reports show that the tide may turn sooner rather than later. In any case, China has always maintained an upward momentum. Investing in China is a good bet, especially given that it has performed much better in comparison with other 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 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 9.55% over the last one year period.
The fund manager is Bobby Bao and he has managed this China mutual fund since 2011.
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 44.63% 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%.
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 9.14%.
As of December 2013, this fund held 89 issues with 7.98% of its total assets invested in Tencent Holdings.
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 6.41%.
As of December 2013, this China mutual fund held 35 issues, with 7.30% of its total assets invested in Tencent Holdings Ltd.
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.
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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