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3 Potential China Funds to Outperform - Mutual Fund Commentary

China's markets have been gaining recently on promises to implement necessary stimulus measures that will help strengthen its growth. China is also making efforts to transform into a self-sustaining economy banking on domestic consumption. Employment and services have been attributed to be the bright spots, and the slowdown is stabilizing. Thus, China promises to be a growth opportunity now for mutual fund investors. China had braved loads of dismal economic data last year to clock significant gains for the benchmarks. The markets' rally has continued this year, handing yet another profit opportunity for mutual fund investors.

Below we will share with you 3 top China funds . Each has earned a Zacks #2 Rank (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 .

JPMorgan China Region A (JCHAX) invests most of its assets in equities belonging to the China region. It may also invest in other instruments that have familiar economic characteristics with China. The fund invests in companies irrespective of their market capitalizations. However, the fund may invest a notable portion of its assets in a single type of market capitalization at one time. This non-diversified China mutual fund returned 17.9% in the last one year period.

As of February 2015, this fund held 61 issues with 8.19% of its total assets invested in Taiwan Semiconductor Mfg. Co. Ltd.

Fidelity China Region (FHKCX) seeks long-term capital appreciation. The fund 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. Factors such as financial strength and economic conditions are considered to invest in a company. The China mutual fund returned 19.8% in the last one year period.

Bobby Bao is the fund manager and has managed this fund since 2011.

Matthews China Investor (MCHFX) invests a lion's share of its assets in common and preferred stocks of China based companies. This also includes companies located in Hong Kong and other Chinese administered regions. It seeks capital growth over the long run. The China mutual fund returned 15.1% in the last one year period.

The China mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.11% 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. Pick the best mutual funds with the Zacks Rank.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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