Three Buy Ranked China Funds

China’s markets have been gaining recently on promises to implement necessary stimulus measures to spur growth. China is making efforts to transform into a self-sustaining economy by banking on domestic consumption. Employment and services have been the bright spots, and the slowdown is stabilizing. Thus currently, China promises to be a growth opportunity for mutual fund investors. China 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 buy-ranked China funds. Each has earned either a Zacks Mutual Fund Rank #1 (Strong Buy) or a Zacks Mutual Fund Rank #2 (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 capital appreciation over the long run. FHKAX invests a lion’s share in companies based in Greater China. FHKAX invests a maximum of 35% of its assets in industries that account for over 20% of the Hong Kong, Taiwanese and the Chinese market. Factors such as financial strength and economic condition are considered to invest in common stocks of companies. The Fidelity Advisor China Region A fund returned 14.7% this year.

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

Matthews China Dividend Investor (MCDFX) invests a large chunk of its assets in Chinese firms that are expected to pay dividends. MCDFX may also invest in convertible debt securities. MCDFX also invests in companies located in Hong Kong. The Matthews China Dividend Investor fund returned 19.2% this year.

MCDFX has a minimum initial investment of $2,500 and an expense ratio of 1.19% compared to a category average of 1.78%.

Fidelity China Region (FHKCX) seeks long-term capital appreciation. 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% of FHKCX’s assets 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 Fidelity China Region fund returned 14.5% this year.

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