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Kolkata: The Chinese economy has suffered for a few years with plummeting growth rates, sagging investments and weak real estate sector. Eager to claw back into a fast mode, the authorities in Beijing sanctioned a $1.4 trillion package last year. Gradually things have started looking up. As a result, at least four mutual funds in India that are focused on the Chinese markets have also started offering high returns, say reports. Let's have a look.
The renewed investor interest in the Chinese equity markets is pushing up prices. Reports state that ACE MF data indicate that China’s Shanghai Composite and Hong Kong’s Hang Seng Index have jumped up to 35% in the past year. In fact, it has risen faster than the Indian benchmark indices of Sensex 30 and Nifty 50.
According to market data, there are four mutual fund schemes in India that focus on what is known as the Greater China region comprising Hong Kong, Taiwan and the mainland of China. The following are the performance over one-year and three-year periods.
Mirae Asset Hang Seng TECH ETF: This ETF with an AUM of Rs 365 crore has generated a return as high as 53.3% over the past one year. Nippon India ETF Hang Seng BeES, which has an AUM of Rs 865 crore, been able to provide a returns of 43.4% over the past one year and 9.3% over the past three years. The biggest fund in this category, Edelweiss Greater China Equity Offshore Fund, which has an AUM of Rs 1,820 crore, has generated 19.9% return over the past one year which jumped from a mere 2.2% over the past three years. Fourth on the list is Axis Greater China Equity FoF. This fund of fund has provided 17.2% over the past one year.
Incidentally, Edelweiss Greater China Equity Offshore Fund is the oldest China focused fund. It was set up in August 2009. The newest is Mirae Asset Hang Seng TECH ETF which began its journey in December 2021. Nippon India ETF Hang Seng BeES was established in March 2010 while Axis Greater China Equity FoF was set up a few month before Mirae -- in February 2021.
According to reports, Edelweiss Greater China Equity Offshore Fund and Axis Greater China Equity FoF are accepting SIPs (Systematic Investment Plan) from investors. But no new investment is allowed in Mirae Asset Hang Seng TECH ETF and Nippon India ETF Hang Seng BeES. This follows the instructions of market regulator SEBI in overseas investments.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals, commodity, any form of alternative investment instruments and crypto assets.)
