China Funds

Here are 3 good options for investing in China. The first two have more diversified portfolios and we prefer those keeping in long term gain and risk factors in mind

(i) Fidelity China Region Fund (FHKCX) whose year-to-date gain is 16.27% and has expense ratio of 1.16%. Minimum investment amount is $2500.

(ii) The PowerShares Golden Dragon Halter USX China Portfolio (PGJ) Exchange Traded Fund (ETF) is composed of 51 U.S.-listed companies that derive most of their revenue from China. It has an expense ratio of 0.6%.

(iii) The iShares FTSE/Xinhua China 25 Index (FXI) ETF tracks the 25 largest and most liquid Chinese companies trading on the Hong Kong exchange. As a result its portfolio is less diversified than other two funds. It had a better gain than others but may also turn out to be more volatile. Its expense ratio is 0.74%.

[Disclaimer: We donot personally possess any of these funds]