The 2568 China Fund Investment Guide: In-Depth Comparison of 10 Funds Worth Watching

China, as the world’s second-largest economy, continues to attract the attention of many investors in 2568. Although the market has recently come under pressure, in the long term, China’s stock market growth potential cannot be ignored. For investors considering allocating overseas funds, Chinese Funds remain a worthwhile area for in-depth research. This article will introduce you to 10 relatively outstanding funds to help you make more informed decisions.

The Nature and Classification of Chinese Funds

Before investing, we need to understand what Chinese Funds are and the different types available.

Chinese Funds include companies listed on the mainland stock market, Hong Kong market, and global exchanges. China’s economy has clear advantages in finance, technology, e-commerce, and other fields, making related stocks highly liquid. Understanding fund classifications is crucial for choosing the right investment tools.

Passive Funds( Index Funds)

These funds adopt a tracking index strategy, aiming to match the market index performance. Features include lower fees and controllable risk, making them very suitable for newcomers to overseas fund investment. The strategies and fee details of passive funds are explained in the fund prospectus, which investors should read carefully to protect their capital.

Active Funds( Stock Selection)

This is an aggressive investment approach, with higher risk but potentially better returns. The core advantage of these funds lies in the fund manager’s stock-picking ability, aiming to outperform the benchmark. The diversity of options among different fund products far exceeds that of passive funds, so investors should make decisions after thorough understanding.

Performance Comparison of 10 Chinese Funds

The table below shows the performance of these funds over different time periods:

Individual Fund Analysis

SCBCEE - The Preferred Choice for Steady Growth

As an electronic channel fund under TISCO Bank, SCBCEE has performed the best so far this year, with a return of 11.37%. Its 3-year average annual return is 6.88%, though the 5-year return has dropped to 0.56%, reflecting the volatility of the Chinese market.

This fund has no dividend policy, making it suitable for long-term investors. If you can tolerate some risk and are optimistic about China’s economic prospects, this is a worthwhile option.

SCBCEP - Stable Appreciation Plan

SCBCEP has achieved a 10.83% return year-to-date, with a 3-year average annual return of 5.94%. Although the 5-year return is negative(-0.33%), this is normal during market adjustments. Its no-dividend policy focuses on capital appreciation.

This fund is especially suitable for long-term investors who can tolerate medium-term fluctuations, particularly those preparing for retirement.

SCBCE(SSF) - Tax-Advantaged Policy

As a special savings fund(SSF), SCBCE(SSF) offers tax benefits combined with investment growth. As of May 30, the year-to-date return is 10.92%, with a 3-year average annual return of 5.81%.

Due to the short historical data, 5-year return data is not available. This fund is especially attractive to long-term savers seeking tax benefits.

SCBCE - Long-term Appreciation Benchmark

SCBCE has a year-to-date return of 10.91%, similar in structure to SCBCEE. Its 3-year average annual return is 5.81%, and the 5-year return is -0.45%. With no dividend policy, it emphasizes long-term capital growth.

Suitable for investors who believe in China’s economic recovery and are willing to endure short-term volatility.

SCBCEHE - Performance with Currency Hedging

By hedging exchange rate risk, SCBCEHE has performed strongly in the short term, with a year-to-date return of 14.63%. However, its 3-year average annual return is only 4.30%, and the 5-year return is negative(-2.09%), indicating pressure over the long term.

Recommended only for experienced investors, not suitable for conservative or income-focused portfolios.

TISCOCH - Aggressive Growth Choice

TISCOCH, under TISCO Fund, has shown impressive short-term performance, with a year-to-date return of 14.18%. But its 3-year average is only 3.65%, and the 5-year is -3.26%, indicating it is not a stable long-term choice.

No dividends and high risk, only suitable for long-term investors confident in the Chinese market and able to withstand significant fluctuations.

TCHRMF - Retirement Planning Tool

As a retirement fund(RMF) product, TCHRMF combines tax benefits with long-term growth. Year-to-date return is 13.89%, with a 3-year average of 3.57%. The 5-year return is -3.16%, reflecting long-term challenges in Chinese assets.

Especially suitable for investors seeking retirement savings and diversification through overseas investments.

KF-HSHARE-INDX - Passive Tracking Strategy

As an H-share index tracking fund, KF-HSHARE-INDX adopts a passive strategy, with a year-to-date return of 14.21%. Its 3-year average return is only 3.32%, and the 5-year return is -2.91%.

Most suitable for passive investors who believe in the long-term rise of the index and do not require dividends, with good understanding of high-risk investments.

SCBCEHP - RMF + Currency Hedging Portfolio

Combining retirement fund and currency hedging features, SCBCEHP has a short-term return of 14.18%. Its 3-year average return is only 3.30%, and the 5-year return is negative###-3.03%.

This is a choice for long-term investors confident in the Chinese market and seeking tax benefits.

SCBCEH - Comprehensive Hedging Solution

SCBCEH offers currency hedging, with a year-to-date return of 14.16%. However, its 3-year and 5-year returns are 3.26% and -3.07%, respectively, reflecting long-term market pressure.

No dividends are provided, suitable for investors pursuing capital growth and able to accept high risk.

Investment Decision Recommendations

Most of these 10 Chinese Funds are active or passive growth products, employing near-market index pricing strategies to diversify risk. Most do not pay dividends but reinvest earnings for capital appreciation.

Before choosing these funds, investors must carefully read the fund prospectus. Overseas fund investments carry risks and require cautious assessment of personal risk tolerance. This article is for educational purposes only and does not constitute investment advice. Before making final decisions, it is recommended to consult a professional investment advisor to ensure the selected products match your risk profile.