Chinese government The stock market there is showing tremendous growth due to the incentive measures brought by the Government to revive the market and economy. Mutual funds investing in China have become quite attractive and are giving bumper returns. These mutual funds have given an average return of 21 percent in just one week. Market sentiments have gone up due to China’s stimulus package, interest rate cuts and targeted sector support, due to which funds are performing very well. According to experts, China focused funds are currently showing attractive short term opportunities. The returns have increased significantly due to important policy decisions by the Chinese government.
Gave up to 33% return in a week
In the last one week, China focused mutual funds have given an average return of 21.39 percent. At the same time, some funds have also given returns above 30 percent. Mirae Asset Hang Seng TECH ETF FoF has given a tremendous return of 33.43 percent in the last one week. After this, Mirae Asset Hang Seng TECH ETF has given a return of 29.15 percent. Edelweiss Greater China Equity Off-Shore Fund has given a return of 17.26 percent. Axis Greater China Equity FoF has given a return of 15.61 percent. Nippon India ETF Hang Seng BeES has given a return of 11.51 percent. According to experts, the short term outlook is quite attractive. But he advised investors with a long-term outlook to proceed cautiously, keeping in mind the broader economic outlook and the potential for volatility.
There may be outflow of funds from India
This strong rise in Chinese shares can shock the Indian market. Foreign investors can shift from India to China to take advantage of this boom in the Chinese market. This means there may be an outflow of funds from India. We are also seeing that last week foreign investors have made huge withdrawals from the Indian market. According to National Securities Depository Limited (NSDL) data, FPIs sold ₹27,142 crore in Indian equities this month till October 4.
