Recently, I’ve been noticing that the Chinese market has been weakening more and more, but I still believe Chinese equity funds have opportunities—if we choose wisely. Take a look at the information on Chinese mutual funds that have delivered good returns over the past few years. I found that SCBCEE and SCBCEP have returned about 11% and 10% since the beginning of the year, which is fairly strong, even though their 5-year long-term returns are slightly negative.

Which fund is better depends on how long we plan to hold it. If you’re someone who can accept risk, SCBCEHE and TISCOCH offer very strong short-term returns—around 14% or so. But it seems like this is only a temporary rebound. KF-HSHARE-INDX, on the other hand, is an index fund with low fees, making it suitable for beginners or for those who want to accumulate steadily in a relaxed way.

For RMF and SSF, TCHRMF and SCBCE SSF are good options if you want tax benefits. Their returns aren’t bad either, but you need to stay patient and wait longer, because the Chinese market is volatile as well.

However, it seems that most Chinese equity funds still have negative returns over the past 5 years, which indicates that the Chinese market has gone through a difficult period. Before deciding to invest, you should carefully study which fund is truly a good match for your own profile, because investing in foreign funds carries high risk. Don’t rush to put your money in just yet.