How to Invest in China from India: Top ETFs Available
Many investors are seeking ways to diversify their portfolios by investing in China’s markets. One effective way to gain exposure is through China-focused ETFs available in India. Below is a selection of ETFs that allow Indian investors to tap into China’s economic growth.
Top China-Focused ETFs Available in India
1. Nippon India ETF Hang Seng BeES
- Description: Tracks the Hang Seng Index, providing exposure to top companies listed on the Hong Kong Stock Exchange.
- NAV: ₹313.63 (as of Nov 1, 2024)
- Expense Ratio: 0.93%
- AUM: ₹622 crore
- 1-Year Return: ~20.66%
- Risk Level: Very High
2. Mirae Asset Hang Seng TECH ETF
- Description: Follows the Hang Seng TECH Index, offering access to the largest technology companies listed in Hong Kong.
- NAV: ₹16.24 (as of Nov 1, 2024)
- Expense Ratio: 0.60%
- AUM: ₹332 crore
- 1-Year Return: ~22.17%
- Risk Level: Very High
3. Axis Greater China Equity Fund of Fund
- Description: Primarily invests in the Schroder International Greater China Fund, targeting capital growth through investments in China, Hong Kong, and Taiwan.
- NAV: ₹7.61 (as of Oct 29, 2024)
- Expense Ratio: 1.57%
- AUM: ₹254.7 crore
- 1-Year Return: ~17.41%
- Risk Level: Moderately High
4. Edelweiss Greater China Equity Off-shore Fund
- Description: Invests in companies across Greater China, including Mainland China, Hong Kong, and Taiwan.
- NAV: ₹39.02 (as of Oct 28, 2024)
- Expense Ratio: 2.32%
- AUM: ₹1,474.1 crore
- 1-Year Return: ~22.21%
- Risk Level: Very High
Why Invest in China ETFs?
Investing in China-focused ETFs allows Indian investors to diversify their portfolios with exposure to one of the world’s largest economies. These ETFs provide an opportunity to tap into China’s technology, consumer goods, and financial sectors without the complexities of direct foreign investment.
Important Considerations: Some ETFs may trade at a premium due to high demand and limited supply, which can impact returns. Chinese markets are also known for significant volatility, so investors should assess their risk tolerance.
Risk Warning & Disclaimer
Investing in international markets carries inherent risks, including currency fluctuations, geopolitical instability, and liquidity challenges. ETFs focused on China are best suited for investors with a high-risk appetite and a long-term horizon.
SEBI Disclaimer: Past performance is not indicative of future returns. Investors are advised to consult a financial advisor before investing. This post is for informational purposes only and does not constitute investment advice from Riddhi Siddhi Share Brokers.
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