Investing in stocks and bond is risky and sometimes can cause you so much stress that it can affect your health.
If you're not careful, your entire investment can literally become worthless overnight.
Mutual funds are one of the best way not to take stress off you because most of the work are performed by qualified mutual fund managers.
These managers understand the risks involved and have excellent discipline to weather the ups and downs of the Chinese markets.
To choose the best China mutual fund, make sure they have the following qualities: Excellent Long Term Strategy A good Chinese mutual fund company should plan for any economic disasters and unexpected changes in the market.
They should survive in any condition.
Long Tern Experience A good mutual fund should have at least five or more experience in China.
The more experience they have in the market, the more knowledgeable they are.
If the mutual fund has experienced the bad times as well as the good times, they are a lot better equipped to know the correct thing to do in those situations.
Market Discipline Are the fund managers able to weather all financial conditions? You don't want to see a mutual fund to not suddenly decide to quit the Chinese market just because of one downturn, they need to find a good way to exploit these situations.
How The Fund Perform Through A Bull And Bear Market You should look at the past performance and see how well it performs in it's category.
Has it kept up or exceed with it's comparable index.
Don't just choose one China mutual fund, instead choose two or three of them.
It is best to spread your risk because if one mutual fund goes under, you have another fund to compensate for that risk.
In other words, don't put all your eggs in one basket!