China Stock and Fund Investment Guide: In-Depth Review of 10 Funds to Watch in 2568

In the investment environment of 2568, Chinese equity funds remain a popular choice for overseas fund allocations. Although recent markets have been under pressure, China, as the world’s second-largest economy, still offers long-term growth potential. Which Chinese equity funds are suitable to choose this year? This article provides real data and detailed analysis to help you quickly find the answer.

Overview: Top 10 Chinese Funds’ Annual Performance Comparison

Two Investment Approaches for Chinese Equity Funds

Before delving into specific funds, it’s important to understand the operational models of Chinese equity funds. The market mainly divides into two categories:

Passive Index Funds(Passive Fund) track Chinese stock indices, with returns close to the index performance and lower fees. These funds tend to have relatively controlled volatility, making them suitable for risk-averse investors and beginners.

Active Management Funds(Active Fund) are managed by fund managers who select stocks aiming to outperform the index benchmark. These funds carry higher risks but also greater potential returns, depending on the manager’s stock-picking ability. It’s essential to read the fund’s prospectus carefully before investing to understand the specific investment strategy.

In-Depth Analysis of 10 Chinese Equity Funds

1. SCBCEE - A Stable Choice with Short-Term Strength

As one of the funds with the highest YTD gains, SCBCEE has demonstrated an excellent performance of 11.37%. Managed by Thailand’s Business Bank, it invests in Chinese stocks via a parent fund structure, with a 3-year annualized return of 6.88%, indicating stable medium-term performance.

However, the 5-year return of only 0.56% serves as a reminder that long-term performance of Chinese equity funds can be affected by market cycle fluctuations. This fund has no dividend distribution design, making it suitable for long-term investors seeking capital appreciation.

Investment Tip: Suitable for investors with high risk tolerance who strongly believe in China’s long-term economic growth.

2. SCBCEP - A Balanced Growth Option

Compared to SCBCEE’s slightly lower YTD return of 10.38%, SCBCEP’s 5-year return of -0.33% reflects challenges in the Chinese stock market over the past few years. Its 3-year annualized return of 5.94% indicates acceptable medium-term performance.

This fund is positioned as a value-growth type, non-dividend paying, suitable for long-term savers who can tolerate market volatility. It is especially suitable for investors with retirement planning needs and those comfortable with emerging market fluctuations.

Investment Tip: Medium-risk investors and those with pension savings plans should pay attention.

3. SCBCE(SSF) - Tax-Advantaged Long-Term Savings Tool

As a special savings fund(SSF) product in Thailand, SCBCE(SSF) offers tax deferral benefits. Its YTD performance of 10.92% and 3-year annualized return of 5.81% are comparable to similar funds.

Due to its relatively short listing period, data for 5 years is unavailable, reflecting the novelty of SSF products. As a tax-optimized tool, it is suitable for investors seeking long-term savings combined with tax planning.

Investment Tip: Retirement planners seeking tax benefits and investors with a strong long-term savings focus.

4. SCBCE - Classic Chinese Equity Fund

With a similar investment strategy to SCBCEE, SCBCE offers a YTD return of 10.91% and a 3-year annualized return of 5.81%. Its 5-year return of -0.45% is moderate among peers.

This fund aims for long-term capital appreciation, does not distribute dividends, and carries a higher risk level. Its performance volatility reflects systemic risks in the Chinese market.

Investment Tip: Suitable for investors confident in China’s economic recovery and able to withstand short-term fluctuations.

5. SCBCEHE - High Returns with Currency Hedging

The currency hedging strategy has enabled SCBCEHE to achieve an impressive 14.63% YTD return, but its 3-year annualized return of 4.30% and 5-year return of -2.09% indicate concerns over long-term performance.

Its non-dividend design and high-risk nature make it a product for experienced investors. The hedging mechanism shows value during sharp currency fluctuations, but long-term return erosion should be approached cautiously.

Investment Tip: Suitable for seasoned investors and portfolios needing currency hedge against RMB depreciation.

6. TISCOCH - A Challenger with High Volatility and High Returns

TISCOCH has achieved a 14.18% return YTD, but its 3-year annualized return of 3.65% and 5-year return of -3.26% demonstrate extreme volatility.

Focusing solely on Chinese stocks, with no dividends and a high-risk label, its past performance volatility requires strong conviction and psychological resilience.

Investment Tip: Long-term bullish on China’s economy and capable of enduring significant drawdowns.

7. TCHRMF - A Special Choice for Retirement Planning

As a Thai retirement savings fund(RMF) product, TCHRMF has a stellar YTD performance of 13.89%, but its 3-year annualized return of 3.57% and 5-year return of -3.16% reflect long-term challenges.

RMF products offer specific tax benefits, suitable for retirement planning. Its high risk and no dividend payout require investors to commit to long-term holding.

Investment Tip: Set retirement goals and pursue tax efficiency with medium- to long-term investments.

8. KF-HSHARE-INDX - Passive Index Allocation

Tracking the Chinese H-share index, this fund has led with a YTD return of 14.21%, but its 3-year annualized return of 3.32% and 5-year return of -2.91% show the index’s overall weakness.

Passive index strategies mean lower costs, no dividends, and high risk. Suitable for investors who believe in the market’s long-term efficiency and seek low-cost Chinese stock exposure.

Investment Tip: Index investors and cost-sensitive investors may consider.

9. SCBCEHP - Hedged Retirement Savings Plan

As a hedged version of the RMF product, SCBCEHP achieves a short-term return of 14.18%, with 3-year annualized return of 3.30% and 5-year return of -3.03%, similar to peers.

Combining tax advantages for retirement savings with currency hedging, it has a unique positioning. Suitable for investors who need retirement planning and have concerns about exchange rate fluctuations.

Investment Tip: Retirement planners seeking growth rather than income distribution.

10. SCBCEH - Mature and Stable Hedged Option

With a YTD return of 14.16%, this mature hedged product demonstrates effective hedging. However, its 3-year return of 3.26% and 5-year return of -3.07% suggest limited long-term growth potential.

As a mature hedging product, it’s suitable for investors focused on value appreciation rather than dividends. The long-term negative returns are concerning but also reflect systemic challenges in China’s stock market.

Investment Tip: Experienced investors and portfolios needing currency hedging protection.

Rational Investment Advice for Investors

These 10 Chinese equity funds showcase diverse investment styles. Most adopt passive index strategies, providing returns close to the market while reducing costs. This offers risk protection for investors.

Important Reminder: This article is for informational sharing only and does not constitute investment advice. Overseas fund investments carry higher risks; thorough research is essential before investing. Choosing the right Chinese equity fund should be based on your risk tolerance, investment horizon, and financial goals.

Investors are advised to carefully read each fund’s prospectus before making final decisions, to understand specific investment strategies, fee structures, and risk characteristics.