A mutual fund is one of the safest and best ways to invest than any other way. It is a firm that is professionally managed using investors money to invest in bonds, stocks, short-term money instruments and other such securities. The money manager of a mutual fund, the fund manager (also known as the portfolio manager) is responsible for losses/gains, collects the interest income or dividend. These will then passed to the individual investors.

China mutual funds are one of the hottest funds today. The GDP growth rate of china is around 10% a year and is matched by the growth of Chinese mutual funds. The current lack of economic growth in United States has scared off a lot of investors and other options are beginning to open up.

China’s foreign trade has grown to such as extent that it is now one of the most important economy in the world. It has been a deadly competitor to other Asian export countries such Singapore, Malaysia and South Korea.

One of the other benefits of China’s economic growth is the importance of it’s two stock exchanges (Shenzhen Stock Exchange and Shanghai Stock Exchange ) which have a combination market value of a staggering $1 trillion dollars in the beginning of 2007. It is the third biggest stock market in Asia behind Hong Kong and Japan. Also, it is predicted that it will be the third largest in the world by 2016. It is in no doubt, China will be stronger and stronger in the future, therefore more money will flow in and out of china then there will ever be.

The other positive feature of investing mutual funds in China is that the domestic growth is unstoppable. Although China is an export orientated country, the domestic demand can cushion any outside problem by solely focusing on the domestic growth. The country have one of the largest foreign exchange reserves in the world, bigger than Japan. It is estimated to be around $1.066 trillion at the end of 2006. The size of the reserves will protect the Chinese economy from any excessive volatility and the monetary system from failure.

Investing in China mutual funds is one of the best way in ensuring the best returns in any market around the world.

The world is so small now that investing in another country is the norm. There are so many mutual fund you can choose from. Currently the best mutual funds are the ones that are soaring in value for the past two years. At the moment, the best places to invest in are china mutual funds. China has a population of more than 1.3 billion people and growing. The growth opportunity is outstanding. If you look at other places in the world such as Europe, most of the market is already developed and saturated. Growth rates within Europe are tiny compared to the current economic growth rate of china. The nominal GDP of China is a mind blowing $3.4 trillion dollars (fourth highest in the world) and a GDP per capita is $7,800.

This has attracted a lot of investors from all over the world. The big investment banks in America are salivating on the potential for growth in China. For example, one of the biggest mutual funds, Fidelity, has created a separate fund called Fidelity Greater China Fund to invest billion of dollars in the country. This has attracted the best professional money managers all around the world. When a big investment back comes in a country, others companies will follow.

As a results there are hundred of other china mutual funds available and therefore very difficult to choose the best one.

Choosing a good mutual fund will depend on the amount of risks you’re willing to take. You should choose a mutual fund based on the rating. However, the ratings are based on the past and cannot predict the performance in the future. The rating will tell you how consistent the management skills of that fund.

Research is very important in investing in any fund and you must have a specific financial goal for yourself so if the mutual fund perform poorly or bust, you will have other options available for you. It is a good idea not to put your eggs in one basket. Instead of just choosing one Chinese mutual fund, invest in two or three of them. This will reduce the risk greatly.

Also, look for any Chinese mutual fund that have a consecutive growth record year after year. Be careful of mutual funds that have only one year of excellent growth but you may find the other years have mutual growth.

Once you choose the best China mutual fund, sit back and relax because China will be the biggest economic power within the next decade or so. Good luck!

It is also important to note, in China, there are two distinct markets. The ‘H Share’ (Hong Kong stock exchange) and the ‘A Share’ (Mainland China stock exchange). There are certain differences between the two markets. For example, the ‘A share’ market do not allow domestic shares outside the market and only few foreigners are allowed to purchase ‘A shares’.

For the individual investor, try to pick a mutual find that are managed by an experienced manager with consistent results.

The best way to choose one is to search it on Morningstar. Sort the funds that you suits your trading personality by the risks, returns and size of the fund. Choose a couple of funds from the website and research each fund thoroughly before you make your decisions.

It will take you several hours to choose the funds that matches your needs but the rewards are worth it. History demonstrates America have an excellent long term growth record but the future of the world economy lies in Asia, specifically in China.

Remember, don’t put all your eggs in one basket. A good investor should always have a diversified portfolio as it will lower your risk factor yet at the same time, benefit from the growth of China. Mutual funds are a great way of investing in China without much worry that justifies the cost. If you’re not sure how to invest in a mutual fund, seek a friend or a financial planner that will show you the best way in getting excellent returns.

 Hong Kong is one of the leading financial centers of Asia. It’s open market, large expatriate community, direct physical and business connection to china make it one of the most exciting places to invest in. Compared to mainland china, Hong Kong has a transparent and reliable legal system which allows transfer of money and goods easily from one destination to another.

Hong Kong has a wealth of international expertise on both the institutional and retail side that mainland Chinese colleagues can exploit. For example, Hong Kong have a long track record of expertise in compliance, marketing, investor education, innovation and product development, risk management and others.

For more than a decade, China has one of the world most fastest economic growth rates in the world. In only five years, the average household wealth had more than doubled and an average annual GDP growth rate of 9%. With these rapid growth, financial expertise are needed to maintain these growths. Hong Kong is an excellent place to invest in mutual funds because they have the local knowledge and best international practice to help Chinese companies develop and distribute products to the international community. Hong Kong can also help develop the necessary regulatory framework to ensure China adopt best practices and standards.

Investing in Hong Kong mutual funds is a safe bet compared to other mutual in Asia because Hong Kong, is one of the world’s freest economy, has one of the most sophisticated financial market infrastructure, low taxes and global talent and experience. However, risks and returns will vary with the different types of mutual funds available in Hong Kong. To determine a fund risk and return characteristics, you should research carefully of the funds investment policies, objectives and restrictions. In addition, a good long term performance will not guarantee the fund in the future but the likelihood continuing with it’s performance is good.

It is also important to note, Hong Kong mutual funds tend to hold a portfolio of anywhere between 20 to 300 individual stocks. Since there these funds hold so many different stocks, it can handle extreme volatility one stock because it has many other stocks to fall back on.

The hottest mutual funds to invest in are the China and India Mutual funds. The two nations are very similar but yet very different. Each countries has a negative and positive aspect of economic growth. China has a population of 1.3 billion whereas India have a simillar population of 1.2 billion people.

India is a democracy that have many benefits but sometimes can hinder economic growth. Labor strikes can happen without notice and India is well known for it’s complicated and expensive bureaucracy. Foreign businesses often complain about it’s slow and inefficient government system whereas, China’s government is willing to accommodate foreign investors enthusiastically compared with India.

The other issue with investing mutual funds in India is the number of dirt poor and illiterate citizens. However, India have a large and growing middle class with wages going higher every year. The middle classes are well educated and speak excellent English.

China has a large and educated population. The infrastructure is excellent and the economy is diverse. The world increasingly would rely on both China and India as the economic engine of the world.

An average investor is not sophisticated nor knowledgeable enough to invest in individual securities within these countries. As a result, the number of companies the investor can easily and safely to invest in is limited. Therefore is it is better to place the funds into mutual companies that focuses on these two countries only, India and China.

Investment banks such as HSBC Assest Management, Schroders Investment Management, Deutsche Asset Management are a number of companies that offer mutual funds in the Unites States to wealthy individuals. However, at the time this is written, there are not much large funds that offer these mutual funds to a normal investors. But don’t worry, the number of funds available to a ‘normal’ investor are growing yearly.

There are also mutual funds located right inside the country that primary caters to the domestic population. There are sometimes more knowledgeable about local conditions and have direct communication with individual companies.

As you may note, these funds are not available to the average investor in the US - but if you are a high net worth individual then you can take advantage of these funds. There are other options such as the American Century Emerging Markets and Managers Emerging Market Equity, that invest in all of the BRIC nations as well as other emerging economies.