Thursday, June 2, 2011

Best Way to Invest in Chinese Stocks

Best Way to Invest in Chinese Stocks : Investing in Chinese stocks is somewhat like scheduling a trip to visit China. If you are a native of China and know the language, you could plan and book the entire trip for yourself. It would be your responsibility to find out where to go, where to eat, where to stay and so forth. Scheduling your own trip to China is similar to picking an individual Chinese stock. A Chinese citizen can purchase individual Chinese stocks but a non-Chinese citizen cannot purchase the actual stock. (See Craig Larsen’s blog on the FPA in China home page for how the Chinese are investing for themselves and their retirement.)

China is a very large country and the types of businesses in China range from A to Z. I believe an investor would be best suited if they purchased a top quality mutual fund that invests in Chinese companies. I do not believe the average financial planner has a betting chance at picking the right stock that will outperform a top-quality Chinese mutual fund while taking on the same risk of the fund.Source advisorone.com...
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