Chinese mutual funds posted moderate gains in February after declining more than seven percent in January, according to a recent report.


The six-month average for all types of mutual funds is still in the red, due to China’s struggling stock market, according to Lipper Fund Market Insight Reports.


"Good February performance of small and medium shares made up for that of blue chips and bolstered fund returns," said Zhou Liang, head of research for China at Lipper. "But the growth was modest, and the half-year returns ended February were still negative."


Mutual funds invested in stocks posted a 1.2% growth last month, and mixed stock/bond funds saw a growth between 1.04% and 0.66%, depending on the combination.


Qualified Domestic Institutional Investor products outperformed their domestic peers, with an average growth of 3.32% for February.


Qualified Foreign Institutional Investor products reported a loss of 1.26%, due to deteriorating global economic prospects.


Mutual fund investors should pursue safer products like bond-invested funds that could beat inflation growth, Zhou said, and avoid looking for big profits.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.