Thursday, July 3, 2008

Almost time to invest China Fund

Be prepare, it is almost time to invest in China fund, since the China stock market decline more than 50%.

I like to use Shanghai composite index as my guideline for China market. The index decline below 3000 points after achieved its peak at 6000 points last year. My target is 2000 points and if you dare enough you can wait till 1500 points, it may happen because China bull market is started at 1500 points on june 2006. No one can predict how low it can go, don't blame me if you lose any opportunity since you decide the entry points yourself. But to be safe, you can make regular average down, which means you can buy at 2000 points and 1500 points and 1000 points if it achieve that low point.

Due to I am Public Mutual Agent, of course I promote on Public Mutual various China Fund. There are few China Fund, Public China Select Fund (PCSF), Public China Ittikal Fund (PCIF) and Public China Titans Fund (PCTF). The details and features of the funds can refer to www.publicmutual.com.my . I personally will recommend Public China Titans Fund (PCTF), it invested in China big market capitalisation stocks. I personally believe that this kind of stocks will rebound faster than other stocks if the China market rebound.

If you feel China Fund which fully invest in China is too risky for you and you would like to diversify the risk, you may invest in Public Mutual Far East Funds, they not fully invest in China but big portion. You may get the information of the Far East Funds from Public Mutual website. Among the funds, I like to recommend Public Far East Consumer Theme Fund (PFECTF), it invest in consumer related goods and services stocks. The stocks with consumer related goods and services which are necessary can easily rebound after market achieve low point.

So, what you should do is just prepare your cash and wait till the opportunity. Good luck!

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