The stock market there is showing tremendous growth due to the incentive measures taken by the Chinese government to revive the market and economy. Mutual funds investing in China have become very attractive and are giving bumper returns. These mutual funds have given an average return of 21 percent in just one week. Market sentiment has gone up significantly due to China's stimulus package, interest rate cuts, and targeted sector support, due to which the funds are performing very well. According to experts, China-focused funds are showing attractive short-term opportunities at this time. Returns have increased significantly due to important policy decisions by the Chinese government.

Up to 33% return given in a week

In the last one week, China-focused mutual funds have given an average return of 21.39 percent. At the same time, some funds have also given returns of more than 30 percent. Mirae Asset Hang Seng TECH ETF FoF has given a tremendous return of 33.43 percent in the last one week. After this, Mirae Asset Hang Seng TECH ETF has given a return of 29.15 percent. Edelweiss Greater China Equity Off-Shore Fund has given a return of 17.26 percent. Axis Greater China Equity FoF has given a return of 15.61 percent. Nippon India ETF Hang Seng BeES has given a return of 11.51 percent. According to experts, the short-term outlook is quite attractive. But they have advised investors with a long-term outlook to proceed cautiously keeping in mind the macroeconomic scenario and the possibility of volatility. 

There may be an outflow of funds from India.

This strong rally in Chinese stocks can shock the Indian market. Foreign investors may shift from India to China to take advantage of this boom in the Chinese market. That is, there may be an outflow of funds from India. We are also seeing that foreign investors have made a big withdrawal from the Indian market last week. According to the data of National Securities Depository Limited (NSDL), till October 4 this month, FPIs sold ₹ 27,142 crore in Indian equities.