Mumbai, Aug. 18: Domestic mutual fund investors will soon have a second chance to ride the Chinese dragon.

JPMorgan is coming out with a scheme that will invest in the units of its JF Greater China Equity Fund.

The fund largely invests in a diversified portfolio of companies incorporated in the Greater China region or which derives a predominant part of their business from this region.

With this fund-of-fund scheme, JPMorgan will become the second mutual fund after ABN Amro to focus on a China play.

Although many mutual funds have come up with schemes that invest in overseas markets, they have not confined themselves to a single market.

Last September, ABN Amro’s China-India fund opened for subscription.

The open-ended scheme invested predominantly in equity and equity-related securities of Indian and Chinese markets and other international markets.

However, industry observers say the fund has been among the worst performers in this calendar year as it concentrated on India and China, stock markets that were mauled badly.

Despite the poor performance of this fund, some industry experts say the JPMorgan open-ended fund of funds scheme can see a better response among investors.

Dhirendra Kumar, CEO of ValueResearch, said most domestic investors of mutual funds were dominantly exposed towards Indian markets but they do not have any overseas investments.

“Considering the Indian meltdown during this year, it does make a stronger case for investors,” he said.

Kumar reckoned that one of the principal reasons why ABN Amro’s China-India fund had not fared well was the fact that it was launched before the meltdown.

In its scheme information document, JPMorgan has said the minimum investment amount will be Rs 10,000. It will have an entry load of 2.25 per cent and an exit load of 1 per cent if the unit is redeemed within six months from the date of allotment.