New Delhi, July 11 -- It is always a good idea to extend the diversification of your equity portfolio geographically. And getting into China - the world's second-largest economy - can be particularly appealing. Here's a look at what are China-focused ETFs, whether they are worth investing in and how much you should hold in your protfolio.

China ETFs are funds that track publicly listed Chinese companies. The issuing company purchases the underlying asset (such as stocks, bonds or currency), and investors purchase shares in the fund. As the underlying assets rise and fall, so does the value of your fund investment.

However, investing in China ETFs carries risks, such as trade tensions with the U.S. and other geopolitical factors.

For In...