If you have been looking for Mutual Fund Equity Report funds, it would not be wise to start your search with Baron Emerging Markets Retail (BEXFX Quick QuoteBEXFX - Free Report) . BEXFX holds a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.

History of Fund/Manager

BEXFX is a part of the Baron family of funds, a company based out of New York, NY. Baron Emerging Markets Retail made its debut in December of 2010, and since then, BEXFX has accumulated about $283.70 million in assets, per the most up-to-date date available. The fund's current manager, Michael Kass, has been in charge of the fund since December of 2010.

Performance

Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of -1.94%, and is in the bottom third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 1.83%, which places it in the bottom third during this time-frame.

It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.

When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. BEXFX's standard deviation over the past three years is 19.35% compared to the category average of 18.89%. The standard deviation of the fund over the past 5 years is 19.96% compared to the category average of 16.65%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors should note that the fund has a 5-year beta of 0.75, so it is likely going to be less volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. BEXFX's 5-year performance has produced a negative alpha of -9.11, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Expenses

Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, BEXFX is a no load fund. It has an expense ratio of 1.38% compared to the category average of 1.13%. So, BEXFX is actually more expensive than its peers from a cost perspective.

While the minimum initial investment for the product is $2,000, investors should also note that there is no minimum for each subsequent investment.

Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.

Bottom Line

Overall, Baron Emerging Markets Retail ( BEXFX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and higher fees, this fund looks like a somewhat weak choice for investors right now.

For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Equity Report, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.