Non US - Equity fund seekers may want to consider taking a look at Fidelity Emerging Markets Discovery Fund (FEDDX Quick QuoteFEDDX - Free Report) . FEDDX possesses a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.

Objective

We classify FEDDX in the Non US - Equity category, which is an area rife with potential choices. Investing in companies outside the United States is how Non US - Equity funds set themselves apart, since global funds tend to keep a good portion of their portfolio stateside. Many of these funds like to allocate across emerging and developed markets, and will often focus on all cap levels.

History of Fund/Manager

FEDDX is a part of the Fidelity family of funds, a company based out of Boston, MA. Fidelity Emerging Markets Discovery Fund debuted in November of 2011. Since then, FEDDX has accumulated assets of about $286.67 million, according to the most recently available information. Greg Lee is the fund's current manager and has held that role since November of 2011.

Performance

Of course, investors look for strong performance in funds. FEDDX has a 5-year annualized total return of 10% and it sits in the middle 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 13.07%, which places it in the top third during this time-frame.

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. Over the past three years, FEDDX's standard deviation comes in at 21.3%, compared to the category average of 16%. The standard deviation of the fund over the past 5 years is 18.14% compared to the category average of 13.35%. 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 0.88, 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. FEDDX's 5-year performance has produced a negative alpha of -3.65, 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, FEDDX is a no load fund. It has an expense ratio of 1.19% compared to the category average of 1.18%. From a cost perspective, FEDDX is actually more expensive than its peers.

Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.

Bottom Line

Overall, Fidelity Emerging Markets Discovery Fund ( FEDDX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and higher fees, this fund looks like a somewhat average choice for investors right now.

For additional information on the Non US - Equity area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into FEDDX too for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.