If investors are looking at the Japan - Equity fund category, Fidelity Japan Smaller Companies (FJSCX Quick QuoteFJSCX - Free Report) could be a potential option. FJSCX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

FJSCX is part of the Japan - Equity section, which is a segment that boasts many possible selections. Japan - Equity mutual funds mostly invest in Japan-based companies, which is one of the world's richest and most diversified economies. Japan's focus on exports allows them to be somewhat exposed to global economic trends, but investors should note that the country's lack of natural resources can also have an impact.

History of Fund/Manager

FJSCX finds itself in the Fidelity family, based out of Boston, MA. Since Fidelity Japan Smaller Companies made its debut in November of 1995, FJSCX has garnered more than $403 million in assets. The fund's current manager, Masaki Nakamura, has been in charge of the fund since February of 2022.

Performance

Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 5.43%, and it sits in the bottom third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of 4.35%, which places it in the middle 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. Compared to the category average of 16.22%, the standard deviation of FJSCX over the past three years is 16.29%. The fund's standard deviation over the past 5 years is 14.8% compared to the category average of 16.66%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

Investors should note that the fund has a 5-year beta of 0.6, which means it is hypothetically less volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. With a negative alpha of -4.88, 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, FJSCX is a no load fund. It has an expense ratio of 0.87% compared to the category average of 0.93%. FJSCX is actually cheaper than its peers when you consider factors like cost.

Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.

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

Bottom Line

Overall, Fidelity Japan Smaller Companies ( FJSCX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, this fund looks like a great potential choice for investors right now.

For additional information on the Japan - 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 FJSCX too for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.