If you have been looking for China - Equity funds, a place to start could be Fidelity China Region Fund (FHKCX Quick QuoteFHKCX - Free Report) . FHKCX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

FHKCX is one of many China - Equity mutual funds to choose from. These funds focus their investments almost exclusively on stocks in China, Taiwan, and Hong Kong. We tend to associate the Chinese economy with vast export-focused manufacturing, and although this is still important, China is increasingly catering to its booming middle class. If this approach sounds appealing to you, FHKCX could be the way to go.

History of Fund/Manager

Fidelity is based in Boston, MA, and is the manager of FHKCX. Since Fidelity China Region Fund made its debut in November of 1995, FHKCX has garnered more than $1.04 billion in assets. The fund is currently managed by Ivan Xie who has been in charge of the fund since April of 2018.

Performance

Of course, investors look for strong performance in funds. FHKCX has a 5-year annualized total return of 3.09%, and is in the top 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 12.61%, which places it in the top 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. FHKCX's standard deviation over the past three years is 27.04% compared to the category average of 28.98%. The fund's standard deviation over the past 5 years is 23.55% compared to the category average of 25.75%. 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 0.5, 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 -3.73, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Expenses

As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, FHKCX is a no load fund. It has an expense ratio of 1.18% compared to the category average of 1.31%. Looking at the fund from a cost perspective, FHKCX is actually cheaper than its peers.

This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.

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

Bottom Line

Overall, Fidelity China Region Fund ( FHKCX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Fidelity China Region Fund ( FHKCX ) looks like a good potential choice for investors right now.

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