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Is Fidelity Japan Fund (FJPNX) a Strong Mutual Fund Pick Right Now?

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Any investors hoping to find a Japan - Equity fund could think about starting with Fidelity Japan Fund (FJPNX - Free Report) . FJPNX bears a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.

Objective

FJPNX 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

FJPNX finds itself in the Fidelity family, based out of Boston, MA. Fidelity Japan Fund debuted in September of 1992. Since then, FJPNX has accumulated assets of about $241.84 million, according to the most recently available information. Kirk Neureiter is the fund's current manager and has held that role since March of 2014.

Performance

Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 6.53%, 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 16.33%, 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. The standard deviation of FJPNX over the past three years is 13.61% compared to the category average of 11.91%. The fund's standard deviation over the past 5 years is 15.59% compared to the category average of 13.5%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. FJPNX has a 5-year beta of 0.79, which means it is likely to be less volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. FJPNX has generated a negative alpha over the past five years of -5.12, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Expenses

For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, FJPNX is a no load fund. It has an expense ratio of 0.69% compared to the category average of 0.94%. FJPNX is actually cheaper than its peers when you consider factors like cost.

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

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

Bottom Line

Overall, Fidelity Japan Fund ( FJPNX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Fidelity Japan Fund ( FJPNX ) looks like a somewhat average choice for investors right now.

Want even more information about FJPNX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis 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.


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