There are plenty of choices in the China - Equity category, but where should you start your research? Well, one fund that may not be worth investigating is ProFunds UltraChina Investor (UGPIX Quick QuoteUGPIX - Free Report) . UGPIX has a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.

Objective

We note that UGPIX is a China - Equity option, an area loaded with different options. China - Equity mutual funds and their investments revolve around stocks in China, Taiwan, and Hong Kong. China's middle class is booming, and its economy reflect this demographic's rise more than the vast export-focused manufacturing one we typically associate with the country. Even if this strategy sounds enticing, you may want to look past UGPIX.

History of Fund/Manager

ProFunds is based in Columbus, OH, and is the manager of UGPIX. Since ProFunds UltraChina Investor made its debut in February of 2008, UGPIX has garnered more than $26.36 million in assets. The fund is currently managed by Alexander V. Ilyasov who has been in charge of the fund since November of 2009.

Performance

Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of -3.21%, and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 7.67%, 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. The standard deviation of UGPIX over the past three years is 42.82% compared to the category average of 19.62%. The standard deviation of the fund over the past 5 years is 44.88% compared to the category average of 21.94%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment.

Even still, the fund has a 5-year beta of 2.74, so investors should note that it is hypothetically more 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. UGPIX's 5-year performance has produced a negative alpha of -20.84, which means 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, UGPIX is a no load fund. It has an expense ratio of 1.72% compared to the category average of 1.49%. Looking at the fund from a cost perspective, UGPIX is actually more expensive than its peers.

This fund requires a minimum initial investment of $15,000, while there is no minimum for each subsequent investment.

Bottom Line

Overall, ProFunds UltraChina Investor ( UGPIX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and higher fees, this fund looks like a poor potential choice for investors right now.

For additional information on this product, or to compare it to other mutual funds in the China - Equity, 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.