If you have been looking for Japan - Equity funds, a place to start could be Fidelity Japan Smaller Companies (FJSCX Quick QuoteFJSCX - Free Report) . FJSCX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

Objective

We note that FJSCX is a Japan - Equity option, an area loaded with different choices. Primarily invest in companies in one of the world's richest and most diversified economies, Japan. While the country remains partially exposed to global economic trends due to its export focus, its lack of natural resources can also impact the nation.

History of Fund/Manager

Fidelity is responsible for FJSCX, and the company is based out of Boston, MA. Fidelity Japan Smaller Companies debuted in November of 1995. Since then, FJSCX has accumulated assets of about $642.37 million, according to the most recently available information. The fund's current manager, David Jenkins, has been in charge of the fund since March of 2014.

Performance

Of course, investors look for strong performance in funds. FJSCX has a 5-year annualized total return of 7.25% 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 8.29%, 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 FJSCX over the past three years is 10.7% compared to the category average of 16.09%. Looking at the past 5 years, the fund's standard deviation is 10.55% compared to the category average of 16.18%. This makes the fund less 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. In the most recent bear market, FJSCX lost 58.27% and underperformed comparable funds by 2%. This might suggest that the fund is a worse choice than its peers during a bear market.

Investors should note that the fund has a 5-year beta of 0.55, 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. FJSCX has generated a positive alpha over the past five years of 1.47, demonstrating that managers in this portfolio are skilled in picking 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, FJSCX is a no load fund. It has an expense ratio of 0.94% compared to the category average of 1.21%. So, FJSCX is actually cheaper than its peers from a cost perspective.

While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.

Bottom Line

Overall, Fidelity Japan Smaller Companies ( FJSCX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, this fund looks like a good 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. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.