China - Equity fund seekers should consider taking a look at Fidelity China Region Fund (FHKCX). FHKCX carries a Zacks Mutual Fund Rank of 2 (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 responsible for FHKCX, and the company is based out of Boston, MA. Fidelity China Region Fund debuted in November of 1995. Since then, FHKCX has accumulated assets of about $853.54 million, according to the most recently available information. Ivan Xie is the fund's current manager and has held that role since April of 2018.

Performance

Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 4.76%, 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 -7.48%, 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. The standard deviation of FHKCX over the past three years is 26.84% compared to the category average of 27.54%. The standard deviation of the fund over the past 5 years is 24.32% compared to the category average of 25.56%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

The fund has a 5-year beta of 0.55, so investors should note that it is hypothetically 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. Over the past 5 years, the fund has a negative alpha of -2.16. This means 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, FHKCX is a no load fund. It has an expense ratio of 0.93% compared to the category average of 1.39%. FHKCX is actually cheaper than its peers when you consider factors like cost.

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

Fees charged by investment advisors have not been taken into considiration. 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, this fund looks like a good 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 are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.

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