Is Fidelity Emerging Asia Fund (FSEAX) a Strong Mutual Fund Pick Right Now?

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Any investors hoping to find a Mutual Fund Equity Report fund could think about starting with Fidelity Emerging Asia Fund (FSEAX). FSEAX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

History of Fund/Manager

Fidelity is responsible for FSEAX, and the company is based out of Boston, MA. Fidelity Emerging Asia Fund made its debut in April of 1993, and since then, FSEAX has accumulated about $1.87 billion in assets, per the most up-to-date date available. The fund’s current manager, Xiaoting Zhao, has been in charge of the fund since June of 2019.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 19.91%, and is 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 26%, 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 FSEAX over the past three years is 20.34% compared to the category average of 18.85%. Over the past 5 years, the standard deviation of the fund is 18.33% compared to the category average of 17.01%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 0.74, the fund 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. The fund has produced a positive alpha over the past 5 years of 6.77, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

Expenses

Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, FSEAX is a no load fund. It has an expense ratio of 0.99% compared to the category average of 1.38%. Looking at the fund from a cost perspective, FSEAX is actually cheaper than its peers.

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

Bottom Line

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

Don’t stop here for your research on Mutual Fund Equity Report funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare FSEAX to its peers as well for additional information. And don’t forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.

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