Is Fidelity Latin America Fund (FLATX) a good mutual fund choice right now?

On Are you looking for a mutual fund equity report fund? Getting started with Fidelity Latin American Fund (FLATX) is a possibility. FLATX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine predictor factors such as size, cost and past performance.

Fund/manager history

Fidelity is responsible for FLATX and the company is based in Boston, MA. The Fidelity Latin America Fund debuted in April 1993 and FLATX has managed to accumulate approximately $274.18 million in assets, according to the most recent information available. The fund is currently managed by William Pruett who has been in charge of the fund since October 2015.

Performance

Clearly, what investors are looking for in these funds is strong performance relative to their peers. This particular fund has generated a 5-year annualized total return of 0.26% and is in the bottom third of its peers in the category. If you’re interested in shorter timeframes, don’t overlook the fund’s 3-year annualized total return of -2.72%, which puts it in the bottom third over this time frame.

When looking at a fund’s performance, it’s also important to note the standard deviation of returns. The lower the standard deviation, the less volatility the fund experiences. FLATX’s standard deviation over the past three years is 35.23% compared to the category average of 17.67%. Looking at the past 5 years, the standard deviation of the fund is 31.12% compared to the category average of 15.67%. This makes the fund more volatile than its peers over the past half-decade.

Risk factors

Investors should keep in mind beta, an important way to measure a mutual fund‘s risk relative to the market as a whole. FLATX has a 5-year beta of 1.1, which means it is likely to be more volatile than the market average. Since alpha represents the performance of a portfolio on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, it is also worth paying attention to this measure. FLATX’s 5-year performance produced a negative alpha of -9.59, meaning managers in this portfolio struggle to pick stocks that outperform the benchmark.

Expenses

As competition intensifies in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low cost product will perform better, all other things being equal. Thus, it is essential for investors to take a closer look at the cost parameters. In terms of fees, FLATX is a zero-fee fund. It has an expense ratio of 1.04% compared to the category average of 1.15%. Thus, FLATX is actually cheaper than its peers from a cost perspective.

This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.

Conclusion

Overall, the Fidelity Latin America Fund (FLATX) has a high ranking for Zacks mutual funds, and in conjunction with its relatively poor performance, worse downside risk and lower fees, the Fidelity Latin America Fund (FLATX) looks like a great potential choice for investors. now.

For more information on the World Mutual Funds Mutual Funds Stock Report area, be sure to visit www.zacks.com/funds/mutual-funds. There you can learn more about the ranking process and dive even deeper into FLATX for additional information. If you also want to check out our stock reports, be sure to go to Zacks.com to see all the great tools we have to offer, including our proven Zacks Ranking.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Dolores W. Simon