Is the Fidelity Emerging Markets Discovery Fund (FEDDX) a solid mutual fund choice right now?

AInvestors hoping to find a mutual fund equity reporting fund might consider starting with the Fidelity Emerging Markets Discovery Fund (FEDDX). FEDDX holds a Zacks mutual fund rating of 2 (buy), which is based on nine predictor factors such as size, cost, and past performance.

Fund/manager history

Fidelity is responsible for FEDDX and the company is based in Boston, MA. Since the Fidelity Emerging Markets Discovery Fund debuted in November 2011, FEDDX has raised over $247.98 million in assets. The fund is currently managed by Greg Lee who has been in charge of the fund since November 2011.

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 6.66% and is in the middle third of its peers in the category. But if you’re looking for a shorter time frame, it’s also worth looking at its 3-year annualized total return of 8.78%, which puts it in the top third over that 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. FEDDX’s standard deviation over the past three years is 20.37% compared to the category average of 15.35%. The standard deviation of the fund over the last 5 years is 17.84% against a category average of 13.63%. This makes the fund more volatile than its peers over the past half-decade.

Risk factors

With a 5-year beta of 0.85, the fund should be less volatile than the market average. Alpha is an additional metric to consider, as it represents the performance of a portfolio on a risk-adjusted basis relative to a benchmark, which in this case is the S&P 500. The fund has produced a negative alpha over the last 5 years of -5.59, which shows that the managers of this portfolio have difficulty choosing stocks that generate returns above 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, FEDDX is a no-load fund. It has an expense ratio of 1.18% compared to the category average of 1.15%. Looking at the fund from a cost perspective, FEDDX is actually more expensive than its peers.

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

Conclusion

Overall, Fidelity Emerging Markets Discovery Fund (FEDDX) has a high ranking of Zacks Mutual Fund, and in conjunction with its relatively similar performance, medium downside risk and higher fees, this fund seems like a good potential choice. for investors right now.

Don’t stop here for your fund research on the Mutual Fund Stock Report. We also have a lot more on our site to help you find the best possible fund for your portfolio. Be sure to check out www.zacks.com/funds/mutual-funds for more information on the world of funds, and feel free to compare FEDDX to its peers for more insight. If you’re more of an equity investor, be sure to also check out our Zacks Rankings and comprehensive suite of tools we make available to both novice and professional investors.

5 shares ready to double

Each was handpicked by a Zacks expert as the #1 preferred stock to earn +100% or more in 2021. Previous recommendations have skyrocketed +143.0%, +175.9%, + 498.3% and +673.0%.

Most of the stocks in this report fly under the radar on Wall Street, which provides a great opportunity to get in on the ground floor.

Today, check out these 5 potential home runs >>

Click to get this free report

Get Your Free (FEDDX): Fund Analysis Report

To read this article on Zacks.com, click here.

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