If you have been looking for Japan - Equity funds, it would not be wise to start your search with Matthews Japan Fund (MJFOX Quick QuoteMJFOX - Free Report) . MJFOX has a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.

Objective

We note that MJFOX 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

Matthews Asia is based in San Francisco, CA, and is the manager of MJFOX. Matthews Japan Fund debuted in December of 1998. Since then, MJFOX has accumulated assets of about $252.05 million, according to the most recently available information. Shuntaro Takeuchi is the fund's current manager and has held that role since January of 2019.

Performance

Investors naturally seek funds with strong performance. MJFOX has a 5-year annualized total return of 5.48% and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of -1.14%, which places it in the middle 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. Over the past three years, MJFOX's standard deviation comes in at 19.11%, compared to the category average of 15.32%. The standard deviation of the fund over the past 5 years is 17.55% compared to the category average of 15.83%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

The fund has a 5-year beta of 0.75, so investors should note that it is hypothetically less volatile than the market at large. 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. MJFOX has generated a negative alpha over the past five years of -5.45, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Expenses

As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, MJFOX is a no load fund. It has an expense ratio of 1.12% compared to the category average of 0.96%. So, MJFOX is actually more expensive than its peers from a cost perspective.

Investors should also note that the minimum initial investment for the product is $2,500 and that each subsequent investment needs to be at $100

Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.

Bottom Line

Overall, Matthews Japan Fund ( MJFOX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, Matthews Japan Fund ( MJFOX ) looks like a poor potential choice for investors right now.

Want even more information about MJFOX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.