Is Matthews India Fund (MINDX) a Strong Mutual Fund Pick Right Now?

Any investors hoping to find a Pacific Rim - Equity fund could think about starting with Matthews India Fund (MINDX). MINDX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.ObjectiveThe world of Pacific Rim - Equity funds is an area filled with options, such as MINDX. Pacific Rim - Equity mutual funds usually invest in companies with a big presence in the export-focused markets of Hong Kong, Singapore, Taiwan, and Korea. These funds also invest less than 10% of their assets in Japanese companies since Japan mutual funds are incredibly popular.History of Fund/ManagerMatthews Asia is based in San Francisco, CA, and is the manager of MINDX. Since Matthews India Fund made its debut in October of 2005, MINDX has garnered more than $395.83 million in assets. The fund's current manager, Peeyush Mittal, has been in charge of the fund since April of 2018.PerformanceInvestors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 4.75%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 5.67%, 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, MINDX's standard deviation comes in at 14.45%, compared to the category average of 11.6%. Over the past 5 years, the standard deviation of the fund is 14.14% compared to the category average of 13.08%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsThe fund has a 5-year beta of 0.45, so investors should note that it is hypothetically less volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. With a negative alpha of -2.64, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.ExpensesAs 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, MINDX is a no load fund. It has an expense ratio of 1.26% compared to the category average of 1.17%. MINDX is actually more expensive than its peers when you consider factors like cost.Investors need to be aware that with this product, the minimum initial investment is $2,500; each subsequent investment needs to be at least $100.Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.Bottom LineOverall, even with its comparatively strong performance, average downside risk, and higher fees, Matthews India Fund ( MINDX ) has a high Zacks Mutual Fund rank, and therefore looks a good potential choice for investors right now.For additional information on this product, or to compare it to other mutual funds in the Pacific Rim - Equity, make sure to go to www.zacks.com/funds/mutual-funds 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.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks