Is Matthews China Fund (MCHFX) a Strong Mutual Fund Pick Right Now?

This post was originally published on this site

China – Equity fund seekers should consider taking a look at Matthews China Fund (MCHFX). MCHFX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.ObjectiveMCHFX is one of many China – Equity mutual funds to choose from. These funds focus their investments almost exclusively on stocks in China, Taiwan, and Hong Kong. We tend to associate the Chinese economy with vast export-focused manufacturing, and although this is still important, China is increasingly catering to its booming middle class. If this approach sounds appealing to you, MCHFX could be the way to go.History of Fund/ManagerMCHFX finds itself in the Matthews Asia family, based out of San Francisco, CA. Matthews China Fund debuted in February of 1998. Since then, MCHFX has accumulated assets of about $1.07 billion, according to the most recently available information. Winnie Chwang is the fund’s current manager and has held that role since April of 2014.PerformanceInvestors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 22.72%, 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 17.45%, 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 MCHFX over the past three years is 21.88% compared to the category average of 17.78%. Over the past 5 years, the standard deviation of the fund is 20.03% compared to the category average of 15.19%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsWith a 5-year beta of 0.73, 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. With a positive alpha of 9.92, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.ExpensesFor investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, MCHFX is a no load fund. It has an expense ratio of 1.09% compared to the category average of 1.57%. MCHFX is actually cheaper than its peers when you consider factors like cost.While the minimum initial investment for the product is $2,500, investors should also note that each subsequent investment needs to be at least $100.Bottom LineOverall, Matthews China Fund ( MCHFX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Matthews China Fund ( MCHFX ) looks like a good potential choice for investors right now.Don’t stop here for your research on China – Equity 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 MCHFX to its peers as well for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.Zacks’ Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create “the world’s first trillionaires.” Zacks’ urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (MCHFX): Fund Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
Read more on “Zacks”

Related Posts