Good Sun Rising

As Japan's economy gets stronger, so do the funds.
Magazine Contributor
2 min read

This story appears in the June 2006 issue of . Subscribe »

Japan's made the news a lot lately--from its hot stock market to its top car brands. What this means for investors is opportunity--in small doses, of course.

Don Cassidy, a senior research analyst at Lipper, says that for the calendar year 2005, the average return for Japanese funds was 33.64 percent. "That was enough to push their previously lagging longer-period returns from minus to plus signs all the way back for 15 years," he says.

Cassidy points out that Japan's economy has turned around after a long, painful spell. Consumer and business confidence are up, corporate and banking reforms are taking place, and an expanding world economy has created opportunity for Japanese exporters.

"Finally, there is a lot of money in the postal savings accounts held by individual households [in Japan]," says Cassidy. "If or when people gain investment confidence, it could be a major boost to the local market."

If we've captured your interest, check out these funds, which each have solid three-year returns: Fidelity's Japan Smaller Companies Fund (FJSCX), JPMorgan's Japan Fund (CVJAX), T. Rowe Price's Japan Fund (PRJPX), and The Japan Fund (SJPNA). Remember, investing in any regional fund is best for aggressive investors who don't buy for life and know to keep their asset allocation to 3 percent to 5 percent of their total holdings.

Dian Vujovich is an author, syndicated columnist and publisher of fund investing site www.fundfreebies.com.

More from Entrepreneur

Are paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.
Get Your Quote Now

One-on-one online sessions with our experts can help you start a business, grow your business, build your brand, fundraise and more.
Book Your Session

Whether you are launching or growing a business, we have all the business tools you need to take your business to the next level, in one place.
Enroll Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

It Started As a Joke and Turned Into a Startup That Raised $1 Million in Funding