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Japan's made the news a lot lately--from its hot stockmarket to its top car brands. What this means for investors isopportunity--in small doses, of course.
Don Cassidy, a senior research analyst at Lipper, saysthat for the calendar year 2005, the average return for Japanesefunds was 33.64 percent. "That was enough to push theirpreviously lagging longer-period returns from minus to plus signsall the way back for 15 years," he says.
Cassidy points out that Japan's economy has turned aroundafter a long, painful spell. Consumer and business confidence areup, corporate and banking reforms are taking place, and anexpanding world economy has created opportunity for Japaneseexporters.
"Finally, there is a lot of money in the postal savingsaccounts held by individual households [in Japan]," saysCassidy. "If or when people gain investment confidence, itcould 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 JapanSmaller 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 aggressiveinvestors who don't buy for life and know to keep their assetallocation to 3 percent to 5 percent of their total holdings.
