How good is BlackRock Latin America C fund?

Question

The fund brings back over 49.43% in 5 year period. But also has Expense ratio of 2.32%, 1% 12b-1 Fee and 1% load fee. How much will these fees hinder my returns? Is it worth my time? By the way in thinking about starting out with $2000 investment.

Thank you.

Answer 1

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Answer 2

The loads aren't too outrageous, but what has it done over the last 3 yrs and the past year. % years is a place to start, but the returns could have been great in yr 1 and lost a lot in 2 thru 4. Check it a bit more carefully.

Answer 3

Evaluate the level of risk and how this fund will fit in your total portfolio.  Is this appropriate as your only investment?  Certainly not because I suspect the risk is too high.  The expense ratio and 12b-1 is already figured into the expense ratio, and the 1% load is simply $20 that will cost you to buy into the fund.

The above is all the technicals from the fund, now I have to ask . .. Are you used to driving while looking in your rearview mirror?  What you are looking at is past returns - which if that is what you are chasing, you may be sadly disappointed.  The research that you need to do is determine if Latin America has more growth available - or did you miss it?  I would hate for you to buy at this new higher price, and then sadly find out that the run is over, and the price either stays the same or starts a downward cycle.  

Check with your personal financial advisor who is most familiar with your total financial picture to check on the appropriateness of adding this fund to your asset allocation strategy.