Fidelity India has come up with new equity fund called Fidelity India Value Fund. Lets do a review and analysis and get into finer details of the New Fund Offer.
The new fund offer (NFO) open for subscription from November 16 to December 15, 2009. The face value of the NFO will be Rs 10 per unit and offers growth option and dividend option. The dividend Option offers dividend payout and dividend re-investment. The minimum application amount is Rs 5000 per application. For additional purchase minimum application amount is Rs 1000. Entry Load – Nil, Exit load – 1% For redemption within 1 year.
Fidelity as a fund house is always my favorite fund house with good returns and Nitin Bajaj who will be the fund manager of Fidelity India Value Fund currently manages Fidelity India special situations fund and I have seen good track record of Fidelity India special situations fund.
The objective of this fund is to invest in undervalued stocks and will invest at least 80 percent of the assets in equities and the rest in exchange-traded funds, debt and money market instruments.
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{ 8 comments… read them below or add one }
Shabbir, don’t you think that Fidelity has been a laggard in India in terms of performance. Even its flagship Fidelity Equity Fund has struggled to keep pace with its peers.
I personally feel, Indian Economy is in a Strong Growth Phase and Value Investing will work more in mature markets and thus Growth Funds will give more returns than Value Funds.
I don’t think Fidelity has been laggard and if you check Fidelity Growth and Reliance Growth both are close to 90%+ return for the last one year. Which fund you are referring when taking a view of fidelity as a whole. I know some funds did not perform but thats always the case with any fund house.
Also Growth funds are definitely good options but Value funds and Midcap funds in a stable market are also things to consider.
Dear Shabbir,
I am talking about the Fidelity India growth Fund, which has been a disaster in terms of performance. If you are talking about Fidelity Equity, then here too, this Fund has often struggled to match its peer over 6months, 1year, 2year and even 3 year period.
Fidelity have a fantastic reputation, but sadly, their performance in India leaves a lot to be desired.
I do agree with you, that in a Stable Market, Value Funds are a good option, but India is a Growth Market and……..
Can you please mention which funds you are comparing because according to me 80%+ return in funds you mentioned is good enough in last 1 year. Also they have outperformed the benchmarks.
Yes some other fund may have performed even better than what they have done but that does not mean they are not doing good.
See the following cards where they have outperformed the category almost each time
http://new.valueresearchonline.com/funds/newsnapshot.asp?schemecode=2686
http://new.valueresearchonline.com/funds/newsnapshot.asp?schemecode=5707
I was talking about Fidelity India Growth Fund. Sure, it has given a return of 83.7% in the last one year. But do you it is ranked 73rd in terms of returns compared with its peers. Click on the following link
http://www.moneycontrol.com/mutual-funds/performance-tracker/eqd/ab
Beating the Benchmark is quite easy but the beating the peers shows your real skill and test of your knowledge.
Even Fidelity Equity has always been behind Reliance Growth, Birla Sunlife Equity Fund, HDFC Top 200 Fund.
I am NOT against Fidelity, but what I am interested in is, that People should invest not just on a NAME.
I only hope to learn more by this interaction.
Regards,
Srikanth
The rank you are showing is for equity diversified section which can vary depending on your fund objectives and I think instead of judging the fund based on its peers you should see what is the investment objective of the fund and how they stick to the objective. If you see XYZ fund is a large cap funds but now investing in midcap no matter where it ranks and how much profit it gives its bad fund.
So I also suggest not the names and peers but the objective of the fund and how they meet the objective.
Fully agree with you.
It has been quite a learning experience talking with you.
Thanking you for sparing your valuable time.
Same here.