Fidelity India Value Fund – Should you invest?

Fidelity India Value Fund: Key Highlights

  1. A fund that focuses on fundamentals – the business and not the popularity or position of its stock in the market place – in order to assess the underlying worth of a company and its potential to deliver value for its investors.
  2. Long term wealth creation – helps investors to benefit from valuation anomalies driven by market sentiments.
  3. Information advantage to identify Value opportunities across markets is made possible by the depth and scope of Fidelity’s global research network of 9001 investment professionals who cover 95% of world market capitalization.
  4. A style diversifier with a portfolio construction that spans sectors and market caps.
  5. Systematic Investment Plan available.

Fidelity India Value Fund – Fund Facts:

Fund objectiveTo generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity related securities, in the Indian markets with higher focus on undervalued securities. The Scheme could also additionally invest in Foreign Securities in international markets.
NFO opening dateNovember 16, 2009
NFO closing dateDecember 15, 2009
Fund ManagerNitin Bajaj and Subramanian Balakrishnan (for investment in foreign securities)
Benchmark IndexBSE – 200 Index
Scheme reopens onNot later than January 14, 2010
Plans OfferedGrowth and Dividend options available. The Dividend option offers payout or reinvestment facilities
Minimum Initial Application amountFor opening a folio: Rs. 5,000; For SIP: Rs. 5,000 (minimum single investment Rs. 500, minimum 6 cheques)
Entry loadNIL
Exit LoadWithin 1 year from the date of allotment or Purchase applying First in First Out basis – 1.00%
SIP availabilityYes

Should You Invest?

I would advise investment in a New fund Offer only if it has something new to offer. As far as Fidelity India Value Fund is concerned I don’t see any thing new offered in the fund. It’s just another diversified equity fund with a fancy name.

So for innovation it gets a rating of 1/5

Fund House Performance:

Fidelity entered Indian Mutual Fund Arena in 2005. Presently it has portfolio of around 6 Equity Funds, 8 debt funds & 3 hybrid funds. In the equity space it has two outperforming funds

  • Fidelity Tax Advantage
  • Fidelity Equity

While it’s other equity funds are average performers.

It offers online investment facility which comes very handy and you can invest at the comforts of your home without paying any commission whatsoever.

Fund House: 3/5

Fund Manager Performance:

Nitin Bajaj and Subramanian Balakrishnan together are already managing Fidelity India Special Situations which is an average performer for last 3 years. In addition Subramanian Balakrishnan also manages Fidelity India Growth, Fidelity International Opportunities, and Fidelity Equity funds. Except Fidelity Equity there’s nothing outstanding about other funds.

Fund Manager: 3/5

Final Verdict:

While it makes sense for Fidelity to launch new funds to expand itself but from investors’ perspective I don’t see any new value proposition in the fund. If investors want to invest in Fidelity House then they would be better off by investing in existing schemes – Fidelity Tax Advantage or Fidelity Equity.

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