Tuesday, December 15, 2009
FIDELITY INDIA VALUE FUND - AVOID
Fidelity has launched a New Fund Offer with a attractive name, Fidelity India Value Fund.
The fund will invest in Indian and international equities with a higher focus on undervalued securities to deliver long term capital appreciation. The Fidelity India Value Fund's new fund offer (NFO) will close on December 15, 2009.
Fidelity has built a strong reputation for giving more prominence to Fundamentals of Stocks it buys and thus has been a steady performer rather than being spectacular.
COMMENT AND RECOMMENDATION :
Value Funds tend to take a long time to give reasonable returns and Fidelity as a Fund House itself, is quite defensive in nature.
It is surprising that Fidelity has come with a Such a Fund at all. What do the other Fund Managers do??? Don't they see
'value' in the stocks they buy?.
And what these 'Contra' Funds do????., They too find 'value' and do Contra buying.
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.
Go for Fidelity Equity Fund and avoid this NFO for now. If you are really keen on 'Value investing' go for existing funds like ICICI Discovery Fund, Birla Sunlife Dividend Yield Fund, UTI Dividend Yield Fund.
For your information, even their flagship, Fidelity Equity Fund, though consistent, has lagged behind its peers over 1 year, 3 year period.
Thus, This Fund is purely for a fan of Fidelity.
Also visit http://equityadvise.blogspot.com