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Fidelity hopes for Indian summer


Fidelity Funds India Focus Fund


Growth by investing in Indian companies and companies deriving their income from India

Minimum investment:
Lump sum £1,000,
monthly £50

Investment split:
100% in Indian companies and companies deriving their income from India

Place of registration:

Initial 3.5%,
annual 1.5%

Initial 3%,
renewal 0.5%

Tel: 0800 414124

The Fidelity Funds India focus fund invests in companies based in India and those which which derive most of their income from the egion.

Ronald Blue & Co director David Flowers believes that as long as investors are aware that this is a higher risk fund for long-term growth, it should be useful for advisers to have on their panels.
He says: “At last, an accessible fund targeted at a specific emerging market economy rather than a broad emerging markets fund.”

Flowers points out that Fidelity manages the fund in the same way as its other funds &#45 bottom-up stock picking with people on the ground visiting every company at least once a year. He feels the initial charge is low but complains about the annual charge plus 0.45 per cent for expenses. He says: “The usual reduction in yield calculation shows a drag of 2.4 per cent. One has to see a long-term return well in excess of 7.5 per cent to make the risk worthwhile.”

Looking at the literature Flowers says: “Fidelity provides literature with good explanations and simple descriptions in familiar formats. This is backed up by a straightforward web access to the same information.”

When asked what he dislikes about the fund Flowers reiterates his complaint that it is expensive. He says: “The fund has to be invested with an expectation of long term significant growth to justify the charges.”

Flowers thinks that at the moment, few funds will compete with this fund and concludes: “Fidelity is one of the few companies that can launch into a new market like this with the funds for the necessary long-term perspective.”


Suitability to market: Good
Investment strategy: Good
Charges: Average
Commission: Average

Overall 8/10


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