Fidelity India Fund

4 Ways to Navigate Volatility

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/100082-2023-07-28-10:56.pdf
FUND MANAGER Fidelity International
ASX Code
INVESTMENT STYLE Invests in a diversified selection of Indian companies and draws on the research capabilities of Fidelity's analysts based on the ground in India.
INVESTMENT PROFILE To achieve returns in excess of the Benchmark over the suggested minimum investment time period of five to seven years.
FEES 1.20% p.a.



Benefits of investing in the Fidelity India Fund

The Fidelity India Fund is an actively managed portfolio of Indian Securities. Some of the features of the Fund include:

  • Access to an actively managed portfolio of Indian Securities.
  • An investment approach that places first-hand, detailed research at the core of decision making, ensuring that every security is investigated before being included in the Fund.
  • The ability for the portfolio manager to call on the research of a dedicated team of analysts based throughout Asia including India, who have access to a global network of research analysts.

Significant benefits

Some of the benefits that may arise from an investment in  the Fund include:

  • Potential to earn higher returns than the Fund's benchmark, the MSCI India Index NR, over the suggested timeframe.
  • Access to the investment knowledge and expertise of Fidelity's global network of investment professionals  who can assess Indian companies in a global context.
  • Regular investment statements and an annual tax statement to keep you up to date on your investment.

Risk Level

Very high

The potential for loss and unit price variability over the short term is very high.

Investor Suitability

Investors looking for an Indian equities investment who have a tolerance for a very high amount of risk.




Key Features

Why invest?

For over 10 years, Fidelity has been active and on the ground in India. With seven dedicated analysts exclusively covering Indian equities, Fidelity has the first-hand knowledge and experience  to know how to best do business in India.

  • Invests in a diverse range of companies in one of the world's fastest-growing economies
  • Our investment approach is risk-aware and conservative and places first-hand, detailed research at the  core of its decision making
  • A proven 10-year track record

What will we invest your money in?

The Fund may invest in a variety of shares, derivatives and cash. The Fund invests primarily in securities of companies located in India as well as those companies, located elsewhere, that derive a significant proportion of their earnings from India (Indian Securities). The Fund will comprise between 90% to 100% of Indian Securities with the remaining portfolio held in cash. Decisions to invest cash will be dependent upon the availability of other favourable investment opportunities.

A dedicated team on the ground gives us the edge

Idea generation

Every piece of information counts as we look for insights  into companies we believe show unrecognised potential.  This bottom-up approach uses first-hand company research  to evaluate potential investments.

Idea validation

Company visits play a key part in the investment process to assess profitability, attractiveness of a business, the track record and suitability of management structure and the level of returns given to shareholders. Our dedicated on-the-ground analysts use this process to help rate companies and filter recommendations, combined with the insights from our global research platform.

Portfolio construction and risk management

Final stock selection decisions are made by the Portfolio Manager, Amit Goel. Amit will look to invest in quality stocks trading below their intrinsic value - typically looking for sustainable superior earnings, real cash flows and mispriced companies.

Portfolio monitoring and oversight

Market conditions can change rapidly. Every 120 days, we review companies that have stock in the Fund. If things change, we can react quickly.

The Fidelity difference

Established in 1969, Fidelity International offers world- class investment solutions and retirement expertise. As  a privately owned, independent company, investment  is our only business and we're driven by the needs of  our clients, not by shareholders. Our vision is to deliver innovative client solutions for a better future. We're an active manager focused on global research,  and have one of the largest buy side research teams in  the world. It's our obsession with research, with insights globally and locally, which enable us to evaluate complex businesses and make better investment decisions for our clients.


How we invest your money

The Fund generally invests in a diversified selection of Indian Securities.

Fidelity believes that markets are semi-efficient and share prices don't always reflect inherent value. Through in-house, bottom-up company research, Fidelity aims to uncover the opportunities that it believes offer the greatest scope for outperformance.

Based on this research approach, Fidelity seeks out stocks that it believes are undervalued and likely to generate growth. The companies selected for the portfolio must demonstrate good management, strong competitive advantages and enjoy favourable industry dynamics.

The Fund's exposure to international securities will not be hedged back to Australian dollars. This means that the value of an investment in the Fund will change not only on the basis of a change in asset values, but also because of movements in exchange rates.

Asset classes and ranges

  • Indian Securities: 90% to 100%
  • Cash: 0% to 10%

The approach

The Fund is managed by Amit Goel. Amit has 12 years' experience and joined Fidelity in India in 2006. Amit is supported by Portfolio Advisor Sandeep Kothari,  an Indian equity specialist with over 20 years' investment experience. Amit's bottom-up approach favours high-quality companies with scalable business models and strong management track records available at reasonable valuations.  He keeps an eye on macro-indicators, especially for cyclical companies, to understand their stage in the business cycle. Amit has access to a team of seven analysts who are dedicated to India stocks,  plus the support of the broader Fidelity global research team.

We may make use of derivatives, such as futures contracts and swaps. A derivative is a security whose price or value is dependent upon or derived from an underlying instrument (such as shares, indices, interest rates, fixed income securities, commodities, currencies, etc). A derivative contract is a contract between two or more parties and its value is determined by fluctuations in the underlying asset. Generally, derivatives will be used for cash flow management purposes within the Fund. Any derivative exposure must be fully covered by cash or assets sufficient to meet any obligation that could arise. If derivatives are used, they will comprise a small portion of the Fund's assets.