Fidelity India Performance Review | News

What is the Fidelity India fund?

Fidelity India Fund aims to achieve returns in excess of the MSCI India Index over the suggested minimum investment time period of five to seven years.

Invests in a diversified portfolio of typically 30 to 50 Indian companies.
Uses in-house, bottom-up company research.
Fidelity seeks out stocks that it believes are undervalued and likely to generate growth.
The Fund suits for investors looking for an Indian equities investment who have a tolerance for a very high amount of risk.

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Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Latest News & Updates For Fidelity India

Fidelity India Fund Commentary June 30, 2023

The holding in Shriram Finance proved rewarding as it maintains a strong capital position, adequate liquidity and improving asset quality levels. It also remains on track to achieve double-digit growth in its assets under management and earnings, with an everincreasing demand for commercial vehicles in India. Shares in Astral advanced as it posted a strong set of earnings for the March quarter, buoyed by low-cost inventories. Moreover, the outlook remains healthy with robust growth across segments, aided by new product launches and geographical expansion. The holding in Tata Motors supported performance on the back of improved global electronic vehicle (EV) business. The company exhibits an adaptive product development strategy that is in sync with market readiness. It has a competitive advantage compared to its peers as it has developed custom made products for India, balancing accessibility and features. Many information technology (IT) services companies struggled amid heightened recession fears across the globe. Consequently, an overweight allocation to Infosys held back gains. The position in HDFC Bank detracted as its merger with HDFC would cause the net interest margin and return on equity to drop this year. The exposure to SRF weighed on returns as its technical textiles and packaging film segments have not been performing well in light of weaker demand and higher input costs.

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Product Snapshot

Product Overview
Performance Review
Peer Comparison
Product Details

Product Overview

Fund Name	APIR Code ? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.	Structure ?	Asset Class ? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.	Asset Category ? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.	Peer Benchmark Name ? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.	Broad Market Index ? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.	FUM ? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.	Management Fee ? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.	Performance Fee ? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.	Spread ? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
Fidelity India	FID0015AU	Managed Funds	Foreign Equity	Global Other	Foreign Equity - Other Index	Developed -World Index	203.09 M	1.2%	0.00%	0.8%

Performance Review

Fund Name	Last Month ? Returns after fees in the most recent (last) month).	3 Months Return ? Returns after fees in the most recent 3 months.	1 Year Return ? Trailing 12 month returns.	3 Years Average Return ? Average Annual returns from the last 3 years.	Since Inc. Average Return ? Average (annualised) returns since inception	1 Year Std. Dev. (Annual) ? The standard deviation (or annual volatility) of the last 12 months.	3 Years Std. Dev. (Annual) ? The average standard deviation (or annual volatility) from the last 3 years.	Since Inc. Std. Dev. (Annual) ? The average standard deviation (or annual volatility) since the fund inception.	1 Year Max Drawdown ? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.	3 Year Max Drawdown ? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.	Since Inc. Max Drawdown ? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Fidelity India	0.29%	2.35%	19.49%	8.44%	10.74%	10.07%	12.17%	21.46%	-3.43%	-15.25%	-62.39%

Peer Comparison

Fund Name	Peer Index Name ? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.	12 Months Excess Return ? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.	Excess Return Annualised Since Inception ? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.	12 Months Alpha ? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.	Alpha Annualised Since Inception ? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.	12 Months Beta ? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).	Beta Annualised Since Inception ? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).	12 Months Tracking Error ? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.	Tracking Error Since Inception ? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.	12 Months Correlation ? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.	Correlation Since Inception ? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Fidelity India	Foreign Equity - Other Index	-4.04%	1.52%	NA%	NA%	NA%	0.65	9.14%	14.55%	0.59	0.75

Product Details

Fund Name	Verifed by SMSF Mates	Manager Address	Phone	Website	Email
Fidelity India	Yes		-	https://www.fidelity.com.au/	-

Product Due Diligence

What is Fidelity India

Fidelity India is an Managed Funds investment product that is benchmarked against Developed -World Index and sits inside the Foreign Equity - Other Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Fidelity India has Assets Under Management of 203.09 M with a management fee of 1.2%, a performance fee of 0.00% and a buy/sell spread fee of 0.8%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the Fidelity India has returned 0.29% in the last month. The previous three years have returned 8.44% annualised and 21.46% each year since inception, which is when the Fidelity India first started.

How is risk measured in this investment product?

There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Fidelity India first started, the Sharpe ratio is NA with an annualised volatility of 21.46%. The maximum drawdown of the investment product in the last 12 months is -3.43% and -62.39% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.

What is the relative performance of the investment product?

Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Fidelity India has a 12-month excess return when compared to the Foreign Equity - Other Index of -4.04% and 1.52% since inception.

Does the investment product produce Alpha over its Peers?

Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Fidelity India has produced Alpha over the Foreign Equity - Other Index of NA% in the last 12 months and NA% since inception.

What are similar investment products?

For a full list of investment products in the Foreign Equity - Other Index category, you can click here for the Peer Investment Report.

What level of diversification will Fidelity India provide?

Fidelity India has a correlation coefficient of 0.75 and a beta of 0.65 when compared to the Foreign Equity - Other Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.

How do I compare the investment product with its peers?

For a full quantitative report on Fidelity India and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Fidelity India with the Developed -World Index?

For a full quantitative report on Fidelity India compared to the Developed -World Index, you can click here.

Can I sort and compare the Fidelity India to do my own analysis?

To sort and compare the Fidelity India financial metrics, please refer to the table above.

Has the Fidelity India been independently verified by SMSF Mate?

This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.

How can I invest in Fidelity India?

If you or your self managed super fund would like to invest in the Fidelity India please contact via phone or via email .

How do I get in contact with the Fidelity India?

If you would like to get in contact with the Fidelity India manager, please call .

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the Fidelity India. All data and commentary for this fund is provided free of charge for our readers general information.

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Historical Performance Commentary

Performance Commentary - March 31, 2023

The Fund returned -2.1% over the quarter, while the index returned -5.2%. Shares in several Adani Group companies experienced massive losses following the release of a research report that highlighted concerns over the group’s debt levels. Therefore, not holding Adani Total Gas, Adani Enterprises, Adani Transmissions and Adani Green Energy contributed to relative performance. The holding in HCL Technologies added value. The company posted higher-than-expected profits for the December quarter, aided by their strong order pipeline. Its shares are also supported by its long-term sustainable growth, better sales growth and higher risk-reward The conviction position in HDFC Bank enhanced gains as it reported a jump in net profits, buoyed by higher top-line and strong loan growth. The lack of exposure to ITC weighed on returns. It posted healthy profit estimates for the December quarter, helped by steady demand for its packaged food. The lack of exposure to Tata Consultancy Services pared gains. The company exhibits quality characteristics including better growth rates, margins and execution skills, which puts it ahead of its peers. Not holding Larsen & Toubro held back gains. Its biggest segment, infrastructure projects, reported a strong pick up in order inflow. The stock was sold from a sustainability point of view due to concerns around its defence business.

Performance Commentary - January 31, 2023

Performance Commentary - December 31, 2022

Holdings in IT services detracted from performance

An anticipated slowdown in IT spending, given rising inflation and a likely slowdown in global growth, put pressure on IT stocks. As a result, positions in Infosys and HCL Technologies held back gains, while the conservative exposure to TCS and the overall underweight in the sector added relative value. Infosys is expected to strengthen its sales team, with a special focus on large deals and investing in digital capabilities, which has resulted in market share gains and industry-leading growth over the last three years. HCL Technologies has created strong capabilities in cloud infrastructure services and benefits from the acceleration in the shift to cloud and cyber security requirements in remote workplaces.

Positions in NBFCs and insurance companies held back gains

The holding in Shriram Transport Finance, the largest used commercial vehicle financier in India slid. Investors took profits in the stock ahead of its merger with Shriram City Union Finance and Shriram Capital. The consolidation is set to create the largest retail non-bank financial company (NBFC) in the country. In the insurance space, positions in ICICI Lombard General Insurance weighed on performance.

Performance Commentary - September 30, 2022

Holdings in IT services detracted from performance
An anticipated slowdown in IT spending, given rising inflation and a likely slowdown in global growth, put pressure on IT stocks. As a result, positions in Infosys and HCL Technologies held back gains, while the conservative exposure to TCS and the overall underweight in the sector added relative value. Infosys is expected to strengthen its sales team, with a special focus on large deals and investing in digital capabilities, which has resulted in market share gains and industry-leading growth over the last three years. HCL Technologies has created strong capabilities in cloud infrastructure services and benefits from the acceleration in the shift to cloud and cyber security requirements in remote workplaces.

Positions in NBFCs and insurance companies held back gains
The holding in Shriram Transport Finance, the largest used commercial vehicle financier in India slid. Investors took profits in the stock ahead of its merger with Shriram City Union Finance and Shriram Capital. The consolidation is set to create the largest retail non-bank financial company (NBFC) in the country. In the insurance space, positions in ICICI Lombard General Insurance weighed on performance.

Stock picking in consumer discretionary added value
The allocation to premium two-wheeler manufacturer Eicher Motors proved rewarding with better-than-expected results due to its product mix and price hikes. The company also fared well on the export front, with an encouraging response from Brazil and Australia. Eicher Motors is trying to make the brand more accessible, with new product launches at competitive prices to attract young customers. The position in Sapphire Foods, one of the largest franchisees of Yum! Brands, which operates KFC/Pizza Hut stores in India, gained amid optimism around robust growth in its stores and a guidance upgrade.

Performance Commentary - June 30, 2022

The Fund returned -5.8% over the quarter, while the index returned -5.7%.

Selected financials added value
The holding in Shriram Transport Finance, the largest used commercial vehicle financier in India, advanced. In our view investor sentiment was buoyed by the RBI’s approval of the merger of Shriram City Union Finance and Shriram Capital Ltd with Shriram Transport Finance Company. The consolidation is set to create the largest retail non-bank financial company (NBFC) in the country. Holdings in private lenders HDFC Bank and ICICI Bank proved rewarding. We believe that shares in these banks gained momentum amid expectations of improved margins supported by interest rate hikes. The merger of Housing Development Finance Corporation (HDFC) with HDFC Bank may have further buoyed investor sentiment.

Underweight in IT services companies enhanced gains
Potential concerns over a slowdown in demand against the backdrop of muted economic growth weighed on IT services companies. The lack of exposure to Tech Mahindra and Wipro proved rewarding as these companies slid in line with global peers. Conversely, a slight overweight in Infosys held back gains.

Bias against utilities and selected automobile names detracted
Not holding selected utility companies, including NTPC, Adani Total Gas, Adani Enterprises and Adani Transmission held back gains. These companies fared well in a risk-off environment. The lack of exposure to tractor manufacturer Mahindra & Mahindra and automobile manufacturer Maruti Suzuki detracted from relative performance. Shares in these companies gained momentum towards the end of the period as commodity prices eased somewhat. Encouragingly, the exposure to premium two-wheeler manufacturer Eicher Motors proved rewarding amid steady demand in both domestic and international markets. The company has an encouraging response from Brazil and Australia on the export front. Moreover, its new launches, distribution network expansion in underpenetrated Indian states and international expansion are helping to offset the slowdown in more mature states.

Performance Commentary - March 31, 2021

Stock selection in utilities and financials proved rewarding In the utilities space, Gujarat Gas was supported by continued strength in its core area in Gujarat and continued expansion into new regions. It remains a key beneficiary of the government’s impetus to adopt greener fuel in India. Among financials, Shriram Transport Finance Company benefited from the post COVID-19 normalisation, driven by favourable government policies and easy liquidity. The position in Axis Bank, India’s third largest private sector lender, rebounded on increased confidence about the bank’s resilience during the pandemic. Construction proxy stocks added value India’s largest structural steel tubes and pipes player APL Apollo Tubes gained momentum amid an encouraging demand outlook, driven by the launch of new products with strong distribution and branding efforts. Ultratech Cement also advanced during the month. Increased government spending on infrastructure projects, low interest rates supporting housing demand and ongoing government programmes for low-cost housing is driving cement demand. Chlorinated polyvinyl chloride (CPVC) pipe player Astral PolyTechnik gained momentum after it reported better than expected earnings due to higher plastic pipe margins, and strong revenues and margins for its adhesive business.

Performance Commentary - February 28, 2021

Invests in a diversified selection of 30 to 50 Indian companies and draws on the research capabilities of Fidelity’s analysts based on the ground in India. Valuation plays a key role in stock selection. Portfolio holdings are continually assessed against new investment ideas.

Fidelity India (FID0015AU) Report & Performance