Fidelity India Special Situations Fund

Fidelity India Special Situations Fund is being managed by Nitin Bajaj and Anirudh Gopalakrishnan. Nitin has 12 years experience in this domain and took over in 2009 while Anirudh has 10 years of experience and joined in 2010. It is good performer and its performance has shined.

Where does Fidelity India Special Situations Fund invest your money?

Fidelity India Special Situations Fund is a thematic multi cap fund which invests your money in large, mid and small cap stocks of high growth companies. It has 52% exposure to large cap companies, 23% exposure to mid cap companies and 16% exposure to small cap companies. Large cap companies tend to be stable compared to mid cap and small cap companies. Small and mid size companies have the potential to become large companies and when that happens you are expected to get bumper returns.

Suitable for what?
  • Creation of wealth
  • Lifestyle needs
Not suitable for?
  • Child's Education
  • Child's Marriage
  • Retirement Corpus
  • Buying Home
How much to invest?

Minimum one time investment is Rs 5000 and minimum SIP is Rs 1000 per month. Do not make Fidelity India Special Situations Fund as part of your core portfolio. Core portfolio is investments that are made for your basic goals and makes up about 70% of your investment portfolio. Do not make the mistake of investing in too many mutual fund schemes. At any point of time do not have more than two mutual fund schemes in your core portfolio. Fidelity India Special Situations Fund can be part of the satellite portfolio.

Our recommendation for fresh investment
Recommended
Our recommendation for existing investment
Recommended
How has Fidelity India Special Situations Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in May 2006 the value of your investments would be around Rs 1.7 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.3 lakhs. The performance has been not better than or similar to other mutual funds in this category. The fund has been giving at around 5% every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in Fidelity India Special Situations Fund through SIP for the past 5 years today you would have just around Rs 7.5 lakhs.

How will Fidelity India Special Situations Fund perform in the future?

Needless to say no one can predict the future of markets. We have firm belief in the future prospects of the Indian economy. If the Indian economy grows at 9% then the leading companies tend to do well. When the companies do well their stock prices follows their performance. So if you expect the economy to grow at 9% then you can expect top performing mutual funds to give you returns in excess of 15%. 

We advise you to avoid too much of star gazing and future prediction. Be reminded that equities are one of the asset classes that have the potential to beat inflation. Your aim for core portfolio should be to beat inflation.

When to review the performance?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good.

What charges apply?

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of Fidelity India Special Situations Fund is 2.59%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.

When to exit?

Withdraw when your goals are closer to achievement. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.

What are the tax implications?

The returns in a mutual fund are absolutely tax free, provided you do not withdraw within 1 year. Fidelity India Special Situations Fund does not qualify for sec 80C ELSS benefits.

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