Fidelity Equity

[soaringhigh]

hi! Ppl,

I am very new to investing in MFs. This May i have invested in Fidelity, considering the point that it has been the no1 investor outside INDIA and feeling that it would surely make a good start in India as well...

I think it has done considerable well in the last 4 months increasing by more than 30%... but still i have a few Qs left..

1) What is the time period after which Fidelity will give returns..
2) On what factors do these returns depend ( for any MFs)
3) It is not under the tax exemption category..if i don't sell off these units can i show it in my investment proposal for tax exemption next year...

Any help with these Qs and further basic information is awaited...

[coljaspal]

Dear Soaringhigh,
I'm not an expert on mutual funds but can answer your questions:
1. You asked the time period when Fidelity would give returns. You also mentioned that your investment has already increased by 30%. That being the case, you already have the returns. 30% over 4-5 months is not bad, but you should regularly compare its performance with the Sensex/Nifty and also other good mutual Funds. If you are asking about the dividend, it will be paid only if you are in the dividend payout option and too whenever the fund announces one. Generally most equity funds payout dividends once a year (though in good times, some even payout twice).
2. The returns depend on how how much the stocks held by the fund have appreciated/depreciated.
3. As you said yourself, the Fidelity fund is not an ELSS, and hence it will get you no benefit under Sec 80C. However, dividends from equity funds are tax exempt. The capital appreciation is also exempt of Capital Gains Tax if the holding period is more than one year.
For loads of information on mutual funds go to Valueresearchonline.com and the mutual fund section on Moneycontrol.com.

[nrip]

Hi,

Fidelity is a very good Fund. It has shown good appreciation. (nearly 36 % since inception). Now that you ask when it will show returns, you must clarify what you are looking for ? Over the Long Run( a 5 Year period), I expect Fidelity to mantain an annual 40% growth. Which I believe is a very good Return on Investment for any Mutual Fund.

2) On what factors do these returns depend ( for any MFs) => Asset Allocation amongst various equities. Which all shares does the MF hold, and how it manages this allocation. Whether it sells at the right time, whether it buys at the right time...those factors determine the returns...

[darsh_goswami]

Fidelity is an excellent performer,.. but if ur going for tax saving go for any ELSS fund ( Reliance is one of them n lookin very smart performer )
But instead of pickin up the funds at higher prices i would suggest its better to go for New Fund Offers ,.. N remember investments in Funds r less risky then the stock market ,..
Go for TATA Contra ,.. NFO is runnin ,..
Regards

[psrikant1978]

I use icicidirect.com to invest in stocks and MF.

I don't see any MF from fidelity. Can you please give me the exact name of the mutual fund and its current NAV.

Thanks
Prashanth

[coljaspal]

Originally Posted by darsh_goswami

Fidelity is an excellent performer,.. but if ur going for tax saving go for any ELSS fund ( Reliance is one of them n lookin very smart performer )
But instead of pickin up the funds at higher prices i would suggest its better to go for New Fund Offers ,.. N remember investments in Funds r less risky then the stock market ,..
Go for TATA Contra ,.. NFO is runnin ,..
Regards

Dear Darsh,
I wouldn't recommend new fund offers to anyone, unless one is very confident of the ability and proven past performance of the fund house and the fund manager. While past performance is no guarantee for future results, it still gives us a measure of how a particular fund performed during previous bull and bear phases. Past performance should be used to compare various funds in the same category over different time periods.
One should not worry about whether the NAV of a fund is high or low. It is immaterial while making an investment decision.
Consider the hypothetical case of two funds having exactly identical investments. The fund which has issued a larger number of units will have a lower NAV than the other which has issued lesser number of units. This is so because the NAV of a fund is equal to the total value of the assets divided by the number of units issued. Since the investments of the two funds are identical, their performance (till the time portfolios are not switched) will also be identical, regardless of one having a lower NAV than the other.
I feel that the performance of an equity fund depends on:
(a) Its present portfolio.
(b) The ability of the fund manager to correctly decide when/what to sell and when/what to buy.
Would appreciate your views.....
Jaspal

[coljaspal]

Originally Posted by psrikant1978

I use icicidirect.com to invest in stocks and MF.

I don't see any MF from fidelity. Can you please give me the exact name of the mutual fund and its current NAV.

Thanks
Prashanth

Dear Prasanth,
ICICI Direct does not offer mutual funds of all AMCs. If you are interested, they have a toll free number 1600121262 and their website is www.fidelity.co.in
Jaspal

[swama694]

I was going thru offer letter of Fidelity Equity and it sounds interesting...do u have any idea about this fund?

[marghadedk]

Fidelity Equity is large cap diversified equity fund launched in April 2005.Fund has done well in the past with decent returns 50% & 47.5% for 1 yr. and 2 yr. respectively.

[Vicky78]

Its a good fund.

It did will in Feb 07 quarter losing much lesser than the average and fair enough during the May 06 quarter. It follows a buy and hold strategy.