Fidelity India Children's Plan

[vishal412]

A Hybrid Fund is one where investments are made in different asset classes. Such a fund invests in asset classes like equity & equity related instruments, debt & money market instruments, and gold. Thus by having an exposure to different and least co-related securities, such a fund offers the benefit of diversification and helps in managing the returns during turbulent times.

Equities provide the chance to earn an extra income through dividends and capital appreciation over a period of time, whereas debt instruments provide the safety and stability of regular income from coupon payments. However, it is noteworthy that in times of market uncertainty, equities can get very volatile which may negatively affect the overall portfolio’s return.

Read more:xxxxxxxxxx

 

[asterix24]

Hi Vishal,

Thanks for posting this. However, I would like to comment on your post, which is nothing but the scheme information document for Fidelity's new children plan. Your post hasn't got a view or review attached and hence, I am trying to add to the conversation.

I have analyzed a few children plans from quite a few fund houses and am disappointed by their performance. I have seen that lot of other reviewers on most of the forums also agree with this thought. Typically Crisil index has delivered a decent return compared to these funds.

I have a fundamental question which I am trying to answer. What is the objective of investing into this fund? Why can't I save into a balanced fund or a equity fund for my child? What do these children's plans provide to an end consumer like me?

An interesting twist to the tale is "Marriage Fund" concept, where Gold ETF is part of the strategy. I would rather wait for the fluctuation in gold to settle and then buy units directly.

I would rather invest in HDFC Prudence fund (If I really want balanced fund) or HDFC Equity/IDFC Imperial Equity or similar fund for saving for future.

These are my thoughts and would love to hear from you or others who can provide a different perspective.

Happy Investing !!

 

[xxdiesel]

My guess is that Vishal is either a broker or works for Fidelity.

I wouldn't invest in this or any other such plan. Even if somebody who doesn't have any investments wants to try this as part of a portfolio, I would suggest they avoid it and construct their own portfolio based on their risk appetite and from various fund houses.

 

[ris]

Hi Vishal,


I would rather wait for the fluctuation in gold to settle and then buy units directly.

Have you had a look at the new Reliance gold savings fund? Do you find it's worth investing in this through SIP?