Fidelity Mutual Fund
Fidelity Mutual Fund
Introduction
Fidelity Mutual Fund, operating under FIL Fund Management Private Limited, was the Indian asset management arm of Fidelity Worldwide Investment (now Fidelity International), a global leader in asset management. Fidelity entered the Indian mutual fund market in 2004, bringing its renowned global investment expertise and research capabilities. It aimed to provide high-quality mutual fund products with a strong focus on active management, particularly in the equity space.
Despite its global reputation and strong investment performance in India for a period, Fidelity decided to exit the Indian mutual fund market. This decision, announced in 2012, was attributed to various factors, including the challenging regulatory environment (like the ban on entry loads) and the difficulty in achieving the desired scale and profitability in the highly competitive Indian market.
In March 2012, L&T Finance, a subsidiary of Larsen & Toubro, announced the acquisition of Fidelity's entire Indian mutual fund business. The acquisition was completed by November 2012, and all schemes of Fidelity Mutual Fund were subsequently transitioned to and eventually renamed or merged with L&T Mutual Fund schemes.
Therefore, Fidelity Mutual Fund does not exist as an independent entity managing funds in India today. Its legacy and investor base were absorbed into L&T Mutual Fund, which itself was later acquired by HSBC Mutual Fund in 2022.
Fund Managers
Since Fidelity Mutual Fund's schemes were acquired by L&T Mutual Fund (and subsequently by HSBC Mutual Fund), there are no active fund managers directly employed by "Fidelity Mutual Fund" in India. The erstwhile schemes of Fidelity Mutual Fund are now managed by the fund management team of HSBC Mutual Fund.
Previously, Fidelity India had a strong equity team, with individuals like Sandeep Kothari managing some of their key equity schemes. However, these individuals either moved within Fidelity's global operations or to other AMCs after the acquisition.
To understand the fund managers, one would need to refer to the HSBC Mutual Fund management team, as they are the current custodians of the funds that originated from Fidelity's India operations.
Scope and Investment Philosophy
The original scope and investment philosophy of Fidelity Mutual Fund in India were built on Fidelity's global strengths:
- Active Management: A strong emphasis on bottom-up, fundamental research-driven active management, particularly in equities. They aimed to identify high-quality businesses with strong growth prospects.
- Global Research Integration: Leveraging Fidelity's vast global research network and analytical capabilities to inform investment decisions in India.
- Customer Focus: Providing accessible and well-managed investment products to a broad investor base.
- Diversified Offerings: Offering a range of equity, debt, and hybrid funds.
However, since the acquisition, the investment philosophy and scope applicable to the former Fidelity schemes are now those of HSBC Mutual Fund. HSBC Mutual Fund's philosophy generally emphasizes:
- Global Expertise, Local Relevance: Combining HSBC's global investment prowess with deep local market understanding.
- Disciplined Investment Process: Adherence to a structured and repeatable investment process across asset classes.
- Risk Management: Strong focus on prudent risk management and portfolio construction.
- Value-Oriented Growth: Often seeking growth at a reasonable price (GARP) in equities.
- Credit Quality (Debt): Prioritizing credit quality and active duration management in fixed income portfolios.
Part 2: List of Funds with Brief Explanation
As Fidelity Mutual Fund's schemes were acquired by L&T Mutual Fund and subsequently merged or renamed, there are no funds currently listed under the "Fidelity Mutual Fund" brand in India.
Some of the prominent schemes that existed under Fidelity Mutual Fund at the time of its acquisition (prior to November 2012) included:
- Fidelity Equity Fund: A diversified equity fund.
- Fidelity Tax Advantage Fund: An ELSS (Equity Linked Savings Scheme).
- Fidelity India Growth Fund: An equity growth-oriented fund.
- Fidelity India Value Fund: An equity fund focusing on value investing.
- Fidelity Global Real Assets Fund: An international fund focusing on global real assets.
- Fidelity Flexi Gilt Fund: A debt gilt fund with flexible maturity.
- Fidelity Wealth Builder Funds (various plans): Hybrid funds with different asset allocations.
- Fidelity Fixed Maturity Plans (various series): Close-ended debt funds with fixed maturity periods.
- Fidelity Short Term Income Fund: A short duration debt fund.
- Fidelity Liquid Fund: A liquid debt fund.
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