Performance review
The Fidelity fund has a higher three- and five-year standard deviation than the Schroders fund, indicating it is more volatile, she pointed out.
The three-year standard deviation for the Fidelity fund on 30 June was 12.78 compared to 10.79 of the Schroders fund, according to Morningstar.
Despite volatility, the Fidelity fund has fared better than the Schroders fund over one- and three-year periods to 30 June. On the other hand, the Schroders fund outperformed the Fidelity vehicle over a five-year period, as per the table below:
Source: FE Analytics
The better performance of the Fidelity may be due to its higher exposure to the Indian market, said Share.
“That market has rallied quite strongly. The Schroders fund has only 10% exposure to India [as seen in the portfolio snapshot table].”
Meanwhile, upside and downside capture ratios of the two funds are nearly similar. Both funds would perform well during market upturns and less well when markets are weak.
A look at the upside and downside capture ratios for three- and five-year periods until 30 June:
Source: Morningstar
“At the margin, we see that the Fidelity fund performs better in up markets but also sees more losses in down markets compared with the Schroders fund. I would, however, stress that there is only a slight difference.”
