Posted inHead To Head

HEAD-TO-HEAD: Fidelity vs First State

FSA compares the Fidelity India Focus Fund with the First State Indian Subcontinent Fund.
by Fund Selector Asia
Performance

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Fidelity India Focus First State Indian Subcontinent MSCI India Index India Equity Sector (HK)
1-yr return 22.15% 22.98% 20.36% 23.78%
3-yr return 9.54% 18.33% 5.58% 10.55%
Alpha 3.72 11.21 5.51
Beta 0.99 0.91 1.00
Standard Deviation 17.45 16.50 17.14 18.15
Sharpe Ratio 0.75 1.20 0.55 0.83
Data: FE, Morningstar

Both funds delivered strong performance in the one-year period ending 18 May, exceeding the MSCI India Index, but coming short of the sector average for the period.

On a three-year basis, the Fidelity product again fell short of the sector average.

The First State fund comfortably outperformed both the category index and the sector average.

“Fidelity’s volatility is a touch higher, probably more in line with the market but still lower than the wider peer group,” Laidlaw noted, adding that it reflected the fund’s willingness to pursue growth stocks.

By comparison, First State’s fund has historically been less volatile than its peers, he said. “That really just highlights the conservative nature and the absolute return mindset focused on preservation of capital.”

“It hasn’t actually hurt shareholders at all. They still managed to deliver outstanding returns with the lower risk profile.

“Historically, First Street captures a large share of strong market gains,” said Laidlaw. “But where they really have come to the fore over the years is when the markets are in trouble. That’s when they stand out.”

 

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