Posted inHead To Head

HEAD-TO-HEAD: Alquity versus Fidelity

FSA compares two India equity products: the Alquity Indian Subcontinent Fund and the Fidelity Funds India Focus Fund.
by Rupert Walker

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Conclusion

Morningstar has awarded the Alquity product one star based on historical returns, and with a negative analyst rating. The firm rates the Fidelity fund much higher with four stars, and a forward-looking analyst rating of neutral.

FE Fundinfo, which bases its assessment on a fund’s three-year history of delivering alpha, minimising relative volatility and producing consistent returns, also awards rates the Fidelity fund higher, with two crowns, compared with just one crown for the Alquity product.

However, McDermott is less convinced by the views of these fund research firms.

“Despite the slightly better long-term performance, the Fidelity fund doesn’t really stand out for me and the manager is relatively new to the lead role,” he said.

“India has been lauded as possibly the most exciting investment opportunity in a generation. With its young, educated, and motivated workforce, I prefer the Alquity fund as it is more exposed to these trends.”

“The Alquity fund is not for the faint-hearted, but when coupled with Alquity’s excellent responsible investment approach, over the long-term it makes a great investment for both the soul and the pocket,” concluded McDermott.

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