I'm a beginner investor, low risk taker. What are your views on investing a lump sum in the fidelity funds global multi asset income fund? It's recommended by the bank manager. Any advice?

Hi Anon!

Fidelity Global Multi Asset Income Fund is a unit trust and no investments are guaranteed, objective of the fund is 'to provide income and moderate capital growth over the medium to longer term by investing in global fixed income securities and global equities.' Please do look at the fund factsheet for full details.
1) The fund has dividends, are you going to invest or cash them out?

2) Are you okay with volatility? Despite it's allocations there is some form of volatility with the current bond and European exposure.

3) The good thing about the fund is that, it is diversified globally (so risk is diversified), but will the fixed income/ bond/ Europe portion grow enough (recover in this economy) for you? Does the risk to you, worth the return provided?

4) When do you need the lump sum? Short term or mid-long term?

5) And what's the sales charge? 😉 The sales charge will affect your net returns as well.

This does not constitute professional advice, just something to consider.

Hi, If you are a low-risk taker, you should only be considering taking sovereign bond funds. See below adapted from FSM.

Fidelity Multi-Asset Income Fund, as the name implies, consists of equities inside. When there are equities in a portfolio, minimum risk profile should be Moderate Risk due to the increase in volatility. Your financial advisor should be aware of your risk profile before accessing what funds to pitch.

Aside from your risk, you may want to note that the NAV (price) of this fund is still performing below its long-term linear trend line and its dividend has been trending down gradually since inception. By taking these pointers, it's always good to constantly challenge your advisor for better alternatives to ensure that they are doing their job in delivering value to your portfolio. Question their recommendations and if they are able to convince you via a logical and analytical approach, supported by proper data analysis, you can be sure that you are in the right hands.

These are some of the important questions to know before deciding which funds to invest in:

• How has the NAV (price) been trending since inception?

• How has the fund been performing quarter on quarter since inception?

• How has the dividend been trending since inception?

• How has the fund size been growing?

• What are your probabilities to make/lose money?

• What are your average (+) and (-) returns?

• Is your fund outperforming or underperforming the benchmark? (For Unit Trust)

You can find a list of useful charts and checklists of Fidelity Funds Global Multi-Asset Income Fund to do your own analysis and answer the above questions via this link: https://dl.orangedox.com/fund-analysis-pdfs

File Name:

FID FDS GL MULT AST I-AMIGSG (FFAMIGS LX Equity)_update_050720

You can even print the charts out and discuss with your advisor to see if there are better alternatives out there that suit your risk profile. Hope it helps.​​​