Launched at a time when investors have been unnerved by extreme volatility in the markets, Fidelity's volatility tool demonstrates the importance of longer term investing and staying focussed on financial goals. The interactive micro site can be accessed at www.fidelity.co.in and has timeless investing truths, up-to-date data and dynamic graphics. Its simple design is visually engaging and showcases several scenarios and themes that will help educate advisers and investors about volatility. The web site has three tools that deal with different aspects of market volatility.
Timing the market
It is impossible to predict the best days and worst days in the stock market and missing just a few days of good performance can significantly reduce your overall return. This tool helps you establish how much you could lose on a notional investment of Rs. 1 lakh if you missed the 10, 20, 30 and 40 best days in the Indian market over a ten-year period.
Generally, the longer you remain invested, the more predictable your returns become. This tool helps you look at how volatility increases or dips as investments are held over a one-year to a ten-year period.
No matter how severe the crisis, markets always recover. This section allows you to check out how long the market took to return to its previous level after various crises.
"At a time when markets are unpredictable and investors are nervous about investing, it is important to provide information that puts current market events in to a longer-term perspective," said Ashu Suyash, Managing Director and Country Head - India, Fidelity International. "Our volatility web site provides tools that demonstrate why the basic principles of investing continue to make sense when investing in volatile times, especially those of investing for the long term and staying focussed on financial goals."
Other than India, the web site also provides similar tools for other markets including Hong Kong, Singapore and Canada to give investors a view of market behaviour across geographies. Investors visiting the volatility web site can also download a free copy of Fidelity's latest investor guide, "Making Sense of Markets".
Fidelity International's Indian asset management company started operations in the country in 2004. Its first fund, the Fidelity Equity Fund, was launched in March 2005.