What are your views on Fidelity Multi Asset Income Fund, please? I noticed it got an award from yourselves but that may have been a few years ago. To me it seems to be a stable, low risk fund, paying a good dividend in today's climate but it won't shoot the lights out. Only negative for me is that it seems to invest in a lot of other Fidelity funds investing in UK stuff, and therefore I suspect there may be considerable overlap. Cheers, Nigel
Thanks for your question. We're not allowed to give personalised financial recommendations so I can't comment on specific funds, but here are some general pointers and things to consider.
The award I think you're talking about was an award we gave to Fidelity for their platform business - this is the administration business which allows people to buy and sell funds, as well as hold ISAs and pensions.
This is very different to the Fidelity fund business, which makes the investment products themselves. So the award in question was for the Fidelity platform business and not the Fidelity fund business.
If I want a quick overview of any individual funds I tend to go to a site like Morningstar or Trustnet, and typically look at how a fund has performed compared to its benchmark.
The benchmark for this fund is called the “The Investment Management Association (IMA) Mixed Investment 0-35% Shares Sector”, and over the last five years the Fidelity fund has generally outperformed its benchmark, so there's nothing to raise any immediate red flags. This is a low risk fund as you say, and its purpose in life is indeed not to shoot any lights out.
As for the concentration risk you highlight, to my mind the most important thing is that you get diversification of geographies, of sectors, and of underlying investments. Fidelity is such a large global organisation, but I wouldn't worry unduly about the fact that they use in-house products to get you the exposure to various markets.
Have a look at Morningstar or Trustnet, but if you're broadly happy with how the fund is performing, the income it pays you, and the underlying investments that it holds, then I don't think you need to worry too much.
Hope this helps,
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