Fidelity Tax Advantage Fund Review

I have invested Rs.50000 in Fidelity Tax Advantage Fund (Growth) during the NFO more than 3 years ago. Should I continue it further or redeem it?

Since it’s inception the fund has delivered 12.83% annualized return, outperforming it’s all the ELSS peers which generated just 6.3% return. The fund has given the best risk-adjusted performance. The fund is also rated 4 star by Morningstar.

The Volatility of the fund is relatively low. So I recommend you to stay invested in this fund for few more years. This is one of the best ELSS Mutual fund in it’s category.

The only decision I don’t like about you is that, I advise you not to invest in NFOs because NFOs don’t have any record of past performance. This time you are lucky that the fund outperformed. But from now onwards, don’t invest in NFOs rather than invest in funds having a past track record of good performance.