Market Risk. Market risk arises from fluctuation in the market value of positions attributable to changes in market variables, (such as interest rates, foreign exchange rates, equity and commodity prices or an issuer's credit worthiness) held in the Fund. Market risk includes the risk arising from leveraging and inappropriate diversification. The Manager uses the leverage methodology (Gross Method and Commitment method) expressed as ratio between the exposure of a Fund and its net asset value to measure the Fund's global exposure and to monitor and manage the Fund's market risk volatility. Additionally, the Manager also calculates Value at Risk (VaR). The fund is investing into Fidelity Funds, cash and cash equivalents only and has no derivatives exposure; hence the leverage in both methods is low. Fund Name Commitment Method (%of Net Assets) Leverage Gross Method (%of Net Assets)
Market Risk. Market risk arises from fluctuation in the market value of positions (such as interest rates, foreign exchange rates, equity and commodity prices or an issuer's credit worthiness) held in the Fund. Market risk includes the risk arising from leveraging and inappropriate diversification. The Manager uses the leverage methodology (Gross Method and Commitment method) expressed as ratio between the exposure of a Fund and its net asset value to measure the Fund's global exposure and to monitor and manage the Fund's market risk volatility. Additionally the Manager also calculates Value at Risk (VaR). The fund is investing into Fidelity Funds, cash and cash equivalents only and has no derivatives exposure; hence the leverage in both methods is low. Fund Name Leverage Commitment Method (of Net Assets) Gross Method (of Net Assets) India Focus Fund 100.21 100.11
Market Risk. Market risk arises from fluctuation in the market value of positions attributable to changes in market variables, (such as interest rates, foreign exchange rates, equity and commodity prices or an issuer's credit worthiness) held in the Fund. Market risk includes the risk arising from leveraging and inappropriate diversification. The Manager uses the leverage methodology (Gross Method and Commitment method) expressed as ratio between the exposure of a Fund and its net asset value to measure the Fund's global exposure and to monitor and manage the Fund's market risk volatility. Additionally, the Manager also calculates Value at Risk (VaR). The fund is investing into Fidelity Funds, cash and cash equivalents only and has no derivatives exposure; hence the leverage in both methods is low. Fund Name Commitment Method (%of Net Assets) Leverage Gross Method (%of Net Assets) India Focus Fund 99.90 99.90 Liquidity Risk The Fund may encounter liquidity risk and the Fund may have difficulties in satisfying unitholder redemptions requests or other contractual obligations of the Fund by using existing liquidity positions or by liquidating positions in a timely manner at a reasonable price. In the event of high shareholder concentration, this is particularly relevant in the context of several top clients suddenly redeeming over a short period. The Manager has adopted a liquidity risk management framework of mitigation and control to manage liquidity risk combined with stress testing. In order to estimate the fund liquidity, FIL uses the MSCI's Risk Manager platform, known as LiquidityMetrics ("LM"). The Manager assesses the liquidity profile for each Fund. The Manager further assesses and monitors the investor base the unitholder concentration in the fund and the non-redemption liabilities. The Fund is obliged to redeem its units at the request of any unitholder in all but exceptional circumstances. In such exceptional circumstances, the Management Company may temporarily defer/suspend the redemption of units where this is justified having regard to the interest of the unitholders. As at 30 April 2022, the fund is invested in Fidelity Funds, cash or cash equivalents, which are deemed to be liquid. Please refer to the below detailed overview of the percentage of portfolio which can be traded to cash in the given number of days. Fund Name 1 days 5 days 20 days 65 days 126 days 252 days >252 days Above Transaction Cost Limit India Focus Fund 79.76% 96.78% 97.41% 97.41% 97...