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Fidelity is unloading its mutual fund business in India, unable to make money after 8 years...

Fidelity is unloading its mutual fund business in India, unable to make money after 8 years despite industry assets there that have boomed to $134B. "It's a very worrying sign that a player like Fidelity is getting out," says a Morningstar analyst. To blame are the company's high pay structure and marketing costs, along with volatile stocks that have investors moving to bond funds.
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  • $CLU
    , contributor
    Comments (208) | Send Message
     
    "But just think of all those customers and the huge untapped market!"
    The next time I hear this from a young puke I'm going to put his nose to the grindstone for a business plan with every f'ing detail confidently solved.

     

    These untapped "markets" did not just fall of the turnip truck. Most business people in these countries are financially savvy. They grew up fighting their corrupt and over-reaching gov't to keep every last hard earned cent. Don't get me started on the affinity bias on top of this. These Governments have a "Hotel California" model, you can set up shop any time you like but your money (and jobs) can never leave.

     

    Looks like Fidelity and a number of other US fund companies were the one riding the turnip truck.
    27 Mar 2012, 01:01 PM Reply Like
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