Fidelity Special Situations Fund ISA

What is a Fidelity Special Situations Fund ISA?

A Fidelity Special Situations Fund ISA is a Stocks and Shares ISA that invests in the Fidelity Special Situations Fund.

What is a Stocks and Shares ISA?

A Stocks and Shares ISA is a type of tax-free savings account that allows you to invest in the stock market.

ISAs are completely free from income tax and capital gains tax.

You keep 100% of your profits from dividends and investment growth within a Stocks and Shares ISA as they’re tax efficient accounts.

What is the Fidelity Special Situations Fund?

Fidelity’s Special Situations Fund is a managed fund, specifically an open-ended investment company (OEIC), managed by Fidelity’s investment professionals.

You can invest in the fund through an investment platform such as Hargreaves Lansdown or Fidelity’s own share platform.

Units of the fund can be purchased within a Stocks and Shares ISA account provided by your platform, and you can invest from as little as £100.

What does the Fidelity Special Situations Fund invest in?

Here are the key facts to know before investing:

The investment fund invests in a range of companies in the UK and abroad, with a focus on UK stocks specifically.

At least 70% of its holdings will be UK companies at all times.

The fund has two main investment strategies:

1. It will choose companies it believes to be undervalued by the market
2. It will choose companies it expects to have recovery potential from a drop in market value

The fund invests for long term growth and generally aims to increase its value over a period of 5 years or more.

It’s therefore a suitable investment for a long term savings strategy.

Its performance can fluctuate, and its value can go both up and down, meaning you could lose money in your investment over the short term.

The Fidelity Special Situations Fund is graded as risk level 6 of 7, placing it high on the risk level, meaning it can fluctuate fairly significantly in value compared to safer investments.

How do I open a Fidelity Special Situations Fund ISA?

1. Open a self-select (also known as a DIY or self-invested) Stocks and Shares ISA account

You can do this via an investment platform online, and the process takes between 10-15 minutes.

2. Contribute up to £20,000 into your ISA

You can do this via a debit card payment, or by setting up a monthly direct debit contribution

3. Purchase units in the Fidelity Special Situations Fund

Navigate to the Fidelity fund via your online account and purchase units in the fund. You can mix and match with other funds and shares too if you wish.

Can I transfer an existing ISA into a Fidelity Special Situations Fund ISA?

If you have existing Cash or Stocks and Shares ISAs you want to transfer into the Fidelity Special Situations Fund, you can do so without it affecting your annual ISA allowance.

This means you can transfer as many ISAs you want to a new provider and still add £20,000 of new money if you wish.

To transfer a previous year’s ISA:

1. Complete an ISA transfer form with your new ISA provider
2. Post it back to your provider
3. They will complete your ISA transfer for you
4. Once it completes, invest your ISA savings into the Fidelity Special Situations Fund