The Hindu : Business : Fidelity floats maiden mutual fund scheme

Online edition of India's National Newspaper
Wednesday, Mar 16, 2005

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Fidelity floats maiden mutual fund scheme

MUMBAI, MARCH 15. The U.S.-based Fidelity Fund Management Private Ltd (FFMPL) will float its maiden mutual fund product, Fidelity Equity Fund, an open-ended growth scheme, on March 21. The scheme will close for subscription on April 19, FFMPL head of business, Ashu Suyash, told reporters here today.

The scheme is aimed at generating long-term capital growth from a diversified portfolio of predominantly equity and equity-related securities, Ms. Suyash said.

The mutual fund would charge entry fee (load) of 2.25 per cent for investments less than Rs. 5 crores and would levy exit load of one per cent for redemptions from lumpsum investments held for less than six months, she said. The scheme would contain a portfolio of about 75 stocks.

While there are no restrictions on individual holdings, the fund manager would rarely allocate over 4 per cent to one stock, ensuring diversification across companies, she added. She did not elaborate on specific sectors that looked attractive for investment but said the MF would follow a bottoms-up approach.

Asked if Fidelity was late in floating a fund in India, she said Fidelity had been an active player as foreign institutional investor in India since the early `90s and now its assets portfolio here was worth $2.5 billion. — PTI

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