Fidelity Mutual Fund has announced the launch of the Fidelity India Value Fund, an open-end diversified equity fund.
The fund will invest in Indian and international equities with special emphasis on undervalued securities.
It has been benchmarked to the BSE 200.
The fund house’s intention is to broaden its equity fund offering.
At the heart of the fund will be a bottom-up stock picking approach based on value investing that will focus on finding undervalued stocks.
The fund manager will check out the market inefficiencies that give rise to valuation anomalies and target stocks that are thereby revealed.
The fund allocation will be of 80-100 per cent of net assets in equity, and up to 20 per cent in cash, debt and domestic ETFs. The fund may well invest up to 10 per cent in foreign securities including overseas ETFs.
The exit load applicable will be one per cent if redeemed within one year while the minimum amount for lump sum investments is Rs 5,000.
The New Fund Offer (NFO) will remain open from November 16 – December 15, 2009.