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Fidelity Equity NFO

The fund house’s investment approach is targeting undervalued securities

Fidelity Mutual Fund has launched the Fidelity India Value Fund, an open-end diversified equity fund. This is the fifth equity diversified fund launched by the fund house.

The fund style will tend towards value bias and therefore will invest in Indian and international equities with special emphasis on undervalued securities.

While the fund would have an allocation of 80-100 per cent of its net assets in equity, it would have up to 20 per cent allocation in cash, debt and domestic ETF. The fund may well invest up to 10 per cent in foreign securities including overseas ETFs.

The fund has been benchmarked against BSE 200 Index.

Fund Family

Fidelity International’s India Asset Management Company started its operations with the launch of its first fund, Fidelity Equity, in 2005. Since then it has built a reputation for itself as a fund that refuses to chase momentum stocks and instead gives weightage to a diversified portfolio. At present, the total assets under management (AUM) is over Rs 8,700 crore (average AUM, October, 2009). Some 74.20 per cent of its total assets are in equities.

    Returns (%)  
Funds  3 months  1 Yr  2Yr
Fidelity Equity 6.59 68.03 -4.82
Fidelity India Special Situations 6.89 66.06 -6.40
Fidelity International Opportunities 9.00 62.71 -4.33
Fidelity India Growth 6.32 71.83 -3.61
Trailing Returns as on October 31, 2009

Fund Manager

Nitin Bajaj, a B.Com (H) degree holder, is a chartered accountant, and also possesses an MBA (INSEAD). He has 11 years of experience having held positions as portfolio manager - equity in FIL Fund Management Private Limited apart from being Assistant Portfolio Manager and analyst in FIL.

The fund manager for foreign securities will be Subramanian Balakrishnan who holds a B.Com degree (is a Chartered Accountant) and an MBA degree from Indian School of Business.

Basic Details

Type: Open-end equity growth scheme
NFO Opens: November 16, 2009
NFO Closes: December 15, 2009
Plan / Options: Growth and Dividend option
Minimum Application Amount: Rs 5,000
SIP Investment: Minimum of Rs 500 in six installments
Minimum Additional Application / Redemption: Rs 1,000
Benchmark: BSE - 200 Index
Exit Load Structure: One per cent for redemptions within 1 year.
Annual Recurring Expense (maximum): 2.50 per cent per annum (including investment management fee of 1.25 per cent