Fidelity Mutual Fund has launched the Fidelity Global Real Assets Fund, which is an open-ended fund of funds (FoF) scheme that combines thematic thinking and a bottom-up stock idea selection, according to the fund house.
The fund looks to generate growth from a portfolio invested in Fidelity Funds – Global Real Assets Securities Fund which is an offshore fund.
The Global Real Assets Securities Fund invests in equity securities all around the world leading to a diversified exposure spanning commodities, property, industrials, utilities, energy, materials and infrastructure.
"Indian investors have always had a soft spot for physical assets, like gold and real estate. The Fidelity Global Real Assets Fund brings the option of adding a whole range of physical assets through the convenience of a diversified equity fund," said Ashu Suyash, MD & country head – India, Fidelity International.
The fund is looking to invest up to 100 per cent in shares and units of the underlying scheme, (which itself would invest 70 per cent in global equity securities), while it would also look to invest up to 20 per cent in money market instruments and liquid, or cash, schemes of mutual funds registered with market regulator Securities and Exchange Board of India (SEBI).
The fund would be benchmarked against the following indices – MSCI ACWI Industrials, MSCI ACWI Real Estate, MSCI ACWI Utilities, MSCI Materials and MSCI Energy. The weights assigned to each individual index while calculating the custom benchmark is 20 per cent, 20 per cent, 10 per cent, 20 per cent and 30 per cent respectively.
The New Fund Offer (NFO) opened on January 11 and will close on January 29, 2010. It offers both growth and dividend options, with the latter offering a dividend payout and dividend re-investment facility.
The fund will be managed by Subramanian Balakrishnan, who has a 10-year industry experience. He holds B.Com and MBA (Indian School of Business) degrees, and is a qualified Chartered Accountant.
The offer is for units of Rs 10 each during the NFO.
The minimum application amount is Rs 5,000, while the minimum additional application amount is Rs 1,000.
The minimum amount for redemption would be Rs 1,000.
One per cent exit load would be applicable if the investment is redeemed within one year.