Unfazed by the talks of European recession, Fidelity has filed an offer document to launch Fidelity European Dynamic Growth Fund.
The Indian fund will invest in Fidelity’s European Dynamic Growth Fund domiciled in Luxembourg. The fund invests in mid-sized European companies with a market capitalization between 1 and 10 billion Euros. The fund can invest upto 20 per cent in money market instruments or cash and liquid funds.
Fidelity’s European Dynamic Growth Fund has existed since January 2001 and given an annualized return of 2.9% since its launch (in Euros as on August 31, 2008). In terms of its geographic spread, 26% of the fund is in Switzerland, 25% in Germany, 15% in Sweden and 11% in the United Kingdom.
The fund will be benchmarked against MSCI Europe Index. It proposes to charge an entry load of 2.25 per cent for the investors investing below Rs. 5 crore and an exit load of 1 per cent for the investors redeeming the units within six months of the date of allotment. It has also estimated an average recurring expense of 0.50 per cent chargeable on weekly basis.
There has been a rush to launch a wide variety of the international funds in recent months. Atleast eight funds offer document has been filed with SEBI by JP Morgan, DWS, Goldman Sachs, Franklin Templeton and ING to launch the Indian version of their popular International funds.