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(From right) Mr Richard A. Spillane, Executive Vice-President & Head of Global Investment Strategy, Fidelity Investments, with Mr Richard Wastcoat, MD, and Mr Arun Mehra, Fund Manager, Fidelity Equity Fund, at a press conference in Mumbai on Tuesday. - Paul Noronha

Mumbai , March 15

FIDELITY Fund Management on Tuesday launched its first mutual fund scheme for the Indian market.

The Fidelity Equity Fund is an open-ended equity growth scheme that will rely on the fund house's `bottom up' stock picking expertise. The initial public offering of the fund will open on March 21 and closes on April 19.

"Fidelity Equity Fund is designed to be a core holding in an investor's portfolio as it aims to build a diversified range of stocks with strong growth potential regardless of any particular sector or market cap," said Ms Ashu Suyash, Head of Business, Fidelity Fund Management.

The fund will invest across a broad range of scrips and the portfolio will contain about 75 stocks. Holdings in individual stocks are not expected to exceed 4 per cent of the fund and the prevailing cap on investments in a certain sector would be 25 per cent, said Mr Arun Mehra, Fund Manager of the Fidelity Equity Fund.

Mr Mehra also said stocks would be held for a period of one year or more and the fund will be fully invested at most times, with very little cash holding.

In a bid to induce retail investors to invest in the scheme, the fund offers a systematic investment plan (SIP), right from the IPO.

Ms Suyash said the fund would levy an entry load of 2.25 per cent, but will be free for SIP investments of less than Rs 1 lakh. The minimum investment amount for the scheme is Rs 5,000. For an SIP commitment of Rs 5,000, the initial investment can be as low as Rs 500, said Ms Suyash.

Fidelity is launching its Indian operations this year and is also entering Korea, Australia and Germany.

Mr Richard Wastcoat, Managing Director, Fidelity Investments International, said the company believes that the Indian mutual fund industry presents an exciting opportunity and they expect to see significant growth in the years to come.

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