The Hindu Business Line : Fidelity selects distributors to market equity fund

FIDELITY, which plans to launch its maiden equity fund in India, has signed on a string of national-level and regional distributors to vend its scheme. The entities that have been selected so far include some of the heavyweights in the business as well as relative newcomers such as Coolbrain Consultants.

Fidelity Equity Fund, which proposes to hold a diversified portfolio of about 75 stocks, will not be dispensed by all and sundry, certainly not in the initial phase, hinted Ms Ashu Suyash, Head of Business for Fidelity Fund Management Pvt Ltd, the Indian venture of Fidelity International Ltd.

Fidelity plans to build a network of distributors, including a few regional players, and work closely with them before the franchise is scaled up to take in new partners.

However, the intermediaries signed up by the fund so far, although limited in number, comprise both national and regional names; a few city-specific players are also part of the list.

The fund hopes to encourage savers to allocate in an orderly manner. "Investment in small and regular doses is what we have in mind. That will make it more affordable for investors," Ms Suyash noted, adding that the idea is part of Fidelity's overall plan for stepping up its presence in the Indian market.

The distributor community seems to be aware of Fidelity's plan with regard to those who are willing to back the SIP approach. Mr Naresh Pachisia, MD of SKP Securities, said the fund is on "the right track" in terms of tapping the retail segment. "The plan to offer SIP (systematic investment plan) from launch requires to be supported by those who have a stake in the well-being of the market", he said.

SKP Securities is part of Fidelity's chosen set in Kolkata.

According to Mr Ambarish Agarwal of Eastern Financiers, also one of Fidelity's local partners, the US-based fund house "has given an impression that it is not particularly running after trading, flighty money". Now, Fidelity's efforts will have to be supported by serious-minded investors, including those who wish to see Fidelity Equity Fund as part of their core holdings.

Mr Rupinder Singh, part of the two-member team that has recently flagged off Coolbrain Consultants, said his interactions with clients have led him to believe that there is a need for such a product.

"We have talked to our investors on the matter. Clearly, Fidelity's approach tells a lot about its strategy", he said. Coolbrain, it may be mentioned, is a new-generation intermediary, one that has been started by professionals who have worked in the banking sector.

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