Fidelity’s foreign fund offer

Want to hold international scrips in your portfolio and get help to diversify in the process? The new Fidelity International Opportunities Fund, from the stable of fidelity AMC, seeks to invest in the best opportunities available in the Indian and international markets, with a high focus on opportunities in the Asia Pacific region, including India, but excepting Japan.

The fund will have a bottom-up, stock-picking approach. In the name of diversification, investments would span across countries and market capitalization.

To give it a really punchy and aggressive approach, meaningful bets will be made on high conviction individual stocks. Usually, a 3-to-4 per cent exposure to one company’s equity is considered safe, yet Fidelity is very confident about its strategy and it is targeting an exposure as high as 6-to-8 per cent. However, valuations would be key considerations in stock selection and portfolio construction.

Fund objective

To generate long term capital appreciation from a diversified portfolio of predominantly equity and equity related securities including equity derivatives in the Indian and international markets

Asset allocation

At least 65 per cent in Indian equities, 30 per cent in International equities with bias towards Asia Pacific markets, up to 5 per cent in cash.

Should tax rules change, the fund can consider a higher allocation to international equities, beyond 35 per cent, subject to the limit laid by SEBI/RBI which currently stands at $150 million.

Fund managers

Rajesh Singh and Leng Ng

SIP availability:

Yes

Options:

Growth and dividend options available. The dividend option offers payout or reinvestment facilities.

Tax benefits:

Similar to domestic equity-oriented funds.

Initial issue expenses:

Limited to entry load only. No amortisation,

Minimum Investment:

For opening a folio Rs. 5,000

For SIP:

Minimum annual amount Rs.5,000 from a minimum 6 installments.

Minimum single installment of Rs. 500.

Auto-debit facility available from NFO onwards.

Entry Load:

Lump-sum investments for each purchase:

Of less than Rs. 5 crore-2.25 per cent.

Exit Load:

For redemptions within 6 months from the date of allotment/purchase on first-in-first-out basis: 1.00 per cent.

Average return of Fidelity Fund house

Mutual Fund

15 Days

31 Days

91 Days

182 Days

1 Year

3 Year

5 Year

Equity

Fidelity Mutual Fund

-0.1536

1.7393

-7.1392

7.4527

12.3958

N.A

N.A

Tax Planning

Fidelity Mutual Fund

-1.0739

5.1499

-4.1389

8.4967

7.9724

N.A

N.A

Compare that to the average returns made by the Sensex.

Index Name

7 Days*

14 Days

1 Month

2 Months

3 Months

6 Months

1 Year

2 Years

3 Years

5 Years

BSE Sensex

-0.9521

-3.3961

3.5525

-11.4345

-7.2468

3.7667

9.4423

96.2673

120.213

267.2568

Date: 05/04/2007