Fidelity Intl Opportunities Fund to invest in India, abroad

Mumbai: Leading Asset Management Company Fidelity Fund Management on Monday announced its first international open-ended equity growth scheme that seeks to invest in both Indian and international equities.

The new offering, Fidelity International Opportunities Fund, will invest 65 per cent in Indian equities and around 35 per cent in international equities with a focus on Asia, company managing director and country head Ashu Suyash told reporters here.

While this is the first international offering, Fidelity awaits regulations on the $ 50,000 remittance scheme for Indian individuals, to introduce other global products.

"The limit for individual remittance for purchasing financial products is $50,000 and we hope to launch products in this segment but it depends on when regulations are announced," she said.

The limit for investment for mutual funds in international markets is $150 million. While individuals can invest up to USD 50,000 annually in buying stocks abroad or acquiring property, financial intermediaries are currently not allowed to market such products to investors here.

Fund manager Rajesh Singh said international investment will provide diversification benefits. Asia is going through a growth phase and offers a wide set of opportunities, he said.

The new fund offer will open from April 9 to 30, 2007. Entry load is 2.25 per cent for each purchase of less than Rs five crore.

There is an exit load of one per cent for redemptions within the first six months. Minimum investment amount is Rs 5,000 and a systematic investment plan option too is available.