Fidelity plans to launch diversified fund in India

Fidelity Investments, which has $1,200 billion — around Rs 54,00,000 crore or more than double India’s GDP — assets under man...

Fidelity Investments, which has $1,200 billion — around Rs 54,00,000 crore or more than double India’s GDP — assets under management, is planning to launch a diversified equity mutual fund scheme in India.

The world’s largest fund manager has over 20 million investors in over 100 countries.

The US-based mutual fund is making a late entry into India. Other major fund houses like Merrill Lynch, Morgan Stanley, Prudential and Templeton are already present in India.

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Fidelity is making an entry into the Indian markets when stock indices are touching a new peak every day.

Making a presentation here on Thursday, John Ross, Executive Director of Investment Communications said the MF scheme has received the in-principal approval from the market regulator Securities and Exchange Board of India (Sebi) to launch their first scheme by January 2005. The final approval is awaited from Sebi.

The company — which also has a BPO unit in the country — has 523 people on its rolls. The mutual fund arm has hired 52 people.

Fidelity is already a big investor with investments of $1.4 billion in the Indian stock market as a foreign institutional investor. It has hired former Citibank operative Ashu Suyash as its India head of operations.

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Company officials said presently there are many opportunities in small and medium cap shares. The Indian markets look attractive, said an official.