Fidelity launches scheme to tap ‘intrinsic value’

[markettrend766]

Fidelity Mutual Fund on Monday announced the launch of an open-ended, diversified, equity fund that will invest in companies that have more intrinsic value than reflected in their stock prices.

Mr Nitin Bajaj, Fund Manager, Fidelity India Value Fund, said the “investment process will take into account information advantage and valuation anomaly while investing.”

“Sometimes, over-pessimism leads to valuation anomaly but just as market pessimism is getting tired, such stocks give fantastic returns,” Mr Bajaj said during the launch function.

The fund will allocate 80 to 100 per cent of net assets to equity and equity-related securities and upto 20 per cent in debt instruments and domestic ETFs.

“The fund may invest up to 10 per cent of net assets of the fund in foreign securities,” Fidelity said.

New fund offer, which opened for subscription on November 16, will remain open till December 15. Investors will be charged an exit load of 1 per cent for redemption within one year of purchase.