Indian investors have an easier option now to invest in stocks abroad. Fidelity Mutual Fund’s Fidelity International Opportunities Fund launched on Monday proposes to invest 35 per cent of its corpus in Asian equities, excluding Japan.
Fidelity said that this is their first international offering in India and other global products will be introduced once guidelines are issued under the recently announced outward remittance of up to $50,000 by resident Indians.
“The product gives an opportunity for Indian investors to add a global element to the portfolio,” said Ashu Suyash, managing director and country head, Fidelity Fund Management. The fund has a maximum cap of $150 million for investment in international markets as per the current regulations, she explained.
Out of the total funds mobilised 65 per cent would be invested in Indian equities benchmarked against BSE-200 index and the MSCI Asia-Pacific index would be benchmark for the 35 per cent funds to be invested abroad.
Fidelity demonstrates that the correlation between Indian and other markets remains low, which would mean for instance, the Indian market either moves higher than the other markets or fall further. “So, diversification reduces risk and brings more consistent returns,” said Jed Wrigley, director, Fidelity International. Fidelity currently has Rs 5,813 cr assets under management in India.
{{/usCountry}}Fidelity demonstrates that the correlation between Indian and other markets remains low, which would mean for instance, the Indian market either moves higher than the other markets or fall further. “So, diversification reduces risk and brings more consistent returns,” said Jed Wrigley, director, Fidelity International. Fidelity currently has Rs 5,813 cr assets under management in India.
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