Fidelity likely to launch fixed income product
Mutual fund company Fidelity Fund Management Ltd is likely to come out with a fixed income fund next fiscal and work on overseas fund once the market regulator SEBI comes out with guidelines on the product.
"We are excited by the budget proposal (to raise the ceiling on aggregate investment by mutual funds in overseas instruments from 1 billion dollars to 2 billion dollars), but are waiting for SEBI guidelines," Fidelity Management Country Head Ashu Suyash told reporters after announcing the launch of Special Situations Fund.
After the guidelines, the company will be able to tell what kind of overseas fund will be launched, she said.
The company is also working on fixed income fund, which could be a bond fund, and the product is likely to be launched during 2006-07, sources said.
Fidelity, which manages Rs 3,500 crore assets in India, has launched its fourth fund, Special Situations Fund on March 28 and the new fund offer will end on April 26.
The open-ended equity fund will invest in undervalued
Stocks for long-term investment with focus being on "Special Situations", Fidelity Fund Manager Rajesh Singh said.
He said companies could be in special situations because of their recovery potential or their potential is not recognised by the market, or because of their restructuring exercise or they are potential candidates for mergers and acquisitions related activites.
Singh said the Special Situations Fund is much wider in scope than contra, value or opportunity funds because it contains all the traits of these products, besides other features.