Fidelity International's Indian asset management company today announced the launch of its Fidelity Wealth Builder Fund, an open ended fund of funds scheme offering asset allocation options with three Plans. The investment objective of the fund is to seek to generate reasonable returns based on the Plan selected with minimum and maximum asset allocation between debt and equity. The fund manager will use a two-tier investment approach – asset allocation and fund selection – to invest in Fidelity’s funds. This is a zero entry load Fund with free switching between Plans permitted.
The NFO will be open from January 14 to February 5, 2009. The Fund will open for ongoing purchases and redemptions from March 2, 2009.
Ashu Suyash, Managing Director and Country Head - India, Fidelity International, said, “Asset allocation decisions can drive as much as 91.5% of investment returns variability, as studies have shown. In the current market conditions of heightened volatility, a fund like the Fidelity Wealth Builder Fund provides investors a convenient route to benefit from disciplined asset allocation. We are in an environment where attractive returns are likely in the bond market and there is potential for bear-market rallies in equities on the back of increasingly attractive valuations.”
The Fidelity Wealth Builder Fund offers three Plans with varying levels of exposure to debt and equity that investors can choose from depending on their risk appetite.
The NFO will be open from January 14 to February 5, 2009. The Fund will open for ongoing purchases and redemptions from March 2, 2009.
Ashu Suyash, Managing Director and Country Head - India, Fidelity International, said, “Asset allocation decisions can drive as much as 91.5% of investment returns variability, as studies have shown. In the current market conditions of heightened volatility, a fund like the Fidelity Wealth Builder Fund provides investors a convenient route to benefit from disciplined asset allocation. We are in an environment where attractive returns are likely in the bond market and there is potential for bear-market rallies in equities on the back of increasingly attractive valuations.”
The Fidelity Wealth Builder Fund offers three Plans with varying levels of exposure to debt and equity that investors can choose from depending on their risk appetite.
Under Plan A, the Fund will invest up to 85% in debt schemes and around 15% in equity schemes.
Under Plan B, the Fund will invest around 30% of net assets in equity schemes and the remaining in debt schemes and
under Plan C, the Fund will invest at least 50% of the net assets of the Plan in debt schemes and 50% of the net assets of the Plan in the equity schemes.
Ms. Suyash added, “To encourage investors who have turned risk averse, the Fidelity Wealth Builder Fund is a fund with no entry load. Whether investors invest through their advisers or directly, they will not be charged an entry load. Moreover, the Fund also offers investors free switch-in and switch-out facility between the Plans, if, over time, investors’ outlook for debt and equity changes.”
The Fund will offer Growth and Dividend options. A dividend is proposed to be declared, subject to availability of distributable surplus, on a Quarterly basis under Plan A and Plan B. Under Plan C, the dividend may be declared by the Trustee, at its discretion, from time to time subject to the availability of distributable surplus.
The Fidelity Wealth Builder Fund will have a custom benchmark for each Plan created using the CRISIL Composite Bond Fund Index and the BSE 200 in the proportion of the split between debt and equity for each Plan.
The Fund has no entry load but an exit load of 1% will be applicable for redemptions within a year from the date of purchase.
Ms. Suyash added, “To encourage investors who have turned risk averse, the Fidelity Wealth Builder Fund is a fund with no entry load. Whether investors invest through their advisers or directly, they will not be charged an entry load. Moreover, the Fund also offers investors free switch-in and switch-out facility between the Plans, if, over time, investors’ outlook for debt and equity changes.”
The Fund will offer Growth and Dividend options. A dividend is proposed to be declared, subject to availability of distributable surplus, on a Quarterly basis under Plan A and Plan B. Under Plan C, the dividend may be declared by the Trustee, at its discretion, from time to time subject to the availability of distributable surplus.
The Fidelity Wealth Builder Fund will have a custom benchmark for each Plan created using the CRISIL Composite Bond Fund Index and the BSE 200 in the proportion of the split between debt and equity for each Plan.
The Fund has no entry load but an exit load of 1% will be applicable for redemptions within a year from the date of purchase.
The minimum initial investment is Rs. 5000. Investors can invest in the Fidelity Wealth Builder Fund even through the SIP route with a minimum amount of Rs. 500 per installment with the total of all installments not being less than Rs. 5000. In addition, the systematic transfer and systematic withdrawal plans are also available.
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