Mumbai: Fidelity Mutual Fund on Monday launched its open-ended hybrid fund named Fidelity India Children’s Plan consisting of three plans focused on education, marriage and savings. A maximum of 25 per cent of the net assets of the fund will also be invested in foreign securities.
Fund Asset Allocation Fund Managers Benchmark Exit Load Education Equity-70%, Debt-30% Nitin Bajaj-Equity, Shriram Ramanathan-Debt, Anirudh Gopalakrishnan- Foreign Equity BSE 200-70%, CRISIL Short term bond fund index 3% within one year,2% between 1-2 years and 1% between 2-3 years Marriage Equity-65% to 100%,Gold ETF-0% to 25%,Debt-0% to 10% Nitin Bajaj-Equity, Shriram Ramanathan-Debt, Anirudh Gopalakrishnan- Foreign Equity BSE 200 - 70%, Gold Prices-20%, Crisil short term bond fund index- 10% 3% within one year,2% between 1-2 years and 1% between 2-3 years Savings Up to 100% in Debt and Money market instruments Shriram Ramanathan Crisil Short term bond fund index 0.50% for redemptions within 1 year.
NFO Period: January 17, 2011 to January 31, 2011
Target Investors: The fund is targeted at parents above thirty years of age. “The launch of Fidelity India Children’s Plan is driven by our in-depth study of consumer needs and behaviour to provide a comprehensive offering to parents and guardians looking at investing for the future financial needs of children like marriage or higher education. The Plan, with its three goal-based investment options, presents a unique opportunity for disciplined wealth creation for children through a balance of risk and reward to ride out volatility and beat inflation over the long term. Additionally, parents are expected to benefit from the lower cost, transparency, tax-efficiency and flexibility associated with mutual funds while investing in the Fidelity India Children’s Plan,” said Ashu Suyash, Managing Director and Country Head, Fidelity Mutual Fund.
Target: The mutual fund aims to generate 25,000 SIPs under the children’s plan.
Distribution Strategy: The fund will be distributed through banks, IFAs, national distributors and its website. It will also be promoted actively through schools and colleges. It plans to hold more than 300 road shows.
Empanelled IFAs: 1,600
Application Amount: Minimum Rs 5,000 per fund, per application
Custodian: J. P. Morgan Chase Bank
Collection Banks: Citibank, HDFC Bank, Kotak Mahindra Bank
RTA: CAMS
AUM of the fund house: Rs 8,901.48 crore at the end of December 2010
