Date:05/04/2006 URL: http://www.thehindu.com/2006/04/05/stories/2006040505221800.htm

Business

Novel fund from Fidelity

Special Correspondent

To invest in companies in `special situations'

CHENNAI: Subscriptions to the Special Situations Fund, a new category of fund from Fidelity Fund Management Private Ltd. will close on April 26.

It is an open-ended equity fund. It is aimed at those investors who have a long-term perspective. The minimum amount for subscription is Rs. 5,000 and multiples of Rs. 1,000. The entry load is 2.25 per cent for each purchase of less than Rs. 5 crore. There is also an exit load of one per cent for redemptions within the first six months for non-systematic investment plan investments.

Typically, the fund will identify 40-60 stocks across the spectrum for investment. The fund will focus on companies that are in special situations. According to Ashu Suyash, Country Head, Fidelity Fund Management Private Ltd., these special situations or out-of-ordinary situations present fund managers an investment opportunity. Fidelity has similar Special Situations Funds in the U.K. and the U.S. It has one product each for Japan and Asia. Addressing a press conference here on Tuesday, Ms. Ashu Suyash asserted that research was the key differentiator in this specific instance. Fidelity has kept the definition of `Special Situations' somewhat open-end since they do not represent any pre-determined list of situations.