- First AMC to pay such premium
- Fidelity celebrates 5 years of operations in India
Fidelity Mutual Fund today announced a unique Loyalty Premium for investors in Fidelity Equity Fund (FEF) who have stayed invested since inception. This coincides with Fidelity completing five years of business in India. This initiative, aimed at rewarding the long term investors, is possibly the first from a mutual fund in India and is in line with Fidelity’s philosophy of investing in the interest of customers. The eligible investors will receive 2 free units at current NAV for every 500 units of FEF held since inception. The units will be added to the eligible investors’ portfolios on 18 May 2010 at the applicable net asset value.
Speaking on the occasion, Ashu Suyash, Managing Director and Country Head – India, Fidelity International, said: “We are delighted to offer this loyalty premium to our long term investors and believe that our vision of always acting in the best interest of customers in helping them reach their financial goals will help us build a solid long term business in India.
“At Fidelity we have always maintained that equities as an asset class outperform over the long term and it pays to stay invested in equity funds irrespective of market cycles which is borne out by the performance of the Fidelity Equity Fund over the last five years. The fund has delivered a CAGR of more than 25% over the last 5 years.
“We hope that this initiative will encourage many more customers to invest and stay invested in our equity funds in their own best interests,” she added.
Sandeep Kothari, Fund Manager, Fidelity Equity Fund commented: “Fidelity’s bottom-up, research driven stock picking approach combined with a focus on the consistency of risk-adjusted returns has contributed significantly to the fund’s long term performance.
“We have maintained a disciplined approach to understanding the companies that we have invested in - their business models, their growth prospects, the scalability of the business, the management team which runs the business and the valuations. We expect the investors in Fidelity Equity Fund to continue benefiting from this approach”.
FIL Fund Management Private Limited (FFMPL), Fidelity International’s Indian asset management company started operations in the country in 2004. Its first fund, the Fidelity Equity Fund, opened for ongoing subscription in May 2005. Today, with total average assets under management of over Rs.7795 crores (Source: AMFI – Average AUM in April 2010) and more than 17 lakh customer accounts, FFMPL is among the fastest growing new asset management companies in India. In addition to offices in 8 cities and sales coverage over 20 cities, it has a significant web presence which helps investors across India access Fidelity’s funds. With an on-the-ground investment team comprising 6 Fund Managers and 6 Analysts and supported by 3 Sector Analysts in Gurgaon and 3 Regional Sector Analysts based in Hong Kong, Fidelity today offers Indian investors a range of well differentiated investment options through its seven equity funds and five fixed income / hybrid funds.
About Fidelity:
Fidelity International is one of the world's leading global investment management companies with operations in 23 countries and more than US$ 215 billion in assets under management (as at 31 March 2010). FIL provides mutual funds, retirement services, including defined benefit and defined contribution pension schemes, and specialist institutional mandates to individual and institutional investors outside the Americas. FIL's US affiliate, Fidelity Management and Research LLC (FMR) is one of the US' largest mutual fund companies and manages over US$ 1.5 trillion (as at as at 31 March 2010) in assets. FIL has constant access to the investment analysis carried out by FMR and Pyramis. Central to Fidelity's success is a pioneering spirit, a commitment to innovation that sets new industry standards and an unmatched investment in research, talent, technology and investor education.
Scheme classification and investment objectives: Fidelity Equity Fund (“FEF”) is an open ended equity growth scheme with an objective to generate long-term capital growth from a diversified portfolio of predominantly equity and equity-related securities. Loads: FEF: - Exit: For redemption within 1 year from the date of allotment or purchase applying First in First out basis – 1%. A switch-out or a withdrawal under SWP or a transfer under STP may also attract an exit load / CDSC like any redemption. Risk factors: ? Mutual funds, like securities investments, are subject to market risks and there is no guarantee against loss in the scheme or that the schemes’ objectives will be achieved. ? As with any investment in securities, the NAV of the units issued under the schemes can go up or down depending on various factors and forces affecting capital markets. ? Past performance of the Sponsor/the AMC/the Mutual Fund does not indicate the future performance of the schemes. ?Investments in the scheme(s) will be affected by trading volumes, settlement periods, volatility, price fluctuations, inability to sell securities, disinvestment of holdings of any unlisted stocks prior to target date of disinvestment, credit risk and interest rate risk. ? FEF is the names of the scheme, and they do not in any manner indicate the quality of the schemes, its future prospects or returns. ? Please read the Scheme Information Documents of the schemes and the Statement of Additional Information carefully before investing. Statutory: Fidelity Mutual Fund (‘the Fund’) has been established as a trust under the Indian Trusts Act, 1882, by FIL Investment Advisors (liability restricted to Rs. 1 Lakh). FIL Trustee Company Private Limited, a company incorporated under the Companies Act, 1956, with a limited liability is the Trustee to the Fund. FIL Fund Management Private Limited, a company incorporated under the Companies Act, 1956, with a limited liability is the Investment Manager to the Fund. Fidelity, Fidelity International and Pyramid Logo are trademarks of FIL Limited.