Fidelity Mutual Fund today announced the launch of Fidelity Short Term Income Fund, an open ended income scheme that aims to generate reasonable returns primarily through investments in fixed income securities and money market instruments. The NFO for the fund will be open from 19 – 30 November 2010. Shriram Ramanathan is the fund manager of the Fidelity Short Term Income Fund. The Scheme is benchmarked to the Crisil Short Term Bond Fund Index.
Ashu Suyash, Managing Director and Country Head – India, Fidelity Investment Managers, said: “At a time when investors have turned risk averse with hardening interest rates and increasing equity market volatility, we believe that Fidelity Short Term Income Fund could provide reasonable returns even over shorter periods of time. The Fund presents a key building block for the asset allocation plans of retail and high net-worth investors and is in line with our overall objective of helping investors in reaching their financial goals. With this launch, we hope to reach out to a wide section of investors with an investment option that will leverage our expertise in bottom-up credit research to provide better post-tax returns over other interest bearing instruments including deposits.”
Shriram Ramanathan, the fund manager for the Fidelity Short Term Income Fund, said: “In the current environment where short term yields have moved up significantly, on a risk-adjusted basis, short term income funds provide a good opportunity for investors to benefit from the higher yields, yet keeping interest rate risk at an acceptably low level. Fidelity Short Term Income Fund with its freshly constructed portfolio of short term instruments with attractive yields and sound credit quality (with thoroughly researched constituents) makes even more investing sense in such a scenario. The Fund has been assigned the Credit Risk Rating mfAAA by ICRA.”
The rating for the Fidelity Short Term Income Fund indicates that the underlying portfolio has the lowest credit risk and the highest degree of safety from credit losses.
The Fidelity Short Term Income Fund will offer Growth and Dividend options. The minimum initial investment is Rs. 5000. The Fund has an exit load of 0.50%, which will be applicable for redemptions within 6 months from the date of purchase or allotment on a first-in-first-out basis.
Investors can invest in the Fidelity Short Term Income 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 withdrawal plans are available in the Fund.
FIL Fund Management Private Limited (FFMPL), Fidelity Investment Managers’ Indian asset management company started operations in the country in 2004. Today, with total assets under management of over Rs.8900 crores (AUM as on 29 October 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 16 cities, it has a significant web presence which helps investors across India access Fidelity’s funds. Further, most of its funds are listed on the NSE’s Mutual Fund Service System (MFSS) and the BSE’s StAR MF Platform, reaching out to investors in over 1500 cities and towns. Fidelity today offers Indian investors a comprehensive range of well-differentiated investment options through its seven equity funds and six fixed income / hybrid funds. For more information, please visit www.fidelity.co.in.
About Fidelity:
Fidelity Investment Managers is one of the world's leading global investment management companies with operations in 23 countries and more than US$ 231 billion in assets under management (as at 30 September 2010). It 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. Fidelity Investment Managers’ US affiliate, Fidelity Management and Research LLC (FMR) is one of the US' largest mutual fund companies and manages over US$ 1.4 trillion (as at 31 August 2010) in assets. Fidelity Investment Managers 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.
ICRA Rating: The rating should not be treated as recommendation to buy or sell or hold the units
Scheme classification and investment objectives:
Scheme Classification: An open-ended income scheme Investment Objective: To generate reasonable returns primarily through investments in fixed income securities and money market instruments. There is no assurance that the objective of the Scheme will be realised and the Scheme does not assure or guarantee any returns. ? Normal Asset Allocation: a) Debt instruments and money market instruments with averaged maturity less than or equal to two years 65% - 100 %; b) Debt instruments and money market instruments with averaged maturity less than or equal to two years 35% - 0%. Terms of issue: Units of Rs. 10 per unit for cash during the new fund offer and at applicable NAV thereafter. Minimum initial application amount: Rs. 5,000 per application. Minimum redemption amount/units: Rs. 1,000 or 100 Units. Statement of Additional Information, Scheme Information Document, Key Information Memorandum and Application Forms will be available at the ISCs/distributors’ offices. General Services: Investors can contact us at the toll-free number “1800-2000-600”. NAVs will be calculated on every business day and published in two daily newspapers with a lag of one day. Redemption on all business days. ? Loads – Exit Load: For redemption within 6 months from the date of allotment or purchase applying First in First Out basis – 0.5%. A switch-out or a withdrawal under SWP or a transfer under STP may also attract an Exit Load / CDSC like any Redemption. No Entry / Exit Loads / CDSC will be chargeable in case of switches made between different options of the Scheme. No Exit Load will be chargeable in case of redemption of; (i) Units allotted on account of dividend re-investments; and (ii) Units issued by way of bonus, if any. 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 Scheme’s objectives will be achieved. ? As with any investment in securities, the NAV of the units issued under the scheme 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 Scheme. ? Fidelity Short Term Income Fund is the name of the Scheme, and this does not in any manner indicate the quality of the Scheme, its future prospects or returns. ? In addition to the factors that affect the values of securities, the NAV of Units of the Scheme will fluctuate with the movement in the broader fixed income, money market and derivatives market and may be influenced by factors influencing such markets in general including but not limited to economic conditions, changes in interest rates, price and volume volatility in the bond and stock markets, changes in taxation, currency exchange rates, foreign investments, political, economic or other developments and closure of the stock exchanges. ?Please read the Scheme Information Document of the Scheme and 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 Fidelity Investment Managers and Globe Logo are trademarks of FIL Limited.
