Fidelity Launches Fidelity India Growth Fund

Mumbai, Maharashtra, India

Fidelity Fund Management today announced the launch of the Fidelity India Growth Fund, an open ended, diversified equity fund which will invest largely in growth oriented companies in Indian and international markets to deliver long term capital appreciation. The Fidelity India Growth Fund's new fund offer (NFO) will remain open from September 3 - 26, 2007.

Speaking at the launch, Ashu Suyash, Managing Director and Country Head, Fidelity Fund Management, said, "As a mainstream player in India, we are expanding our range of funds by adding the Fidelity India Growth Fund. This fund complements our existing product suite by adding a fund with a growth bias that will appeal to a cross-section of investors looking to invest with the objective of wealth creation."

Sandeep Kothari, Fund Manager, said, "The India growth opportunity is an exciting one as it is a reflection of the growth curve of the nation. What is driving growth is favorable demographic composition, India's knowledge capital, the cost advantage, productivity improvements and improving corporate governance. Against that backdrop, the Fidelity India Growth Fund will look for stocks which benefit from this environment. These will be stocks where earnings growth will drive long term performance. Valuations will remain a key consideration in stock selection and portfolio construction."

Besides the Fidelity India Growth Fund, Sandeep Kothari is also Fund Manager of Fidelity Equity Fund and Fidelity Tax Advantage Fund. The Fidelity Equity Fund has been a consistent top quartile performer and for the one year period ending July 31, 2007, has given returns of 61.52% outperforming its benchmark BSE 200 which returned 48.50%. Since inception, the Fidelity Equity Fund has given returns of 51.82% again outperforming the BSE 200 which returned 42.64%. The Fidelity Tax Advantage Fund too has outperformed the BSE 200, its benchmark, giving returns of 56.13% for the one year period ending July 31, 2007, while the BSE 200 returned 48.50% during the same period. Since inception too, the Fidelity Tax Advantage Fund has outperformed the BSE 200 with returns of 32.46% while the BSE 200 returned 31.10%. Past performance may or may not be sustained in future.

Benchmarked to the BSE 200, the Fidelity India Growth Fund will have a normal allocation to equity and equity related securities of 95%, with a range from 80% to 100%. The normal cash allocation will be 5%, with a range from 0% to 20%.

The minimum amount for lump sum investments is Rs 5000. The entry load is 2.25% for each purchase of less than Rs 5 crore. For amounts greater than or equal to Rs 5 crore or by an FOF or on dividend reinvestment or through switch-in from equity schemes, the entry load is NIL. There is an exit load of 1% for redemptions within the first six months.

The Systematic Investment Plan (SIP) option will be available during the NFO period with a minimum of 6 instalments and each single instalment for a minimum of Rs. 500 and totalling not less than Rs. 5000. The entry and exit loads are the same as for lump sum investments.

Fidelity Fund Management Private Limited is the Indian arm of Fidelity International Limited, one of the world's leading global investment management companies with operations in 23 countries. Fidelity International 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. In 2006 alone, Fidelity won 2771 awards for investment excellence - an outcome of consistently following its philosophy of 'bottom-up' stock picking that focuses on the core strengths of a company based on first-hand, 360-degree research. Fidelity International along with its US affiliate, Fidelity Management and Research Co., actively covers 95%2 of the world market capitalization through its unrivalled research network of over 7003 investment professionals. 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.

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Sources:

-- Fidelity. All awards have been won by Fidelity International Limited and its affiliates. Past performance is not a guide to future returns. The value of investments, and the income from them, can go down as well as up and an investor may not get back the amount invested.

-- Fidelity, 2006.

-- FMR Corp., Pyramis Global Advisers, FIL, 2006. Data is unaudited. These figures reflect the resources of FMR Corp., A U.S. company and its subsidiaries, and the resources of Fidelity International Limited, a non-U.S. company and affiliate and its subsidiaries.

-- Scheme Classification: An open ended equity growth scheme.

-- Investment Objective: To generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity related securities, including equity derivatives, in the Indian markets. The Scheme could also additionally invest in Foreign Securities in the international markets.

-- Normal Asset Allocation: Equity and Equity related securities (including Indian and foreign equity securities as permitted by SEBI/RBI): 95%; Money Market Instruments: 5%.

-- Terms of issue: Units of Rs. 10 per Unit for cash plus applicable entry load during the New Fund Offer and at Applicable NAV plus applicable entry load thereafter. Minimum initial application amount: Rs. 5,000 per application. Minimum additional application amount: Rs. 1,000 per application. Minimum redemption amount/units: Rs.1,000/100 units. Offer Document, Key Information Memorandum and Application Forms available at the ISCs/distributors' offices.

-- General Services: Investors can contact any of the ISCs at its toll-free number "1-800-180 8000". NAVs will be calculated and published in two daily newspapers on all Business Days. Purchase / Redemption on all Business Days.

-- Loads: Entry: For each Purchase (i) of less than Rs. 5 Crores - 2.25% (ii) of Rs. 5 Crores or more - Nil (iii) by an FOF (irrespective of the amount of Purchase) - Nil (iv) as a result of Dividend Re-investment - Nil (v) Through switch-in (including through STP) into the Scheme from Fidelity MultiManager Cash Fund ("FMCF") or Fidelity Short Term Income Fund ("FSTIF") or Fidelity Cash Fund ("FCF"); provided units are first switched out / systematically transferred out from any Equity Schemes of the Fund to FMCF or FSTIF or FCF and, within a period of 90 days from such transaction, the units allotted against such switch proceeds are again switched out / systematically transferred out from FMCF or FSTIF or FCF (on a FIFO basis) into the Scheme- Nil (vi) through switch-in from other equity schemes of the Fund - Nil. In case of SIP/STP the above criteria for Entry Load will be applicable for each installment. A switch-in will also attract an Entry Load like any Purchase except in cases mentioned above. Exit: For Redemptions within 6 months from the date of allotment/purchase applying First in First Out basis: 1.00%. A switch-out or a withdrawal under SWP may also attract an Exit Load like any Redemption. No loads will be applicable for switches between the options of the Scheme.

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 India Growth 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.

-- Investments in the Scheme 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 and the risks associated with investments in derivatives.

-- The Scheme may invest in overseas markets which carry risks related to fluctuations in the foreign exchange rates, the nature of the securities market of the country, repatriation of capital due to exchange controls and political circumstances.

--Please read the Offer Document of the scheme carefully before investing.

Statutory:

Fidelity Mutual Fund ('the Fund') has been established as a trust under the Indian Trusts Act, 1882, by Fidelity International Investment Advisors (liability restricted to Rs. 1 Lakh). Fidelity Trustee Company Private Limited, a company incorporated under the Companies Act, 1956, with a limited liability is the Trustee to the Fund. Fidelity 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 Fidelity International Limited.

Source: Fidelity Fund Management (Business Wire India)

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