Fidelity Launches Fidelity Liquid Plus Fund

Mumbai, Maharashtra, India

Fidelity Fund Management Private Limited announced the launch of its Fidelity Liquid Plus Fund with a credit risk rating mfA1+ from ICRA, which indicates highest-credit-quality short-term rating assigned by ICRA to debt funds. The Fidelity Liquid Plus Fund is an open ended debt scheme that aims to generate reasonable returns and liquidity primarily through investment in money market and short term debt instruments. The fund will have an NFO of one day - September 19, 2007 and thereafter will be open for ongoing purchase and redemptions from September 21, 2007. Sameer Kulkarni is the fund manager of the Fidelity Liquid Plus Fund, which is benchmarked to the CRISIL Liquid Fund Index.

Ashu Suyash, Managing Director and Country Head of Fidelity Fund Management, said: "With the addition of the Fidelity Liquid Plus Fund, we are enhancing our range of fixed income funds. We remain committed to growing our fixed income business and you will see us bringing more products to the market over the coming months."

The Fidelity Liquid Plus Fund will have Retail, Institutional and Super Institutional Plans and each Plan will offer Growth and Dividend options. The minimum initial investment for the Institutional Plan is Rs. 1 crore while the Super Institutional Plan requires a minimum initial investment of Rs. 10 crores. For the Retail Plan, the minimum initial investment is Rs. 5000. The Fund has no entry load, but an exit load of 0.10% will be applicable for redemptions within 5 calendar days from the date of allotment or purchase applying First in First Out basis. A switch-out or a withdrawal under SWP or transfer under STP may also attract an exit load like any redemption.

Investors can invest in the Fidelity Liquid Plus 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 as well.

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 debt scheme. Investment Objective: The investment objective of the Scheme is to generate reasonable returns and liquidity primarily through investment in money market and short term debt instruments.

-- Normal Asset Allocation: Money Market and Debt instruments with average maturity of not greater than 1 year : 65% - 100%. Debt Instruments with average maturity more than 1 year : 0% - 35%. The Scheme may invest in securitized debt up to 100% of its net assets.

-- 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:- Retail Plan - Rs. 5,000 per application, Institutional Plan - Rs. 1,00,00,000 per application and Super-Institutional Plan - Rs. 10,00,00,000 per application. Minimum additional application amount: - Retail Plan - Rs. 1,000 per application, Institutional Plan - Rs. 1,00,000 per application and Super-Institutional Plan - Rs. 1,00,00,000 per application. Minimum redemption amount/units: - Retail Plan - Rs.1,000 /100 units, Institutional Plan and Super-Institutional Plan- Rs. 1,00,000/10,000 units. Offer Document, Key Information Memorandum and Application Forms / Transaction Slips 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 on every business day and published in two daily newspapers on all Business Days. Purchase/Redemption on all Business Days.

-- Loads - Entry: Nil. If the AMC introduces an Entry Load, a switch-in or transfer under STP may also attract the applicable Entry Load like any Purchase. Exit: For Redemptions within 5 calendar days from the date of allotment or purchase applying First in First Out basis: 0.10%. 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 plans/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 Liquid Plus 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 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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