Fidelity Mutual Fund on Tuesday said it has converted its Fidelity Short-Term Income Fund into a flexi-bond, removing the restriction of four years on the average maturity of the portfolio.
Re-named the Fidelity Flexi Bond Fund, the fund has no duration bias and no cap bias with regard to money market or bond products, a release here stated.
The portfolio will be constructed and actively managed to generate reasonable returns and to maintain adequate liquidity to accommodate funds movement.
Capital appreciation opportunities will be explored by extending credit and duration exposure, the release said.
The performance of the fund will now be benchmarked against the Crisil Composite Bond Fund Index instead of the earlier benchmark of Crisil Short-Term Bond Fund Index.
Fidelity International India's Managing Director and Country Head, Ashu Suyash, said that "with the flexible nature of the investment mandate of the Fidelity Flexi Bond Fund, investors now have the option of investing in a fund that will work through various interest rate cycles and credit scenarios."
"Investors looking at a longer-term option to stay invested in bonds now have one fund that will actively straddle various maturities depending on the market environment," Suyash said.
Re-named the Fidelity Flexi Bond Fund, the fund has no duration bias and no cap bias with regard to money market or bond products, a release here stated.
The portfolio will be constructed and actively managed to generate reasonable returns and to maintain adequate liquidity to accommodate funds movement.
Capital appreciation opportunities will be explored by extending credit and duration exposure, the release said.
The performance of the fund will now be benchmarked against the Crisil Composite Bond Fund Index instead of the earlier benchmark of Crisil Short-Term Bond Fund Index.
Fidelity International India's Managing Director and Country Head, Ashu Suyash, said that "with the flexible nature of the investment mandate of the Fidelity Flexi Bond Fund, investors now have the option of investing in a fund that will work through various interest rate cycles and credit scenarios."
"Investors looking at a longer-term option to stay invested in bonds now have one fund that will actively straddle various maturities depending on the market environment," Suyash said.
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