Fidelity Mutual Fund Announces Changes

Pursuant to the acquisition of Fidelity's Indian mutual fund business by L&T Finance Limited (LTF), a subsidiary of L&T Finance Holdings Limited (LTFH). The names of schemes are changed as follows:

*Fidelity Ultra Short Term Debt Fund, an open ended debt scheme will be renamed as Fidelity Low Duration Fund with effect from 16 November 2012.

**Fidelity India Children's Plan - Savings Fund, an open ended income fund under the umbrella - Fidelity India Children's Plan (an open ended hybrid plan comprising three funds - Education Fund, Marriage Fund and Savings Fund) will be merged with Fidelity Short Term Income Fund, an open ended income scheme.

***Fidelity India Children's Plan - Education Fund, an open ended equity growth fund under Fidelity India Children's Plan will be unbundled from the umbrella - Fidelity India Children's Plan, undergo fundamental attribute changes and renamed as Fidelity India Prudence Fund with effect from 16 November 2012.

****Fidelity India Children's Plan - Marriage Fund, an open ended equity growth fund under Fidelity India Children's Plan will be unbundled from umbrella - Fidelity India Children's Plan, undergo fundamental attribute changes and renamed as Fidelity India Equity and Gold Fund with effect from 16 November 2012.  

Upon completion of the proposed transaction certain schemes of Fidelity Mutual Fund will be merged with certain schemes of L&T Mutual Fund. Consequently, the transferee schemes will be the surviving schemes as listed below:

Upon completion of the proposed transaction certain schemes of L&T Mutual Fund will be merged with certain schemes of Fidelity Mutual Fund. The name of the surviving schemes (i.e. the transferee schemes) is proposed to be changed as follows:

 

 

* Fidelity India Growth Fund will undergo a change of name and fundamental attribute changes effective on 16 November 2012, pursuant to which this scheme will be named as 'Fidelity India Large Cap Fund'.  

Fidelity India Prudence Fund, an open ended equity growth scheme:  The scheme would invest 65% to 75% of assets in equity and equity related securities with medium to high risk profile.  On the other side it would allocate 25% to 35% of assets in debt and money market instruments including units of debt / fixed income schemes launched by mutual funds registered with SEBI with low to medium risk profile.

The exit load charge will be 1% if redeemed within 1 year from the date of allotment or purchase applying first in first out basis.

Fidelity India Equity and Gold Fund, an open ended equity growth scheme: The scheme would invest 65% to 90% of assets in equity and equity related securities with medium to high risk profile. 10% to 25% of assets in Gold ETFs with medium to high risk profile. Upto 10% of assets in debt and money market instruments including units of debt / fixed income schemes launched by mutual funds registered with SEBI with low to medium risk profile.

The exit load charge will be 1% if redeemed within 1 year from the date of allotment or purchase applying first in first out basis.

Fidelity Cash Fund, an open ended liquid scheme: The scheme would invest 65% to 100% of assets in certificate of deposit issued by banks, bank fixed deposits, treasury bills, CBLO, Repo / reverse repo with medium to high risk profile.  On the other side it would allocate upto 35% of assets in commercial papers and other debt instruments including securitized debt with low to medium risk profile.

The change in fundamental attributes of the schemes of Fidelity Mutual Fund will take effect on 16 November 2012 notwithstanding the outcome of the proposed transaction.

Source: http://www.indiainfoline.com/Markets/News/Fidelity-Mutual-Fund-Announces-Changes/4535981912