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Thursday, January 15, 2009

Fidelity Short Term Income Fund coverts into Bond Fund

With effect from 23 February 2009

Fidelity Mutual Fund has decided to convert Fidelity Short Term Income Fund into a flexi bond fund namely Fidelity Flexi Bond Fund with effect from 23 February 2009. Accordingly necessary fundamental attributes of Fidelity Short Term Income Fund will be changed on a prospective basis.

Consequently, the portfolio for Fidelity Flexi Bond Fund will be constructed and actively managed to generate returns to match the investment objective and to maintain adequate liquidity to accommodate funds movement. Capital appreciation opportunities could be explored by extending credit and duration exposure. The performance of Fidelity Flexi Bond Fund will be benchmarked against CRISIL Composite Bond Fund Index.

Fund manager would have flexibility to invest in securities with various tenure depending on market conditions prevalent at the time of investing, the current restriction on Fidelity Short Term Income Fund in terms of average maturity of the portfolio which is restricted to 4 years will not be applicable to Fidelity Flexi Bond Fund.

Minimum amount of purchase/redemption will remain unchanged. For the proposed conversion, changes are to be carried out to the investment strategy, investment pattern of Fidelity Short Term Income Fund.

The unit holders who are not agree with the proposed changes may switch to other schemes of the Fund or redeem their investments in Fidelity Short Term Income Fund from 15 January 2009 to 20 February 2009 at the prevailing net asset value without any exit load.

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