August 2006

Fidelity Fund Management Private Limited announced that its first fixed income product, ‘ the Fidelity Short Term Income Fund ‘ , has opened for subscription today. The Fund is an open ended income scheme that aims to generate reasonable returns through a diversified portfolio of fixed income securities. The subscriptions will be open for a week and will close on August 24, 2006.

Ashu Suyash, Managing Director and Country Head of Fidelity Fund Management Private Limited, said: “With the Fidelity Short Term Income Fund, we are delighted to bring our expertise in fixed income to investors in India. From the start, it has been our aim to offer investors products across the core assets classes – equity, fixed income and cash – which will help them build balanced portfolios in keeping with their financial goals.”

The Fund will be managed based on Fidelity’s global fixed income investment philosophy, which combines its research on markets, sectors, yield curves and individual bonds with highly focused trading skills to build “multi strategy” portfolios in a way that deliver attractive returns.

Sameer Kulkarni, Fund Manager, Fixed Income, Fidelity Fund Management Private Limited, said: “Short term income funds provide a good alternative to volatile markets such as the one we are seeing now. The added benefit with FSTIF is a flexible asset allocation strategy moving dynamically between money market and debt instruments to capture the best opportunities for investors.”

Vijay Venkatram, Executive Director - Sales and Marketing, Fidelity Fund Management Private Limited, said: “Fixed income funds are beneficial to investors as they offer investors the opportunity to earn reasonable returns over shorter periods of time even as their overall portfolio works towards creating wealth over the long term.”

An attractive feature of the Fidelity Short Term Income Fund is the dividend payout and reinvestment option which follows a monthly cycle. Both institutional and non institutional investors will have the choice to receive monthly dividends where the dividends will be declared on the 25th of each calendar month subject to distributable surplus being available.

The Fidelity Short Term Income Fund will have an Institutional and Non-Institutional Plan and each Plan will offer Growth and Dividend options. The minimum initial investment for the Institutional Plan is Rs 5 crores and for investors under the non-Institutional Plan, it is Rs 5000/-. The Fund has no entry or exit loads.

Investors can invest in the Fidelity Short Term Income 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.

The benchmark index for the Fund is the Crisil Short Term Bond Index.

Fidelity Fund Management Private Limited is the Indian arm of Fidelity International Limited. Fidelity International Limited has offices in over 20 countries across Europe and Asia-Pacific. Fidelity International along with its US affiliate, Fidelity Management and Research Co., actively covers 95% of world market capitalization. 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 and technology. Driven by an entrepreneurial culture, Fidelity is known to actively pursue investor education and distributor training.