Mumbai, Aug 18 (ANI/Business Wire India): Asset Management Company, the Indian arm of Fidelity International, today announced the launch of its first Fixed Maturity Plan (FMP), the Fidelity Fixed Maturity, Series 1 - Plan A with a duration of 370 days from the date of allotment of units.
This scheme is a close-ended debt scheme with an objective to seek to generate reasonable returns and reduce interest rate volatility primarily through investment in money market and short term debt instruments with a maturity profile generally in line with the Plan's duration. The performance of the Plan will be benchmarked against the CRISIL Short Term Bond Fund Index.
Ashu Suyash, Managing Director and Country Head - India, Fidelity International, said, "Fixed Maturity Plans provide investors with a good alternative to fixed deposits given that they are more tax efficient. This is especially so during volatile times when investors are likely to be more risk averse."
The new fund offer opens on August 20 and will close on August 27 for subscription. The fund offers both, retail and institutional plans. The minimum application amount for the retail plan is Rs. 5000 and under the institutional plan, it is Rs. 1 crore. The fund would offer a redemption facility on the maturity date without the payment of any load. Redemptions before the maturity date will be subject to an exit load of 2%.
Fidelity International's Indian asset management company started operations in the country in 2004. Its first fund, the Fidelity Equity Fund, was launched in March 2005. Today, with total assets under management of over Rs. 7000 crores and more than 1.6 million customer accounts, Fidelity offers Indian investors investment options through its five equity funds and five fixed income funds.