Fidelity launches Cash Fund

Fidelity Fund Management Private Ltd has launched Fidelity Cash Fund with a credit risk rating of MfA1+ from Icra, which indicates highest-credit-quality short-term rating assigned by ICRA to debt funds. The Fidelity Cash Fund is an open ended liquid scheme that aims to generate reasonable returns with lower volatility and higher liquidity through a portfolio of debt and money market instruments. Subscriptions will be open during the NFO period from November 20 - 22, 2006 and thereafter for ongoing purchase and redemptions from November 29. Sameer Kulkarni is the fund manager of the Fidelity Cash Fund, which is benchmarked to the CRISIL Liquid Fund Index.

The Fund will be managed on the basis of 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 consistent returns.

The Fidelity Cash Fund will have retail, institutional and super institutional plans. Each plan will offer growth and dividend options. The minimum initial investment for the Institutional Plan is Rs 1 crore while the Super Institutional Plan requires a minimum initial investment of Rs 25 crore. For the Retail Plan, the minimum initial investment is Rs 5000. The Fund has no entry or exit loads.