E-Paper
Fidelity to launch short term income fund
The fund management firm plans to launch its first such fund in India on Aug 17. The scheme closes on Aug 24.
Fidelity Fund Management Pvt. Ltd. plans to launch its first fixed income fund -- a short-term income fund -- in India on August 17, the company's head said on Wednesday.
The Fidelity Short Term Income Fund would invest in debt and money market instruments, Ashu Suyash, the firm's managing director and country head, told Reuters.
"This product will provide better returns on a relative basis compared to cash funds and on the risk return spectrum would score lower than a longer term bond fund," she said.
Initial subscription period would close on August 24 and there would be no entry or exit load.
Fidelity also planned to launch a cash fund and core bond fund shortly as part of a plan to offer a bouquet of fixed income funds, she said.
Sameer Kulkarni, who would manage the fund, said he had set a target maturity in the range of 6-18 months for the portfolio.
Fidelity manages two diversified equity funds, a tax-planner and a multi-manager cash fund. At the end of June, the fund house had assets worth Rs 48.11 billion, data from the Association of Mutual Funds in India showed.
