Fidelity Launches India Children’s Plan
A comprehensive investment offering that provides multiple options to plan for
the future financial needs of a child

Comprises Education, Marriage and Savings Funds

Allocation to Gold ETF in Marriage Fund aims to protect against rise in gold prices
Mumbai, January 18, 2011 - Fidelity Mutual Fund announced the launch of Fidelity India
Children’s Plan, an open ended hybrid scheme that consists of three funds focused on education,
marriage and savings. The NFO will be open from January 17 to January 31, 2011. This unique
offering from Fidelity is the first children’s investment solution which aligns specific investment
needs with the underlying fund strategies and caters to the risk appetite of different types of
investors. The key features of the Fidelity India Children’s Plan are the Savings Fund which
invests predominantly in debt and money market instruments suitable for conservative investors
and those nearing their financial goals and the Marriage Fund with allocation to Gold ETFs which
aims to protect against rise in gold prices while saving for children’s marriage needs.
Speaking on the occasion, Ashu Suyash, Managing Director and Country Head, Fidelity
International – India said: “The launch of Fidelity India Children’s Plan is driven by our in-depth
study of consumer needs and behaviour to provide a comprehensive offering to parents and
guardians looking at investing for the future financial needs of children like marriage or higher
education. The Plan, with its three goal-based investment options, presents a unique opportunity
for disciplined wealth creation for children through a balance of risk and reward to ride out
volatility and beat inflation over the long term. Additionally, parents are expected to benefit from
the lower cost, transparency, tax-efficiency and flexibility associated with mutual funds while
investing in the Fidelity India Children’s Plan.”
Alexander Treves, Head of Investment, Fidelity International – India commented: “In
contrast to most hybrid mutual funds in the market, Fidelity India Children’s Plan will have
dedicated fund managers for both the equity and debt portions of the portfolios which will help us
leverage our expertise in bottom-up stock picking and fundamental credit research in order to
maximise the benefits of the long term outperformance of equities and the stability of debt. The
product construct is unique with each fund offering varying levels of exposure to equity and debt
depending on the specific investment goal. The allocation to Gold ETFs in the Marriage Fund is
another unique product feature, which is expected to provide cushion against any rise in the price
of gold keeping in mind financial needs at the time of marriage.”
The Fidelity India Children’s Plan comprises three funds with varying asset allocation levels.
Asset allocation under the Education Fund will comprise of 70% equity and 30% debt to provide
funds over the long-term for children’s education. The Marriage Fund will have asset allocation of
70% equity, 20% gold ETFs and 10% in debt. In Savings Fund, the asset allocation will be upto
100% in debt and money market instruments to provide stability.
Each fund in the Children’s Plan will offer both growth and dividend options. The dividend option
will offer dividend payout and dividend re-investment facilities.
The exit loads for Education and Marriage funds will be 3% for redemptions within one year, 2%
between 1-2 years and 1% between 2-3 years. The Savings Fund will carry an exit load of 0.50%
for redemptions within 1 year: There will be a custom benchmark for each fund depending upon
the composition of the fund using BSE 200 Index, CRISIL Short Term Bond Fund Index and gold
prices.
The minimum lump sum investment under the plan is Rs. 5,000 per fund per application.
Investors can invest in the Fidelity Children’s plan also through the SIP route. The minimum SIP
instalment amount is Rs. 500 with monthly, quarterly, semi-annual annual instalment options with
the minimum total investment amount of Rs. 6,000. In addition, the systematic transfer (STP) and
systematic withdrawal plans (SWP) are also available. There will be no charge for switching
between different options of the same fund or between different funds within the Plan and in the
case of transfers under STP.
About FIL Fund Management Private Limited:
FIL Fund Management Private Limited (FFMPL), Fidelity International’s Indian asset
management company started operations in the country in 2004. Today, with total assets under
management of over Rs.9500 crores (AUM as on 31 December 2010) and more than 1 million
customer accounts, FFMPL is among the fastest growing new asset management companies in
India. In addition to offices in 16 cities, it has a significant web presence which helps investors
across India access Fidelity’s funds. Further, most of its funds are listed on the NSE’s Mutual
Fund Service System (MFSS) and the BSE’s StAR MF Platform, reaching out to investors in over
1500 cities and towns. Fidelity today offers Indian investors a comprehensive range of well-
differentiated investment options through its seven equity funds and six fixed income / hybrid
funds. For more information, please visit www.fidelity.co.in.
About Fidelity:
Fidelity International is one of the world's leading global investment management companies with
operations in 22 countries and more than US$ 231 billion in assets under management (as at 30
September 2010). It provides mutual funds, retirement services, including defined benefit and
defined contribution pension schemes, and specialist institutional mandates to individual and
institutional investors outside the Americas. Fidelity International’s US affiliate manages money
for retail and institutional investors in the Americas. Fidelity Management and Research LLC
(FMR) is one of the US' largest mutual fund companies and manages over US$ 1.5 trillion (as at
31 December 2010) in assets. 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,
technology and investor education.
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For further information contact:
From Adfactors PR
Elita Sequeira / Ashwini Nande
Adfactors PR
Mobile: 9819478708 / 9833344097
Email- elita.sequeira@adfactorspr.com /
ashwini.nande@adfactorspr.com
From FIL Fund Management
Abhijit Roy
FIL Fund Management Pvt. Ltd.
Tel.: (+91 22) 66554139
Mobile : (+91) 9820026372
email: abhijit.roy@fil.com
Scheme Classification: An open-ended hybrid Plan comprising of three Funds. Education
Fund and Marriage Fund: An open ended equity growth Fund. Savings Fund: An open ended
income Fund. Investment Objective: Education Fund: To seek to generate long-term capital
appreciation from a diversified portfolio of predominantly equity and equity related securities and
to generate reasonable returns through a portfolio of debt and money market instruments to help
generating funds in the long term to save for the cost of children’s education. Marriage Fund: To
seek to generate long-term capital appreciation from a diversified portfolio of predominantly equity
and equity related securities and to generate reasonable returns through a portfolio of debt and
money market instruments. The Fund could also additionally invest in domestic Gold ETFs. This
could help generating funds in the long term to save for the cost of children’s marriage. Savings
Fund: To seek to generate reasonable returns predominantly from a diversified portfolio of debt
and money market instruments.▪ Normal Asset Allocation: a) Education Fund: Equity and
Equity related securities – 65% - 100% ; Debt and money market instruments including units of
debt/fixed income scheme launched by mutual funds registered in India 0%.- 35% b) Marriage
Fund : Equity and Equity related securities – 65% - 100% ; Gold ETF’s – 0% - 25%; Debt and
money market instruments including units of debt/fixed income scheme launched by mutual funds
registered in India 0%.- 10% ; c) Savings Fund : Debt and money market instruments including
units of debt/fixed income scheme launched by mutual funds registered in India 0%.- 100%;
Terms of issue: Units of Rs. 10 per unit for cash during the new fund offer for each fund and at
applicable NAV thereafter. Minimum initial application amount: Rs. 5,000 per Fund per
application. Minimum redemption amount/units: Rs. 1,000 or 100 Units in respect of each Fund.
Statement of Additional Information, Scheme Information Document, Key Information
Memorandum and Application Forms will be available at the ISCs/distributors’ offices. General
Services: Investors can contact us at the toll-free number “1800-2000-600”. NAVs will be
calculated on every business day and published in two daily newspapers with a lag of one day for
each Fund. Redemption on all business days. ▪ Loads – Exit Load for Education and Marriage
Fund : For redemption within 1 year from the date of allotment or Purchase applying First in First
Out basis – 3%, For redemption within 2 years from the date of allotment or Purchase applying
First in First Out basis – 2%, or redemption within 3 years from the date of allotment or Purchase
applying First in First Out basis – 1%, Savings Fund : For redemption within 1 year from the
date of allotment or Purchase applying First in First Out basis – 0.5%. A switch-out or a
withdrawal under SWP or a transfer under STP may also attract an Exit Load/ CDSC like any
Redemption. No Exit Load/CDSC will be chargeable in case of switches made between different
options of the same Fund or between different Funds within the Plan and in case of transfer
under STP. In case of units switched out/systematically transferred out from the Savings Fund to
Education Fund and/or Marriage Fund and subsequent redemption of such units from the
Education Fund and/or Marriage Fund, the Exit Loads as applicable to Education Fund and/or
Marriage Fund will be charged. However, in case of units switched out/systematically transferred
out from the Education Fund and/ or Marriage Fund to the Savings Fund and subsequent
redemption of such units from the Savings Fund, for the purpose of determining the Exit Load, the
date when such units were allotted in the Education Fund and/or Marriage Fund will be deemed
to be the purchase/allotment date and the Exit Load as applicable to Education Fund and/or
Marriage Fund will be charged. No Exit Load will be chargeable in case of redemption of: (i) Units
allotted on account of dividend re-investments; and (ii) Units issued by way of bonus, if any. Risk
factors: ▪ Mutual funds, like securities investments, are subject to market risks and there
is no guarantee against loss in the Scheme or that the Scheme’s objectives will be
achieved. ▪ As with any investment in securities, the NAV of the units issued under the
scheme can go up or down depending on various factors and forces affecting capital
markets. ▪ Past performance of the Sponsor/the AMC/the Mutual Fund does not indicate the
future performance of the Scheme. ▪ Fidelity India Children’s Plan is a the name of the Plan
comprising three funds viz; Education Fund, Marriage Fund and Savings Fund and this
does not in any manner indicate the quality of the Plan, its future prospects or returns. ▪
Investments in the Funds will be affected by trading volumes, settlement periods,
volatility, price fluctuations, inability to sell securities, disinvestment of holdings of any
unlisted stocks prior to target date of disinvestment, and risk associated with investments
in derivatives.. ▪In addition to the factors that affect the values of securities, the NAV of
Units of the Funds will fluctuate with the movement in the broader fixed income, money
market and derivatives market and may be influenced by factors influencing such markets
in general including but not limited to economic conditions, changes in interest rates,
price and volume volatility in the bond and stock markets, changes in taxation, currency
exchange rates, foreign investments, political, economic or other developments and
closure of the stock exchanges. Further Marriage Fund will also affected by risks
associated with investments in Gold ETFs ▪Please read the Scheme Information Document of
the Plan and Statement of Additional Information carefully before investing. Statutory: Fidelity
Mutual Fund (‘the Fund’) has been established as a trust under the Indian Trusts Act, 1882, by
FIL Investment Advisors (liability restricted to Rs. 1 Lakh). FIL Trustee Company Private Limited,
a company incorporated under the Companies Act, 1956, with a limited liability is the Trustee to
the Fund. FIL Fund Management Private Limited, a company incorporated under the Companies
Act, 1956, with a limited liability is the Investment Manager to the Fund. Fidelity, Fidelity
International and Pyramid Logo are trademarks of FIL Limited.