Fidelity MultiManager Cash Fund

Transcription

1 Fideity MutiManager Cash Fund Ongoing Offer: Issue of units at appicabe NAV pus appicabe entry oad, if any. This Key Information Memorandum (KIM) sets forth the information, which a prospective investor ought to know before investing. For further detais of the Scheme(s) / Mutua Fund, due diigence certificate by the AMC, key personne, investors rights & services, risk factors, penaties & pending itigations, associate transactions, Who cannot invest, Important Note on Anti- Money Laundering, Know-Your-Customer and Investor Protection, investors shoud, before investment, refer to the Offer Document(s) avaiabe free of cost at any of our Investor Service Centres or distributors or at our website The Schemes particuars have been prepared in accordance with Securities and Exchange Board of India (Mutua Funds) Reguations 1996, as amended ti date, and fied with Securities and Exchange Board of India (SEBI). The units being offered for pubic subscription have not been approved or disapproved by SEBI, nor has SEBI certified the accuracy or adequacy of this KIM. This KIM is dated January 01, 2007.

2 PERFORMANCE OF SCHEMES (as on December 15, 2006) Schemes & Benchmark Indices Date of Aotment Returns % Last 1 Year Since Inception EQUITY FUNDS Fideity Equity Fund May 16, ** 57.36** BSE ** 49.16** Fideity India Specia Situations Fund May 22, * BSE * Fideity Tax Advantage Fund February 27, * BSE * INCOME FUND Fideity Short Term Income Fund (Institutiona) August 30, * Fideity Short Term Income Fund (Non-Institutiona) 1.84* CRISIL Short Term Bond Fund Index 1.59* LIQUID FUND Fideity Cash Fund (Super-Institutiona) November 27, ~ Fideity Cash Fund (Institutiona) 8.64~ Fideity Cash Fund (Retai) 8.25~ CRISIL Liquid Fund Index 5.10~ FUND OF FUNDS Fideity MutiManager Cash Fund January 9, ~ CRISIL Liquid Fund Index 5.94~ * Absoute Returns; ** Compounded Annuaised Growth Rate (CAGR); ~ Simpe Annuaised Return Fideity Equity Fund Fideity India Specia Situations Fund 60% 50% 40% 30% 20% 10% 0% Last 1 Year (% CAGR) Fideity Equity Fund BSE Since Inception (% CAGR) 50% 40% 30% 20% 10% 0% Since Inception (Absoute) Fideity India Specia Situations Fund BSE % 40% 30% 20% 10% 0% Fideity Tax Advantage Fund Since Inception (Absoute) Fideity Tax Advantage Fund BSE % 2.0% 1.5% 1.0% 0.5% 0% Fideity Short Term Income Fund Since Inception (Absoute) Fideity Short Term Income Fund (Institutiona) Fideity Short Term Income Fund (Non-Institutiona) CRISIL Short Term Bond Fund Index Fideity Cash Fund Fideity MutiManager Cash Fund 10% 8% 6% 4% 2% 0% Since Inception (Simpe Annuaised) Fideity Cash Fund (Super-Institutiona) Fideity Cash Fund (Institutiona) Fideity Cash Fund (Retai) CRISIL Liquid Fund Index 7% 6% 5% 4% 3% 2% 1% 0% Since Inception (Simpe Annuaised) Fideity MutiManager Cash Fund CRISIL Liquid Fund Index NAVs of Growth Option are used for cacuation of returns. Returns have been cacuated on the face vaue of Rs. 10/- per unit. CAGR has not been cacuated for schemes which have not competed one year from date of aotment. Past Performance may or may not be sustained in future. 2

3 Investment Objective FIDELITY EQUITY FUND To generate ong-term capita growth from a diversified portfoio of predominanty equity and equity-reated securities. FIDELITY INDIA SPECIAL SITUATIONS FUND To generate ong-term capita growth from a diversified portfoio of predominanty equity and equity-reated securities incuding equity derivatives. Information on Specia Situations The Scheme wi primariy be a diversified equity fund which wi seek to invest in undervaued companies for ong term investment with key theme focus being "Specia Situations" - these are situations that are out-of-the-ordinary and which therefore present interesting stock picking opportunities. The types of companies that may fa within the scope of Specia Situations coud incude but are not imited to companies with recovery potentia, companies whose growth potentia, may not be fuy recognised by the market, companies with hidden /undervaued assets whose vaue, may not be fuy recognised by the market, companies with interesting product pipeines which coud offer good earnings potentia, companies undertaking corporate restructuring, companies which coud be potentia candidates for mergers and acquisitions reated activities. Asset Aocation Pattern Instrument Risk Profie Range of Aocation (% of net assets) Norma Aocation (% of net assets) Equity and equity reated securities* High 80 to Money market instruments Low to Medium 0 to 20 5 * Incudes investments in Offshore securities, ADRs and GDRs not exceeding 10% of the net assets of the Scheme as on March 31 of each reevant year. In respect of Fideity India Specia Situations Fund, aso incudes investments in equity derivatives. Risk Profie Pans Options Appicabe NAV Minimum Appication Size (Lumpsum Investment) Minimum Appication Size (Systematic Investment) Minimum Redemption Size Despatch of Redemption Proceeds Benchmark Index Dividend Poicy Mutua Fund investments are subject to market risks. Pease read the Offer Document carefuy for detais on risk factors before investment. Not Avaiabe Growth and Dividend. The Dividend Option offers Payout and Reinvestment faciities. Pease refer Page 7 under the heading Common to A Schemes Initia Investment Additiona Investment Initia Investment Additiona Investment Rs. 5,000 Rs. 1,000 Rs. 5,000 Rs. 1,000 Min. Instament Amount Min. No. of Instaments Min. Aggregate Investment Rs Rs. 5,000 A the three above conditions to be jointy fufied Rs. 1,000 or 100 units Within 10 Business Days of the receipt of a vaid redemption request at the authorised centre of Fideity Mutua Fund. BSE-200 Index Min. Instament Amount Min. No. of Instaments Min. Aggregate Investment Rs Rs. 5,000 A the three above conditions to be jointy fufied The Trustee may decide to distribute by way of dividend, the surpus by way of reaised profit, dividends and interest, net of osses, expenses and taxes, if any, to Unit Hoders in the Dividend Option of the Scheme(s). Dividends wi be decared ony if, in the opinion of the Trustee, such surpus is avaiabe and adequate for distribution. The Trustee s decision with regard to avaiabiity and adequacy, rate, timing and frequency of distribution sha be fina. The dividend wi be due to ony those Unit Hoders whose names appear in the register of Unit Hoders in the Dividend Option of the Scheme(s) on the record date, which wi be announced in advance. The Unit Hoders have the option of receiving or reinvesting the dividend. If the Dividend Reinvestment faciity is chosen the dividend wi be reinvested at the Appicabe NAV of the immediatey foowing Business Day. In respect of Unit hoders opting for dividend payout faciity, the AMC sha despatch the dividend warrants within 30 days of the date of decaration of dividend. Dividend Frequency and Record Dates Name of Fund Manager Dividend Frequency Record Date Faciities avaiabe At Trustee's Woud be announced Reinvestment & Discretion in advance Payout Sandeep Kothari Dividend Frequency Record Date Faciities avaiabe At Trustee's Woud be announced Reinvestment & Discretion in advance Payout Rajesh Singh Name of Trustee Company Performance of Schemes Expenses (i) Load Structure For Ongoing Offer Fideity Trustee Company Private Limited Pease refer Page 2 aongside Entry Load : (i) For each Purchase of ess than Rs. 5 Crores : 2.25% (ii) For each Purchase of Rs. 5 Crores or more : Ni (iii) For each Purchase by an FOF (irrespective of the amount of Purchase) : Ni (iv) For each Purchase as a resut of Dividend Re-investment : Ni (v) For each Purchase through switch-in (incuding through STP) into any of the equity schemes of the Fund from Fideity MutiManager Cash Fund ("FMCF") or Fideity Short Term Income Fund ("FSTIF") or Fideity Cash Fund ("FCF"); provided units are first switched out / systematicay transferred out from the equity schemes of the Fund to FMCF or FSTIF or FCF and, within a period of 90 days from such transaction, the units aotted against such switch proceeds are again switched out / systematicay transferred out from FMCF or FSTIF or FCF (on a FIFO basis) into any of the equity schemes of the Fund : Ni (vi) For each Purchase through switch-in from other equity schemes of the Fund : Ni In case of SIP/STP the above criteria for Entry Load wi be appicabe for each instament. A switch-in wi aso attract an Entry Load ike any Purchase except in cases mentioned above. Exit Load : (i) Within 6 months from the date of aotment or Purchase appying First in First Out basis for investments made other than through SIP / STP or if the Purchase was made through SIP / STP and the Entry Load appicabe at the time of SIP / STP Purchase was NIL / 2.25%: 1.00%. (ii) Within 2 years from the date of aotment or Purchase appying First in First Out basis, if the Purchase was made through SIP / STP and the Entry Load appicabe at the time of the SIP / STP Purchase was 1.25%: 1.00%. A switch-out or a withdrawa under SWP may aso attract an Exit Load ike any Redemption. No Entry / Exit Loads / CDSC wi be chargeabe in case of switches made between different options of the Scheme. (ii) Recurring Expenses Tax Treatment for Investors Daiy Net Asset Vaue (NAV) Pubication For Investor Grievances Unit Hoders' Information Pease refer Page 7 under the heading Information Common to A Schemes Pease refer Page 6 under the heading Consoidated Tax treatment for the Investors (Unit Hoders) Pease refer Page 7 under the heading Information Common to A Schemes Pease refer Page 7 under the heading Information Common to A Schemes Pease refer Page 7 under the heading Information Common to A Schemes 3

4 Investment Objective Asset Aocation Pattern FIDELITY TAX ADVANTAGE FUND To generate ong-term capita growth from a diversified portfoio of predominanty equity and equity-reated securities. Instrument Risk Profie Range of Aocation Norma Aocation (% of net assets) (% of net assets) Equity and equity High 80 to reated securities* Money market Low to 0 to 20 5 instruments Medium *Incudes investments in Offshore securities, ADRs and GDRs not exceeding 10% of the net assets of the Scheme as on March 31 of each reevant year. FIDELITY SHORT TERM INCOME FUND Risk Profie Mutua Fund investments are subject to market risks. Pease read the Offer Document carefuy for detais on risk factors before investment. Pans Not Avaiabe Institutiona Pan & Non-Institutiona Pan Options Growth and Dividend. The Dividend Option offers Payout and Reinvestment faciities. Appicabe NAV Minimum Appication Size (Lumpsum Investment) Minimum Appication Size (Systematic Investment) Minimum Redemption Size Despatch of Redemption Proceeds Benchmark Index Dividend Poicy Initia Investment Additiona Investment Rs. 500 and in mutipes of Rs. 500 and in mutipes of Rs. 500 thereafter Rs. 500 thereafter Min. Instament Min. No. of Min. Aggregate Amount Instaments Investment Rs Rs. 3,000 Rs. 500 or 50 units A the three above conditions to be jointy fufied Within 10 Business Days of the receipt of the redemption request at the authorised centre of Fideity Mutua Fund. Pease note that in respect of Fideity Tax Advantage Fund redemption of units can be made ony after three years of ock-in period from the date of aotment of units proposed to be redeemed. BSE-200 Index To generate reasonabe returns through a diversified portfoio of fixed income securities. Pease refer Page 7 under the heading Common to A Schemes Instrument Risk Profie* Norma Aocation (% of net assets) Debt Instruments incuding securitized debt Medium to Low 0 to 100 Money market instruments Medium to Low 0 to 100 * The average maturity profie of the portfoio of the Scheme is ikey to be up to 4 years. The Scheme may, subject to appicabe reguations from time to time, invest in offshore securities up to 25% of net assets of the Scheme. Pan Initia Investment Additiona Investment Institutiona Rs. 5,00,00,000 Rs. 1,00,000 Non-Institutiona Rs. 5,000 Rs. 1,000 Pan Min. Instament Min. No. of Min. Aggregate Amount Instaments Investment Institutiona Rs Rs. 5,000 Non-Institutiona Rs Rs. 5,000 A the three above conditions to be jointy fufied Institutiona Pan - Rs. 1,00,000 or 10,000 units Non-Institutiona - Rs. 1,000 or 100 units CRISIL Short Term Bond Index The Trustee may decide to distribute by way of dividend, the surpus by way of reaised profit, dividends and interest, net of osses, expenses and taxes, if any, to Unit Hoders in the Dividend Option of the Scheme(s). Dividends wi be decared ony if, in the opinion of the Trustee, such surpus is avaiabe and adequate for distribution. The Trustee s decision with regard to avaiabiity and adequacy, rate, timing and frequency of distribution sha be fina. The dividend wi be due to ony those Unit Hoders whose names appear in the register of Unit Hoders in the Dividend Option of the Scheme(s) on the record date. The Unit Hoders have the option of receiving or reinvesting the dividend. If the Dividend Reinvestment faciity is chosen the dividend wi be reinvested at the Appicabe NAV of the immediatey foowing Business Day. In respect of Unit hoders opting for dividend payout faciity, the AMC sha despatch the dividend warrants within 30 days of the date of decaration of dividend. Dividend Frequency and Record Dates Name of Fund Manager Name of Trustee Company Performance of Schemes Expenses (i) Load Structure For Ongoing Offer (ii) Recurring Expenses Tax Treatment for Investors Daiy Net Asset Vaue (NAV) Pubication For Investor Grievances Unit Hoders' Information Dividend Frequency Record Date Faciities avaiabe At Trustee's Woud be announced Reinvestment & Discretion in advance Payout Sandeep Kothari Entry Load : (i) For each Purchase of ess than Rs. 5 Crores : 2.25% (ii) For each Purchase of Rs. 5 Crores or more : Ni (iii) For each Purchase by an FOF (irrespective of the amount of Purchase) : Ni (iv) For each Purchase as a resut of Dividend Reinvestment : Ni (v) For each Purchase through switch-in (incuding through STP) into any of the equity schemes of the Fund from Fideity MutiManager Cash Fund ("FMCF") or Fideity Short Term Income Fund ("FSTIF") or Fideity Cash Fund ("FCF"); provided units are first switched out / systematicay transferred out from the equity schemes of the Fund to FMCF or FSTIF or FCF and, within a period of 90 days from such transaction, the units aotted against such switch proceeds are again switched out / systematicay transferred out from FMCF or FSTIF or FCF (on a FIFO basis) into any of the equity schemes of the Fund : Ni (vi) For each Purchase through switch-in from other equity schemes of the Fund : Ni In case of SIP / STP the above criteria for Entry Load wi be appicabe for each instament. A switch-in wi aso attract an Entry Load ike any Purchase except in cases mentioned above. Exit Load : NIL No Entry / Exit Loads / CDSC wi be chargeabe in case of switches made between different options of the Scheme. Dividend Frequency Record Date Faciities avaiabe Monthy 25th of every month Reinvestment & Payout (Appicabe for both Institutiona and Non-Institutiona Pans under the Scheme.) If, 25th of a month happens to be a non-business Day, the immediatey next Business Day woud be the Record Date. Fideity Trustee Company Private Limited Pease refer Inside Cover Page Pease refer Page 7 under the heading Information Common to A Schemes Sameer Kukarni Entry Load: Ni Exit Load: Ni If the AMC introduces an Entry Load, a switch-in or transfer under STP may aso attract the appicabe Entry Load ike any Purchase. If the AMC introduces an Exit Load, a switch-out or a withdrawa under SWP or transfer under STP may aso attract the appicabe Exit Load ike any Redemption. No Entry / Exit Loads / CDSC wi be chargeabe in case of switches made between different pans/options of the Scheme. Pease refer Page 6 under the heading Consoidated Tax treatment for the Investors (Unit Hoders) Pease refer Page 7 under the heading Information Common to A Schemes Pease refer Page 7 under the heading Information Common to A Schemes Pease refer Page 7 under the heading Information Common to A Schemes 4

5 Investment Objective Asset Aocation Pattern FIDELITY CASH FUND To deiver reasonabe returns with ower voatiity and higher iquidity through a portfoio of debt and money market instruments. Instrument Risk Profie Norma Aocation (% of net assets) Debt Instruments incuding securitized debt Medium to Low 0 to 100 Money market instruments Medium to Low 0 to 100 The Scheme may, subject to appicabe reguations from time to time, invest in offshore securities up to 25% of net assets of the Scheme. FIDELITY MULTIMANAGER CASH FUND To provide reasonabe returns, commensurate with ow risk whie providing a high eve of iquidity, from a portfoio predominanty made up of iquid / cash schemes of mutua funds registered with SEBI. Instrument Risk Profie Range of Aocation Norma Aocation (% of net assets) (% of net assets) Liquid / Cash schemes of mutua funds registered with SEBI Low to Medium 80 to Money market instruments Low to Medium 0 to 20 5 Risk Profie Mutua Fund investments are subject to market risks. Pease read the Offer Document carefuy for detais on risk factors before investment. Pans Super Institutiona Pan, Institutiona Pan & Retai Pan Not Avaiabe Options Growth and Dividend The Dividend Option offers Payout and Reinvestment faciities Growth and Dividend The dividend decared in the scheme woud be compusoriy re-invested. Appicabe NAV Pease refer Page 7 under the heading Common to A Schemes Minimum Appication Size (Lumpsum Investment) Minimum Appication Size (Systematic Investment) Pan Initia Investment Additiona Investment Super Institutiona Rs. 10,00,00,000 Rs. 1,00,00,000 Institutiona Rs. 1,00,00,000 Rs. 1,00,000 Retai Rs. 5,000 Rs. 1,000 Pan Min. Instament Min. No. of Min. Aggregate Amount Instaments Investment Super Institutiona Rs Rs. 5,000 Institutiona Rs Rs. 5,000 Retai Rs Rs. 5,000 A the three above conditions to be jointy fufied Initia Investment Additiona Investment Rs. 5,000 Rs. 1,000 Min. Instament Min. No. of Min. Aggregate Amount Instaments Investment Rs Rs. 5,000 A the three above conditions to be jointy fufied Minimum Redemption Size Despatch of Repurchase (Redemption) Request Benchmark Index Dividend Poicy Dividend Frequency and Record Dates Name of Fund Manager Name of Trustee Company Performance of Schemes Expenses (i) Load Structure For Ongoing Offer (ii) Recurring Expenses Tax Treatment for Investors Daiy Net Asset Vaue (NAV) Pubication For Investor Grievances Unit Hoders' Information Pan Minimum Redemption Size Rs. 1,000 or 100 units Super Institutiona Pan Rs. 1,00,000 or 10,000 units Institutiona Pan Rs. 1,00,000 or 10,000 units Retai Pan Rs. 1,000 or 100 units Within 10 Business Days of the receipt of the redemption request at the authorised centre of Fideity Mutua Fund CRISIL Liquid Fund Index The Trustee may decide to distribute by way of dividend, the surpus by way of reaised profit, dividends and interest, net of osses, expenses and taxes, if any, to Unit Hoders in the dividend option of the Scheme if such surpus is avaiabe and adequate for distribution in the opinion of the Trustee. The Trustee's decision with regard to avaiabiity and adequacy and rate of distribution sha be fina. The dividend wi be due to ony those Unit Hoders whose names appear in the register of Unit Hoders in the Dividend option of the Scheme on the day(s) mentioned under the head "Dividend Frequency and Record Dates" beow or the next Business Day, as appicabe. In case of FCF, under the monthy dividend decaration frequency, the Unit Hoders have the option of receiving the dividend or reinvesting the same whie under the daiy and weeky dividend decaration frequencies the dividend wi be compusoriy reinvested at the ex-dividend NAV announced immediatey after the record date. In case of FMCF, any dividend decared wi be compusoriy reinvested at the Appicabe NAV of the immediatey foowing business day. In respect of Unit hoders opting for monthy dividend payout faciity in Fideity Cash Fund, the AMC sha despatch, dividend warrants within 30 days of the date of decaration of dividend. Dividend Frequency Record Date Faciities avaiabe Daiy Every Day* Reinvestment ony Weeky Every Monday** Reinvestment ony Monthy 25th of each Reinvestment & Payout caendar month*** (Appicabe for Super-Institutiona, Institutiona and Retai Pans under the Scheme.) * A days for which NAV is pubished on / websites ** If a particuar Monday of a week happens to be a non-business Day, the dividend wi be decared on the next Business Day. *** If, 25th of a month happens to be a non-business Day, the immediatey next Business Day woud be the Record Date. Dividend Frequency Record Date Faciities avaiabe Weeky Every Monday Reinvestment ony If a particuar Monday of a week happens to be a non-business Day, the dividend wi be decared on the next Business Day. Sameer Kukarni Fideity Trustee Company Private Limited Pease refer Inside Cover Page Entry Load: Ni Exit Load: Ni If the AMC introduces an Entry Load, a switch-in or transfer under STP may aso attract the appicabe Entry Load ike any Purchase. If the AMC introduces an Exit Load, a switch-out or a withdrawa under SWP or transfer under STP may aso attract the appicabe Exit Load ike any Redemption. No Entry / Exit Loads / CDSC wi be chargeabe in case of switches made between different pans / options of the same Scheme. Pease refer Page 7 under the heading Information Common to A Schemes Pease refer Page 6 under the heading Consoidated Tax treatment for the Investors (Unit Hoders) Pease refer Page 7 under the heading Information Common to A Schemes Pease refer Page 7 under the heading Information Common to A Schemes Pease refer Page 7 under the heading Information Common to A Schemes 5

6 CONSOLIDATED TAX TREATMENT FOR THE INVESTORS (UNIT HOLDERS) The information furnished beow outines briefy the tax impications with respect to the unit hoders of the Scheme and with respect to the Fund and is based on reevant provisions of the Income Tax Act, 1961 and Weath Tax Act, 1957 (coectivey caed 'the reevant provisions') as at December 22, For this purpose, the provisions of the Finance Act, 2006 as assented by the President of India have been considered. The impications stated herein have been reviewed and certified by the Auditors of the Scheme and are found in agreement with the reevant provisions vide their etter dated December 22,2006.However, the Fund does not make any representations on the procedures for ascertaining the tax benefits nor do they make any representation regarding any ega interpretations. Since the information beow is based on the reevant provisions as on December 22, 2006, any subsequent changes in the said provisions coud affect the tax benefits. Except for the above procedure, the auditor has not performed any other services in connection with any other data or information incuded in this Offer document. THE FOLLOWING INFORMATION IS PROVIDED FOR GENERAL INFORMATION PURPOSES ONLY AND APPLIES TO THE SCHEME. IN VIEW OF THE INDIVIDUAL NATURE OF TAX BENEFITS, EACH INVESTOR IS ADVISED TO CONSULT HIS OR HER OWN TAX CONSULTANT WITH RESPECT TO THE SPECIFIC TAX IMPLICATIONS ARISING OUT OF HIS OR HER PARTICIPATION IN THE SCHEMES. A) FOR UNIT HOLDERS 1. Under the provisions of section 10(35) of the Income Tax Act, 1961 ('the Act'), income received in respect of the units of a Mutua Fund specified under section 10(23D) wi be exempt from income tax in the hands of a unit hoders. 2. Under Section 2(29A) read with 2(42A) of the Act, units of a mutua fund are treated as a ong term capita asset if they are hed for a period of more than tweve months preceding the date of transfer. Units hed for not more than 12 months preceding the date of their transfer are short term capita assets. As per section 112 of the Act, income arising on transfer of a ong-term capita asset by resident and non-resident investors [other than Foreign Institutiona Investor ('FII')], woud be chargeabe to tax at the rate of 20% after indexation or at 10% without indexation, if appicabe. In case of FII, such income is chargeabe to tax at the rate of 10% under section 115AD of the Act. In case of an individua or Hindu Undivided Famiy ('HUF'), being a resident, where the tota income as reduced by the ong term capita gains is beow the maximum amount not chargeabe to tax (i.e Rs. 1,00,000 in case of a individuas, to Rs. 1,35,000 in case of women and to Rs.1,85, 000 in case of senior citizens), the ong term capita gains sha be reduced to the extent of the shortfa and ony the baance ong term capita gains wi be subject to the fat rate of taxation. In addition to the aforesaid tax, in the case of an individua, HUF or Association of Persons ('AOP'), where the income exceeds Rs. 10,00,000, a surcharge of 10%, in case of domestic companies a surcharge of 10%, in case of foreign companies a surcharge of 2.5% and in case of an artificia juridica person a surcharge of 10% of such tax iabiity is aso payabe. An education cess of 2% on tota income tax payabe (incuding surcharge) is payabe by a categories of taxpayers. Moreover, in case of an equity-oriented fund, ong term capita gains arising from the sae of a units of such equity oriented fund are exempt from tax under section 10(38) of the Act, where such sae attracts Securities Transaction Tax ('STT'). However, at the time of sae of units (redemption) the unit hoder wi have to pay a STT of 0.25% on vaue of sae of the unit to the Mutua Fund, which wi be coected by the Mutua Fund and deposited into Government Treasury. For this purpose, 'an equity oriented fund' is a fund where the investibe funds are invested in equity shares of domestic companies to the extent of more than 50% of the tota proceeds of such fund. As per the Finance Act, minimum investment by equity-oriented funds in equity shares of domestic companies is increased to 65% w.e.f. June 1, Further, as per Finance Act, 2006, even income by way of ong term capita gains exempt under section 10(38) of the Act, woud be taken into account whie computing the Book Profits of a company for the purpose of Minimum Aternate Tax payabe under section 115JB of the Act. 3. Short term capita gains arising to a unit hoder wi be taxed at the norma rate appicabe to that unit hoder as per the provisions of the Act. In case of an individua or HUF, being a resident, where the tota income as reduced by the short term capita gains is beow the maximum amount not chargeabe to tax (i.e Rs. 1,00,000 in case of a individuas, to Rs. 1,35,000 in case of women and to Rs.1,85,000 in case of senior citizens), the short term capita gains sha be reduced by the amount by which the tota income as so reduced fas short of the maximum amount which is not chargeabe to income tax and the tax on the baance of such short term capita gains sha be computed at the appicabe sab rates. A reference may aso be made to the provisions of section 112 of the Act, which provides for a simiar treatment in case of ong-term capita gains. Short term capita gains are in case of domestic in case of foreign companies and as per section 115AD of the in case of FII. In case of an equity-oriented fund, as per section 111A of the Act, short term capita gains arising from the sae (redemption) of a unit of an equity oriented fund, where such sae (redemption) attracts STT, is taxabe at the rate of 10%. However, at the time of sae of units (redemption) the unit hoder wi have to pay a STT of 0.25% on the vaue of the sae of the unit to the Mutua Fund, which wi be coected by the Mutua Fund and deposited into Government Treasury. In addition to the aforesaid tax, in the case of an individua, HUF or Association of Persons (AOP), where the income exceeds Rs. 10,00,000, a surcharge of 10%, in the case of domestic companies a surcharge of 10%, in case of foreign companies a surcharge of 2.5% and in case of an artificia juridica person a surcharge of 10% of such tax iabiity is aso payabe. An education cess of 2% on tota income tax payabe (incuding surcharge) is payabe by a categories of taxpayers. 4. In terms of the provisions of section 80C of the Act, an Individua or a HUF is entited to caim a deduction for investments made in specified securities etc. up to a maximum amount of Rs. 1,00,000. Subscription to any units of any Mutua Fund notified under cause (23D) of section 10 of the Act or from the Administrator or the specified company under any pan formuated in accordance with such scheme as the Centra Government may, by notification in the Officia Gazette, specify in this behaf, quaify for deduction under section 80C of the Act. The Centra Government has notified the Equity Linked Savings Scheme, 2005 ('ELSS, 2005') in this regard vide Notification No. 226 dated November 3, 2005 as amended by Notification No. 259 dated December 13, The investors woud be entited to the benefit under section 80C of the Act for investments made under such schemes of the Fund, which are in accordance with ELSS 2005 ('Fideity Tax Advantage Fund'), subject to the aggregate imit of Rs.100,000 provided under section 80C of the Act. 5. The capita oss resuting from sae of units woud be avaiabe for set off against other capita gains made by the investor and woud reduce the tax iabiity of the investor to that extent. However, osses on transfer of ong-term capita assets woud be aowed to be set-off ony against gains from transfer of ong-term capita assets. Further, as the ong term gains arising on transfer of units of equity oriented funds are not subject to tax then the ong-term capita osses from such units woud not be aowed to be set off or carry forward. 6. Where the units are treated as 'stock in trade' and the profits arising from the sae of units are taxed under the head "Profits & Gains of business or profession", an amount equa to the STT paid by the unit hoder can be caimed as a rebate from the tax payabe on the income from such sae of units by virtue of the provisions of section 88E of the Act. No deduction woud be aowed for STT whie cacuating capita gains or business profits. 7. Where a person buys any units within a period of three months before the record date, ses such units within nine months after such date and the income distributed on such units is exempt from tax, the oss on such sae to the extent of the income distributed on units sha be ignored whie computing the income chargeabe to tax. 8. Where a person buys units (origina units) within a period of three months before the record date, receives bonus units on such origina units, and then ses the origina units within a period of nine months from the record date and continues to hod the bonus units, then the oss incurred on the origina units sha be ignored whie computing the income chargeabe to tax but sha be deemed to be the cost of acquisition of the bonus units. 9. As stated in chapter VII of the offer document of respective schemes switching from one Scheme/option to another Scheme/option wi be effected by way of redemption of units of the reevant Scheme/option and reinvestment of the redemption proceeds in the other Scheme/option seected by the unit hoder. Hence switching wi attract the same impications as appicabe on transfer of such units. 10. Further, in case of Fideity Tax Advantage Fund, the unit hoder woud not be permitted to transfer or switch to another scheme / option before competion of 3 years from the date of aotment of units (1 year in the event of death of an investor). 11. No deduction of tax at source sha be made from income credited or paid by a mutua fund to a Unit hoder. 12. As per Circuar no. 715 dated August 8, 1995 issued by the CBDT in case of resident Unit hoders, no tax is required to be deducted at source from capita gains arising at the time of repurchase or redemption of the units. Under Section 195 of the Act, in case of schemes other than equity oriented scheme, the Mutua Fund is required to deduct tax at source at the rate of 20% on any ong-term capita gains arising from units chargeabe to tax if the payee Unit hoder is a non-resident. In respect to short-term capita gains, tax is required to be deducted at source at the rate of 30% if the payee Unit hoder is a non-resident non-corporate and at the rate of 40% if the payee Unit hoder is a foreign company in case of schemes other than equity oriented scheme. In case of short-term capita gains arising from sae of equity-oriented schemes, tax is required to be deducted at the rate of 10%. Further, the aforesaid tax to be deducted is required to be increased by surcharge and education cess, as appicabe. 13. As per circuar no. 728 dated October 30, 1995 issued by the CBDT, in the case of a remittance to a country with which a Doube Tax Avoidance Agreement ('DTAA') is in force, the tax shoud be deducted at the rate provided in the Finance Act of the reevant year or at the rate provided in the DTAA, whichever is more beneficia to the assessee. In order for the Unit hoder to obtain the benefit of a ower rate avaiabe under a DTAA, the Unit hoder wi be required to provide the Mutua Fund with a certificate obtained from his Assessing Officer stating his eigibiity for the ower rate. 14. Investment in units of the Fund by Reigious and Charitabe Trusts is an eigibe investment under Section 11(5) of the Act, read with Rue 17C of the Income Tax Rues, Units hed under the Scheme of the Fund are not treated as assets as defined under section 2(ea) of the Weath-Tax Act, 1957 and therefore, woud not be iabe to weathtax. B) FOR THE FUND 1. Fideity Mutua Fund is a Mutua Fund registered with the Securities and Exchange Board of India and its entire income is exempt from tax under section 10(23D) of the Act. 2. Under Section 115R(2) of the Act, a Mutua Fund sha be iabe to pay Distribution Tax (incuding appicabe Surcharge and Education Cess) at the rate of % on income distributed to any person being an individua or Hindu Undivided Famiy; and % on income distributed to any other person. No Distribution Tax is payabe by an equity oriented fund. 3. As specified in Chapter VII of the Finance (No. 2) Act, 2004, as and when the mutua fund purchases and ses equity shares/units, it woud be required to pay the STT appicabe on such purchases and saes to the concerned Recognised Stock Exchange at the prescribed rates. 4. Further, in case of equity oriented funds, the Fund woud aso be iabe to coect STT from every person who ses such units to the Fund at the rate of 0.25% and pay the same to the credit of the Centra Government within the specified time imits. 6

7 INFORMATION COMMON TO ALL SCHEMES Appicabe NAV for Fideity Cash Fund and Fideity MutiManager Cash Fund Appicabe NAV for Fideity Equity Fund, Fideity India Specia Situations Fund, Fideity Tax Advantage Fund and Fideity Short Term Income Fund The Cut-off time and the Appicabe NAV wi be as under: For Purchase : 1. In respect of vaid Purchase appications accepted at a Designated Coection Centre upto noon on a day and if the funds are avaiabe for utiization by the Scheme on the same day, the cosing NAV of the day immediatey preceding the day of acceptance of appication wi be appicabe. 2. In respect of vaid Purchase appications accepted at a Designated Coection Centre after noon on a day and if the funds are avaiabe for utiization by the Scheme on the same day, the cosing NAV of the day immediatey preceding the next business day wi be appicabe. 3. In respect of vaid Purchase appications accepted at a Designated Coection Centre on a day, irrespective of the time of acceptance of appications, where the funds are not avaiabe for utiization on the day of the appication, the cosing NAV of the day immediatey preceding the day on which the funds are avaiabe for utiization by the Scheme wi be appicabe. No outstation cheques wi be accepted. For Redemption : 1. In respect of vaid Redemption appications accepted at a Designated Coection Centre upto 3.00 p.m., the cosing NAV of the day immediatey preceding the next business day wi be appicabe. 2. In respect of vaid Redemption appications accepted at a Designated Coection Centre after 3.00 p.m., the cosing NAV of the next business day wi be appicabe. For Switches : Vaid appications for 'switch-out' sha be treated as appications for Redemption and vaid appications for 'switch-in' sha be treated as appications for Purchase, and the provisions of the Cut-off time and the Appicabe NAV mentioned in the Offer Document as appicabe to Purchase and Redemption sha be appied respectivey to the 'switch-in' and 'switch-out' appications. The Cut-off time and the Appicabe NAV wi be as under: For Purchases / Redemptions : 1. In respect of vaid Purchase (aong with cheques / drafts / other payment instruments) / Redemption appications accepted at a Designated Coection Centre up to 3 p.m.on a Business Day, the NAV of such day wi be appicabe. 2. In respect of vaid Purchase (aong with cheques / drafts / other payment instruments) / Redemption appications accepted at a Designated Coection Centre after 3 p.m.on a Business Day, the NAV of the next Business Day wi be appicabe. The above wi be appicabe ony for cheques / drafts / payment instruments payabe ocay in the city in which ISC is ocated. No outstation cheques wi be accepted. For Switches : Vaid appications for switch-out sha be treated as appications for Redemption and vaid appications for switch-in sha be treated as appications for Purchase, and the provisions for the Cut-off time and the Appicabe NAV as appicabe to Purchase and Redemption sha be appied respectivey to the switch-in and switch-out appications. Pease note that in respect of Fideity Tax Advantage Fund redemption of units can be made ony after three years of ock-in period from the date of aotment of units proposed to be redeemed. Recurring Expenses Average Daiy Net Assets Maximum Recurring Expenses (as a % of Average Daiy Net Assets) Fideity Equity Fund Fideity Short Term Income Fund Fideity MutiManager Cash Fund Fideity India Specia Situations Fund Fideity Cash Fund Fideity Tax Advantage Fund First Rs. 100 Crores Next Rs. 300 Crores Next Rs. 300 Crores Baance Assets Daiy Net Asset Vaue (NAV) Pubication For Investor Grievances pease contact Unit Hoders' Information The NAVs of a schemes except Fideity Cash Fund and Fideity MutiManager Cash Fund wi be decared on a business days and wi be pubished in 2 newspapers. In case of Fideity Cash Fund and Fideity MutiManager Cash Fund, the NAV wi be cacuated on a caendar days and wi be pubished on a Business Days in 2 newspapers. The NAVs of a the schemes can aso be viewed on and Aternativey, investors can ca up our InvestorLine on (to-free from a MTNL/BSNL ine) or (accessibe across a and-ine and mobie # networks at oca ca rates) or (at ong distance rates) to access the NAV. # When diaing from a mobie phone, pease prefix the city code. Computer Age Management Services Private Limited Ground Foor, Rayaa Towers, 158, Anna Saai, Chennai Mr. R. Ananth Narayanan Fideity Fund Management Private Limited 1st Foor, Ganesha Towers, Od No. 90, New No. 104, Dr. Radhakrishnan Saai, Myapore, Chennai Teephone: Fax: E-mai: investor.ine@fideity.co.in An Account Statement wi be sent by ordinary post / courier / secured encrypted eectronic mai to each Unit Hoder, stating the number of Units purchased, not ater than 30 days from date of acceptance of a vaid transaction. The first Account Statement under Systematic Investment Pan (SIP) and Systematic Transfer Pan (STP) wi be sent to Unit Hoders opting in for these faciities within 10 working days of the date of the first systematic investment / systematic transfer. Account statements for subsequent systematic investments / systematic transfers woud be sent to Unit Hoders within 10 working days of the beginning of a caendar quarter for the immediatey previous caendar quarter ti the continuance of the investment / transfer. Unit Hoders wi aso be sent an Annua Account Statement by the AMC, within 30 days after March 31. An Annua Report of the Scheme wi be prepared as at the end of each financia year (March 31) and copies of the report or an abridged summary thereof wi be maied to a Unit Hoders. Fu portfoio detais, in the prescribed format, sha aso be discosed either by pubishing it in the newspapers or by sending to the Unit Hoders within one month from the end of each haf-year and it sha aso be dispayed on the website of the Fund. Date : January 01,

8 FREQUENTLY ASKED QUESTIONS ON PREVENTION OF MONEY LAUNDERING ACT (PMLA) AND MUTUAL FUND IDENTIFICATION NUMBER (MIN) 1. What is the Prevention of Money Laundering Act? As part of the goba initiative, a Financia Action Task Force ("FATF") was created to hep member countries draw up Anti-Money Laundering ("AML") egisation which woud hep impement the poicies, techniques and counter-measures to combat money aundering. In India, The Prevention of Money Laundering Act, 2002 ("PMLA") was created under the aegis of FATF. The PMLA forms the core of the ega framework put in pace by India to combat money aundering to be foowed by banking companies, financia institutions and intermediaries by administering KYC and other reporting requirements such as suspicious transactions reporting, etc. 2. What is KYC? KYC is an acronym for "Know Your Cient" or "Know Your Customer", a term commony used for Customer Identification Process. Pursuant to PMLA, SEBI has prescribed certain requirements reating to KYC norms for Financia Institutions and Financia Intermediaries (such as Mutua Funds) to 'know' their customers. This coud be in the form of persona meetings or verification of identity and address, financia status, occupation and such other persona information. Many companies who do not have face-to-face transacting (such as Mutua Funds) empoy the verification route. The underying principe is to foow the principes enshrined in the PMLA as we as the SEBI Act, 1992 so that the intermediary is aware of the cients on whose behaf it is deaing. 3. Are Mutua Fund Investors aso covered by PMLA? Yes, the PMLA covers a Financia Intermediaries, and this incudes Mutua Funds. As such, a Investors are required to submit necessary documentation that wi hep the Mutua Funds to compete the KYC procedure. 4. What are the KYC requirements for a Mutua Fund Investor? An Individua investor wi have to produce his proof-of-identity and proof-of-address as aid down by SEBI / AMFI to fufi the KYC process. (This process is covered in subsequent questions beow). Non-Individua Investors wi have to produce certain documents pertaining to its registration, etc. to fufi the KYC process. 5. Does the investor have to approach every Mutua Fund separatey to fufi these requirements? In order to make it convenient to investors, a Mutua Funds have come together to provide a singe-point of competing the KYC process. For this, an Investor wi have to obtain a Mutua Fund Identification Number ("MIN"). He/She can quote the MIN in an appication to any Mutua Fund and hence need not approach every Mutua Fund separatey to compete the KYC process. MIN is a Mutua fund Identification Number. This is issued to an investor after obtaining documents of Proof-of-Identity and Proof-of-Address. Since an investor generay invests with more than one Mutua Fund, it was fet by the Mutua Fund industry that the whoe KYC process coud be carried out at a singe window and by issuing a singe number. This wi make it easier for the investor as they do not have to undergo a KYC process with each individua Mutua Fund. It aso means that the industry can offer many more Points-of-Service (POS) where an investor can get a MIN. 6. From what date is MIN mandatory? The effective date for quoting a MIN with your investment transaction of Rs. 50,000 and above is 1st January, Any investment from this date which does not carry your MIN is iabe to be rejected by the Mutua Fund. 7. To whom is a MIN appicabe? Is there any exemption? Currenty, a investors who wish to make an investment transaction of Rs. 50,000 or above, wi be required to obtain a MIN. This woud aso appy to SIP instaments, even if the SIP was registered before 1st January, Investors who invest ess than Rs. 50,000 are currenty exempt from obtaining a MIN. Any switches made from existing investments or dividends re-invested do not require a MIN. However, it is in the interest of a investors to obtain a MIN, irrespective of the amount being invested for their own convenience, since it is one time exercise and the MIN is vaid across a Participating Mutua Funds. 8. Once an account is opened with a Mutua Fund by 1st, 2nd & 3rd hoder by competing the necessary formaities and the investors return to make a fresh investment, do they need to furnish the necessary documents again? Once a MIN is obtained by mutipe appicants in a foio, they can continue investing with any combination of hoders by quoting their correct MIN. Investors need not submit the documents again if they quote the MIN detais in the transaction form. 9. Why do I need to obtain a MIN at a? What if I do not obtain a MIN? MIN is a faciity to aow Mutua Funds to carry out KYC requirements under the PMLA. It has been designed with a view to offer the simpest way for compying with the PMLA, by competing the process in ess than 2 hours from the time the MIN appication form is submitted at a POS. The MIN that you get can be utiised for an investment in any Participating Mutua Fund. In this manner, a separate KYC process with each Mutua Fund is avoided. If you do not obtain a MIN, you wi not be abe to invest Rs. 50,000 or more in a mutua fund. 10. How ong does it take to get a MIN? If you fi up the MIN Appication Form (MAF) and submit it at the Point of Service designated by CDSL aong with a required documents, you wi get the MIN in about 2 hours (barring exceptiona circumstances). 11. I am aready providing my PAN / PAN Proof for my investment in Mutua Fund. Is that not sufficient for PMLA? The requirement of providing your PAN aong with proof is a requirement under the Income Tax aw and SEBI reguations. The current requirement for KYC is under a different aw - the PMLA. The fufiment of both aws is required. The PAN can be submitted as Proof of Identity for an individua but it is not sufficient to evidence address which is aso a mandatory requirement. To make the process convenient, the MIN obtained can be used across a Participating Mutua Funds. 12. Where and how do I obtain a MIN? The Mutua Fund Industry has appointed CVL, a subsidiary of Centra Depository Services (India) Limited, to issue MINs. For this purpose, CVL has appointed some Schedued Commercia Banks to function as POS. A ist of the POS is avaiabe on the website of AMFI. Additionay, Designated Investor Service Centres (ISCs) of some Mutua Fund woud aso be avaiabe for issuing MINs. Pease og on to the website of the Mutua Fund with who you are ooking to invest. You can go to a POS and obtain a MIN, by fufiing the foowing procedure: a) Fi up a MAF competey in ENGLISH in BLOCK Letters. Pease read the compete Instructions behind the MAF before fiing up the form. b) Pease attach a recent coour photograph (35mm x 45mm), stick it on the MAF in the space provided. Sign across the photograph. c) You wi need to give your PAN number, if you have been aotted one, and attach a photocopy of the PAN Card. d) You wi need to attach an Identity proof. The PAN Card is acceptabe as a Identity proof, but if not, you can attach any of the foowing documents which has your photograph: Vaid Passport; Photo PAN Card; Voter's Identity Card; Vaid Driving Licence; UIN (MAPIN) Card issued by SEBI; Vaid Photo Debit Card issued by a Bank in India; Vaid Ration Card with your photograph; Photo Identification issued by Bank Mangers of Schedued Commercia Banks / Gazetted Officer / Eected Representatives to the Legisative Assemby / Pariament. e) Pease fi in the address at which you wish to receive a correspondence from the Mutua Fund. Pease note that this address wi over-write the address in the Mutua Fund / Registrar records, and you wi receive a communications from the Mutua Fund where you provide the MIN at this address. This has to be supported by an Address Proof. You can attach any of the foowing documents: Teephone Bi*; Eectricity Bi*; Vaid Passport; Bank Passbook / Bank Account statement*; Demat Account Statement*; Voters Identity Card carrying your address; Vaid Driving Licence; Vaid Ration Card; Vaid Registered Rent Agreement / Sae Agreement; Any other document containing the photograph, address and signature duy attested by a Bank Managers of Schedued Commercia Banks / Gazetted Officer / Eected Representatives to the Legisative Assemby / Pariament. * These documents shoud not be more than 3 months od as on the date of the submission of this Form f) If you are a non-resident, you wi need to aso give your Overseas address, with a simiar Proof-of-address as above. If you are a Resident in India, you can give your Permanent address here, and provide a Proof-of-address as above. g) The above "Proof" documents need to be provided in Origina at the POS counter, aong with a photocopy (the origina wi be returned to you immediatey). Aternativey, you may attach a copy notarised by a Notary Pubic or attested by a Gazetted Officer / Manager of a Schedued Commercia Bank (Name, Designation and Sea shoud be affixed on the copy). h) After competing the above, pease carry a photocopy of the fied-up MIN Appication form, and submit it with a the aforesaid documents to a POS. i) You shoud get the MIN normay in not more than 2 hours. 13. Is it necessary to quote the MIN for every transaction? No, after informing a Mutua Fund of the MIN for your foio, it wi be registered against the foio, and you woud not need to inform this for every transaction. (This practice may vary from one Mutua Fund to another). 14. Is there a charge I need to pay to obtain a MIN? Currenty an investor does not need to pay any charges to CVL or to any Mutua Fund to obtain a MIN. 15. I am an NRI outside India. How do I get a MIN? At present, there are no POS avaiabe outside India. You may obtain the MIN Appication form on the internet from the AMFI website. After fiing it and attaching necessary documents, you can mai it to your Power of Attorney Hoder or Distributor/Broker to obtain a MIN for you. Aternativey, if the Mutua Fund in which you invest offers a faciity to process MIN Appication form by post, you may send them the same. A certified true copy of the overseas address wi aso be needed, and if the document is in a foreign anguage, a certified copy of its Engish Transation wi aso be needed. 16. If a members in my famiy invest, can I get a singe MIN? Each individua investor wi need to have a separate MIN (simiar to a PAN). This woud incude Joint Hoders in a foio. As such, a investing famiy members (i.e. whose name appears as the first / second or third hoder) shoud have separate MIN. Though not mandatory, it is preferabe for Nominees aso to have a MIN. 17. I invest in my minor chidren's name? Do I need to get a MIN for my minor chidren as we? Minors cannot appy for a MIN. In case of a Minor, the Guardian of the minor has to obtain and quote his / her MIN in the Mutua Fund form whie investing. 18. I have eft my investments to my PoA hoder as (I am not in India/I am not fit to sign)? Are there any additiona requirements for a POA hoder? In addition to the investor (who has to obtain / quote his / her MIN), the POA hoder is aso required to obtain a separate MIN in his / her own name and quote it whie investing on behaf of the beneficiary investor. 8