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Presented By Group - I

It is

An open ended hybrid plan comprising of three funds Education Fund: growth Fund. Marriage Fund: growth Fund. An open-ended equity

An

open-ended

equity

Savings Fund: An open-ended income Fund.

It is
Education Fund:-

The Education Fund will normally invest 70% in equities to aim for investment growth and 30% in debt to help provide stability - a balance of risk and reward to help ride out volatility over the long term.

Marriage Fund:Typically in an Indian marriage, a significant amount goes towards buying gold. And so, the Marriage Fund will normally invest 70% in equities for long-term growth, 10% in debt for stability and 20% in Gold ETFs to provide protection from any rise in gold prices during the period of your investment.

Savings Fund:If you prefer to adopt a conservative approach while saving for your children s needs or if you do not have a long-term horizon, then the Savings Fund is the one for you. It will invest up to 100% in debt and money market instruments to aim for stability. So, if you invest in the Education Fund or Marriage Fund, you could also set up a Systematic transfer Plan (STP) to the Savings Fund, to gradually shift from equities closer to the time that you need your money. There will be no charge for such transfers.

Why to Invest ..
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.

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. The Mutual 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.

Marriage Fund:

Savings Fund:

To seek to generate reasonable returns predominantly from a diversified portfolio of debt and money market instruments.

There is no assurance that the objective of the Funds will be realized and the Funds do not assure or guarantee any returns.

Asset Allocation Pattern

Asset Allocation Pattern

Asset Allocation Pattern

Important Notes
A Fund may, subject to applicable regulations from time to time, invest in foreign securities up to 25% of its net assets. However, before commencing investments in foreign debt/fixed income securities, the AMC shall comply with the requirements specified in its circular dated September 26, 2007 including appointment of a dedicated fund manager for such investments. A Fund may invest in derivatives up to 100% of its net assets for efficient portfolio management including for the purpose of hedging and portfolio balancing and optimizing returns to the extent permitted under and in accordance with the applicable Regulation. The cumulative gross exposure through Equity, Debt and Derivative positions will not exceed 100% of the net assets of a Fund. Due to market conditions, in case of the Education Fund and Marriage Fund, the AMC may invest beyond the range set out above. Such deviations shall normally be for a short term purpose only, for defensive considerations and the intention being at all times to protect the interests of the Unit Holders. In the event of deviations, rebalancing will normally be carried out within 30 Business Days.

Where will the funds invest??


Education Fund Predominantly in equity & equity related securities Marriage Fund Savings Fund

Predominantly in Predominantly in equity & equity debt & money market related securities instruments

Portion of net assets will be invested in debt & money market instruments

Portion of net assets will be invested in Gold ETFs, debt & money market instruments

LIST OF SECURITIES WHERE THE FUNDS ARE LIKELY TO INVEST:


Equity & Equity related securities Money market instruments Overseas mutual fund units which are permissible under the Regulations Any other domestic o international instrument as may be permitted under the Regulations Derivatives Additionally, Marriage Fund can make investments in Gold ETFs launched/registered in India.

Central Govt securities

Deposits of scheduled commercial banks

Corporate bonds Debt obligation of banks and financial institutions Convertible debentures

Securitised debt ABS, MBS, CDO, PTCs Foreign Securities

Debt/fixed income schemes launched by mutual funds registered with SEBI

Where will the funds invest??


 Currently, the Funds are permitted to invest only in stock and/ or index futures .  Investments in other equity derivative instruments may be done only once the Trustees are comfortable that the systems for dealing, back office and accounting are in place for derivative instruments.

Investment Strategy
1. Investments in equity and equity related instruments:  The Fund Manager(s) will generally aim to identify stocks which as per the Fund Manager s belief are sound, but which are mispriced.  The Fund Manager(s) does this by analyzing a company s business model and financial parameters, valuations and business expectations. 2. Investments in debt and money market instruments:  The portfolio will be constructed and managed to generate returns to match the investment objective and to maintain adequate liquidity to accommodate funds movement.  Capital appreciation opportunities could be explored by extending credit and duration exposure.

Investment Strategy
 The fund management team will take an active

view of the interest rate movement based on the following parameters: 1. Prevailing interest rate scenario 2. Returns offered relative to alternative investment opportunities. 3. Quality of the security/instrument (including the financial health of the issuer) 4. Maturity profile of the instrument 5. Liquidity of the security 6. Any other factors considered relevant in the opinion of the fund management team.

Investment Strategy
3. Investments in Gold ETFs:  Marriage Fund may also invest in Gold ETFs launched/registered in India to the extent permitted under the applicable laws, including the SEBI Regulations and guidelines specified by RBI. 4. Investments in derivatives:  Investment in derivatives will be made in accordance with the investment objective and the strategy of the Funds and in accordance with the applicable Regulations, for efficient portfolio management including for the purpose of hedging and portfolio balancing and optimizing returns to the extent permitted under and in accordance with the applicable Regulations.  Investments in interest rate swaps shall be done only for the purposes of hedging and shall be in terms of requirements specified by SEBI and/or RBI from time to time. Hedging does not mean maximization of returns but only attempts to reduce systemic or market risk that may be inherent in the investment.

Investment Strategy
5. Investments in foreign securities:  A Fund may also invest in foreign securities for diversification as permitted under the applicable laws, including the SEBI Regulations. The investments of a Fund in foreign securities will be restricted to 25% of the net assets of the Fund.

Investment Strategy
6.
   

Investments in securitised debt:


The various asset classes which are generally available for securitisation in India are: Commercial Vehicles, Construction equipments, Auto and two wheeler pools, Mortgage pools, Personal loan, credit cards and other retail loans etc. As and when new asset classes of securitised debt are introduced, the investments in such instruments will be evaluated on a case by case basis. The internal credit research team is integrated with Fidelity s global research team and regular interaction with the global team enables them to get timely updates on various developments on fixed income markets including securitisation. The credit research team awards an internal rating for various issuers based on the independent research and by following Fidelity s internal credit process taking into account issuer s/ originator s historical track record, prevailing rating and financial statements.

Risks & Risk Mitigation


 Risks associated with investments in securitised debt:

1. Risk due to prepayment:  Investors may be exposed to changes in tenor and yield. 2. Liquidity Risk:  Due to illiquid nature of the secondary market. Instruments may trade at a discount due to change in interest rate structure. 3. Limited Recourse and Credit Risk 4. Bankruptcy Risk 5. Risk of Co-mingling: Payments from obligors are pooled into a single collection account. If not paid timely, investors face the loss.

Benchmark
Fund
Education Fund Marriage Fund

Benchmark
70% - BSE 200 index and 30% - CRISIL ST Bond Fund index 70% - BSE 200 index, 20% - Gold Prices and 10% - CRISIL ST Bond Fund index CRISIL ST Bond Fund index

Savings Fund

BSE 200 is a broad based index CRISIL Short-Term Bond Fund Index - track the return of short-term funds based on their asset allocation pattern on a rolling three-month average

Performance Analysis Education Fund


Absolute Returns Fidelity India Children s Plan - Education Fund Benchmark (70% - BSE 200 and 30% - CRISIL ST Bond Fund index) 4.97%

Returns as on April 29, 2011 ( Since inception Feb 7, 2011)

3.21%

Absolute Returns

Returns calculated on the face value of Rs. 10 per unit.

6.00% 5.00%

5.25%
FICP - Education Fund

4.00% 3.00% 2.00% 1.00% 0.00% FY 2010-11

Crisil Education Option Index

2.60%

Performance Analysis Marriage Fund


Absolute Returns Fidelity India Children s Plan Marriage Fund Benchmark (70% - BSE 200, 20% - Gold Prices and 30% - CRISIL ST Bond Fund index) 6.72%

Returns as on April 29, 2011 ( Since inception Feb 7, 2011)

4.79%

Absolute Returns

Returns calculated on the face value of Rs. 10 per unit.

7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% FY 2010-11 3.19% 5.82% FICP - Marriage Fund Crisil Marriage Option Index

Performance Analysis Savings Fund


Absolute Returns Fidelity India Children s Plan Savings Fund Benchmark (70% - BSE 200, 20% - Gold Prices and 30% - CRISIL ST Bond Fund index) 1.89%

Returns as on April 29, 2011 ( Since inception Feb 7, 2011)

1.47%

Absolute Returns
1.60%

Returns calculated on the face value of Rs. 10 per unit.

1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00%

1.35% 1.11%

FICP - Savings Fund Crisil ST Bond Fund Index

FY 2010-11

I. CONSTITUTION OF THE MUTUAL FUND


Fidelity Mutual Fund has been constituted as a trust in terms of the Trust Deed dated August 09, 2004 in accordance with the provisions of the Indian Trusts Act, 1882 (2 of 1882) with FIA as the Sponsor and FIL Trustee Company Private Limited as the Trust. The Mutual Fund was registered with SEBI on February 17, 2005.

SPONSOR
Fidelity Mutual Fund is sponsored by FIA. The Sponsor is the Settler of the Mutual Fund Trust. The Sponsor has entrusted a sum of Rs.1,00,000 to the Trustee as the initial contribution towards the corpus of the Mutual Fund. FIA is a company incorporated in Bermuda in 1983. FIA is registered with the following financial services regulators The Securities Exchange Commission in US Securities and Futures Commission in Hong Kong The Financial Services Agency in Japan. FIA is a wholly owned subsidiary of FIL Limited, a company established in Bermuda

FINANCIALS: (amount in US $)

THE TRUSTEE:
Details of Trustee Directors: Mr. Alasdair Boulding Justice (retired) S. S. Sodhi Mr. K. R. Ramamoorthy Rights and obligations of the Trustee. The Trustee Company has exclusive ownership of the assets of the Schemes of the Fund ( Trust Property ) and holds the same in trust and for the benefit of the Unit Holders.  Etc. 3. Trustee Supervisory role.  The Compliance Officer reports directly to the board of directors of the Trustee Company to carry out the supervisory role on behalf of the Trustees. 4. Trustee Fees and Expenses  The fee charged for each equity scheme will be 0.025%per annum of the average daily net assets of the respective Scheme and the fee charged for each debt scheme will be 0.001% per annum of the average daily net assets of the respective Scheme or Rs. 1,500,000 per annum per Scheme, whichever is lower.
1.    2. 

ASSET MANAGEMENT COMPANY


 FIL Fund Management Private Limited is a private limited company

incorporated under the Companies Act, 1956 on July 02, 2004.FIL Fund Management Private Limited has been appointed as the AMC of Fidelity Mutual Fund by the Trustee Company vide the Investment Management Agreement dated August 09, 2004 and executed between the Trustee Company and the AMC. INFORMATION ON KEY PERSONNEL
 Ashu Suyash - Managing Director and Country Head  Alexander Treves - Head of Investments  Sandeep Kothari - Fund Manager, etc

SHAREHOLDING PATTERN OF THE AMC

SERVICE PROVIDERS (a) Custodian - JP Morgan Chase Bank. (b) Registrar and Transfer Agent - computer Age Management Services Private Limited ("CAMS ) (c) Statutory Auditor - Price Waterhouse, Chartered Accountants. (d) Fund Accountant - JP Morgan Chase Bank.

II. HOW TO APPLY


  

Applications filled up and duly signed by all joint investors should be submitted along with the cheque / draft. It is mandatory for every applicant to provide the name of the bank, branch, address, account type and number as per SEBI requirements. all investors (resident and non-resident) are required to provide the Permanent Account Number ( PAN ). all investors other than KYC compliant investors are required to follow the new KYC compliance procedure. proportionate right in the beneficial ownership of the assets. dispatch of Redemption proceeds within 10 Business Days of accepting the Redemption request.

III. RIGHTS OF THE UNITHOLDERS OF A SCHEME


 

 75% of the Unit Holders of a Scheme can pass a resolution

to wind- up that Scheme.


 appointment of the AMC for the Mutual Fund can be

terminated by majority of the directors. IV. INVESTMENT VALUATION NORMS FOR SECURITIES
1. Traded Securities 2. Thinly Traded Securities / Non-Traded Securities / Unlisted

Equity Securities
3. Thinly Traded / Non-Traded debt securities 4. Valuation of securities with Put / Call Options: 5. Government securities 6. The non-convertible and convertible

V. TAX AND LEGAL AND GENERAL INFORMATION


 TAXATION ON INVESTING IN MUTUAL FUNDS under

this head information is provided for general information purposes only and applies to the scheme.

Why Fidelity
In the investment world, one name stands out Fidelity. We believe it s what lies beneath our size and stature that makes for true leadership. An absolute dedication to building our customers wealth over the long term, through market ups and downs, and a passion for investing The Fidelity Way . Each stock, every security is picked bottom-up purely for its core strength and selection is based on first-hand, in-depth research. The reason for this is straightforward. We believe our customers can benefit from decisions based on fact, not fashion. For millions of people around the world, Fidelity has become synonymous with family. And now, we hope the three funds in the Fidelity India Children s Plan can help you to plan and better your family s future.

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