Fidelity to launch auto switch facility for its funds
Entry and exit at pre-set levels to help investors take charge of their investments
Hyderabad, October 7, 2009 – Fidelity Mutual Fund is launching a new feature – Auto Switch - for its funds. The Auto Switch facility allows investors to automatically switch in to and switch out of Fidelity’s equity funds based on pre-set entry and exit trigger levels. With the Auto Switch – Entry Facility, investors can invest in any of Fidelity’s fixed income funds and switch in to any of Fidelity’s equity funds at pre-set BSE Sensex levels. Conversely, the Auto Switch – Exit Facility allows investors to switch in to fixed income funds, the appreciation of their investments in equity funds or the appreciation plus the principal at pre-set NAV levels. The Auto Switch facility will be available from October 8, 2009.
Speaking about the launch of the Auto Switch Facility, Ashu Suyash, Managing Director and Country Head – India, Fidelity International, said, “In our conversations with investors during volatile markets, we found that there was a need for some product features that would help investors take charge of their investments. Fidelity’s Auto Switch facility allows investors to invest in our equity funds at market levels that they are comfortable with and it allows them to book their gains at specified NAV appreciation levels so that they do not forego accrued returns. The pre-determined triggers for entry and exit take emotion and sentiment out of the decision.”
The Auto Switch – Entry Facility gives investors the choice of specifying up to four trigger points linked to BSE Sensex levels and they can choose the percentage of units to be transferred from a fixed income fund to the equity fund of their choice, in multiples of 5% with a minimum of 10%. In the Auto Switch - Exit Facility, triggers would be based on the percentage appreciation in NAV, with investors specifying the exact trigger value in multiples of 5% with a minimum of 10%. Once the exit trigger activates, the investor will have the option of redeeming the appreciation value or the total investment. Exit loads will apply as applicable to the selected fund.
About Fidelity
Fidelity International’s Indian asset management company started operations in the country with its first fund, the Fidelity Equity Fund, which was launched in March 2005. Today, with total assets under management of over Rs. 9200 crores (Source: AMFI - average AUM in September 2009) and more than 16 lakh customer accounts, Fidelity offers Indian investors investment options through its five equity funds and five fixed income / hybrid funds. For more information, please visit www.fidelity.co.in
FIL Fund Management Private Limited is the Indian arm of Fidelity International, one of the world’s leading global investment management companies with operations in 23 countries and more than US$179.8 billion in assets under management (as at June 30, 2009). FIL 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. FIL’s US affiliate, Fidelity Management and Research LLC (FMR) is one of the US’ largest mutual fund companies and manages over US$1.3 trillion (as at June 30, 2009) in assets. FIL has constant access to the investment analysis carried out by FMR and Pyramis. 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.
Media contacts: Kiran Makhija / SV Shweta, Adfactors PR, 9820937572 / 9619105070, kiran.makhija@adfactorspr.com; sv.shweta@adfactorspr.com
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