Fidelity Liquid Plus Fund

OFFER DOCUMENT
AN OPEN ENDED DEBT SCHEME
Presented by Fidelity Mutual Fund
Issue of Units at Rs. 10 per Unit for cash during the

New Fund Offer and at Applicable NAV thereafter
New Fund Offer Opens and Closes: September 19, 2007

This Offer Document contains information necessary for an investor to make an informed investment decision in the
Scheme described herein. Investors should read the Offer Document carefully prior to making an investment decision
and retain the Offer Document for future reference. Investors may note that this Offer Document remains effective
until a material change occurs. Material changes shall be filed with the Securities and Exchange Board of India (SEBI)
and circulated to all Unit Holders or may be publicly notified by advertisements in the newspapers subject to the
applicable Regulations. Investors may also like to obtain further changes after the date of this Offer Document from
the Mutual Fund/its Investor Service Centres or distributors. Kkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk
The particulars of the Scheme under this Offer Document, have been prepared in accordance with the Securities
Exchange Board of India (Mutual Funds) Regulations, 1996, as amended till date, and filed with SEBI, and the Units
being offered for public subscription have neither been approved or disapproved by SEBI nor has SEBI certified the
accuracy and adequacy of the Offer Document. Kkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk
This Offer Document is dated September 12, 2007. Kkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk
Sponsor: Trustee: Asset Management Company:

Fidelity International Investment Advisors Fidelity Trustee Company Private Limited Fidelity Fund Management Private Limited
Registered Office: Registered Office: Registered Office:
Pembroke Hall, 42 Crow Lane, 56, 5th Floor, Maker Chambers VI, 56, 5th Floor, Maker Chambers VI,
Pembroke, Hamilton, HM19, Bermuda 220, Nariman Point, Mumbai 400 021 220, Nariman Point, Mumbai 400 021
SPONSOR
Fidelity International Investment Advisors
Registered Office:
Pembroke Hall, 42 Crow Lane,
Pembroke, Hamilton, HM19,
Bermuda.
TRUSTEE
Fidelity Trustee Company Private Limited
Registered Office:
56, 5th Floor, Maker Chambers VI,
220, Nariman Point, Mumbai - 400 021.
ASSET MANAGEMENT COMPANY

Fidelity Fund Management Private Limited
Registered Office:
56, 5th Floor, Maker Chambers VI,
220, Nariman Point, Mumbai - 400 021.
REGISTRAR AND TRANSFER AGENT

Computer Age Management Services Private Limited
Registered Office :
A&B, Lakshmi Bhawan,
609, Anna Salai,
Chennai - 600 006.
CUSTODIAN
J P Morgan Chase Bank
Registered Office :
Mafatlal Centre, 9th Floor,
Nariman Point,
Mumbai - 400 021.
AUDITORS TO THE FUND

Price Waterhouse
Office:
252, Veer Savarkar Marg,
Shivaji Park, Dadar (West),
Mumbai - 400 028.
LEGAL ADVISORS
Amarchand & Mangaldas & Suresh A. Shroff & Co.
Office:
5th Floor, Peninsula Chambers,
Peninsula Corporate Park,
Ganpatrao Kadam Marg,
Lower Parel, Mumbai - 400 013.
FIDELITY LIQUID PLUS FUND 1

Offer Document
Fidelity Liquid Plus Fund
Table of Contents
Page Page
I. Highlights ............................................................ 3 F. Procedure and Recording of
Investment Decisions .................................... 22
II. Definitions and Abbreviations .......................... 5
G. Overview of Debt Markets ............................. 22
A. Definitions ...................................................... 5
H. Investment Restrictions ................................. 23
B. Abbreviations ................................................. 7
I. Investment of Subscription Money ................ 23
C. Interpretation .................................................. 8
J. Computation of Net Asset Value ................... 23
III. Risk Factors and Special Considerations ...... 9
K. Accrual of Expenses and Income ................. 25
A. Risk Factors Associated with Fixed
Income and Money Market Instruments ....... 9 L. Recording of Changes ................................... 25
B. Risk Factors Associated with Derivatives ..... 10 M. Calculation of NAV ......................................... 25
C. Risk Factors Associated with N. Accounting Policies and Standards .............. 25
Overseas Investment ..................................... 10
VI. Load and Fees and Expenses .......................... 27
D. Special Considerations .................................. 10
A. Load Structure of the Scheme ...................... 27
IV. Constitution of the Fund ................................... 13
B. Fees and Expenses of the Scheme .............. 27
A. The Fund ........................................................ 13
C. Initial Issue Expenses of Existing /
B. The Sponsor ................................................... 13 Past Schemes ................................................ 28
C. The Trustee Company (The Trustee) ............ 13 VII. Units and the Offer ............................................. 30
I. Directors ................................................. 13 A. Units on Offer during the
New Fund Offer (NFO) .................................. 30
II. Summary of the Substantive
Provisions of the Trust Deed ................. 14 B. Units on Offer - General Information ............ 30
III. Trustee - Fees and Expenses ............... 15 C. Purchase of Units .......................................... 30
IV. Trustee - Supervisory Role .................... 15 D. Important Note on Anti Money Laundering,
Know-Your-Customer and
D. The Asset Management Company ................ 16
Investor Protection ......................................... 33
I. Constitution ............................................ 16
E. Investor's Personal Information .................... 34
II. Directors ................................................. 16
F. Facilities Offered to Investors
III. Duties and Responsibilities of the under the Scheme ......................................... 34
AMC and the material provisions of
G. Redemption of Units ...................................... 37
the Investment Management
Agreement .............................................. 17 H. Suspension of the Purchase and
Redemption of Units ...................................... 38
IV. Investment Management Fees .............. 17
I. Right to Limit Redemptions ........................... 38
V. Fund Manager ........................................ 19
VIII. Unit Holders' Rights and Services ................... 39
VI. Compliance Officer ................................ 19
A. Unit Holders' Rights ....................................... 39
VII. Investors Relations Officer .................... 19
B. Voting Rights of the Unit Holders .................. 39
E. The Registrar and Transfer Agent ................. 19
C. Account Statements and Unit Certificates .... 39
F. The Custodian ................................................ 19
D. NAV Information ............................................. 39
G. The Fund Accountant .................................... 19
XI. Tax Benefits of investing in the Fund .............. 41
H. The Auditors ................................................... 19
X. Other Matters ...................................................... 43
I. The Collection Banks ..................................... 19
A. Transactions with the
V. Investment Objective, Investment Strategy,
Sponsor / Associates ..................................... 43
Investment Pattern and Risk Profile and
Limitations of the Scheme ................................ 20 B. Policy on Offshore Investments
by the Scheme ............................................... 43
A. Fidelity Liquid Plus Fund ............................... 20
C. Dividends and Distributions .......................... 43
B. Investments in Derivatives ............................ 21
D. Inter-Scheme Transfers ................................. 43
C. Fundamental Attributes ................................. 22
E. Disclosure under Regulation 25(11) ............. 44
D. Borrowing Powers .......................................... 22
F. General Information ....................................... 45
E. Investment in the Scheme by the AMC,
Sponsor or their Affiliates .............................. 22
2
2 FIDELITY LIQUID PLUS FUND

Highlights
I. Highlights
Sponsor Fidelity International Investment Advisors
Name of the Scheme Fidelity Liquid Plus Fund
Structure Open ended Debt scheme. The Scheme is not a ''Liquid scheme" as defined as per SEBI
circular SEBI / IMD / CIR No. 11 / 78450 / 06 dated October 11, 2006.The Scheme does not
assure or guarantee any returns.
Investment Objective To generate reasonable returns and liquidity primarily through investment in money market
and short term debt instruments.
Purchase Price for Rs.10 per Unit for cash

New Fund Offer (NFO)
Purchase/ Redemption When the Scheme goes open ended after the closure of the NFO, the price for
Price during Ongoing Offer Purchases and Redemptions will be based on Applicable NAVs of the Plans subject to applicable
Entry and Exit Loads/CDSC respectively.
Plans Retail, Institutional and Super Institutional Plans
Options Each of the Plans under the Scheme offers the Growth option and the Dividend option. The
Dividend option offers Dividend Payout and Dividend Reinvestment facilities.
Dividend Frequency Retail Plan:

Dividend Payout faciliity:
u Monthly
Dividend re-investment facility:
u Monthly
Institutional and Super Institutional Plans:
Dividend Payout faciliity:
u Monthly
Dividend re-investment facility:
u Daily
u Weekly
u Monthly
Minimum Initial Application Retail Plan: Rs. 5,000 per application

Amount Institutional Plan: Rs. 1,00,00,000 per application
Super Institutional Plan: Rs.10,00,00,000 per application
Minimum Additional Retail Plan: Rs. 1,000 per application and thereafter in multiples of Re. 1
Application Amount Institutional Plan: Rs. 1,00,000 per application and thereafter in multiples of Re 1;
Super Institutional Plan: Rs. 1,00,00,000 per application and thereafter in multiples of
Re. 1
Minimum Amount/No. of Retail Plan: Rs. 1000 or 100 Units

Units for Redemption Institutional Plan: Rs. 1,00,000 or 10,000 Units
Super Institutional Plan: Rs. 1,00,000 or 10,000 Units
Minimum Balance Amount/ Retail Plan: Rs. 1000 or 100 Units

No. of Units Institutional Plan: Rs. 1,00,000 or 10,000 Units
Super Institutional Plan: Rs. 1,00,000 or 10,000 Units
Load Structure During the NFO Period and Ongoing Offer Period
Entry Load: NIL

A switch-in or transfer under STP may also attract the applicable Entry Load like any Purchase.
Exit Load: For Redemption Load (% of Applicable NAV)
Within 5 calendar days from the date of 0.10%

allotment or Purchase applying
First in First Out basis.
A switch-out or a withdrawal under SWP or transfer under STP may also attract an Exit Load
like any Redemption.
No Entry / Exit Loads / CDSC will be chargeable in case of switches made between different plans/options of the Scheme.
Investors are advised to contact any of the ISCs or the AMC by calling the investor line of the AMC at "1800 180 8000"
(toll-free from a MTNL / BSNL landline) or 30309800 (at local call rate from your mobile phone prefixing the local city
code or non - MTNL / BSNL landline) or 0124 2542022 (at long distance rates) to know the latest position on Entry / Exit
Load or CDSC structure prior to investing.

Offer Document
Highlights
Liquidity The Scheme will offer Units for Purchase and Redemption at Applicable NAV on every Business
Day on an ongoing basis, commencing not later than 30 days from the closure of the NFO
Period. The Mutual Fund will endeavour to despatch the Redemption proceeds within 3 Business
Days from the acceptance of the Redemption request.
Transparency The AMC will calculate and disclose the first NAVs of the Scheme within a period of 30 days
from the closure of the NFO Period. Subsequently, the NAVs will be calculated and disclosed
on every Business Day.
The AMC shall update the NAVs on the website of the Fund (www.fidelity.co.in) and of the
Association of Mutual Funds in India - AMFI (www.amfiindia.com) every Business Day.
The AMC will disclose details of the portfolio of the Scheme every 6 months by either sending
a complete statement to all the Unit Holders or by publishing such statement, by way of
advertisement, in two daily newspapers.
Benchmark for
performance comparison CRISIL Liquid Fund Index

II. Definitions and Abbreviations
A. Definitions
In this Offer Document the following terms will have the meanings indicated there against, unless the context suggests otherwise.
Definitions and Abbreviations

Applicable NAV For applications for Purchases (along with a local cheque or demand draft payable at par at the
place where the application is received) / Redemptions, accepted during the Ongoing Offer Period
at the Designated Collection Centres of the Fund on a Business Day up to the Cut-off time of the
Scheme, the NAV of that day; and
For applications for Purchases (along with a local cheque or demand draft payable at par at the
place where the application is received) / Redemptions accepted during the Ongoing Offer Period
at the Designated Collection Centres of the Fund on a Business Day after the Cut-off time of the
Scheme, the NAV of the next Business Day; and
For applications for Purchases along with demand drafts not payable at par at the place where
the application is received, NAV of the day on which the demand draft is credited.
Application Form / Key A form meant to be used by an investor to open a folio and Purchase Units in the
Information Memorandum Scheme. Any modifications to the Application Form will be made by way of an addendum, which
will be attached thereto. On issuance of such addendum, the Application Form will be deemed to
be updated by the addendum.
Asset Management Fidelity Fund Management Private Limited, the asset management company, set
Company / AMC / up under the Companies Act 1956, having its registered office at 56, 5th Floor,
Investment Manager Maker Chambers VI, 220, Nariman Point, Mumbai - 400 021 and authorised by SEBI to act as
Asset Management Company / Investment Manager to the schemes of Fidelity Mutual Fund.
Business Day A day not being:

(1) A Saturday or Sunday;
(2) A day on which the banks in Mumbai including the Reserve Bank of India are closed for
business or clearing;
(3) A day on which Purchase and Redemption of Units is suspended or a book closure period is
announced by the Trustee / AMC; or
(4) A day on which normal business cannot be transacted due to storms, floods, bandhs, strikes
or such other events as the AMC may specify from time to time.
The AMC reserves the right to change the definition of Business Day. The AMC reserves the right
to declare any day as a Business Day or otherwise at any or all ISCs.
Contingent Deferred A charge to the Unit Holder upon exiting (by way of Redemption) based on the
Sales Charge / CDSC period of holding of Units. The Regulations provide that a CDSC may be charged only for a no-
Load Scheme and only for the first four years after the Purchase and caps the percentage of NAV
that can be charged in each year.
Custodian J P Morgan Chase Bank, Mumbai branch registered under the SEBI (Custodian of Securities)
Regulations, 1996, or any other custodian who is approved by the Trustee.
Cut-off time A time prescribed in this Offer Document up to which an investor can submit a Purchase request
(along with a local cheque or a demand draft payable at par at the place where the application
is received) / Redemption request, to be entitled to the Applicable NAV for that Business Day.
Collection Bank(s) The bank(s) with which the AMC has entered into an agreement, from time to time, to enable
customers to deposit their applications for Units. The names and addresses are mentioned at the
end of this Offer Document.
Designated Collection During the NFO: ISCs and branches of Collection Bank(s) designated by the AMC
Centres where the applications shall be received.
During Ongoing Offer: ISCs designated by the AMC where the applications shall be received.
The names and addresses are mentioned at the end of this Offer Document.
Entry Load A Load charged to an investor on Purchase of Units based on the amount of investment per
application or any other criteria decided by the AMC.
Exit Load A Load (other than CDSC) charged to the Unit Holder on exiting (by way of Redemption) based
on period of holding, amount of investment, or any other criteria decided by the AMC.
Foreign Institutional An entity registered with SEBI under Securities and Exchange Board of India
Investors / FII (Foreign Institutional Investors) Regulations, 1995 as amended from time to time.
Fidelity International The Sponsor of Fidelity Mutual Fund.

Investment Advisors /
FIIA

Offer Document
Fund of Funds / FOF A mutual fund scheme that invests primarily in other schemes of the same mutual fund or other
mutual funds.
Fund / Mutual Fund Fidelity Mutual Fund, a Trust registered with SEBI under the Regulations, vide Registration No.
MF/050/05/01 dated February 17, 2005.
Investment Management The agreement dated August 9, 2004, entered into between Fidelity Mutual
Agreement / IMA Fund and the AMC, as amended from time to time.
Investor Service Official points of acceptance of transaction / service requests from investors. These will be
Centre / ISC designated by the AMC from time to time.
Load A charge that may be levied to an investor at the time of Purchase of Units of the Scheme or to a
Unit Holder at the time of Redemption of Units from the Scheme.
Net Asset Value / NAV Net Asset Value of the Units of the Scheme (including plans/options thereunder) calculated in the
manner provided in this Offer Document or as may be prescribed by the Regulations from time to
time.
New Fund Offer/NFO The offer for Purchase of Units at the inception of the Scheme, available to the investors during
the NFO period.
New Fund Offer Period/ The period being one day i.e. September 19, 2007 subject to extension, if any.
NFO Period
Non Resident Indian / NRI A person resident outside India who is a citizen of India or is a person of Indian origin as per the
meaning assigned to the term under Foreign Exchange Management (Investment in firm or proprietary
concern in India) Regulations, 2000.
Offer Document This document issued by Fidelity Mutual Fund, offering Units of Fidelity Liquid Plus Fund for
subscription. Any modifications to the Offer Document will be made by way of an addendum
which will be attached to Offer Documents. On issuance of addendum, the Offer Document will be
deemed to be updated by the addendum.
Ongoing Offer Offer of Units under the Scheme when it becomes open ended after the closure of the New Fund
Offer Period.
Ongoing Offer Period The period during which the Ongoing Offer for subscription to the Units of the Scheme is made.
Person of Indian Origin A citizen of any country other than Bangladesh or Pakistan, if (a) he at any time held Indian
passport; or (b) he or either of his parents or any of his grand parents was a citizen of India by
virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955); or (c) the person is a
spouse of an Indian citizen or a person referred to in sub-clause (a) or (b);
Purchase / Subscription Subscription to / Purchase of Units by an investor from the Fund.
Purchase Price The price (being Applicable NAV plus Entry Load) at which the Units can be purchased and
calculated in the manner provided in this Offer Document.
Registrar Computer Age Management Services Private Limited ("CAMS"), appointed as the registrar and
transfer agent for the Scheme, or any other registrar that may be appointed by the AMC.
Redemption Repurchase of Units by the Fund from a Unit Holder.
Redemption Price The price (being Applicable NAV minus Exit Load / CDSC) at which the Units can be redeemed
and calculated in the manner provided in this Offer Document.
Repo/Reverse Repo Sale / Purchase of securities with a simultaneous agreement to repurchase/ sell them at a later
date.
Scheme Fidelity Liquid Plus Fund (including as the context permits, the plans/options thereunder).
SEBI Regulations / Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 as
Regulations amended from time to time, including by way of circulars or notifications issued by SEBI and the
Government of India.
Sponsor FIIA, being the Settlor of Fidelity Mutual Fund.
Systematic Investment A plan enabling investors to save and invest in the Scheme on a monthly/ quarterly
Plan / SIP basis by submitting post-dated cheques / payment instructions.
Systematic Transfer A plan enabling Unit Holders to transfer sums on a weekly/ fortnightly/monthly/
Plan / STP quarterly basis from the Scheme to other schemes launched by the Fund from time to time by
giving a single instruction.
Systematic Withdrawal A plan enabling Unit Holders to withdraw amounts from the Scheme on a monthly
Plan / SWP or quarterly basis by giving a single instruction.

Transaction Slip A form meant to be used by Unit Holders seeking additional Purchase or Redemption of Units in
the Scheme, change in bank account details, switch-in or switch-out and such other facilities
offered by the AMC and mentioned in Transaction Slips.

Trustee / Fidelity Trustee Company Private Limited, a company set up under the Companies Act, 1956, to
Trustee Company act as the Trustee to Fidelity Mutual Fund.
Trust Deed The Trust Deed dated August 9, 2004 made by and between the Sponsor and the Trustee, establishing
Fidelity Mutual Fund, as amended from time to time.
Trust Fund Amounts settled / contributed by the Sponsor towards the corpus of Fidelity Mutual Fund and
additions / accretions thereto.
Unit The interest of an investor, which consists of one undivided share in the net assets of the Scheme.
Unit Holder A person holding Units of the Scheme of Fidelity Mutual Fund offered under this Offer Document.
Valuation Day Business Day
Words and Expressions Same meaning as in the Trust Deed.

used in this Offer
Document and
not defined
B. Abbreviations
In this Offer Document the following abbreviations have been used.
AMC : Asset Management Company
AMFI : Association of Mutual Funds in India
AOP : Association of Persons
BOI : Body of Individuals
CBLO : Collateralised Borrowing and Lending Obligation
CDSC : Contingent Deferred Sales Charge
ECS : Electronic Clearing System
EFT : Electronic Funds Transfer
FII : Foreign Institutional Investor
FIIA : Fidelity International Investment Advisors, the Sponsor of Fidelity Mutual Fund
FOF : Fund of Funds
HUF : Hindu Undivided Family.
ISC : Investor Service Centre
IMA : Investment Management Agreement
NAV : Net Asset Value
NFO : New Fund Offer
NRI : Non-Resident Indian
PAN : Permanent Account Number
PIO : Persons of Indian Origin
POA : Power of Attorney
RBI : Reserve Bank of India
RTGS : Real Time Gross Settlement
SEBI : Securities and Exchange Board of India established under the SEBI Act, 1992
SEBI Act : Securities and Exchange Board of India Act, 1992
SEFT : Special Electronic Funds Transfer
SIP : Systematic Investment Plan
SI : Standing Instructions
STP : Systematic Transfer Plan
SWP : Systematic Withdrawal Plan

Offer Document
C. Interpretation
For all purposes of this Offer Document, except as otherwise expressly provided or unless the context otherwise requires:
u The terms defined in this Offer Document include the plural as well as the singular.
u Pronouns having a masculine or feminine gender shall be deemed to include the other.
u All references to "US$" refer to United States Dollars and "Rs." refer to Indian Rupees. A "Crore" means "ten million" and a
"Lakh" means a "hundred thousand".
u References to times of day (i.e. a.m. or p.m.) are to Mumbai (India) times and references to a day are to a calendar day
including non Business Day.

III. Risk Factors and Special volatility due to factors such as changes in interest rates,
general level of market liquidity and market perception of
Considerations credit worthiness of the issuer of such instruments. The
AMC endeavours to manage such risk by the use of in-
A. Standard Risk Factors house credit analysis.
u Mutual funds, like securities investments, are subject to u The NAV of the Scheme's Units, to the extent that the
market risks and there is no guarantee against loss in the Scheme is invested in money market instruments, will be
Scheme or that the Scheme's objectives will be achieved. affected by the changes in the level of interest rates. When
interest rates in the market rise, the value of a portfolio of
u As with any investment in securities, the NAV of the Units
money market instruments can be expected to decline.
issued under the Scheme can go up or down depending
on various factors and forces affecting capital markets.
C. Risk Factors Associated with Fixed
u Past performance of the Sponsor or the AMC or the mutual Income and Money Market Instruments
funds managed by the Sponsor or the AMC does not indicate
Risk Factors
u The performance of the Scheme may be affected by changes
the future performance of the Scheme.
in Government policies, general levels of interest rates and
u Investors in the Scheme are not being offered a guaranteed risks associated with trading volumes, liquidity and
or assured rate of return. settlement systems.
u Fidelity Liquid Plus Fund is the name of the Scheme, and u Interest rate risk: As with all debt securities, changes in
this does not in any manner indicate the quality of the interest rates may affect the NAV of the Scheme since the
Scheme, its future prospects or returns. price of a fixed income instrument falls when the interest
rates move up and vice a versa. The effect is more prominent
B. Scheme Specific Risk Factors when the duration of the instrument is higher. Hence the
NAV movement of the Scheme consisting of predominantly
u As per SEBI circular no. SEBI/IMD/CIR No. 10/22701/03
fixed income securities is likely to have inverse correlation
dated December 12, 2003, the Scheme (including the plans
with the movement in interest rates. In case of a floating
there under) should have a minimum of 20 Unit Holders
rate instrument, this risk is lower as a result of periodic
and no single Unit Holder should account for more than
reset of the coupon.
25% of the corpus of the Scheme. In case of non-fulfilment
with either of the aforesaid conditions in a three months u Spread risk: Though the sovereign yield curve might remain
time period or the end of succeeding calendar quarter, constant, investments in corporate bonds are exposed to
whichever is earlier, from the close of the NFO of the the risk of spread widening between corporate bonds and
Scheme, the Scheme shall be wound up by following the gilts. Typically, if this spread widens, the prices of the
guidelines prescribed by SEBI. The aforesaid conditions corporate bonds tend to fall and so could the NAV of the
should also be met in each subsequent calendar quarter Scheme. Similar risk prevails for the investments in the
thereafter on an average basis. In case of non-fulfilment floating rate bonds, where the benchmark might remain
with the first condition i.e. minimum of 20 investors in the unchanged, but the spread over the benchmark might vary.
Scheme, on an ongoing basis for each calendar quarter In such an event, if the spread widens, the price and the
as specified by SEBI, the Scheme shall be wound up by NAV could fall.
following the guidelines prescribed by SEBI and Unit Holders'
investment in the Scheme would be redeemed at the u Credit risk or default risk: This refers to inability of the
Applicable NAV. SEBI has further prescribed that if any issuer of the debt security to make timely payments of
investor breaches the 25% limit over a quarter, a rebalancing principal and / or interest due. It is reflected in the credit
period of one month will be allowed to the investor and rating of the issuer. Hence if the credit rating of the issuer
thereafter the investor who is in breach of the limit shall is downgraded, the price of the security will suffer a loss
be given 15 days notice to redeem his exposure over the and the NAV will fall. Credit risk factors pertaining to lower
25% limit. In the event of failure on part of the said investor rated securities also apply to lower rated zero coupon and
to redeem the excess exposure, the excess holding will deferred interest kind bonds. Lower rated zero coupon and
be automatically redeemed by the Fund following the deferred interest kind bonds carry an additional risk in that,
guidelines prescribed by SEBI. unlike bonds that pay interest through the period of maturity,
the Scheme by investing in these bonds will realize no
u In addition to the factors that affect the values of securities, cash till the cash payment date and if the issuer defaults,
the NAV of Units of the Scheme will fluctuate with the the Scheme may obtain no return on its investment.
movement in the broader fixed income, money market and
derivatives market and may be influenced by factors u Liquidity risk: This represents the possibility that the
influencing such markets in general including but not limited realised price from selling the security might be lesser than
to economic conditions, changes in interest rates, price the valuation price as a result of illiquid market. If a large
and volume volatility in the bond and stock markets, changes outflow from the Scheme is funded by selling some of the
in taxation, currency exchange rates, foreign investments, illiquid securities, the NAV could fall even if there is no
political, economic or other developments and closure of change in interest rates. Illiquid securities are typically quoted
the stock exchanges. at a higher yield than the liquid securities and have higher
bid offer spreads. Investment in illiquid securities results
u Investments in different types of securities are subject to in higher current yield for the portfolio. Liquidity risk is a
different levels and kinds of risk. Accordingly, the Scheme's characteristic of the Indian fixed income market today. In
risk may increase or decrease depending upon its investment addition, money market securities, while fairly liquid, lack
pattern. E.g. investments in corporate bonds carry a higher a well-developed secondary market, which may restrict
level of risk than investments in Government securities. the selling ability of the Scheme and may lead to the Scheme
Further, even among corporate bonds, bonds which have incurring losses till the security is finally sold.
a higher rating are comparatively less risky than bonds
which have a lower rating. u Reinvestment risk: This is associated with the fact that
the intermediate cash flows (coupons, prepayment of
u Investments in money market instruments would involve principal in case of securitised transactions or principal
a moderate credit risk i.e. risk of an issuer's liability to meet payment in case a security gets called or repurchased)
the principal payments. may not be reinvested at the same yield as assumed in
the original calculations.
u Money market instruments may also be subject to price
9

Offer Document
u Settlement risk: Different segments of Indian financial to purchase or sell. Swap agreements may be subject to
markets have different settlement periods and such periods pricing risk, which exists when a particular swap becomes
may be extended significantly by unforeseen circumstances. extraordinarily expensive (or cheap) relative to historical
Delays or other problems in settlement of transactions could prices or the prices of corresponding cash market
result in temporary periods when the assets of the Scheme instruments. IRS agreements are also subject to counterparty
are uninvested and no return is earned thereon. The inability risk on account of insolvency or bankruptcy or failure of
of the Scheme to make intended securities purchases, due the counterparty to make required payments or otherwise
to settlement problems, could cause the Scheme to miss comply with the terms of the agreement.
certain investment opportunities. Similarly, the inability to
sell securities held in the Schemes portfolio, due to the E. Risk Factors Associated with
absence of a well developed and liquid secondary market Overseas Investment
for debt securities, may result at times in potential losses
to the Scheme in the event of a subsequent decline in the u Subject to necessary approvals and within the investment
value of securities held in the Scheme's portfolio. objectives of the Scheme, the Scheme may invest in
overseas markets which carry risks related to fluctuations
Risk Factors
u Market risk: Lower rated or unrated securities are more in the foreign exchange rates, the nature of the securities
likely to react to developments affecting the market and market of the country, repatriation of capital due to exchange
the credit risk than the highly rated securities which react controls and political circumstances.
primarily to movements in the general level of interest rates.
Lower rated or unrated securities also tend to be more u It is the AMC's belief that investment in foreign securities
sensitive to economic conditions than higher rated securities. offers new investment and portfolio diversification
opportunities into multi-market and multi-currency products.
u If a court/regulatory authority concludes that the sales from However, such investments also entail additional risks. Such
the originator to the securitisation trust was not a “true investment opportunities may be pursued by the AMC
sale”, the Scheme may, in the event, that it has invested provided they are considered appropriate in terms of the
in instruments issued by such trust, experience losses or overall investment objectives of the Scheme. Since the
delays in the payments due and the NAV of the Units may Scheme would invest only partially in foreign securities,
be affected thereby. Care is generally taken while structuring there may not be readily available and widely accepted
the transactions, so as to minimise the risk of the sale to benchmarks to measure performance of the Scheme. To
the trust not being construed as a “true sale” and legal manage risks associated with foreign currency and interest
opinion confirming that the sale constitutes a true sale is rate exposure, the Fund may use derivatives for efficient
usually obtained. portfolio management including hedging and in accordance
with conditions as may be stipulated under the Regulations
D. Risk Factors Associated with Derivatives or by RBI from time to time.
u The Scheme may invest in derivative products in accordance u Overseas investments will be made subject to any/all
with and to the extent permitted under the Regulations approvals, conditions thereof as may be stipulated under
and by RBI. Derivative products are specialized instruments the Regulations or by RBI and provided such investments
that require investment techniques and risk analysis different do not result in expenses to the Fund in excess of the
from those associated with stocks and bonds. The use of ceiling on expenses prescribed by and consistent with costs
a derivative requires an understanding not only of the and expenses attendant to international investing. The Fund
underlying instrument but of the derivative itself. Trading may, where necessary, appoint other intermediaries of repute
in derivatives carries a high degree of risk although they as advisors, custodian/sub-custodians etc. for managing
are traded at a relatively small amount of margin which and administering such investments. The appointment of
provides the possibility of great profit or loss in comparison such intermediaries shall be in accordance with the
with the principal investment amount. Thus, derivatives applicable requirements of SEBI and within the permissible
are highly leveraged instruments. Even a small price ceilings of expenses. The fees and expenses would
movement in the underlying security could have an impact illustratively include, besides the investment management
on their value and consequently, on the NAV of the Units fees, custody fees and costs, fees of appointed advisors
of the Scheme. and sub-managers, transaction costs and overseas
u The derivatives market in India is nascent and does not regulatory costs.
have the volumes that may be seen in other developed u To the extent that the assets of the Scheme will be invested
markets, which may result in volatility to the values. in securities denominated in foreign currencies, the Indian
u There is the possibility that a loss may be sustained by Rupee equivalent of the net assets, distributions and income
the portfolio as a result of the failure of another party (usually may be adversely affected by changes in the value of certain
referred to as the "counter party") to comply with the terms foreign currencies relative to the Indian Rupee. The
of the derivatives contract. Other risks in using derivatives repatriation of capital to India may also be hampered by
include the risk of mispricing or improper valuation of changes in regulations concerning exchange controls or
derivatives and the inability of derivatives to correlate political circumstances as well as the application to it of
perfectly with underlying assets, rates and indices. other restrictions on investment.
u The Scheme bears a risk that it may not be able to correctly F. Special Considerations
forecast future market trends or the value of assets, indexes
u The Sponsor is not responsible or liable for any loss resulting
or other financial or economic factors in establishing
from the operation of the Scheme beyond the initial
derivative positions for the Scheme.
contribution of an amount of Rs.1,00,000 (Rupees One
u Interest Rate Swaps (IRS) are highly specialized instruments Lakh) collectively made by them towards setting up the
that require investment technique and risk analysis different Fund or such other accretions and additions to the initial
from those associated with equity shares and other traditional corpus set up by the Sponsor.
securities. The use of a IRS requires not only an
u Neither this Offer Document nor the Units have been
understanding of the referenced asset, reference rate, or
registered in any other jurisdiction. The distribution of this
index but also of the swap itself, without the benefit of
Offer Document in certain jurisdictions may be restricted
observing the performance of the swap under all possible
or totally prohibited and accordingly, persons who come
market conditions. Swap agreements are also subject to
into possession of this Offer Document are required to inform
liquidity risk, which exists when a particular swap is difficult
themselves about, and to observe, any such restrictions.
10

u Prospective investors should review / study this Offer Limited) that will act as central record keeping agency
Document carefully and in its entirety and shall not construe ('Central Agency'). As a token of having verified the identity
the contents hereof or regard the summaries contained and address and for efficient retrieval of records, the Central
herein as advice relating to legal, taxation, or financial / Agency will issue a KYC compliance letter to each investor
investment matters and are advised to consult their own who submits an application and the prescribed documents
professional advisor(s) as to the legal, tax, financial or any to the Central Agency.
other requirements or restrictions relating to the subscription,
gifting, acquisition, holding, disposal (by way of sale, switch KYC formalities under the PMLA and the related guidelines
or Redemption or conversion into money) of Units and to issued by SEBI must be completed by all investors. This
the treatment of income (if any), capitalisation, capital gains, one-time verification is valid for transactions across all mutual
any distribution, and other tax consequences relevant to funds. The process to complete KYC formalities is as follows:
their subscription, acquisition, holding, capitalisation, u A completed KYC application form along with the
disposal (by way of sale, transfer, switch or conversion documents/information as mentioned below should be
into money) of Units within their jurisdiction of nationality, submitted to any designated 'Points of Service' (POS)
Risk Factors
residence, incorporation, domicile etc. or under the laws - Fidelity Investor Service Centres, CAMS Investor
of any jurisdiction to which they or any managed funds to Service Centres or CVL Centres (CDSL Ventures Ltd.).
be used to Purchase / gift Units are subject, and also to The POS list is available at www.fidelity.co.in.
determine possible legal, tax, financial or other
consequences of subscribing / gifting, purchasing or holding u A KYC application form can be obtained from any
Units before making an application for Units. designated POS.
u Fidelity Mutual Fund / the AMC have not authorised any u The completed KYC application form along with PAN
person to give any information or make any representations, card copy and other necessary documents should be
either oral or written, not stated in this Offer Document in submitted at a POS. (The list of all documents/
connection with issue of Units under the Scheme. information required and instructions to fill the form
Prospective investors are advised not to rely upon any can be found in the KYC application form).
information or representations not incorporated in this Offer u After verification of the KYC application form and
Document as the same have not been authorised by the accompanying documents, investors will receive a letter
Fund or the AMC. Any subscription, Purchase or sale made certifying their KYC compliance. There is no charge
by any person on the basis of statements or representations for this verification.
which are not contained in this Offer Document or which
are inconsistent with the information contained herein shall When investing with the Fund, a copy of the KYC compliance
be solely at the risk of the investor. letter should be attached to the scheme's application form
to avoid rejection.
u Subject to the Regulations, from time to time, funds managed
by the affiliates /associates of the Sponsor may invest either If you already have a Mutual Fund Identification Number
directly or indirectly in the Scheme. The funds managed ("MIN") (not valid anymore) and have not provided a certified*
by these affiliates/associates may acquire a substantial copy of the PAN card at the time of obtaining MIN, you are
portion of the Scheme's Units and collectively constitute a requested to complete the formalities as mentioned under
major investment in the Scheme. Accordingly, Redemption the paragraph PAN above to be KYC-compliant.
of Units held by such funds may have an adverse impact
All investors must submit a copy of the KYC compliance
on the value of the Units of the Scheme because of the
letter for all transactions in units of the Scheme irrespective
timing of any such Redemption and may affect the ability
of the amount of transaction. Applications submitted without
of other Unit Holders to redeem their respective Units.
a copy of the KYC compliance letter could be rejected.
u As the liquidity of the Scheme's investments may sometimes
u Permanent Account Number ("PAN"):
be restricted by trading volumes settlement periods and
transfer procedures, the time taken by the Fund for In accordance with SEBI circulars dated on April 27, 2007
Redemption of Units may be significant in the event of an and June 25, 2007, with effect from July 02, 2007, PAN
inordinately large number of Redemption requests or of a issued by the Income Tax authorities is used as the sole
restructuring of the Scheme's portfolio. In view of this, the identification number for all investors transacting in the
Trustee has the right, in its sole discretion, to limit securities market including mutual funds, irrespective of
redemptions under certain circumstances - please refer the amount of transaction. Thus, all investors (including
paragraph "Right to Limit Redemptions" in Chapter VII. resident and non-resident investors) have to provide PAN,
along with a certified* copy of the PAN card for all transactions
u Anti Money Laundering and Know Your Customer in units of the schemes of the Fund irrespective of the
("KYC"): amount of transaction. In case of investors who do not
Fidelity is committed to complying with all applicable anti provide a certified* copy of the PAN card, the application
money laundering and KYC laws and regulations in all of for transaction in units of the schemes of the Fund could
its operations. Fidelity recognises the value and importance be rejected. However, till 31 December 2007:
of creating a business environment that strongly discourages
u in case the transaction amount is less than Rs. 50,000,
money launderers from using Fidelity. To that end, certain
investors who are awaiting allotment of PAN should
policies have been adopted by the AMC. The need to KYC
attach a copy of the evidence of having applied for
is vital for the prevention of money laundering.
PAN.
In terms of the Prevention of Money Laundering Act, 2002
u in case the transaction amount is more than or equal
("PMLA") the rules issued there under and the guidelines /
to Rs. 50,000, investors should attach a copy of the
circulars issued by SEBI regarding the Anti Money
evidence of having applied for PAN and a completed
Laundering (AML) Laws, all intermediaries, including mutual
Form 60/Form 61.
funds, are required to formulate and implement a client
identification programme, and to verify and maintain the On and from January 01, 2008, submitting a copy of the
record of identity and address(es) of investors. evidence of having applied for PAN/Form 60/Form 61 will
not be valid and it will be mandatory for all investors to
The AMC has entrusted the responsibility of collection of
provide a certified* copy of the PAN card for all transactions
documents relating to identity and address and record
in units of the schemes of the Fund.
keeping to an independent agency (presently CDSL Ventures
11

Offer Document
*Investors are requested to submit a copy along with the Though the Scheme has no limit on the number of purchases
original for verification at the investor service centres of and redemptions by any investor, the AMC reserves the
the Fund/CAMS, which will be returned across the counter. right, under powers delegated by the Trustee, to reject
Alternatively, a distributor empanelled with the Fund can any application, prevent further transactions by a Unit Holder,
attest a copy. A Bank Manager's attestation or a Notarised or redeem the Units held by the Unit Holder at any time
copy will also be accepted. prior to the expiry of 30 Business Days from the date of
submission of the application if, in the AMC's opinion, a
u Investor Protection: As the Scheme is a Debt scheme, it Unit Holder has been indulging in excessively frequent
is designed to offer investors liquidity and the Fund trading or if his trading has been or may be disruptive for
anticipates that investors will come in and out of the Scheme the Scheme.
frequently. Such frequent purchases and redemptions by
investors can reduce the returns to long term investors by Investors are urged to study the terms of the Offer
increasing expenses of the Scheme and can also disrupt carefully before investing in the Scheme and to retain
portfolio management strategies. Therefore, the Scheme this Offer Document for future reference.
is proposed to be managed with these risks in mind.
Risk Factors
DUE DILIGENCE CERTIFICATE

It is confirmed that:
1. The draft Offer Document forwarded to SEBI is in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the
guidelines and directives issued by SEBI from time to time.
2. All legal requirements connected with the launching of the Scheme and also the guidelines, instructions, etc. issued by the
Government of India and any other competent authority in this behalf, have been duly complied with.
3. The disclosures made in the Offer Document are true, fair and adequate to enable the investors to make a well-informed
decision regarding investment in the proposed Scheme.
4. All the intermediaries named in the Offer Document are registered with SEBI and till date such registration is valid.
For Fidelity Fund Management Private Limited
Place : Mumbai
Date : July 26, 2007 Name : Hemang Bakshi
Designation : Director - Legal and Compliance
Note: The aforesaid Due Diligence Certificate dated July 26, 2007 was submitted to Securities and Exchange Board of India on
July 26, 2007.
12

IV. Constitution of the Fund Names, addresses and Other directorships of the
occupations of the directors directors
A. The Fund Mr. K. R. Ramamoorthy ING Vysya Bank Limited
The Fund was established by FIIA, as a Trust under the Indian D-302-303, Mantri Gardens, The Clearing Corporation of
Trusts Act, 1882, in terms of the Trust Deed dated August 9, Madhavan Park, India Limited
2004 and is registered under Indian Registration Act, 1908. Jayanagar, 1st Block, Nilkamal Limited
The Fund has been registered with SEBI vide Registration No. Bangalore - 560 011. Subros Limited
MF/050/05/01. The office of the Fund is at 56, 5th Floor, Maker Advisor Amrit Corp. Limited
Chambers VI, 220, Nariman Point, Mumbai - 400 021. Ujjivan Financial Services
The objective of the Fund is to raise monies through the sale of Private Limited
units to the public or a section of the public under one or more GMR Infrastructure Limited
schemes for investing in securities. GMR Power Corporation
Private Limited
B. The Sponsor GMR Ambala-Chandigarh
The Sponsor of Fidelity Mutual Fund is Fidelity International Express Private Limited
Investment Advisors, a company incorporated in Bermuda in Gryffon Investment Advisors
1983 under registered number EC 10326. FIIA is registered Private Limited
with the following financial services regulators: the Securities ABC Paper Limited
Exchange Commission in the US, the HK Securities and Futures
Constitution of the Fund

Commission in Hong Kong, and the Financial Services Agency Mr. Rajesh Kapadia Asianet Satellite
in Japan. FIIA is a wholly owned subsidiary of Fidelity International 1001, Raheja Chambers, Communications Limited
Limited, a company established in Bermuda. 213, Nariman Point, Bhoruka Power Corporation Limited
Mumbai - 400 021. Exide Industries Limited
Given below is a brief summary of the Sponsor's financials Chartered Accountant Goldiam International Limited
(amounts in US $): H & R Johnson (India) Limited
Description Year ended Year ended Year ended Nilkamal Plastics Limited
June 30, 2007 June 30, 2006 June 30, 2005 Prism Cement Limited
Surin Investments Private Limited
Total Revenue 123,982,528 133,444,959 98,231,913 Associated Battery Manufacturers
(Ceylon) Limited
Profit Before Tax 16,100,557 22,450,992 10,886,916
Chloride Batteries SE Asia
Profit After Tax 15,801,048 22,404,637 10,850,032 Private Limited
Chloride Eastern Industries
Free Reserves** 89,490,945 58,696,535 36,293,391 Private Limited
Net Worth 90,240,945 59,446,535 37,043,391 Chloride Eastern Limited
The Indian Merchants' Chamber
Earnings per Share 21.07 29.87 14.47 Innovasynth Technologies
Book Value per Share 120.32 79.26 49.39 (I) Limited
Diagold Design Limited
Dividend % 0% 0% 10,163% ING Vysya Life Insurance
Company Limited
Paid Up Capital (Equity) 750,000 750,000 750,000
RPG Guardian Private Limited
** Note: Including contributed surplus. Foodworld Supermarkets
Private Limited
C. The Trustee Company (The Trustee) Mrs. Ann Stock is a director associated with the Sponsor.
Fidelity Trustee Company Private Limited (the Trustee), a
Mrs. Ann Stock
company incorporated under the Companies Act, 1956, is the
Trustee for the Fund vide Trust Deed dated August 9, 2004. Mrs. Stock is the Executive Director, Global Oversight -
responsible for Compliance, Internal Audit, Risk and Investigations
I. Directors and Intelligence across the FIL Group.
The directors of the Trustee are: Mrs. Stock is a Chartered Accountant (ICAEW) with an MBA
Names, addresses and Other directorships of the and a Degree in Economics from Kingston University, England.
She has over 20 years of professional experience in financial
occupations of the directors directors
services and related fields of practice, having previously worked
Mrs. Ann Stock Fidelity Securities KK for KPMG and Legal and General plc.
Flat 2, 130 Tonbridge Road, Fidelity Investment Services Limited Justice (retired) S. S. Sodhi
Tonbridge, Kent TN11 9EW Fidelity Investments International
Justice (retired) Sodhi, a lawyer started practicing law in 1958
United Kingdom Fidelity Pensions Management in the High Court of Punjab and Haryana and served as a Judge
Service Financial Administration Services in this High Court during the period 1982 to 1994. During the
Limited period from 1968 to 1982, he also served in various positions
Fidelity International Investment like the Legal Remembrancer to the Punjab Government;
Advisors (U.K.) Limited Registrar of High Court of Punjab; Lok Pal (Ombudsman), Punjab
Fidelity Investments Asset and Haryana; and District and Sessions Judge in Punjab. In
Management (Korea) Limited 1994, he was appointed as the Chief Justice of the High Court
of Allahabad.
Justice (retired) S. S. Sodhi Fortis Health Care Limited
51, Sector 9, In 1997 he was appointed as the Chairperson of Telecom
Chandigarh - 160 009 Regulatory Authority of India. He is currently a Trustee of the
Retired Tribune group of newspapers, Chandigarh; Honorary Rector
of the Army Law Institute, Mohali; Member Board of Governors
of Yadavindra Public School, Patiala and Mohali; Director Fortis
13

Offer Document
Hospital, Mohali and President, Chandigarh Lawn Tennis (i) frame one or more Schemes for the issue of Units
Association. and frame such rules and regulations for the issue as
it may in its absolute discretion deem fit;
Mr. K. R. Ramamoorthy
(ii) acquire, hold, manage, trade, lend and dispose of
K. R. Ramamoorthy is a senior banker, with over 40 years of
stocks and securities of all kinds, subject to RBI
commercial and banking experience in India. He was the approval;
Chairman and CEO of two of the leading commercial banks in
India, one a state-owned commercial bank - Corporation Bank (iii) acquire or enter into or deal in any derivative, option,
- and the other - Vysya Bank Limited - in the private sector. He hedging, swap or other contract of a similar nature,
has also served as an Advisor to CRISIL for three years, providing repurchase agreement transactions and to enter into
expert advice and guidance on advisory assignments relating securities lending and borrowing transactions,
to commercial banks in the area of Credit Risk Rating framework. underwriting and sub underwriting contracts and
placings;
After his rewarding career in leadership positions, Mr.
Ramamoorthy has been consulting for commercial banks in (iv) calculate the offer, repurchase and Redemption prices
India and other developing countries. His services are availed of Units including inter alia the allowance to be made
of by The World Bank, International Monetary Fund, International in computing these prices for contingent liabilities;
Finance Corporation, commercial banks and international (v) keep the capital and moneys of the Mutual Fund in
investors in many areas including bank restructuring, call or repurchase options or deposit with banks or
strengthening and financial risk assessment. other financial institutions or companies or any other
Prior to joining the Indian banking Industry, Mr. Ramamoorthy financial instruments as may be permitted under the
gained rich career exposure in the private sector for nearly two Regulations;
decades - in pharmaceutical, entertainment, and engineering (vi) enter into agency arrangements with banks;
and consumer product marketing organisations, including Liptons,
where he served for 15 years. (vii) enter into agreements or arrangements including
agreements/arrangements by way of tie-ups,
Mr. Ramamoorthy holds degrees in Economics and Law collaborations, joint ventures with mutual funds, asset
(University Rank holder) and is a senior Fellow Member of the management companies, financial institutions,
Institute of Company Secretaries of India. investment companies, banks and other institutions;
Currently he serves on the Boards of ING Vysya Bank Limited, (viii) do any other kind of business connected with
Fidelity Trustee Company Private Limited, Clearing Corporation mobilisation of savings and investments;
of India, Subros Limited, Nilkamal Limited and Amrit Banasapti
Limited as an Independent Director. He is also on the Audit (ix) accept contributions, grants, and donations;
and Risk Management Committees of some of these companies (x) collect, get in and receive the profit, interest, dividend
and has also served on the various Committees constituted by and income of the Trust Property from time to time as
the Reserve Bank of India and the Indian Banks' Association. and when the same becomes due and receivable;
Mr. Rajesh Kapadia (xi) pay all costs, charges, expenses and outgoings of
Mr. Kapadia, a Chartered Accountant is a Senior Partner of the and incidental to the administration and execution of
firm GM Kapadia & Company. Mr. Kapadia has more than 25 the Trust and the management and maintenance of
years of experience in the field of audit, taxation, investigations, the Trust Property and incurred for the same in
due diligence, company law and exchange control. accordance with and subject to the limits under the
Regulations as may be stipulated from time to time;
Mr. Kapadia was on the Board of the Trustee Company of DSP
Merrill Lynch Mutual Fund from 1998 till 2002. Apart from being (xii) appoint brokers, sub-brokers, agents, custodial agents,
a Trustee for many charitable trusts, Mr. Kapadia is also a director registrars, share transfer agents for the purpose of
on the boards of various companies. purchase and sale of securities, investment under the
Scheme and to pay their charges;
II. Summary of the Substantive Provisions of the (xiii) appoint and engage advocates, solicitors, valuers,
Trust Deed chartered accountants, credit rating agencies, and other
Pursuant to the Trust Deed dated August 9, 2004 constituting such advisers and experts for the purpose of the
the Mutual Fund and in terms of the SEBI Regulations, the Scheme and to pay their remuneration and charges;
rights and obligations of the Trustee, inter alia, are as under:
(xiv) do all such acts, deeds and things and exercise such
1. The Trustee Company has exclusive ownership of the assets powers and sign and execute all such documents,
of the Schemes of the Fund ("Trust Property") and holds Unit Certificates, transfer forms, declarations, affidavits,
the same in trust and for the benefit of the Unit Holders. indemnities as it may in its absolute discretion deem
fit;
2. The Trustee Company has the authority to appoint one or
more bodies corporate to act as an asset management (xv) open one or more bank accounts, securities account/
company and to enter into an investment management s with RBI and other banks (if permitted) and operate
agreement with them. the same;
3. The Trustee Company shall hold the Trust Property in trust (xvi) deal with all matters arising from the Mutual Fund/
for the benefit of the Unit Holders. Asset Management Company, on the one hand and
Unit Holders on the other, and to settle disputes, if
4. The Trustee Company is responsible for the management any, with Unit Holders;
of the Mutual Fund and for providing information to the
Unit Holders, the Sponsor, SEBI, and any other regulatory (xvii) generally to exercise all such powers as it may be
body and to ensure compliance by the Mutual Fund /AMC required to be exercised under the Regulations for
of all statutory formalities. the time being in force and do all such matters and
things as may promote the Mutual Fund or as may be
5. The Trustee Company, through the AMC is, inter alia, incidental to or consequential upon the discharge of
empowered and entitled to: its functions and the exercise and enforcement of all
or any of the powers and rights under the Trust Deed;
14

(xviii) pay out of the income of the Trust Property after Company at the meetings of the Board of Directors of the
deducting all expenses the interest and dividend in Trustee Company for appropriate action;
accordance with the Scheme and the Offer Document
applicable to each Scheme; (vi) The Trustee shall maintain minutes of the meetings of the
Board of Directors of the Trustee Company;
(xix) subject to the provisions of the Regulations and the
Trust Deed, exercise all powers and rights of a trustee (vii) The Trustee shall prescribe and adhere to a code of ethics
under the Indian Trusts Act, 1882 to achieve the objects by the Trustee Company, Asset Management Company
of this Trust and protect the interests of the Unit Holders. and its personnel;
6. The Trustee Company is responsible for supervising the (viii) The Trustee shall communicate in writing with the Asset
collection of all income due to be paid to the Scheme and Management Company regarding any deficiencies and
for claiming any repayment of tax and holding any income checking on the rectification of deficiencies.
received in trust for the Unit Holders in accordance with (ix) The Trustee shall ensure that the accounts maintained by
the Trusts Deed and the Regulations. the Asset Management Company follow the accounting
7. The Trustee Company shall inter alia: policies prescribed by SEBI or any other relevant authority
and shall be in the prescribed format and have the prescribed
(i) at no time acquire any asset out of the Trust Property, contents.
which involves the assumption of any liability which
is unlimited or results in the encumbrance of the Trust (x) The Trustee shall procure that all necessary statements in
Property in any way, except to the extent permitted respect of the Mutual Fund and the Trust Property are
prepared in the manner required by Regulations and make

by the Regulations;
or cause to be made all reports, publications, notices and
(ii) take reasonable care to ensure that the Schemes filings with respect to the Mutual Fund required by Indian
floated and managed by the Asset Management law.
Company, are operated in accordance with the Trust
Deed, the Offer Document and the Regulations; (xi) The Trustee shall cause the balance sheet and accounts
of the Trust to be prepared and submitted to the Sponsor
(iii) cause the Asset Management Company to ensure that for the accounting year as soon as may be after the end of
the manner of calculating the offer, repurchase and each accounting year.
Redemption prices of Units, including inter alia the
allowance to be made in computing these prices for (xii) The Trustee shall cause the affairs of the various Schemes
contingent liabilities, would be in accordance with the of the Trust in respect of every accounting year to be audited
Regulations and any guidelines issued by SEBI from by one or more auditors qualified to act as auditors under
time to time; the law for the time being and obtain their report and submit
the same to SEBI or any other Government Authority, if
(iv) be bound to discharge all obligations, duties and required by the law in force. The auditor shall be appointed
responsibilities entrusted to them under the by the Trustee Company and the Trustee Company may
Regulations. in its discretion, determine out of what part or parts of the
Trust Property or the income thereof, the cost of such audit
The Trustee shall exercise due diligence as under: shall be defrayed and may make such apportionment of
General Due Diligence: such costs as it thinks desirable. Such auditor shall not be
the same as the auditor appointed for the Asset Management
(i) The Trustee shall be discerning in the appointment of the Company.
key personnel of the Asset Management Company.
8. The Trustee may amend the Trust Deed with the prior
(ii) The Trustee shall review the desirability or continuance of approval of SEBI and the Unit Holders where it affects the
the Asset Management Company if substantial irregularities interest of Unit Holders.
are observed in any of the Schemes and shall not allow
the Asset Management Company to float new schemes. 9. The Trustee Company may, subject to the Regulations,
acquire, hold, develop, deal with and dispose of any movable
(iii) The Trustee shall ensure that the Trust Property is properly or immovable property either on ownership, rental or other
protected, held and administered by proper persons and basis whatsoever, with power to let or sublet the same
by a proper number of such persons. with or without charging any compensation fee or rent as
(iv) The Trustee shall ensure that all service providers hold the Trustee may in its absolute discretion deem fit. However,
appropriate registrations from SEBI or concerned regulatory no investment shall be made in immovable property from
authorities. the resources mobilised for the Scheme.
(v) The Trustee shall report to SEBI of any special developments III) Trustee - Fees and Expenses
in the Mutual Fund. Pursuant to the Trust Deed, the Trustee, in addition to the
Special Due Diligence: reimbursement of all costs, charges and expenses incurred in
or about the administration and execution of the Fund, is entitled
(i) The Trustee shall arrange for test checks of service contracts to receive a fee from and out of the Trust Property. As per the
at such frequency and in such manner as it shall deem Trust Deed, the Trustee's fee can be determined for each Scheme
appropriate from time to time. separately. The fee for the Scheme will be 0.001% per annum
of the average daily net assets of the Scheme or Rs. 1,500,000
(ii) The Trustee shall obtain internal audit reports at regular
per annum, whichever is lower. The Trustee fees shall be accrued
intervals from independent auditors appointed by the Trustee
on a daily basis but the payment shall be made on a monthly
Company;
basis.
(iii) The Trustee shall obtain compliance certificates at regular
intervals from the Asset Management Company; IV) Trustee - Supervisory Role
(iv) The Trustee shall hold meetings of the Board of Directors The Compliance Officer reports directly to the Board of Directors
of the Trustee Company regularly and frequently; of the Trustee to carry out the supervisory role on behalf of the
Trustee. In addition, the Trustee may seek any information from
(v) The Trustee shall consider the reports of the independent time to time from the AMC. The internal audit of the Fund will
auditor and compliance reports of Asset Management be carried out by the internal audit team of the FIL Global
15

Offer Document
Oversight function to facilitate monitoring the activities of the Names and addresses Other directorships of the
AMC. On a quarterly basis, an activity report is prepared by of the directors directors
the AMC and the same is discussed at the board meetings of
the Trustee. During the financial year 2006 -2007, 6 meetings FIL Capital Management Limited
of the Board of Directors of Trustee were held. The Audit FIL Greater China Limited
Committee, comprising of all the directors on the board of the FIL Ventures Limited
Trustee with an independent director as its chairman, has been FMR UK Property Limited
constituted pursuant to the SEBI circular MFD/CIR/010/024/ Millharbour Properties Limited
2000 dated January 17, 2000 to, inter alia, review internal audit Mutual Fund Technologies (UK) Limited
systems and reports from internal and statutory auditors. Mutual Fund Technologies Limited
SWS International Properties Limited
D. The Asset Management Company Uriel Limited
I. Constitution Mr. Ramesh Savoor E.I.D. Parry Limited
In conformity with the Regulations, Fidelity Fund Management 201, Pine View, Foseco India Limited
Private Limited, a company registered under the Companies 9, Edward Road, Divgi - Warner Pvt. Ltd.
Act, 1956 and having its registered office at 56, 5th floor, Maker Bangalore - 560 052 Automotive Stampings and
Chambers VI, 220, Nariman Point, Mumbai 400 021, has been Assemblies Limited
set up to act as the Asset Management Company (AMC) to the
Fund. Mr. Arun Duggal Zuari Industries Limited
106, Ashoka Estate, Patni Computer Systems Limited
In terms of the Investment Management Agreement ("IMA") dated 24, Barakhamba Road, Petronet LNG Limited
August 9, 2004 entered into between the Trustee and the AMC, New Delhi - 110 001. Blackstone Investment Co. Private Limited
the AMC has been appointed as the Investment Manager to Tanglewood Financial Advisors
the Fund. Private Limited
International Asset Reconstruction
The Investment Manager was approved by SEBI to act as the
Co. Private Limited FourS Services
AMC for the Fund vide letter no. IMD/SB/33960/05 dated February
Transparency International
17, 2005. The AMC manages the Scheme / plans / options of
Matrix Laboratories Limited
the Fund in accordance with the provisions of the Investment
Manipal AcuNova Private Limited
Management Agreement, the Trust Deed, the Regulations and
The Bellweather Microfinance Fund
the objectives of each Scheme / plan / option. The AMC can be
Carzonrent (India) Private Limited
removed by the Trustee, subject to the Regulations.
Jubilant Energy Ltd., Canada
Shriram Transport Finance Company Limited
II. Directors
Chakra Interactive Private Limited
The directors of the AMC are: Info Edge (India) Private Limited
Names and addresses Other directorships of the Shriram Properties Limited
of the Directors Directors Shriram City Union Finance Limited
Mundra Port and Special Economic Zone
Mr. Simon Haslam COLT Telecom S.A.
Flat 1, 130 Tonbridge Road, FID Funds (Mauritius) Limited Mrs. Ashu Suyash –
Hildenborough, Tonbridge, Fidelity Administration Limited 56, 5th Floor,
Kent TN11 9EW Fidelity Adviser World Funds Maker Chambers VI,
(Bermuda) Limited 220, Nariman Point,
Fidelity Distributors International Limited Mumbai - 400 021.
Fidelity Fund Management Limited
Mr. Simon Haslam and Mrs. Ashu Suyash are the directors
Fidelity Funds II SICAV
associated with the Sponsor.
Fidelity Funds Korea (L) Ltd.
Fidelity Funds SICAV Mr. Simon Haslam
Fidelity International Investment Advisors Mr. Haslam is the Chief Operating Officer at Fidelity International
Fidelity International Investment Limited ("FIL"). He is a Director of several companies within
Advisors (UK) Limited the FIL Group, including FIL. Before joining FIL, Mr. Haslam
Fidelity International Limited was an audit and consulting partner at what is now Deloitte,
Fidelity International Quiescent where he specialised in the fund management and securities
Ventures Limited industry. His career in financial services, spanning more than
Fidelity International Services Limited twenty years has concentrated on financial, compliance and
Fidelity International Ventures Limited business matters affecting stockbroking, investment banking
Fidelity Investment Management GmBH and fund management businesses internationally.
Fidelity Investment Management Limited
Fidelity Investments (Cayman Islands) SPC Mr. Ramesh Savoor
Fidelity Investments (Singapore) Limited Mr. Savoor retired from Castrol India Ltd., after a long career,
Fidelity Investments (South Africa) Limited including 12 years as Chief Executive & Managing Director. In
Fidelity Investments Distributors the last two years of Mr. Savoor's tenure with Castrol, Mr. Savoor
Fidelity Investments Japan Limited was also the leader of the business unit comprising India, Middle
Fidelity Investments Life Insurance Limited East and Africa, managed from India, in addition to his role as
Fidelity Investments Securities the Chief Executive & Managing Director of Castrol India. In
Investment Trust Co. Ltd. this capacity as Business Unit Leader, he was also on the Board
Fidelity Japan Holdings KK of Castrol Worldwide.
Fidelity MultiManager SICAV
Fidelity Structured Investments SPC Apart from being a director on the boards of directors of various
Fidelity Villa Mumm Limited companies, Mr. Savoor is also a director on the Governing Board
FIL Asia Ventures Limited of the Indian Institute of Management, Bangalore.
FIL Capital Management (Hong Kong)
Mr. Arun Duggal
Limited
Mr. Duggal has had a long career with Bank of America and
16

was the Chief Executive Officer and Managing Director before particulars stated in the Offer Document for the Scheme
he chose to take early retirement. For about two years, Mr. Duggal approved by the Trustee Company Board and SEBI;
was also the Chief Financial Officer of HCL Technologies. Mr.
Duggal was also instrumental in establishing the International (7) disclose the Repurchase Price and NAV of the various
Asset Reconstruction Company and now is its non-executive - Schemes of the Fund to the investors, at such intervals as
Vice Chairman. He is also an International Advisor to General may be specified by the Trustee Company Board and in
Atlantic Partners, a leading American Private Equity firm and accordance with the Regulations issued from time to time;
an advisor to a number of different institutions. (8) maintain books and records about the operation of various
Schemes of the Fund to ensure compliance with the
Mrs. Ashu Suyash Regulations, and submit a quarterly report on the functioning
Mrs. Suyash is the Managing Director and Country Head. She of each of the various Schemes of the Fund to the Trustee
has over 17 years of experience in the banking sector. She Company or at such intervals and in such manner as may
held various positions during her stint with Citibank including be required or called for by the Trustee Company or by
that of Operations Head, CEO - brokerage business, Head of SEBI;
investor sales, Head of Business Development, Head of Strategy
and Business. The assets under management of the Fund have (9) send periodical reports, as required under the Regulations,
crossed over two billion USD during her tenure over the last in addition to any other reports called for by the Trustee
two years. Company or SEBI from time to time;
(10) instruct the Auditors to examine the Trust's annual Statement
III. Duties and Responsibilities of the AMC and of Accounts and to report on their correctness and authorise
the material provisions of the Investment

the auditors to communicate directly with the Trustee
Management Agreement Company at any time;
The duties and responsibilities of the AMC shall be consistent (11) publish by public advertisement in newspapers and, if so
with the Regulations and the Investment Management Agreement. thought fit, in any other manner, the un-audited half-yearly
The AMC shall discharge such duties and responsibilities as accounts and audited annual accounts of the various
provided for under the Regulations and the Investment Schemes as required under the Regulations; and
Management Agreement. The AMC shall, in the course of
managing the affairs of the Fund, inter alia: (12) exercise all due diligence and vigilance in carrying out its
duties and in protecting the rights and interests of the Unit
(1) provide management, advisory and administrative services Holders.
for the Trust in accordance with the provisions of the IMA
and any resolution of the Trustee Company Board from IV. Investment Management Fees
time to time;
The AMC is entitled to charge an investment management and
(2) formulate and devise various Schemes and invest the Trust advisory fee at the rate of 1.25% per annum of the average
Fund in accordance with the objects/provisions of the Trust daily net assets of the Scheme(s) outstanding in each financial
Deed, the Regulations, or circulars issued by SEBI from year for the net assets up to Rs. 100 Crores and at the rate of
time to time; 1.00% per annum of the average daily net assets outstanding
in each financial year for the net assets in excess of Rs.100
(3) manage the Schemes of the Fund in accordance with the
Crores.
relevant rules and regulations applicable to them (including
the provisions of the relevant Offer Document applicable V. Shareholding Pattern of the AMC
to each Scheme) subject to directions from SEBI;
The shareholding pattern of the AMC is as follows:
(4) be responsible for the day-to-day management of the Trust
Property and the various Schemes of the Fund; Name of the Shareholder Type of holdings Holdings
(5) be responsible for floating and issuing Schemes for the FIIA [via FID Investments Equity Shares 99.99%
Fund after approval of the same by the Trustee Company (Mauritius) Limited, its subsidiary]
Board and SEBI, as well as investing and managing the Fidelity International Services Equity Shares 0.01%
funds raised under the various Schemes, in accordance Limited
with the provisions of the Trust Deed and the Regulations;
FIIA [via FID Investments Preference Shares 100%
(6) ensure that no Offer Document of a Scheme, key information (Mauritius) Limited, its subsidiary]
memorandum, abridged half yearly results and annual results
For note on the activities of FIIA, please refer to the paragraph
are issued or published without the prior approval of the
headed "The Sponsor". Fidelity International Services Limited
Trustee Company Board or the Board of the AMC in writing,
is a wholly owned subsidiary of Fidelity International Limited, a
and also ensure that such documents do not contain any
company established in Bermuda.
statements or matter extraneous to the Trust Deed or
VI. Key Employees of the AMC and relevant experience

Employee Designation Age Qualifications Total no. Assignments held Period
of years of during last 10 years From - To
Experience
Ashu Suyash Managing 40 B.Com., A.C.A. 20 Citibank(Head of Strategy and Business) 2001 - 2003
Director Development) Citibank (Head of Business Development -
and Country Times of money.com) 2000 - 2001
Head Citibank (Head of Investor Sales) 1998 - 2000
Citibank (CEO - Brokerage Business) 1996 - 1998
Sandeep Kothari Fund Manager 36 B.Com., 13 Fidelity Investments Management Ltd.
(Equity) C.A. (Portfolio Manager) 2005 - 2006
Fidelity Investments Management Ltd.
(Investment Analyst) 2002 - 2005
CLSA (Global Pharma Analyst and Indian
Equity Strategist) 2001 - 2002
Dresdner Kleinwort Wasserstein (Sr. Investment Analyst) 1999 - 2001
Credit Lyonnais Securities (Sr. Investment Analyst) 1996 - 1999 17

Offer Document
Employee Designation Age Qualifications Total no. Assignments held Period

of years of during last 10 years From - To
Experience
Suraj Kaeley Director- Sales 41 B.Sc, MMS 18 Met Life India Insurance Co. Pvt. Ltd.
and Business (Chief Marketing Officer and Head Individual Business) 2003 - 2006
Development Franklin Templeton Asset Management Private Limited
(Senior Vice President - Sales and Marketing) 1996 - 2003
Rajesh Singh Fund Manager 39 B.Tech., 16 Fidelity Investments, Hong Kong (Investment 2005-2006
(Equity) (IIT - Kanpur) Analyst (Sector Team Leader))
M.B.A., Fidelity Mgmt & Research, Boston (Global 2003-2005
(IIM - Investment Analyst)
Ahmedabad) Fidelity Investments, Hong Kong (Investment Analyst) 2000-2002
CFA CLSA, Mumbai & Singapore 1998-2000
(Assistant Investment Manager)
CLSA, Mumbai (Investment Analyst) 1996-1997
Sameer Kulkarni Fund Manager 38 BE (Mech), 14 Franklin Templeton Asset Management (India) Pvt. Ltd - 2004-2006
(Fixed Income) MMS, M Sc, (Senior Vice President and Head of Fixed
CFA (ICFAI) Income)
FRM (Vice President and Portfolio Manager for Gilt Portfolio) 2002 -2004
IndusInd Bank
(Vice President and Head of Domestic Treasury) 2000-2002
(Dealer in fixed income products) 1997-2000

Srikar Baljekar Director - 47 B.Com, A.C.A., 20 Kotak Mahindra Asset Management Company Limited
Operations A.C.S. (Chief Operations Officer) 1998 - 2004
Kotak Mahindra Finance Limited (Vice President - IT) 1992 - 1998
Hemang Bakshi Director- Legal 42 B.Com., A.C.S., 20 Kotak Mahindra Asset Management Company
and Compliance C.P.A. (U.S.A.) Limited (Vice President - Compliance) 1996 - 2003
Kotak Mahindra Finance Limited
(Manager - Secretarial) 1995 - 1996
Rajendra Khatu Associate 35 B.Com., A. C. A. 9 Franklin Templeton Asset Management India Private 2001 -2004
Director - Limited (Senior Manager-Corporate Accounting
Finance and Taxation)
Stockholding Corporation of India Limited 1997 - 2001
(Assistant Manager - Finance)
Vikram Chopra Trader (Fixed 28 M.B.A., (IMT - 5 IDBI Bank Limited (Manager - Treasury) 2002-2006
Income) Ghaziabad) UTI Bank Limited (Deputy Manager - Merchant Banking) 2001-2002
B.Com. (Hons)
Leng Ng Fund Manager 30 Bachelor of 5 Capital International (Portfolio Control Analyst) 2001-2005
(Foreign Business Fidelity International, Singapore (Portfolio Management 2005-2006
Securities) Administration Services Specialist)
C.F.A.
The AMC has four Fund Managers and eight Research/Credit Analysts. All the key personnel are based at the Corporate Office of
the AMC in Mumbai.
Personnel of Investment Department

Employee Designation Age Qualifications Total no. of Assignments held during last 10 years
years of
experience
Varun Lohchab Research 28 B.E. (Electrical) 5 Tata Consultancy Services (Team Leader - IT Consultancy)
Analyst PGDM (IIM) Ericsson India Limited (Systems Analyst)
ICICI Bank (Credit Analyst)
Ganesh Research 29 B.Com, A.C.A., 7 Hindustan Lever Limited. (Commercial Manager)
Chidambaram Analyst MBA (INSEAD) GSK Consumer Healthcare Ltd. (Deputy Manager-Finance)
ITC Limited. (Industrial Trainee)
Seshadri and Seetharam (Article Trainee)
Subramanian Research 28 C.A., PGP in 10 J. P. Morgan India Securities Private Limited (Analyst)
Balakrishnan Associate Management HSBC Ltd. (Audit Senior)
From Indian Morgan Stanley Advantage Services (Audit Senior)
School of Bharat S Raut (KPMG) (Audit Senior)
Business BNP Paribas (Management Trainee)
ABN AMRO Bank NV ( Industrial Trainee)
(Part of CA Articleship)
S Madhavan and Co. (Article Trainee)
Gaurav Jalan Research 27 B.A., M.B.A. 3 Bain & Co (Senior Associate Consultant)
Analyst Bid or Buy India.Com (Intern) Towers Perin (Intern)
Mahesh Credit Analyst 30 F.C.A., C.F.A. 9 Birla Sunlife Asset Management Company Limited
Chhabria (I.C.F.A.I.), (Credit Analyst and Fund Manager)
Financial Risk RSM & Co. (Qualified Assistant)
Manager from Khimji Kunverji & Co. (Audit Senior)
GARP, U.S.A
18

Employee Designation Age Qualifications Total no. of Assignments held during last 10 years
years of
experience
Amit Kumar Jain Research 28 C.A., PGDCM 3 ICICI Bank Limited (Manager
Associate (IIM - Calcutta) Temasek Holdings (Associate)
Ashwinder Research 27 B. Com, MBA, 3 Fidelity Business Services India Private Limited
Bakhshi Associate- PG (Mass (Research Specialist Associate)
Fixed Income Comm.), GNIIT CRISIL Rating Limited (Manager)
Smriti Shekhar Research 30 M.B.A., 8 The Chaterjee Group (Investment Professional -
Analyst C.A., C.P.A. Private Equity)
Arthur Andersen/Ernst & Young - Consultant
VII. Fund Manager u provide detailed information and other reports as required
Mr. Sameer Kulkarni is the Fund Manager who will manage by the AMC;
the investments of the Scheme (for the experience and u maintain confidentiality of the transactions; and
qualification of the Fund Manager please see the table of Key
Employees above.) u be responsible for any loss or damage to the assets
belonging to the Scheme due to negligence on its part or

VIII. Compliance Officer on the part of its approved agents.
The Compliance Officer for the Fund is Mr. Hemang Bakshi. The Custodian shall not assign, transfer, hypothecate, pledge,
lend, use or otherwise dispose of any assets or property of the
IX. Investors Relations Officer Fund, except pursuant to instruction from the Trustee / AMC or
The Investors Relations Officer for the Fund is Mr. Vinod under the express provisions of the Custody Agreement.
Venkateswaran and he may be contacted at the office of the The Custodian will be entitled to remuneration for its services
AMC at 1st Floor, Ganesha Towers, Old No 90, New No 104, in accordance with the terms of the Custody Agreement and
Dr Radhakrishnan Salai, Mylapore, Chennai - 600004. as estimated in the table pertaining to the recurring expenses
in respect of the Scheme. Accordingly, the recurring expenses
E. The Registrar and Transfer Agent will be borne by the Unit Holders of the Scheme. The Trustee
Computer Age Management Services Private Limited ("CAMS") has the right to change the Custodian, in certain circumstances.
has been appointed to act as registrar and transfer agent to
the Scheme in accordance with the Registrar and Transfer Agent G. The Fund Accountant
Agreement dated September 10, 2004. The Registrar is registered J P Morgan Chase Bank, Mumbai has been appointed as the
with SEBI under the SEBI (Registrar and Transfer Agents) fund accountant for the Scheme. J P Morgan Chase Bank
Regulations, 1993 vide registration no. INR000002813. As provides fund accounting, NAV calculation and other related
registrar to the Scheme, the Registrar will handle the processing services in accordance with an Administration Agreement dated
of all Unit Holders' Purchase / Redemption transactions, February 17, 2005 between the AMC and J P Morgan Chase
maintenance of their folio details, processing of dividends / Bank.
commission payments, handling of investor servicing, etc. The
boards of the Trustee and the AMC have satisfied that the J P Morgan Chase Bank is entitled to remuneration for its services
Registrar can provide the services required and has adequate in accordance with the terms of the Administration Agreement
facilities and systems capabilities. The Registrar will be paid and such remuneration will be borne by the AMC and not by
fees in accordance with the agreed terms and conditions and the Unit Holders of the Scheme. The AMC has the right to change
as estimated in the table pertaining to the recurring expenses the fund accountant in certain circumstances.
in respect of the Scheme. Accordingly, the recurring expenses
will be borne by the Unit Holders of the Scheme. The AMC has H. The Auditors
the right to change the Registrar in certain circumstances. Price Waterhouse, Chartered Accountants, 252, Veer Savarkar
Marg, Shivaji Park, Dadar (West), Mumbai 400 028, are the
F. The Custodian auditors appointed for the Fund. The audit fees for the Scheme
J P Morgan Chase Bank, Mumbai has been appointed as will be borne by the Unit Holders as part of the recurring expenses
custodian of the Scheme. The Custodian is registered with SEBI of the Scheme. The Trustee has the right to change the Auditors.
under the SEBI (Custodians of Securities) Regulations, 1996,
vide registration number IN/CUS/014 dated November 10, 1998. I. The Collection Banks
The Mutual Fund has entered into a Custody Agreement dated The Collection Banks to the NFO will be Citibank N.A. (SEBI
February 17, 2005, with the Custodian, whose principal registration no. INBI00000037), and such other banks registered
responsibilities under the said Agreement are to: with SEBI and authorised to act as collection banks. Collection
u provide custodial services to the Mutual Fund; Banks may be decided by the AMC from time to time. Applications
for the NFO will be accepted at Designated Collection Centres.
u ensure that benefits due on the holdings are received; The details are mentioned at the end of this Offer Document.
Any charges levied by the bank(s) will be borne by the investors
u ensure segregation of assets between different Schemes
in the NFO.
of the Fund;
19

Offer Document
V. Investment Objective, The Scheme may invest in derivatives up to 100% of the net
assets of the Scheme for the purpose of hedging and portfolio
Investment Strategy, balancing purposes. The Scheme may also invest in permitted
offshore instruments for diversification.
Investment Pattern and Risk
Profile and Limitations of the 4. Investment Pattern and Risk Profile
The Scheme will invest the entire corpus in debt and money
Scheme market securities. There will be no investment in equity and
equity related products. Under normal circumstances, it is
A. FIDELITY LIQUID PLUS FUND anticipated that the asset allocation shall be as follows:
1. Type of Scheme Instrument Normal Risk Profile
An open ended Debt scheme Allocation
(% of net
assets)
2. Investment Objective
To generate reasonable returns and liquidity primarily through Money Market and Debt 65 - 100% Low
investment in money market and short term debt instruments. instruments with average
maturity of not greater
There is no assurance that the objective of the Scheme than 1 year.
will be realised and the Scheme does not assure or guarantee (Debt instruments may
any returns. include securitized debt)*
The Scheme may invest in derivatives up to 100% of the net Debt Instruments with 0 - 35 % Medium
average maturity more to Low
assets of the Scheme for the purpose of hedging and portfolio than 1 year.
balancing purposes. (Debt instruments may
Hedging does not mean maximization of returns but only attempts include securitized debt)*
to reduce systemic or market risk that may be inherent in the
* The Scheme may invest in securitized debt upto 100% of its
investment.
net assets.
Investment Objective
The performance of the Scheme will be benchmarked against

the CRISIL Liquid Fund Index. The Scheme may, subject to applicable regulations from time
to time, invest in offshore securities up to 25% of net assets of
3. Investment Strategy the Scheme.
The portfolio will be constructed and actively managed to generate Due to market conditions, the AMC may invest beyond the range
returns to match the investment objective and to maintain set out above. Such deviations shall normally be for a short
adequate liquidity to accommodate funds movement. As the term purpose only, for defensive considerations and the intention
interest rate risk of the portfolio is likely to be similar to that of being at all times to protect the interests of the Unit Holders. In
the shorter end of the maturity spectrum, in line with the the event of deviations, rebalancing will normally be carried
investment objective, a significant proportion of the total returns out within 10 Business Days.
is likely to be in the form of income yield or accrual. Selective
capital appreciation opportunities could be explored by extending Subject to regulations and prevailing laws as applicable, the
credit and duration exposure above that offered by a cash fund. portfolio will consist of permissible domestic or international
fixed income instruments, most suitable to meet the investment
The fund management team will take an active view of the interest objectives. The instruments listed below could be listed, unlisted,
rate movement supported by quantitative research, to include privately placed, secured, unsecured, rated or unrated acquired
various parameters of the Indian economy, as well as through primary or secondary market through stock exchanges,
developments in global markets. Investment views/decisions over the counter or any other dealing mechanisms. The following
will be a combination of credit analysis of individual exposures investment categories are likely to cover most of the available
and analysis of macro economic factors to estimate the direction investment universe. The investments could be coupon bearing
of interest rates and level of liquidity and will be taken, inter (fixed or floating), zero coupon discounted instruments,
alia, on the basis of the following parameters: instruments with put and / or call options or any other type.
1. Prevailing interest rate scenario Weights in the portfolio may not have any correlation to the
order of listing.
2. Returns offered relative to alternative investment
opportunities. u Securities issued or guaranteed by central government,
state governments or local governments and/or repos/
3. Quality of the security / instrument (including the financial
reverse repos/ready forward contracts in such government
health of the issuer)
securities as are or may be permitted under the Regulations
4. Maturity profile of the instrument and RBI from time to time (including but not limited to coupon
5. Liquidity of the security bearing bonds, zero coupon bonds and treasury bills).
6. Any other factors considered relevant in the opinion of the u Securities issued (including debt obligations) by domestic
fund management team. government agencies and statutory bodies, which may or
may not be guaranteed by central or state government.
The fund management team, supported by credit research group
will generally adopt a bottom up approach for securities u Corporate bonds of public sector or private sector
identification to optimise the risk adjusted returns on the diversified undertakings.
portfolio. The credit quality of the portfolio will be maintained
u Debt obligation of banks (public or private sector) and
and monitored using the in-house research capabilities as well
financial institutions.
as the inputs from the independent credit rating agencies.
u Convertible debentures. (Though the Scheme will not invest
Investments in debt instruments carry various risks such as
in equity and equity related products, it may have some
interest rate risk, liquidity risk, default risk, reinvestment risk
exposure to equity or equity related instruments to the extent
etc. Whilst such risks cannot be eliminated, they may be
of conversion of the convertible debentures into equity or
minimized by diversification and effective use of hedging
equity related instruments.)
techniques.
20

u Money market instruments (which includes but is not limited to the net amount to be paid or received under the agreement,
to commercial papers, commercial bills, treasury bills, usance based on the relative values of the possession held by each
bills, government securities having unexpired maturity upto counterparty.
one year, certificates of deposit, bills rediscounting, CBLO,
repo, call money and any other like instruments as are or Example of a swap transaction:
may be permitted under the Regulations and RBI from time Assume that the Scheme has a Rs. 50 crore floating rate
to time.) investment linked to MIBOR (Mumbai Inter Bank Offered Rate).
Thus, the Scheme has a potential interest rate risk and stands
u Deposits of scheduled commercial banks as permitted under
to incur a loss if the interest rate moves down. To hedge this
the extant Regulations.
interest rate risk, the Scheme can enter into a 6 month MIBOR
u Securitised debt (asset backed securities, mortgage backed swap on July 1, 2006 for 6 months that is upto January 1, 2007.
securities, pass through certificates, collateralised debt Through this swap, the Scheme will receive a fixed determined
obligations or any other instruments as may be prevailing rate (assume 6%) and pays the 'benchmark rate' (MIBOR), which
and permissible under the Regulations from time to time). is fixed by an intermediary who runs a book and matches deals
between various counterparties, such intermediary could be
u Derivatives (which includes but is not limited to interest the NSE or the Reuters. This swap would effectively lock in the
rate derivatives, currency derivatives, credit derivatives and interest rate of 6% for the next 6 months, eliminating the daily
forward rate agreements or such other derivatives as may interest rate risk.
are or may be permitted under the Regulations and RBI
from time to time). On January 1, 2007 the Scheme is entitled to receive interest
on Rs. 50 crore at 6% for 180 days i.e., Rs. 1.5 crores (this
u Any international fixed income securities as are or may amount is known at the time the swap is concluded) and will
be permitted under the Regulations, RBI and other applicable pay the compounded benchmark rate. The counterparty is entitled
law from time to time. to receive the daily compounded call rate for 180 days and pay
u Overseas mutual fund units which are permissible under 6% fixed rate. On January 1, 2007, if the total interest on the
the Regulations or by any other regulatory body. daily overnight compounded benchmark rate is higher than Rs.
1.5 crore, the Scheme will pay the difference to the counterparty.
u Any other domestic or international instrument as may be If the daily compounded benchmark rate is lower, then the
permitted under the Regulations or any other regulatory counterparty will pay the Scheme the difference.
body from time to time.
Effectively, the Scheme earns interest at the rate of 6% p.a. for
For the purpose of further diversification and liquidity, the Scheme 6 months without lending money for 6 months fixed, whilst the
may invest in other schemes managed by the same AMC or by counterparty pays interest @ 6% p.a. for 6 months on Rs. 50
the asset management company of any other Mutual Fund without crores without borrowing for 6 months fixed.
charging any fees on such investments, provided that aggregate
inter-scheme investment made in all schemes managed by the Forward Rate Agreement
same AMC or in schemes managed by the AMC of any other Forward rate agreement is a transaction in which the
mutual fund shall not exceed 5% of the net asset value of the counterparties agree to pay or receive the difference between
Fund. an agreed fixed rate and the interest rate prevailing on a stipulated
future date, based on a notional amount, for an agreed period.
5. Underwriting As the interest rate is fixed now for a future period, the only
The Scheme does not propose to underwrite securities of other payment is the difference between the agreed fixed rate and
issuers. the reference rate in the future. As in the case of interest rate
swaps, only notional amounts are exchanged.
B. Investments in Derivatives Assume that on June 30, 2006, the 90 day commercial paper
The Scheme may invest in various derivatives instruments (CP) rate is 6.75% and the Scheme has an investment in a CP
including interest rate swaps, credit default swaps, currency of face value Rs. 25 crores which is going to mature on September
swaps and forward contracts which are available for investment 30, 2006. If the interest rates are likely to remain stable or decline
in Indian markets from time to time and which are permissible after September 2006, and if the fund manager,who wants to
under the Regulations and by the RBI from time to time. re-deploy the maturity proceeds for 3 more months, does not
Investment in such instruments will be made in accordance want to take the risk of interest rates going down, he can then
with the investment objective and the strategy of the Scheme enter into a following forward rate agreement (FRA) say as on
to protect the value of the portfolio. The investments shall also June 30, 2006:
be subject to the internal limits as may be laid down from time
to time and such limits and restrictions as may be prescribed He can receive 3 X 6 FRA on June 30,2006 at 6.75% (FRA rate
by the Regulations or any other regulatory body. for 3 months lending in 3 months time) on the notional amount
of Rs. 25 crores, with a reference rate of 90 day CP benchmark.
Concepts and Examples: If the CP benchmark on the settlement date i.e. September 30,
Derivatives are financial contracts of pre-determined fixed 2006 falls to 6.5%, then the Scheme receives the difference
duration, whose values are derived from the value of an underlying 6.75 - 6.5 i.e. 25 basis points on the notional amount Rs. 25
primary financial instrument, commodity or index, such as: interest crores for 3 months. The maturity proceeds are then reinvested
rates, exchange rates, commodities, and equities. at say 6.5% (close to the benchmark). The scheme, however,
would have locked in the rate prevailing on June 30,2006 (6.75%)
Interest Rate Swaps as it would have received 25 basis points more as settlement
Interest Rate Swaps is an agreement between two parties amount from FRA. Thus the fund manager can use FRA to
(counterparties) to exchange payments at specified dates on mitigate the reinvestment risk.
the basis of a specific amount with reference to a specified In this example, if the rates move up by 25 basis points to 7%
reference rate. Swap Agreements provide for period payment on the settlement date (September 30,2006), the Scheme loses
dates for both parties where payments are netted and only the 25 basis points but since the reinvestment will then happen at
net amount is paid to the counterparty entitled to receive the 7%, effective returns for the Scheme is unchanged at 6.75%,
net payment. Consequently, the Scheme's current obligations which is the prevailing rate on June 30,2006.
(or rights) under a swap agreement will generally be equal only
21

Offer Document
Forward Contracts F. Procedure and Recording of

Forward contract is a transaction in which the buyer and the Investment Decisions
seller agree upon the delivery of a specified quality (if commodity) All investment decisions, relating to the Scheme, will be
and quantity of underlying asset at a predetermined rate on a undertaken by the AMC in accordance with the Regulations
specified future date. and the investment objectives specified in this Offer Document.
Assume that on June 30, 2006, the scheme has invested 1 All investment decisions taken by the AMC in relation to the
million dollars in a US treasury security. Fund manager expects corpus of the Scheme shall be recorded.
that the yields in the US will come down in the next 6 months With regard to investments in debt instruments, individual scrip
and plans to sell the asset on December 31,2006 to book the wise reasons shall be recorded by the fund manager at the
gain. Rupee is trading at Rs. 44 to a US Dollar on June 30, time of placing individual orders. A detailed report will be made
2006. If rupee appreciates compared to the Dollar in these 6 before taking any decision to invest in a company for the first
months to say Rs. 43.50 per Dollar, the Scheme will earn lower time. Performance of the Scheme will periodically be tabled
returns in Rupee terms when the fund manager sells the before the Boards of the AMC and the Trustee respectively.
investments on December 31, 2006 and converts the proceeds Performance of the Scheme vis-à-vis benchmark indices would
into Rupees. He can mitigate this exchange rate risk by entering be monitored by the Boards of the Trustee and the AMC
into a forward contract to sell 1 million dollars on June 30, 2006 periodically. Further, the Boards of the Trustee and the AMC
for value December 31, 2006 (6 month forward) and receive will also review the performance of the Scheme in the light of
the prevailing premium of say 40 paise per Dollar i.e. he has performance of the mutual fund industry as published from time
locked in a rate of Rs. 44.40 per US Dollar for delivery on to time by independent research agencies and financial
December 31,2006. With this the Scheme is not exposed to newspapers and journals.
the loss of Rupee appreciation or profit from Rupee depreciation.
The AMC has appointed an Investment Committee for the fixed
Please note that the above examples are based on income schemes. This committee comprises of the fund manager
assumptions and are used only for illustrative purposes. of the Scheme, a research analyst of the AMC, a FIL Group
Chief Investment Officer and the Compliance Officer. The
C. Fundamental Attributes Committee's role will be to lay down the broad investment policy
In terms of the Regulations and SEBI's circular dated February for the Scheme, review the policy and to review the portfolio
4, 1998, "Fundamental Attributes" referred above shall mean: and performance of the Scheme periodically. However the day
to day investment management decision will solely be of the

i) Type of Scheme, i.e. an open ended Debt scheme;
fund manager of the Scheme.
ii) Investment Objective, Investment Strategy, Investment
Pattern; G. Overview of Debt Markets
iii) Terms of Issue relating to listing, Redemption, fees, Indian fixed income market, one of the largest and most developed
expenses in South Asia, is now well integrated with the global financial
markets. Increase in the limit of foreign institutional investors'
In accordance with Regulation 18(15A) of the Regulations, the investment in the domestic fixed income market to 3.5 billion
Trustee shall ensure that no change in the fundamental attributes dollars and a road map for the convertibility of Rupee will certainly
of the Scheme or the Fund or the fees and expenses payable result in attracting global investors to the Indian Market. Screen
or any other change which would modify the Scheme and affect based order matching system developed by the Reserve Bank
the interest of the Unit Holders, will be carried out unless: of India (RBI) for trading in government securities, straight through
settlement system for the same, settlements guaranteed by
(i) a written communication about the proposed change is the Clearing Corporation of India and innovative instruments
sent to each Unit Holder and an advertisement is given in like CBLO have contributed in reducing the settlement risk and
one English daily newspaper having nationwide circulation increasing the confidence level of the market participants.
as well as in a Marathi daily newspaper with wide circulation
published in Mumbai (as the head office of the Fund is The RBI reviews the monetary policy four times a year giving
situated there); and the guidance to the market on direction of interest rate movement,
liquidity and credit expansion. The central bank has been
(ii) the Unit Holders are given an option to exit at the prevailing operating as an independent authority, formulating the policies
NAV without any Exit Load. to maintain price stability and adequate liquidity. Bonds are traded
in dematerialised form and institutional investors' preference
D. Borrowing Powers for listed instruments has resulted in most of the bonds getting
Under the Regulations, the Fund is allowed to borrow to meet listed. This has improved the disclosure standards by the issuers.
the temporary liquidity needs of the Scheme for the purpose of Credit rating agencies have been playing an important role in
repurchase, Redemption of Units or payment of interest or the market and are an important source of information to manage
dividend to the Unit Holders. Further, as per Regulations, the the credit risk.
Fund shall not borrow more than 20% of the net assets of the
Scheme and the duration of such borrowing shall not exceed a Government (Central and State) is the largest issuer of debt in
period of 6 months. the market. Public sector enterprises, quasi government bodies
and private sector companies are other issuers. Insurance
The Fund may enter into necessary arrangements with banks / companies, provident funds, banks, mutual funds, financial
financial institutions for borrowing purposes. The Scheme may institutions, corporates and FIIs are major investors in the market.
bear the interest charged on such borrowings. Government loans are available up to 30 years maturity. Variety
of instruments available for investments including plain vanilla
E. Investment in the Scheme by the AMC, bonds, floating rate bonds, money market instruments, structured
Sponsor or their Affiliates obligations and interest rate derivatives, make it possible to
manage the interest rate risk effectively. Daily average turnover
Subject to the Regulations the AMC, the Sponsor, the Trustee
in the market ranges from Rs. 1000 crores to Rs. 3000 crores.
and their associates or affiliates, may invest either directly or
80 to 90% of it is in gilts. The securities available are listed or
indirectly in the Scheme during the NFO and / or Ongoing Offer
unlisted, secured or unsecured, public issue or private
Period. However, AMC shall not charge any investment
placements.
management and advisory services fee on its own investment
in the Scheme.
22

Indicative levels of the instruments currently trading are as follows: it has to make short sale or carry forward transaction or
engage in badla finance.
Instrument Maturity Yield Liquidity
Provided that the Fund may enter into derivatives
CBLO / Repo Short 5.5% to 6.5% Very High
transactions including for the purpose of hedging and
CP / CD / T Bills One Year 7.50% to 9.25% High portfolio balancing in accordance with the guidelines issued
Securitised Debt One Year 9% to 9.75% Low by SEBI in an attempt to protect the value of the portfolio.
PSU bonds / Medium 9.25% to 10% Medium 6) The Fund shall, get the securities purchased or transferred
Corporate Bonds in the name of the Fund on account of the Scheme, wherever
investments are intended to be of long term nature.
Central / State Low to High 7.75% to 8.50% High
Govt. Securities 7) The Scheme shall not make any investment in;
a) any unlisted security of an associate or group company
These are only indicative levels in August 2007 and are likely
of the Sponsor; or
to change depending upon the prevailing market conditions.
b) any security issued by way of private placement by
H. Investment Restrictions an associate or group company of the Sponsor; or
As per the Trust Deed read with the Regulations, the following c) the listed securities of group companies of the Sponsor
investment restrictions apply in respect of the Scheme at the which is in excess of 25% of the net assets.
time of making investments. However, all investments by the
Scheme will be made in accordance with the investment 8) The Scheme shall not make any investment in any fund of
objective, investment strategy and investment pattern funds scheme.
described previously.
9) No term loans for any purpose may be advanced by the
1) The Scheme shall not invest more than 15% of its net assets Fund and the Fund shall not borrow except to meet
in debt instruments (irrespective of residual maturity) issued temporary liquidity needs of the Scheme for the purpose
by a single issuer which are rated not below investment of repurchase, redemption of Units or payment of interest
grade by a credit rating agency authorised to carry out or dividends to Unit Holders, provided that the Fund shall
such activity under the Act. Such investment limit may be not borrow more than 20% of the net assets of the Scheme
extended to 20% of the net assets of the Scheme with the and the duration of such a borrowing shall not exceed a
prior approval of the Board of Trustees and the Board of period of 6 months.
the AMC.
10) Pending deployment of funds of the Scheme in terms of
Provided that such limit shall not be applicable for its investment objectives, the Scheme may invest them in
investments in government securities and money market short term deposits of schedule commercial banks, subject
instruments. Provided further that investments in debt to such guidelines as may be specified by SEBI.
securities issued by public bodies/institutions such as
electricity boards, municipal corporations, state transport 11) The Scheme will comply with any other Regulations
corporations etc. guaranteed by the state or central applicable to the investments of Mutual Funds from time
government would be included within the aforesaid limit to time.
Provided further that investment within such limit can be The Trustee Company / AMC may alter these above stated
made in mortgaged backed securitised debts which are limitations from time to time, and also to the extent the Regulations
rated not below investment grade by a credit rating agency change and as permitted by RBI, so as to permit the Scheme
registered with SEBI. to make its investments in the full spectrum of permitted
investments in order to achieve its investment objective.
2) The Scheme shall not invest more than 10% of its net assets
in unrated debt instruments (irrespective of residual maturity) I. Investment of Subscription Money
issued by a single issuer and the total investment in such The AMC, on the receipt of the minimum subscription amount,
instruments shall not exceed 25% of the net assets of the can commence investment of the funds received in accordance
Scheme. with the investment objective of the Scheme. Alternatively, it
3) Transfers of investments from one scheme to another may maintain the amounts received in subscription as short
scheme in the Fund shall be made only if, - term deposits with scheduled commercial banks subject to SEBI
regulations. The income earned from such investments /deposits
(a) such transfers are done at the prevailing market price will be merged with the income of the Scheme on completion
for quoted instruments on spot basis. of the allotment of the Units.
Explanation - "spot basis" shall have the same meaning
as specified by stock exchange for spot transactions. J. Computation of Net Asset Value
The Net Asset Value of the Units of a Scheme will be computed
(b) the securities so transferred shall be in conformity with by dividing the net assets of the Scheme by the number of
the investment objective of the scheme to which such Units outstanding on the valuation date. The Fund shall value
transfer has been made. its investments according to the valuation norms, as specified
4) The Scheme may invest in other schemes managed by in Schedule VIII of the Regulations, or such norms as may be
the same AMC or by the asset management company of prescribed by SEBI from time to time.
any other mutual fund without charging any fees, provided The broad valuation norms pertaining to the Scheme are detailed
that aggregate interscheme investment made in all schemes below.
under the same management or in schemes under the
management of any such other asset management company Valuation Norms
shall not exceed 5% of the net asset value of the Fund.
1. Traded Securities
5) The Scheme shall buy and sell securities on the basis of
(i) Traded securities shall be valued at the last quoted price on
deliveries and shall in all cases of purchases, take delivery
The National Stock Exchange (NSE). However, if the securities
of relative securities and in all cases of sale, deliver the
are not listed on NSE, the securities shall be valued at the
securities and shall in no case put itself in a position whereby
price quoted at the exchange where they are principally traded.
23

Offer Document
(ii) When on a particular valuation day, a security has not been up the benchmark yields. The matrix is built based on traded
traded on NSE but has been traded on another stock exchange, corporate paper on the wholesale debt segment of an appropriate
the value at which it is traded on the other stock exchange stock exchange and the primary market issuances. The matrix
shall be used. is restricted only to investment grade corporate paper.
When a debt security (other than Government Securities) is Step C
not traded on any stock exchange on any particular valuation The yields as calculated above are marked-up/marked down
day, the value at which it was traded on the principal stock for ill-liquidity risk
exchange or any other stock exchange, as the case may be,
on the earliest previous day may be used provided such date Step D
is not more than fifteen days prior to valuation date. When a The yields so arrived are used to price the portfolio.
debt security (other than Government Securities) is purchased
by way of private placement, the value at which it was bought As per the recommendation of AMFI, CRISIL Bond Valuation
may be used for a period of fifteen days beginning from the Matrix is used to arrive at yields for pricing the portfolio.
date of purchase. Valuation of securities with Put/Call Options:
2. Thinly Traded Securities / Non-Traded The option embedded securities would be valued as follows:
Debt Securities:
Securities with Call option:
A debt security (other than Government Securities) shall be
considered as a thinly traded security if on the valuation date, The securities with call option shall be valued at the lower of
there are no individual trades in that security in marketable lots the value as obtained by valuing the security to final maturity
(currently Rs. 5 crore) on the principal stock exchange or any and valuing the security to call option.
other stock exchange. In case there are multiple call options, the lowest value obtained
Non-traded/ Thinly traded Debt securities would be valued as by valuing to the various call dates and valuing to the maturity
per the norms set out below: date is to be taken as the value of the instrument.
a) Thinly Traded/ Non Traded Debt Securities Securities with Put option
of Upto 182 Days to Maturity: The securities with put option shall be valued at the higher of
the value as obtained by valuing the security to final maturity
As the money market securities are valued on the basis of

and valuing the security to put option.
amortization (cost plus accrued interest till the beginning of
the day plus the difference between the redemption value and In case there are multiple put options, the highest value obtained
the cost spread uniformly over the remaining maturity period by valuing to the various put dates and valuing to the maturity
of the instruments) a similar process should be adopted for date is to be taken as the value of the instruments.
non-traded debt securities with residual maturity of upto 182
days. Debt securities purchased with residual maturity of upto Securities with both Put and Call option on the same day
182 days are to be valued at cost (including accrued interest The securities with both Put and Call option on the same day
till the beginning of the day) plus the difference between the would be deemed to mature on the Put/Call day and would be
redemption value (inclusive of interest) and cost spread uniformly valued accordingly.
over the remaining maturity period of the instrument. In case
of a debt security with maturity greater than 182 days at the 3. Government securities
time of purchase, the last valuation price plus accrued interest
All Government bonds are to be valued at the prices provided
should be used instead of purchase cost. All other non-traded
by CRISIL.COM on a daily basis.
Non Government debt instruments shall be valued using the
method suggested below. 4. While investments in call money, bills purchased under
rediscounting plan and Cash deposits with banks shall be
b) Thinly Traded /Non Traded Debt Securities valued at cost plus accrual, other money market instruments
of Over 182 Days to Maturity: shall be valued at the yield at which they are currently
For the purpose of valuation, all Non Traded Debt Securities traded. For this purpose, non-traded instruments, that is
would be classified into "Investment grade" and "Non Investment instruments not traded for a period of 7 days, will be valued
grade" securities based on their credit ratings. The non-investment at cost plus interest accrued till the beginning of the Valuation
grade securities would further be classified as "Performing" and Day plus the difference between the redemption value and
"Non Performing" assets. All Non Government investment grade the cost spread uniformly over the remaining maturity period
debt securities, classified as not traded, shall be valued on of the instruments.
yield to maturity basis as described below. All Non Government 5. The non-convertible and convertible components of
non investment grade performing debt securities would be valued convertible debentures and bonds shall be valued separately.
at a discount of 25% to the face value. All Non Government The non-convertible component would be valued on the
non-investment grade nonperforming debt securities would be same basis as would be applicable to a debt instrument.
valued based on the provisioning norms. The convertible component should be valued on the same
The approach in valuation of non-traded debt securities is based basis as would be applicable to an equity instrument. If,
on the concept of using spreads over the benchmark rate to after conversion the resultant equity instrument would be
arrive at the yields for pricing the non-traded security. traded pari passu with an existing instrument which is traded,
the value of the latter instrument can be adopted after an
The yields for pricing the non-traded debt security would be appropriate discount for the non-tradability of the instrument
arrived at using the process as defined below. during the period preceding the conversion. While valuing
Step A such instruments, the fact whether the conversion is optional
should also be factored in.
A Risk Free Benchmark Yield is built using Government Securities
as the base. Government Securities are used as the benchmarks 6. Where an instrument has been bought on a 'Repo' basis,
as they are traded regularly; free of credit risk; and traded across the instrument would be valued at the resale price after
different maturity spectrums every week. deduction of applicable interest upto the date of resale.
Where an instrument has been sold on a 'Repo' basis,
Step B adjustment would be made for the difference between the
A Matrix of spreads (based on the credit risk) are built for marking
24

repurchase price (after deduction of applicable interest up Value at the time of sale of their units, asset management
to date of repurchase) and the value of the instrument. If company shall pay the difference in amount to the Scheme.
the repurchase price exceeds the value of the instrument, The asset management company may recover the difference
the depreciation would be provided for, and if the repurchase from the investors.
price is lower than the value of the instrument, credit would
be taken for the appreciation. The valuation guidelines outlined above are within the parameters
of the Regulations and are subject to changes from time to
7. Valuation in respect of Non-Performing time by the AMC and / or the Trustee. However, such changes
Assets (NPAs) must be in conformity with the Regulations.
Valuation of Non-Performing assets (debt securities) will be
done in accordance with "SEBI Guidelines for Identification and
M. Calculation of NAV
Provisioning for NPAs" issued vide circular dated September The NAV of Units under the Scheme shall be calculated by
18, 2000 (as modified), which will form part of valuation policy either of the following methods shown below:
of the Scheme. Market or fair value of the Scheme's investments
An asset shall be classified as "Non-Performing" if the interest + Current Assets - Current Liabilities and Provisions
NAV (Rs.) =
and / or principal amount have not been received or remained No. of Units outstanding under the Scheme
outstanding for three months from the day such income /
instalment has fallen due. Unit Capital + Reserves and Surplus
NAV (Rs.) =
The Fund shall make scripwise disclosures of NPAs on a half No. of Units outstanding under the Scheme
yearly basis along with the half yearly portfolio disclosure. The NAV will be calculated for up to four decimal places for the
The total amount of provisions made against the NPAs shall be Scheme.
disclosed in addition to the total quantum of NPAs and their The NAV will be calculated on all Business Days. The valuation
proportion of the assets of the Scheme. In the list of investments, of the Scheme's assets and calculation of the Scheme's NAV
an asterisk mark shall be given against such investments which shall be subject to audit on an annual basis and such regulations
are recognised as NPAs. Where the date of redemption of an as may be prescribed by SEBI from time to time.
investment has lapsed, the amount not redeemed shall be shown
as 'Sundry Debtors' and not investment, provided that where The first NAV will be calculated and announced within a period
an investment is redeemable by instalments that will be shown of 30 days after the close of the NFO Period. Subsequently,
as an investment until all instalments have become overdue. the NAV shall be calculated and announced on all Business
Days.
8. Valuation Policies with respect to
Derivative Products : N. Accounting Policies and Standards
a) The traded derivatives shall be valued at market price in In accordance with the Regulations, the AMC will follow the
conformity with the stipulations of sub clauses (i) to (v) of accounting policies and standards detailed below.
clause 1 of the Eighth Schedule to the SEBI Regulations,
1. The AMC shall keep and maintain proper books of accounts,
as amended from time to time.
records and documents, for the Scheme so as to explain
b) The valuation of untraded derivatives shall be done in its transactions and to disclose at any point of time the
accordance with the valuation method for untraded financial position of the Scheme and, in particular, to give
investments prescribed in sub clauses (i) and (ii) of clause a true and fair view of the state of affairs of the Fund.
2 of the Eighth Schedule to the SEBI Regulations as
2. For the purposes of the financial statements, the Fund shall
amended from time to time.
mark all investments to market and carry investments in
the balance sheet at market value. However, since the
K. Accrual of Expenses and Income unrealised gain arising out of appreciation on investments
All expenses and income accrued up to the Valuation Day shall cannot be distributed, provision shall be made for exclusion
be considered for calculation of NAV. For this purpose, while of this item when arriving at distributable income.
major expenses like management fees and other periodic
expenses would be accrued on a day to day basis, the minor 3. In respect of all interest-bearing investments, income shall
expenses and income may not be so accrued, provided the be accrued on a day to day basis as it is earned. Therefore,
non accrual does not affect the NAV calculations by more than when such investments are purchased, interest paid for
1%. the period from the last interest due date up to the date of
purchase shall not be treated as a cost of purchase but
L. Recording of Changes shall be debited to interest recoverable account. Similarly,
interest received at the time of sale for the period from the
Any changes in securities and in the number of Units will be last interest due date up to the date of sale shall not be
recorded in the books not later than the first valuation date treated as an addition to sale value but shall be credited
following the date of transaction. If this is not possible, given to interest recoverable account.
the frequency of NAV disclosure, the recording may be delayed
up to a period of 7 days following the date of the transaction, 4. In determining the holding cost of investments and the gains
provided as a result of such non-recording, the NAV calculations or loss on sale of investments, the "average cost" method
shall not be affected by more than 1%. shall be followed.
In case the Net Asset Value of a scheme differs by more than 5. Transactions for purchase or sale of investments shall be
1%, due to non - recording of the transactions, the investors or recognised as of the trade date and not as of the settlement
scheme/s as the case may be, shall be paid the difference in date, so that the effect of all investments traded during a
amount as follows:- financial year are recorded and reflected in the financial
statements for that year. Where investment transactions
(i) If the investors are allotted units at a price higher than Net take place outside the stock market (for example, acquisitions
Asset Value or are given a price lower than Net Asset Value through private placement or purchases or sales through
at the time of sale of their units, they shall be paid the private treaty), the transaction shall be recorded, in the
difference in amount by the Scheme. event of a purchase, as of the date on which the Scheme
(ii) If the investors are charged lower Net Asset Value at the obtains an enforceable obligation to pay the price, or, in
time of purchase of their units or are given higher Net Asset the event of a sale, when the Scheme obtains an enforceable
25

Offer Document
right to collect the proceeds of sale or an enforceable 8. When Units are sold, an appropriate part of the sale proceeds
obligation to deliver the instruments sold. shall be credited to an equalisation account, and when
Units are repurchased an appropriate amount shall be
6. Where income receivable on investments has accrued but debited to equalisation account. The net balance on this
has not been received for the period as specified in the account shall be credited or debited to the revenue account.
SEBI guidelines for identification and provisioning for NPAs, The balance on the equalisation account debited or credited
provision shall be made by debiting to the revenue account to the revenue account shall not decrease or increase the
the income so accrued in the manner specified in the SEBI net income of the Scheme but shall only be an adjustment
guidelines for identification and provisioning for NPAs. Insofar to the distributable surplus. It shall therefore be reflected
as provision for the principal amount is concerned, the same in the revenue account only after the net income of the
shall be provided as specified in the aforesaid guidelines. Scheme is determined.
9. The cost of investments acquired or purchased shall include
7. When Units are sold, the difference between the sale price
securities transaction tax, brokerage, stamp charges and
and the face value of the Unit, if positive, shall be credited
any charge customarily included in the broker's bought
to reserves and if negative, shall be debited to reserves, note. In respect of privately placed debt instruments, any
the face value being credited to the capital account. Similarly, front-end discount offered shall be reduced from the cost
when Units are repurchased, the difference between the of the investment.
Purchase Price and face value of the Unit, if positive, shall
be debited to reserves and, if negative, shall be credited The accounting policies and standards outlined above are
to reserves, the face value being debited to the capital consistent with the current Regulations and are subject to changes
made from time to time by the AMC and/or Trustee. However,
account.
such changes must be in conformity with the Regulations.
26

VI. Load and Fees and Expenses expenses. Thus, as no Entry Load is being charged by the
Scheme, such expenses shall be borne by the AMC. Thus for
every Rs. 100 contributed by the investor the entire Rs. 100
A. Load Structure of the Scheme will be available to the Scheme for investment.
During the NFO Period and Ongoing Offer Period
2. Investment Management Fee
Entry Load : Nil
The AMC is entitled to an investment management fee at the
If the AMC introduces an Entry Load, a switch-in or transfer rate of 1.25% per annum of the daily average net assets of the
under STP may also attract the applicable Entry Load like any scheme(s) outstanding in each financial year for the net assets
Purchase. up to Rs. 100 Crores and at the rate of 1.00% per annum of the
daily average net assets of the scheme(s) outstanding in each
Exit Load:
financial year for the net assets in excess of Rs. 100 Crores.
For Redemption Load
(% of 3. Recurring Expenses
Applicable The ongoing fees and expenses of operating the Scheme on
NAV) an annual basis, and which shall be charged to the Scheme,
are estimated to be as follows (each as a percentage per annum
Within 5 calendar days from the date of 0.10%
of the daily average net assets):
allotment or Purchase applying First
in First Out basis. Nature of Expense Retail Institutional Super
Plan Plan Institutional
A switch-out or a withdrawal under SWP or transfer under STP
Plan
may also attract an Exit Load like any Redemption.
Investment 0.250% 0.250% 0.250%
No Entry / Exit Loads / CDSC will be chargeable in case of Management and
switches made between different plans/options of the Scheme. Advisory Fee
The Trustee retains the right to change / impose an Entry / Exit Trustee Fees and 0.001% 0.001% 0.001%
Load / CDSC, subject to the provisions below. expenses
1. Any such changes / impositions would be chargeable only Custodian Fees 0.005% 0.005% 0.005%
for prospective Purchases and Redemptions from such
prospective Purchases (applying First in First Out basis). Registrar and 0.025% 0.025% 0.025%
Transfer Agent Fees
2. The AMC shall arrange to display a notice in all the ISCs
Audit Fees 0.001% 0.001% 0.001%
before changing the prevalent Load structure. An addendum
detailing the changes in Load structure will be attached to Marketing and 0.375% 0.170% 0.050%
Offer Documents and Application Forms. Unit Holders / Selling Expenses
Prospective investors will be informed of changed / prevailing including agents'
Fees and Expenses

Load structures through various means of communication commission
such as public notice and / or display at ISCs / Distributors' Costs related to investor 0.134% 0.020% 0.005%
offices, on account statements, acknowledgements, investor communications
newsletters, etc.
Costs of fund transfer 0.004% 0.004% 0.005%
3. The Redemption Price will not be lower than 93% of the from location to location
Applicable NAV and the Purchase Price will not be higher
than 107% of the Applicable NAV, provided that the difference Cost of providing 0.100% 0.019% 0.003%
between the Redemption Price and the Purchase Price at account statements
any point in time shall not exceed the permitted limit as and dividend and
prescribed by SEBI from time to time, which is currently Redemption cheques
7% calculated on the Purchase Price. and warrants
Investors are advised to contact any of the ISCs or the AMC Costs of statutory 0.005% 0.005% 0.005%
by calling the investor line of the AMC at "1800 180 8000" advertisements
(toll-free from a MTNL / BSNL landline) or 30309800 (at local Other expenses – – –
call rate from your mobile phone prefixing the local city which are directly
code or non - MTNL / BSNL landline) or 0124 2542022 (at attributable to the
long distance rates) to know the latest position on Entry / Scheme, subject
Exit Load or CDSC structure prior to investing. to the approval
of the Trustee*
All Loads / CDSC are intended to enable the AMC to recover
expenses incurred for promotion or distribution and sales of TOTAL RECURRING 0.900% 0.500% 0.350%
the Units of the Scheme. All Loads including CDSC will be retained EXPENSES
in the Scheme in a separate account and will be utilised to
* Other expenses: Any other expenses which are directly
meet the distribution and marketing expenses. Any surplus
attributable to the Scheme, may be charged with approval
amounts in this account may be credited to the Scheme whenever
of the Trustee within the overall limits as specified in the
considered appropriate by the AMC.
Regulations except those expenses which are specifically
prohibited.
B. Fees and Expenses of the Scheme
As per the Regulations, the following fees and expenses can The purpose of the above table is to assist the investor in
be charged to the Scheme: understanding the various costs and expenses that the investor
in the Scheme will bear directly or indirectly.
1. Initial Issue Expenses The above estimates for recurring expenses for the Scheme
As per SEBI Circular no. SEBI/IMD/CIR No.1/64057/06 dated are based on the corpus size of Rs. 100 Crores, and may change
April 4, 2006 sales, marketing and other such expenses to the extent assets are lower or higher.
connected with sales and distribution of the Scheme shall be
met from the Entry Load (if any) and not through initial issue These estimates have been made in good faith as per the
27

Offer Document
information available to the AMC at the time of preparation of However, an additional Management Fee of up to 1% may be
the offer document, and the AMC reserves the right to change charged in case of a No-Load scheme.
the estimates, both inter se or in total, subject to prevailing
Regulations. C. Initial Issue Expenses of
The AMC may incur actual expenses which may be more or Existing / Past Schemes
less than those estimated above under any head and / or in
Scheme Name Initial Issue Expenses (in Rs. Lakhs)
total. The AMC will charge the Scheme such actual expenses
incurred, subject to the statutory limit prescribed in Regulation Total Charged Borne by
52 of the Regulations, as given below. Any excess over these to the the AMC
limits will be borne by the AMC. Scheme
to the
Maximum Recurring Expenses: extent of
the Entry
Average daily net assets Maximum, as a % of Load
Average daily net assets
Fidelity Equity Fund 3,526.11 2,650.54 875.57
First 100 Crores 2.25%
Fidelity MultiManager
Next 300 Crores 2.00%
Cash Fund 1.67 – 1.67
Next 300 Crores 1.75%
Balance assets 1.50% Fidelity Tax
Advantage Fund 1,960 883.65 1,077.24
Maximum Management Fee to be charged by the AMC:
Fidelity India
Average daily net assets Maximum, as a % of Special Situations Fund 3,841.13 3,508.34 332.79
Average daily net assets
Fidelity Cash Fund 18.50 – 18.50
First 100 Crores 1.25% Fidelity International
Balance assets 1.00% Opportunities Fund 749.53 749.53 –
D. Condensed Financial Information

Historical Fidelity Fidelity MultiManager Fidelity Tax Fidelity
Per Unit Statistics Equity Fund Cash Fund Advantage Fund India
Special
Situations
Fund
May 2005 to April 2006 to January 2006 April 2006 to February 2006 April 2006 to May 2006 to
March 2006 March 2007 to March 2006 March 2007 to March 2006 March 2007 March 2007
Fees and Expenses
Date of Launch March 21, March 21, January 2, January 2, January 5, January 5, March 28,
2005 2005 2006 2006 2006 2006 2006
Date of Allotment May 16, May 16, January 9, January 9, February 27, February 27, May 22,
2005 2005 2006 2006 2006 2006 2006
Beginning of year / May 16, April 01, January 9, April 01, February 27, April 01, May 22,
Allotment Date 2005 2006 2006 2006 2006 2006 2006
End of year / period March 31, March 31, March 31, March 31, March 31, March 31, March 31,
2006 2007 2006 2007 2006 2007 2007
NAV at beginning of year / 10.00 (G) / 17. 850 (G) / 10.00 (G)/ 10.1333 (G) / 10.00 (G) / 10.774 (G) / 10.00 (G) /
Allotment Date (Rs.) 10.00 (D) 15.752 (D) 10.00 (DR) 10.0135 (DR) 10.00 (D) 10.774 (D) 10.00 (D)
Net Income per unit (Rs.) 2.35 4.34 0.72 1.16 2.02 0.18 0.79
Dividend 2.00 – 0.12 0.66 – – –
Transfer to reserves (if any)
(Rs.) 0 0 0 0 0 0 0
NAV as at the 17. 850 (G) / 20.569(G) / 10.1333 (G) / 10.8351 (G) / 10.774 (G) / 12.159 (G) / 12.064 (G) /
end of the period 15.752 (D) 18.151 (D) 10.0135 (DR) 10.0220 (DR) 10.774 (D) 12.159 (D) 12.064 (D)
NAV as at August 22, 2007 – 23.179 (G) / – 11.1532 (G) / – 13.782 (G) / 13.245 (G) /
17.836 (D) 10.0046 (D) 13.782 (D) 13.245 (D)
Scheme returns as at
the end of the period :
Annualised N.A. 47.03% N.A. 6.80% N.A. 19.74% N.A.
Absolute 78.50% N.A. 1.33% N.A. 7.74% N.A. 20.65%
August 22, 2007 :
Annualised – 44.86% – 6.99% – 24.16% 25.16%
Absolute – N.A. – N.A. – N.A. N.A.
Benchmark Returns as at
the end of the period:
Annualised N.A. 36.92% N.A. 6.23% N.A. 19.02% N.A.
Absolute 63.38% N.A. 1.20% N.A. 9.61% N.A. 21.25%
August 22, 2007
Annualised – 35.60% – 6.74% – 21.74% 26.62%
Absolute – N.A. – N.A. – N.A. N.A.
Net Assets at end of the
period (Rs. Crs.) 3152.41 2,668.00 45.56 54.70 510.59 711.82 2,078.32
Ratio of Recurring
Expenses to net assets (%) 1.87%@ 1.86%@ 0.35%@ 0.35%@ 2.28%@ 2.21%@ 1.90%@
28

Historical Per Unit Statistics Fidelity Fidelity Short Term Fidelity Cash Fund
International Income Fund
Opportunities
Fund
Retail Plan Institutional Retail Plan Institutional Super
Plan Plan Institutional
Plan
May 2007 to August 2006 to March 2007 November 2006 to March 2007
August 2007
Date of Launch April 09, 2007 August 17, 2006 November 20, 2006
Date of Allotment May 28, 2007 August 30, 2006 November 27, 2006
Beginning of year /Allotment Date May 28, 2007 August 30, 2006 November 27, 2006
End of year /period August 22, 2007 March 31, 2007 March 31, 2007
NAV at beginning of year / 10.0000 (G) / 10.0000 (G) / 10.0000 (G) / 10.0000 (G) / 10.0000 (G) / 10.0000 (G) /
Allotment Date (Rs.) 10.0000 (D) 10.0000 (D) 10.0000 (D) 10.0000 (DD) / 10.0000 (DD) / 10.0000 (DD) /
10.0000 (WD) / 10.0000 (WD) / 10.0000 (MD)
10.0000 (MD) 10.0000 (MD)
Net Income per unit (Rs.) – 1.63 0.27
Dividend – 0.19 0.20 0.26 (DD) / 0.28 (DD) / 0.28 (DD) /
0.24 (WD) / 0.25 (WD) / 0.16 (MD)
0.24 (MD) 0.25 (MD)
Transfer to reserves (if any) (Rs.) – 0 0 0 0 0
NAV as at the end of the period: – 10.2075 (G) / 10.2193 (G) / 10.2586 (G) / 10.2726 (G) / 10.2777 (G) /
10.0122 (D) 10.0000 (D) 10.0043 (DD) / 10.0044 (DD) / 10.0045 (DD) /
10.6178 (WD) / 10.0179 (WD) / 10.0000 (WD) /
10.0197 (MD) 10.0244 (MD) 10.0000 (MD)
NAV as at August 22, 2007 9.467 (G) / 10.5613 (G) / 10.5819 (G) / 10.5569 (G) / 10.5880 (G) / 10.5995 (G) /
9.467 (D) 10.0606 (D) 10.0000 (D) 10.0000 (DD) / 10.0000 (DD) / 10.0000 (DD) /
10.0042 (WD) / 10.0024 (WD) / 10.0026 (WD) /
10.0492 (MD) 10.0525 (MD) 10.0000 (MD)
Scheme returns as at the
end of the period :
Annualised – N.A. N.A. N.A. N.A. N.A.
Absolute – 1.98% 2.10% 2.54% 2.68% 2.73%
August 22, 2007 :
Fees and Expenses

Annualised N.A. N.A. N.A. N.A. N.A. N.A.
Absolute -20.74% 5.61 5.82 5.57% 5.88% 6.00%
the end of the period:
Annualised – N.A. N.A. N.A.
Absolute – 2.54 2.26%
Benchmark Returns
as at August 22, 2007:
Annualised N.A. N.A. N.A.
Absolute -1.26% 6.55% 5.56%
Net Assets at end of the
period (Rs. Crs.) 1603.99 25.27 346.28
Ratio of Recurring Expenses
to net assets (%) 1536.49 0.90%@ 0.33%@
@ The ratio of expenses to average daily net assets by percentage has been annualised for the respective period.
G- Growth Option
D - Dividend Option
DR - Dividend Reinvestment Option
DD - Daily Dividend
WD - Weekly Dividend
MD - Monthly Dividend
Notes:
1) Fidelity Short Term Income Fund (FSTIF) was launched on August 17, 2006, Fidelity Cash Fund (FCF) was launched on
November 20, 2006 and Fidelity International Opportunities Fund (FIOF) was launched on April 09, 2007. The returns for the
aforesaid schemes are in absolute terms and are not annualised and compounded.
2) Returns are calculated since the date of allotment of units.
3) Annualised Returns are shown in terms of compounded annualised growth rate.
4) Returns are as of March 30, 2007 as March 31, 2007 was a non business day for the schemes and no benchmark returns
were available as of that date.
5) Returns for the schemes are calculated on the face value of the Units i.e. Rs. 10.
6) NAVs of the Growth Options of the respective schemes/plans have been used to compute the returns.
7) Benchmark for the schemes: Fidelity Equity Fund, FTAF and FISS: BSE 200; Fidelity MultiManager Cash Fund and FCF:
CRISIL Liquid Fund Index; FSTIF: CRISIL Short Term Bond Index; FIOF: BSE - 200 to the extent of 65% of portfolio and MSCI
AC Asia Pacific ex Japan for balance 35%.
29

Offer Document
VII. Units and the Offer option and Dividend option. The Dividend option offers Dividend
Payout and Dividend Reinvestment facilities.
A. Units on Offer during the Growth option: under this option no dividend will be declared.
New Fund Offer (NFO) Dividend option: under this option, a dividend may be declared
1. Minimum Subscription Amount by the Trustee, at its discretion, from time to time (subject to
the availability of distributable surplus as calculated in accordance
The Fund seeks to collect a minimum subscription amount of with the Regulations).
Rs. Fifty Crore under the Scheme during the NFO Period. In
the event this amount is not raised during the NFO Period, the If the investor does not clearly specify the choice of option at
amount collected under the Scheme will be refunded to the the time of investing, it will be treated as a Growth option.
applicants as mentioned in paragraph "Processing of Application
If the investor does not clearly specify the choice of Payout or
Forms during the NFO Period - Refunds".
Reinvestment options within the Dividend option, it will be treated
There is no upper limit on the total amount to be collected under as a Re-investment option.
the Scheme during the NFO Period.
5. Cut-off time and Applicable NAV
2. NFO Price The Cut-off time for the Scheme is 3 p.m., and the Applicable
The Units can be purchased at Rs. 10 per Unit during the NFO NAV will be as under:
Period.
For Purchase / Redemption
3. NFO Period 1. In respect of valid Purchase applications (along with
The NFO Period for the Scheme will be one day i.e. September cheques / drafts / other payment instruments) / Redemption
19, 2007 subject to extention, if any. applications accepted at a Designated Collection Centre
up to 3 p.m. on a Business Day, the NAV of such day will
4. Extension of the NFO Period be applicable.
The Trustee reserves the right to extend the closing date of the 2. In respect of valid Purchase applications (along with
NFO Period, subject to the condition that the new fund offer cheques / drafts / other payment instruments) / Redemption
shall not be kept open for more than 30 days. Any such extension applications accepted at a Designated Collection Centre
shall be announced by way of a notice in one national newspaper. after 3 p.m. on a Business Day, the NAV of the next Business
Day will be applicable.
B. Units on Offer - General Information The above will be applicable only for cheques / drafts / payment
1. Minimum Amount for applying in the Scheme instruments payable locally in the city in which ISC is located.
No outstation cheques will be accepted.
An initial application for purchase of Units under the Scheme
must be as follows: For Switches
Retail Plan: Rs. 5,000 per application Valid applications for 'switch-out' shall be treated as applications
Institutional Plan: Rs. 1,00,00,000 per application for Redemption and valid applications for 'switch-in' shall be
Super Institutional Plan: Rs.10,00,00,000 per application treated as applications for Purchase, and the provisions of the
Cut-off time and the Applicable NAV mentioned in the Offer
Additional application for purchase of Units under the Scheme Document as applicable to Purchase and Redemption shall be
must be as follows: applied respectively to the 'switch-in' and 'switch-out' applications.
Retail Plan: Rs. 1,000 per application and thereafter in multiples
6. Minimum Number of investors and maximum
Units and the Offer
of Re 1
holding by an investor
Institutional Plan: Rs. 1,00,000 per application and thereafter
in multiples of Re 1; As per SEBI circular no. SEBI/IMD/CIR No. 10/22701/03 dated
December 12, 2003, the Scheme should have a minimum of
Super Institutional Plan: Rs. 1,00,00,000 per application and
20 Unit Holders and no single Unit Holder should account for
thereafter in multiples of Re 1
more than 25% of the corpus of the Scheme. In case of non-
fulfilment with either of the aforesaid conditions in a three months
2. Minimum balance to be maintained
time period or the end of succeeding calendar quarter, whichever
under the Scheme is earlier, from the close of the NFO of the Scheme, the Scheme
The minimum balance to be maintained at all times under the shall be wound up by following the guidelines prescribed by
Scheme shall be equal to the minimum redemption size under SEBI. The aforesaid conditions should also be met in each
the Scheme. If, in the course of redemption / switch-out from subsequent calendar quarter thereafter on an average basis.
the Scheme, the balance units / amount available under the In case of non-fulfilment with the first condition i.e. minimum of
Scheme falls below the minimum redemption size requirement, 20 investors in the Scheme, on an ongoing basis for each calendar
all units in the Scheme would be redeemed / switched-out. quarter as specified by SEBI, the Scheme shall be wound up
by following the guidelines prescribed by SEBI. SEBI has further
3. Plans available under the Scheme prescribed that if any investor breaches the 25% limit over a
The Scheme offers three plans - Retail, Institutional and Super quarter, a rebalancing period of one month will be allowed to
Institutional Plans. the investor and thereafter the investor who is in breach of the
limit shall be given 15 days notice to redeem his exposure over
Though, the portfolio of all the aforesaid plans and the options the 25% limit. In the event of failure on part of the said investor
there under will be unsegregated, the annual recurring expenses to redeem the excess exposure, the excess holding will be
chargeable to the investors in the plans will be different. Due automatically redeemed by the Fund following the guidelines
to difference in the annual recurring expenses chargeable to prescribed by SEBI.
the plans and the rate of dividend that might be declared under
the options of the Plans, the NAVs of each of options under the C. Purchase of Units
Plan will be different.
1. Who can invest
4. Options available under the Plans Prospective investors are advised to satisfy themselves that
Each of the Plans under the Scheme offers two options - Growth they are not prohibited by any law governing such entity and
30 any Indian law from investing in the Scheme and are authorised

to purchase units of mutual funds as per their respective The Fund reserves the right to include / exclude new / existing
constitutions, charter documents, corporate / other authorisations categories of investors to invest in the Scheme from time to
and relevant statutory provisions. The following is an indicative time, subject to SEBI Regulations and other prevailing statutory
list of persons who are generally eligible and may apply for regulations, if any.
subscription to the Units of the Scheme:
Subject to the Regulations, any application for Units may be
u Indian resident adult individuals, either singly or jointly (not accepted or rejected in the sole and absolute discretion of the
exceeding three); Trustee. For example, the Trustee may reject any application
for the Purchase of Units if the application is invalid or incomplete
u Minor through parent / lawful guardian; (please see the or if, in its opinion, increasing the size of any or all of the Scheme's
note below) Unit capital is not in the general interest of the Unit Holders, or
u Companies, bodies corporate, public sector undertakings, if the Trustee for any other reason does not believe that it would
association of persons or bodies of individuals and societies be in the best interest of the Scheme or its Unit Holders to
registered under the Societies Registration Act, 1860; accept such an application.
u Religious and Charitable Trusts, Wakfs or endowments of The AMC / Trustee may need to obtain from the investor
private trusts (subject to receipt of necessary approvals verification of identity or such other details relating to a
as required) and Private Trusts authorised to invest in mutual subscription for Units as may be required under any applicable
fund schemes under their trust deeds; law, which may result in delay in processing the application.
u Partnership Firms constituted under the Partnership Act, 2. Purchase Price

1932;
The Purchase Price of the Units is the price at which an investor
u A Hindu Undivided Family (HUF) through its Karta; can Purchase Units of the Scheme. It will be calculated as
described below:
u Banks (including Co-operative Banks and Regional Rural
Banks) and Financial Institutions; Purchase Price = Applicable NAV x (1 + Entry Load)
u Non-Resident Indians (NRIs) / Persons of Indian Origin Purchase Price will be calculated for up to four decimal places
(PIO) on full repatriation basis or on non-repatriation basis; for the Scheme
u Foreign Institutional Investors (FIIs) registered with SEBI For example, if the Applicable NAV of the Scheme is Rs.10,
on full repatriation basis; and it has a 2.00% Entry Load, the Purchase Price will be
calculated as follows:
u Army, Air Force, Navy and other para-military funds and
eligible institutions; Purchase Price = 10 x (1 + 2.00%) i.e. Rs. 10 x Rs. 1.0200 =
Rs. 10.200
u Scientific and Industrial Research Organisations;
If the Scheme has no Entry Load, the Purchase Price will be
u Provident / Pension / Gratuity and such other Funds as equal to the Applicable NAV.
and when permitted to invest;
For details on Load structure for the Scheme, please refer to
u International Multilateral Agencies approved by the the Chapter - LOAD AND FEES AND EXPENSES.
Government of India / RBI; and
u The Trustee, AMC or Sponsor or their associates (if eligible 3. How to Apply
and permitted under prevailing laws). Application Forms / Transaction Slips for the Purchase of Units
of the Scheme will be available at the ISCs / distributors.
u A Mutual Fund through its schemes, including Fund of Funds
Applications filled up and duly signed by all joint investors should
schemes.
be submitted along with the cheque /draft / other payment
Units and the Offer

Note: Minor Unit Holder on becoming major may inform the instrument to a Designated Collection Centre. Please refer to
Registrar about attaining majority and provide his specimen the paragraph "How to pay" below for details of payment.
signature duly authenticated by his banker as well as his details
Applications should be made in adherence to the minimum
of bank account and a certified true copy of the PAN card as
amount requirements as mentioned in paragraph "Minimum
mentioned under the paragraph "Anti Money Laundering and
Amount for applying in the Scheme".
Know Your Customer" to enable the Registrar to update their
records and allow him to operate the Account in his own right. It is mandatory for every applicant to provide the name of the
bank, branch, address, account type and number as per SEBI
1. Who cannot invest requirements and any Application Form without these details
IT SHOULD BE NOTED THAT THE FOLLOWING ENTITIES will be treated as incomplete. Such incomplete applications will
CANNOT INVEST IN THE SCHEME: be rejected. The Registrar / AMC may ask the investor to provide
a blank cancelled cheque or its photocopy for the purpose of
1. Any individual who is a Foreign national or any other entity verifying the bank account number.
that is not an Indian resident under the Foreign Exchange
Management Act, 1999, except where registered with SEBI In accordance with SEBI circulars dated on April 27, 2007 and
as a FII or FII sub account. June 25, 2007, PAN issued by the Income Tax authorities is
used as the sole identification number for all investors transacting
2. Overseas Corporate Bodies (OCBs) shall not be allowed in the securities market including mutual funds, irrespective of
to invest in the Scheme. These would be firms and societies the amount of transaction. Thus, all investors (including resident
which are held directly or indirectly but ultimately to the and non-resident investors) have to provide PAN, along with a
extent of at least 60% by NRIs and trusts in which at least certified* copy of the PAN card for all transactions in Units of
60% of the beneficial interest is similarly held irrevocably the Scheme irrespective of the amount of transaction. In case
by such persons (OCBs.) of investors who do not provide a certified* copy of the PAN
card, the application for transaction in units of the Scheme of
3. Non-Resident Indians residing in the United States of
the Fund could be rejected. However, till 31 December 2007:
America and Canada.
(a) in case the transaction amount is less than Rs. 50,000,
4. Non-Resident Indians residing in the Financial Action Task
investors who are awaiting allotment of PAN should attach
Force (FATF) Non Compliant Countries and Territories
a copy of the evidence of having applied for PAN.
(NCCTs)
31

Offer Document
(b) in case the transaction amount is more than or equal to All cheques / drafts must be drawn favouring "Fidelity Liquid
Rs. 50,000, investors should attach a copy of the evidence Plus Fund". They should be crossed "Account Payee only".
of having applied for PAN and a completed Form 60/Form A separate cheque or bank draft must accompany each
61. application. If the amount mentioned on the application is different
from the amount mentioned on the accompanying cheque or
On and from January 01, 2008, submitting a copy of the evidence bank / demand draft, then the amount which is lower in value
of having applied for PAN/Form 60/Form 61 will not be valid will be treated as the application amount and the application
and it will be mandatory for all investors to provide a certified* will be processed accordingly.
copy of the PAN card for all transactions in Units of the Scheme
of the Fund. Payment can be made by either
KYC formalities under the PMLA and the related guidelines u Cheque;
issued by SEBI must be completed by all investors. This one-
time verification is valid for transactions across all mutual funds. u Draft (i.e. demand draft or bank draft); or
The process to complete KYC formalities is as follows: u a payment instrument (such as pay order, banker's cheque,
u A completed KYC application form along with the documents/ etc.)
information as mentioned below should be submitted to The cheque should be payable at a bank's branch, which is
any designated 'Points of Service' (PoS) - Fidelity Investor situated at and is a member of the Banker's Clearing House /
Service Centres, CAMS Investor Service Centres or CVL Zone in the city where the application is submitted to a Designated
Centres (CDSL Ventures Ltd.). The PoS list is available at Collection Centre.
www.fidelity.co.in.
Applications accompanied by outstation demand drafts must
u A KYC application form can be obtained from any designated be submitted / sent by post or courier at the following address:
POS.
Computer Age Management Services Private Limited
u The completed KYC application form along with PAN card Unit: Fidelity Mutual Fund
copy and other necessary documents should be submitted 178/10, Kodambakkam High Road,
at a PoS. (The list of all documents/information required Opposite Hotel Palm Grove,
and instructions to fill the form can be found in the KYC Chennai - 600 034
application form).
An investor may invest through a distributor with whom the
u After verification of the KYC application form and AMC has made an arrangement, whereby payment may be
accompanying documents, investors will receive a letter made through ECS / EFT / SEFT / RTGS / SI / Wire Transfer or
certifying their KYC compliance. There is no charge for in any manner acceptable to the AMC and is evidenced by receipt
this verification. of credit in the bank account of the Fund.
u When investing with the Fund, a copy of the KYC compliance The following modes of payment are not valid, and applications
letter should be attached to the Scheme's application form accompanied by such payments are liable to be rejected.
to avoid rejection.
u Outstation cheques will not be accepted (i.e. if the cheque
u If an investor has a Mutual Fund Identification Number is payable at a bank's branch which does not participate
("MIN") (not valid anymore) and has not provided a certified* in the local clearing mechanism of the city where the
copy of the PAN card at the time of obtaining MIN, he is application is submitted)
required to complete the formalities as mentioned under
the paragraph "Permanent Account Number" mentioned u Cash, money orders or postal orders will not be accepted.
below to be KYC-compliant. u Post dated cheques (except for applications for purchasing
All investors are required to submit a copy of the KYC compliance Units under SIP of the Scheme) will not be accepted
Units and the Offer
letter for all transactions in units of the Scheme irrespective of The AMC shall not bear or refund any bank charges for the
the amount of transaction. Applications submitted without a copy demand draft(s) incurred by the applicant.
of the KYC compliance letter could be rejected.
Applications accompanied by cheques / drafts not fulfilling
*Investors are requested to submit a copy along with the original the above criteria are liable to be rejected.
for verification at the Investor Service Centres of the Fund/CAMS,
which will be returned across the counter. Alternatively, a Note: The Trustee, at its discretion at a later date, may choose
distributor empanelled with the Fund can attest a copy. A Bank to alter or add other modes of payment.
Manager's attestation or a Notarised copy will also be accepted.
Payment by NRIs, FIIs
Applications incomplete in any respect (other than
mentioned above) will be liable to be rejected. (a) Repatriation Basis
In the case of NRIs/PIOs, payment may be made either by
In order to protect investors from frauds, it is advised that the
inward remittance through normal banking channels or out of
Application Form number / folio number and name of the first
funds held in a Non - Resident (External) Rupee Account (NRE) /
investor should be written overleaf the cheque / draft, before
Foreign Currency (Non-Resident) Account (FCNR).
they are handed over to any courier / messenger / distributor /
ISC. Flls may pay their subscriptions either by inward remittance
through normal banking channels or out of funds held in a Non-
In order to protect investors from fraudulent encashment of
Resident Rupee Account maintained with the designated branch
cheques, the Regulations require that cheques for Redemption
of an authorised dealer in accordance with the relevant exchange
of Units specify the name of the Unit Holder and the bank name
management regulations.
and account number where payments are to be credited. Hence,
all applicants for Purchase of Units must provide a bank name, (b) Non-repatriation Basis
bank account number, branch address, and account type in
the Application Form. In the case of NRIs, payment may be made either by inward
remittance through normal banking channels or out of funds
4. How to pay held in an NRE / FCNR / Non-Resident Ordinary Rupee Account
(NRO).
32

5. Application under Power of Attorney (b) Account Statements
An applicant wanting to transact through a power of attorney An account statement will be sent by ordinary post / courier /
must lodge the photocopy of the Power of Attorney (PoA) attested secured encrypted electronic mail to each Unit Holder, stating
by a Notary Public or the original PoA (which will be returned the number of Units purchased, not later than 30 days from the
after verification) within 30 Days of submitting the Application close of the NFO Period.
Form / Transaction Slip at a Designated Collection Centre.
Applications are liable to be rejected if the power of attorney is (c) Refunds
not submitted within the aforesaid period. If the Scheme fails to collect the minimum subscription amount
of Rs. Fifty Crore, the Fund shall be liable to refund the money
6. Application by a non-Individual Investor to the applicants.
In case of an application by a company, body corporate, society,
In addition to the above, the refund of subscription money to
mutual fund, trust or any other organisation not being an
the applicants whose applications are treated as invalid or rejected
Individual, a duly certified copy of the relevant resolution or
for any other reason whatsoever, will commence immediately
document along with the updated Specimen Signature list of
after the allotment process is completed. Refunds will be
Authorised Signatories must be lodged within 7 Business Days
completed within 6 weeks of the closure of the NFO Period. If
along with the Application Form / Transaction Slip at a Designated
the Fund refunds the amount after such 6 week period, interest
Collection Centre. Further, the AMC may require that a copy of
at 15% per annum shall be liable to be paid by the AMC. Refund
the incorporation deeds / constitutive documents (e.g.
orders will be marked "A/c Payee only" and drawn in the name
Memorandum and Articles of Association) be also submitted to
of the applicant (in the case of a sole applicant) and in the
the Registrar. Requests for redemption may not be processed
name of the first applicant in all other cases. All refund cheques
if the necessary documents are not submitted within the aforesaid
will be mailed by registered post or as per the applicable
period.
Regulations.
7. Mode of Holding 9. Processing of applications during the
An application can be made by up to a maximum of three Ongoing Offer Period
applicants. Applicants must specify the 'mode of holding' in the
Application Form. (a) Allotment
New investors may apply for Units by filling up an Application
If an application is made by one Unit Holder only, then the mode
Form. Existing investors can apply for Units using a Transaction
of holding will be considered as 'First-named holder'.
Slip. All valid and complete applications will be allotted Units at
If an application is made by more than one investors, they have the Applicable NAV for the application amount.
an option to specify the mode of holding as either 'First-named
holder' or 'Jointly' or 'Anyone or Survivor'. (b) Account Statements
An account statement will be sent by ordinary post /courier/
If the mode of holding is specified as 'First-named holder', all
secured encrypted electronic mail to each Unit Holder, stating
instructions to the Fund would have to be signed by the First
the number of Units purchased, generally within 3 Business
named Unit Holder only. The Fund will not be empowered to
Days, but not later than 30 days from date of acceptance of the
act on the instruction of the Second or Third Unit Holder in
valid Transaction Slip.
such cases.
The first account statement under SIP / STP / SWP shall be
If the mode of holding is specified as 'Jointly', all instructions to
issued within 10 Business days of the initial investment. Thereafter
the Fund would have to be signed by all the Unit Holders, jointly.
the account statement to Unit Holders under SIP / STP / SWP
The Fund will not be empowered to act on the instruction of
will be sent once every quarter ending March, June, September
any one of the Unit Holders in such cases.
and December within 10 Business days of the end of the
Units and the Offer

If the mode of holding is specified as 'Anyone or Survivor', an respective quarter.
instruction signed by any one of the Unit Holders will be acted
The account statements under the dividend - reinvestment facility
upon by the Fund. It will not be necessary for all the Unit Holders
will be sent once every month, subject to declaration of dividend
to sign.
under the respective Plan.
If an application is made by more than one investor and the
mode of holding is not specified, the mode of holding would be D. Important Note on Anti Money
treated as joint. The Fund will not be empowered to act on the Laundering, Know-Your-Customer and
instruction of any one of the Unit Holders in such cases.
Investor Protection
In all cases, all communication to Unit Holders (including account u Anti Money Laundering and Know Your Customer
statements, statutory notices and communication, etc.) will be ("KYC") :
addressed to the first-named Unit Holder. All payments, whether
for redemptions, dividends, etc will be made favouring the first- Fidelity is committed to complying with all applicable anti
named Unit Holder. The first-named Unit Holder shall have the money laundering and KYC laws and regulations in all of
right to exercise the voting rights associated with such Units as its operations. Fidelity recognises the value and importance
per the applicable guidelines. of creating a business environment that strongly discourages
money launderers from using Fidelity. To that end, certain
Investors should carefully study paragraphs "Transmission of policies have been adopted by the AMC. The need to KYC
Units" and "Nomination Facility" below "Facilities Offered to is vital for the prevention of money laundering.
Investors under the Scheme" before ticking the relevant box
pertaining to the mode of holding in the Application Form. In terms of the Prevention of Money Laundering Act, 2002
("PMLA") the rules issued there under and the guidelines /
8. Processing of Application Forms during circulars issued by SEBI regarding the Anti Money
the NFO Period Laundering (AML) Laws, all intermediaries, including Mutual
Funds, are required to formulate and implement a client
(a) Allotment identification programme, and to verify and maintain the
Subject to the receipt of the specified minimum subscription record of identity and address(es) of investors.
amount, full allotment of Units applied for will be made within
The AMC has entrusted the responsibility of collection of
30 days from the date of closure of the NFO Period for all valid
documents relating to identity and address and record
applications received during the NFO Period.
33

Offer Document
keeping to an independent agency (presently CDSL Ventures provide a certified* copy of the PAN card for all transactions
Limited) that will act as central record keeping agency in units of the schemes of the Fund.
('Central Agency'). As a token of having verified the identity
and address and for efficient retrieval of records, the Central *Investors are requested to submit a copy along with the
Agency will issue a KYC compliance letter to each investor original for verification at the investor service centres of
who submits an application and the prescribed documents the Fund/CAMS, which will be returned across the counter.
to the Central Agency. Alternatively, a distributor empanelled with the Fund can
attest a copy. A Bank Manager's attestation or a Notarised
KYC formalities under the PMLA and the related guidelines copy will also be accepted.
issued by SEBI must be completed by all investors. This
one-time verification is valid for transactions across all mutual u Investor Protection: As the Scheme is a Debt scheme, it
funds. The process to complete KYC formalities is as follows: is designed to offer investors liquidity and the Fund
anticipates that investors will come in and out of the Scheme
u A completed KYC application form along with the frequently. Such frequent purchases and redemptions by
documents/information as mentioned below should be investors can reduce the returns to long term investors by
submitted to any designated 'Points of Service' (POS) increasing expenses of the Scheme and can also disrupt
- Fidelity Investor Service Centres, CAMS Investor portfolio management strategies. Therefore, the Scheme
Service Centres or CVL Centres (CDSL Ventures Ltd.). is proposed to be managed with these risks in mind.
The POS list is available at www.fidelity.co.in.
Though the Scheme has no limit on the number of purchases
u A KYC application form can be obtained from any and redemptions by any investor, the AMC reserves the
designated POS. right, under powers delegated by the Trustee, to reject
any application, prevent further transactions by a Unit Holder,
u The completed KYC application form along with PAN or redeem the Units held by the Unit Holder at any time
card copy and other necessary documents should be prior to the expiry of 30 Business Days from the date of
submitted at a POS. (The list of all documents/ submission of the application if, in the AMC's opinion, a
information required and instructions to fill the form Unit Holder has been indulging in excessively frequent
can be found in the KYC application form). trading or if his trading has been or may be disruptive for
u After verification of the KYC application form and the Scheme.
accompanying documents, investors will receive a letter
certifying their KYC compliance. There is no charge E. Investor's Personal Information
for this verification. The AMC may share investors' personal information with the
following third parties:
When investing with the Fund, a copy of the KYC compliance
letter should be attached to the scheme's application form u Registrar, Banks and / or authorised external third parties
to avoid rejection. who are involved in transaction processing, despatches,
etc. of investors' investment in the Scheme;
If you already have a Mutual Fund Identification Number
("MIN") (not valid anymore) and have not provided a certified* u Distributors through whom applications of investors are
copy of the PAN card at the time of obtaining MIN, you are received for the Scheme.; or
requested to complete the formalities as mentioned under
the paragraph PAN above to be KYC-compliant. u Any other organisations for compliance with any legal or
regulatory requirements or to verify the identity of investors
All investors must submit a copy of the KYC compliance for complying with anti-money laundering requirements.
letter for all transactions in units of the schemes of the
Fund irrespective of the amount of transaction. Applications Account statements or financial information pertaining to the
submitted without a copy of the KYC compliance letter could investor, if it is to be sent over the internet to the Unit Holder,
Units and the Offer
be rejected. distributors or any other entity as indicated above, will be sent

only through a secure means and / or through encrypted electronic
u Permanent Account Number ("PAN"): mail.
In accordance with SEBI circulars dated on April 27, 2007
and June 25, 2007, with effect from July 02, 2007, PAN F. Facilities Offered to Investors under
issued by the Income Tax authorities is used as the sole the Scheme
identification number for all investors transacting in the
securities market including mutual funds, irrespective of
1. Systematic Investment Plan (SIP)
the amount of transaction. Thus, all investors (including This facility enables investors to save and invest periodically
resident and non-resident investors) have to provide PAN, over a longer period of time. It is a convenient way to "invest
along with a certified* copy of the PAN card for all transactions as you earn" and affords the investor an opportunity to enter
in units of the schemes of the Fund irrespective of the the market regularly, thus averaging the acquisition cost of Units.
amount of transaction. In case of investors who do not The conditions for investing in SIP will be as follows:
provide a certified* copy of the PAN card, the application
1. In case of SIP started during the NFO, the Fund will accept
for transaction in units of the schemes of the Fund could
cheque only for the first instalment and the cheque should
be rejected. However, till 31 December 2007:
be dated on or before the date of submission of the
u in case the transaction amount is less than Rs. 50,000, Application Form. The payment for the subsequent SIP
investors who are awaiting allotment of PAN should instalments (minimum 5 payment instructions), shall be
attach a copy of the evidence of having applied for made on 1st, 10th, 15th or 25th of a month / quarter only
PAN. through ECS / EFT / SEFT / RTGS / SI / Wire Transfer or
in any manner acceptable to the AMC.
u in case the transaction amount is more than or equal
to Rs. 50,000, investors should attach a copy of the 2. In case of SIP started during the Ongoing Offer period,
evidence of having applied for PAN and a completed the date of the first cheque shall be the same as the date
Form 60/Form 61. of the application while the remaining cheques (minimum
5 cheques) shall be post dated cheques (dated uniformly
On and from January 01, 2008, submitting a copy of the either the 1st, 10th, 15th or 25th of a month or quarter).
evidence of having applied for PAN/Form 60/Form 61 will Alternatively, the payment under SIP may be made through
not be valid and it will be mandatory for all investors to a distributor with whom the AMC has made an arrangement
34

for payment of investment money through ECS / EFT / uncleared for SIP instalments or payment instructions not
SEFT / RTGS /SI / Wire Transfer or in any manner acceptable honoured, if no Entry Load had been charged, the AMC
to the AMC. may reduce the number of Units allotted against the previous
instalments to the extent of applicable Entry Load on such
3. There shall be a gap of at least 60 days between the date instalments.
of closure of the NFO and the date of first instalment through
ECS in case of SIP started during the NFO period. There The Units will be allotted to the investor at the Applicable NAV
shall be a gap of at least 30 days between the date of the of the respective dates on which the investments are sought to
first and second instalment in the case of SIP started during be made. However, if any of the dates on which an investment
the Ongoing Offer period. is sought to be made is a non Business Day, the Units will be
allotted at the Applicable NAV of the next Business Day. Any
4. Purchases can be made on either monthly / quarterly. Unit Holder can avail of this facility subject to certain terms and
5. All the cheques /payment instructions (including the first conditions detailed in the Application Form. This facility is available
cheque / payment instruction) shall be of equal amounts. only if the Application Form / Transaction Slip along with the
post-dated cheques /payment instructions is handed over to
6. The minimum amount of each cheque / payment instruction an ISC.
shall be Rs. 500.
Investors should note that an application for SIP cannot
7. The aggregate of such cheques / payment instructions shall be submitted at Collection Banks.
not be less than Rs. 5,000. There is no upper limit for the
Purchase for a single cheque / payment instruction or in The AMC has the authority to make available SIP by way of a
aggregate. salary savings scheme for a group of employees through an
arrangement with their employers.
8. An extension of an existing SIP will be treated as a new
SIP on the date of such application, and all the above The SIP facility will not be available for investors investing in
conditions need to be met with. the following plans:
9. The load structure prevailing at the time of submission of – Institutional Plan

the SIP application (whether fresh or extension) will apply – Super Institutional Plan
for all the instalments indicated in such application.
For applicable load on Purchases through SIP please refer to
10. In case of cancellation of a SIP or cheques returned Chapter VI - LOAD AND FEES AND EXPENSES.
2. Systematic Withdrawal Plan (SWP)

This facility enables the Unit Holders to withdraw sums from their Unit accounts in the Scheme at periodic intervals through a one-
time request. The withdrawals can be made monthly /quarterly on any date specified by the Unit Holder. The minimum amount in
rupees for withdrawal under the SWP facility shall be Rs. 500, while the minimum number of Units for withdrawal shall be 50 Units.
The withdrawals will commence from the Start Date mentioned by the Unit Holder in the Application Form for the facility. A minimum
period of 7 days shall be required for registration under SWP.The Units will be redeemed at the Applicable NAV of the respective
dates on which such withdrawals are sought. However, if any of the dates on which the redemption is sought is a non Business
Day, the Units will be redeemed at the Applicable NAV of the next Business Day. This facility is explained by way of an illustration
below:
Date Amount Amount Assumed++ Units Unit Value after
Invested withdrawn under NAV per redeemed Balance* SWP
Units and the Offer

(Rs.) SWP (Rs.) Unit (Rs.) (Rs.)
March 31, 2006 1,000,000.00 – 10.000 100,000.000 1,000,000.00
May 10, 2006 – 7,000.00 10.071 695.065 99,304.935 1,000,100.00
June 10, 2006 – 7,000.00 10.142 690.199 98,614.736 1,000,150.65
July 10, 2006 – 7,000.00 10.214 685.334 97,929.402 1,000,250.91
August 10, 2006 – 7,000.00 10.286 680.537 97,248.865 1,000,301.83
September 10, 2006 – 7,000.00 10.359 675.741 96,573.124 1,000,400.99
October 10, 2006 – 7,000.00 10.432 671.012 95,902.112 1,000,450.83
November 10, 2006 – 7,000.00 10.506 666.286 95,235.826 1,000,547.59
December 10, 2006 – 7,000.00 10.580 661.626 94,574.200 1,000,595.04
January 10, 2007 – 7,000.00 10.655 656.969 93,917.231 1,000,688.10
February 10, 2007 – 7,000.00 10.730 652.377 93,264.854 1,000,731.88
March 10, 2007 – 7,000.00 10.806 647.788 92,617.066 1,000,820.02
April 10, 2007 – 7,000.00 10.883 643.205 91,973.861 1,000,951.53
May 10, 2007 – 7,000.00 10.960 638.686 91,335.175 1,001,033.52
++ The NAVs in the table above are purely illustrative and should not be understood or construed as assured or guaranteed
returns. Entry and Exit Loads are assumed to be NIL for the purpose of the illustration.
* Previous Balance less Units redeemed
For applicable load on Redemptions through SWP please refer Chapter VI - LOAD AND FEES AND EXPENSES.
35

Offer Document
3. Systematic Transfer Plan (STP) cases of transfers taking place consequent to death or insolvency,
This facility enables Unit Holders to transfer fixed sums from the transferee's name will be recorded by the Fund subject to
their Unit accounts in one scheme to the other schemes launched production of satisfactory evidence and if the transferee is
by the Fund from time to time. The transfers under this facility otherwise eligible to hold the Units. In all such cases, if the
can be made on a weekly/fortnightly/monthly/quarterly basis. transferee is not eligible to hold the Units, the Units will be
The minimum amount in rupees for transfer under the STP facility redeemed and the proceeds will be disbursed to the transferee
shall be Rs. 500. The transfer will commence from the date if such transferee is entitled to the same.
mentioned by the Unit Holder in the Application Form for the
facility and will take place every week/fortnight/month/quarter
7. Transmission of Units
on the day specified by the Unit Holder. A minimum period of 7 If Units are held in a single name by the Unit Holder, Units shall
days shall be required for registration under STP. The Units be transmitted in favour of the nominee where the Unit Holder
will be allotted / redeemed at the Applicable NAV of the respective has appointed a nominee upon production of death certificate
dates of the Schemes on which such investments / withdrawals or any other documents to the satisfaction of the AMC / Registrar.
are sought from a scheme. In case the day on which the If the Unit Holder has not appointed a nominee or in the case
investment / withdrawal is sought is a non - Business Day for where the nominee dies before the Unit Holder, the Units shall
any scheme, then the application for the facility will be deemed be transmitted in favour of or as otherwise directed by the Unit
to have been received on the immediately following Business Holder's personal representative(s) on production of the death
Day certificate and / or any other documents to the satisfaction of
the AMC / Registrar. If Units are held by more than one registered
4. Switching Unit Holder, then, upon death of one of the Unit Holders, the
Units shall be transmitted in favour of the remaining Holder(s)
(i) Inter-Scheme Switching (in the order in which the names appear in the register of Unit
The Transaction Slip can be used by investors to make inter- Holders with the Registrar) on production of a death certificate
Scheme switches (during the NFO period and the ongoing offer and / or any other documents to the satisfaction of the AMC /
period) within the Fund. All valid applications for switch-out shall Registrar and to the nominee only upon death of all the Unit
be treated as Redemption and for switch-in as Purchases with Holders.
the respective Applicable NAVs of the Scheme / option.
8. Nomination Facility
(ii) Intra-Scheme Switching
A Unit Holder can, at the time an application is made or by
Investors can switch between different options under the Scheme, subsequently writing to an ISC, request for a nomination form
at the Applicable NAV. All valid applications for switch-out shall in order to nominate any one person to receive the Units upon
be treated as Redemption and for switch-in as Purchases with his / her death, subject to the completion of certain necessary
the respective Applicable NAVs of the option. As per current formalities e.g. providing proof of the death of the Unit Holder,
Load structure, no Entry or Exit Loads will be charged for intra- signature of the nominee, furnishing proof of guardianship if
scheme switching. However, AMC may change the Loads the nominee is a minor, and the execution of an indemnity bond
prospectively as indicated in the paragraph on Load Structure or such other documents as may be required from the nominee
of the Scheme in this Offer Document. in favour of and to the satisfaction of the AMC / Registrar.
Note: For tax implications on switching please see Chapter on Nomination can be made only by individuals on their own behalf,
TAX BENEFITS OF INVESTING IN THE FUND either singly or jointly. If the Units are held jointly, all joint Unit
Holders must sign the nomination form.
5. Lien on Units for Loans
Only the following categories of Indian residents can be
In conformity with the guidelines and notifications issued by
nominated: (a) individuals; (b) minors through parent / legal
SEBI / Government of India / any other regulatory body from
guardian (whose name and address must be provided); and
time to time, Units under the Scheme may be offered as security
Units and the Offer
(c) religious or charitable trusts; and (d) Central Government,

by way of a lien / charge in favour of scheduled banks, financial
State Government, a local authority or any person designated
institutions, non-banking finance companies (NBFCs), or any
by virtue of his office.
other body. The Registrar will note and record the lien against
such Units. A standard form for this purpose is available on A nomination in respect of Units will be treated as rescinded
request with the Registrar. upon the Redemption of the Units. Cancellation of a nomination
can be made only by the Unit Holders who made the original
The Unit Holder will not be able to redeem / switch Units under
nomination and must be notified in writing. On receipt of a valid
lien until the Lien Holder provides written authorisation to the
cancellation, the nomination shall be treated as rescinded and
Fund that the lien / charge may be vacated. As long as Units
the AMC / Fund shall not be under any obligation to transfer
are under lien, the Lien Holder will have complete authority to
the Units in favour of the nominee.
exercise the lien, thereby redeeming such Units and receiving
payment proceeds. In such instance, the Unit Holder will be The transfer of Units / payment to the nominee of the Redemption
informed by the Registrar through an account statement. In no proceeds shall be valid and effectual against any demand made
case will the Units be transferred from the Unit Holder to Lien upon the Fund / AMC / Trustee and shall discharge the Fund /
Holder. All benefits accruing on the Units under lien during the AMC / Trustee of all liability towards the estate of the deceased
period of the lien in the form of bonus, dividend or otherwise Unit Holder and his / her legal personal representative or other
shall be subject to lien. successors.
6. Listing and Transfer of Units The Fund, the AMC and the Trustee are entitled to be indemnified
from the deceased Unit Holder's estate against any liabilities
The Scheme being open ended, the Units are not proposed to whatsoever that any of them may suffer or incur in connection
be listed on any stock exchange and no transfer facility is with a nomination.
provided. However, the Fund may at its sole discretion list the
Units on one or more stock exchanges at a later date. 9. Folio Number and Consolidation of folios
The Fund will offer and redeem the Units on a continuous basis Unless otherwise requested by the Unit Holder, a single folio
after the NFO Period. If a person becomes a Unit Holder in the number may be assigned if an investor invests in different
Scheme consequent to operation of law, the Fund will, subject schemes of the Fund, and a consolidated account statement
to production of satisfactory evidence, effect the transfer, if the will then be provided for investments in all the schemes. In
transferee is otherwise eligible to hold the Units. Similarly, in case an investor has multiple folios under various schemes of
36

the Fund, the AMC has the right to consolidate all the folios named holder (as determined by the records of the Registrar).
belonging to the same investor into one folio.
The Mutual Fund will endeavour to despatch the Redemption
10. Fractional Units proceeds within 3 Business Days from the acceptance of the
Redemption request, but not beyond 10 Business Days from
Since a request for Purchase or Redemption is generally made the date of Redemption. If the payment is not made within the
in rupee amounts and not in terms of a fixed number of Units of period stipulated in the Regulations, the Unit Holder shall be
the Scheme, an investor may be left with fractional Units. paid interest @15% p.a. for the delayed period and the interest
Fractional Units will be computed and accounted for up to four shall be borne by the AMC.
decimal places for the Scheme. However, fractional Units will
in no way affect the investor's ability to redeem the Units, either The bank name and bank account number, as specified in the
in part or in full, standing to the Unit Holder's credit. Registrar's records, will be mentioned in the cheque. The cheque
will be payable at par at all the cities having ISCs. If the Unit
G. Redemption of Units Holder resides in any other city, he will be paid by a demand
draft payable at the city of his residence and the demand draft
The Unit Holder has the option to request for Redemption either
charges shall be borne by the AMC. The proceeds may be paid
in amount in rupees or in number of Units. In case the request
by way of direct credit / EFT / SEFT / RTGS / Wired Transfer /
for Redemption specifies both, i.e. amount in rupees as well
any other manner through which the investor's bank account
the number of Units to be redeemed, then the latter will be
specified in the Registrar's records is credited with the
considered as the redemption request and the request will be
Redemption proceeds.
processed accordingly.
Note: The Trustee, at its discretion at a later date, may choose
The minimum amount in rupees/number of Units for Redemption
to alter or add other modes of payment.
will be as follows:
The redemption proceeds will be sent by courier or (if the
Retail Plan: Rs. 1,000 or 100 Units
addressee city is not serviced by the courier) by registered post.
Institutional Plan: Rs. 1, 00,000 or 10,000 Units The despatch for the purpose of delivery through the courier /
Super Institutional Plan: Rs. 1, 00,000 or 10,000 Units postal department, as the case may be, shall be treated as
delivery to the investor. The AMC / Registrar are not responsible
Units can be redeemed (sold back to the Fund) at the Redemption
for any delayed delivery or non-delivery or any consequences
Price during the Ongoing Offer Period. If an investor has
thereof, if the despatch has been made correctly as stated in
purchased Units of a Scheme on more than one Business Day
this paragraph.
the Units will be redeemed on a first-in-first-out basis. If multiple
Purchases are made on the same day, the Purchase appearing Non-Resident Investors
earliest in the account statement will be redeemed first.
For NRIs, Redemption proceeds will be remitted depending
1. Redemption Price upon the source of investment as follows:
The Redemption Price of the Units is the price at which a Unit (i) Repatriation Basis
Holder can redeem Units of a scheme. It will be calculated as
described below: When Units have been purchased through remittance in foreign
exchange from abroad or by cheque / draft issued from proceeds
Redemption Price = Applicable NAV x (1 - Exit Load* or CDSC*) of the Unit Holder's FCNR deposit or from funds held in the
Unit Holder's Non Resident (External) account kept in India,
* Either Exit Load or CDSC, whichever is applicable, will be the proceeds can be remitted to the Unit Holder in foreign currency
charged. (any exchange rate fluctuation will be borne by the Unit Holder).
Redemption Price will be calculated for up to four decimal places The proceeds can also be sent to his Indian address for crediting
for the Scheme. to his NRE / FCNR / non-resident (Ordinary) account, if desired
Units and the Offer

by the Unit Holder.
For example, if the Applicable NAV of a Scheme is Rs.10, and
it has a 2% Exit Load, the Redemption Price will be calculated (ii) Non Repatriation Basis
as follows: When Units have been purchased from funds held in the Unit
Holder's non-resident (Ordinary) account, the proceeds will be
Redemption Price = Rs. 10 x (1 - 2.00%) i.e. Rs. 10 x 0.98 = sent to the Unit Holder's Indian address for crediting to the Unit
Rs. 9.8 Holder's non-resident (Ordinary) account.
If the Scheme has no Exit Load and no CDSC, the Redemption For FIIs, the designated branch of the authorised dealer may
Price will be equal to the Applicable NAV. allow remittance of net sale / maturity proceeds (after payment
Investors may note that the Trustee has a right to modify the of taxes) or credit the amount to the Foreign Currency account
existing Load structure in any manner or introduce an Entry or Non-resident Rupee account of the FII maintained in
Load or Exit Load or CDSC or a combination of Entry Load accordance with the approval granted to it by the RBI.
and / or Exit Load and / or CDSC and / or any other Load The Fund will not be liable for any delays or for any loss on
subject to a maximum as prescribed under the Regulations account of any exchange fluctuations, while converting the rupee
and with prospective effect only. amount in foreign exchange in the case of transactions with
Please refer Chapter LOAD AND FEES AND EXPENSES. NRIs / FIIs.
The Fund may make other arrangements for effecting payment
2. How to Redeem of Redemption proceeds in future.
A Transaction Slip can be used by the Unit Holder to request
for a Redemption. The requisite details should be entered in 4. Effect of Redemptions
the Transaction Slip and submitted at an ISC. Transaction Slips The number of Units held by the Unit Holder in his folio will
can be obtained from any of the ISCs. stand reduced by the number of Units Redeemed.
3. Payment of Proceeds Units once redeemed will be extinguished and will not be re-
issued.
Resident Investors
Redemption proceeds will be paid by cheques, marked "A/c 5. Unclaimed Redemptions and Dividends
Payee only" and drawn in the name of the sole holder / first-
As per circular no. MFD/CIR/9/120/2000, dated November 24,
37

Offer Document
2000 issued by SEBI, the unclaimed Redemption and dividend d) If, in the opinion of the AMC, extreme volatility of markets
amounts shall be deployed by the Fund in call money market causes or might cause, prejudice to the interests of the
or money market instruments only. The investment management Unit Holders of the Scheme.
fee charged by the AMC for managing such unclaimed amounts
shall not exceed 50 basis points. The circular also specifies e) In case of natural calamities, war, strikes, riots, and bandhs.
that investors who claim these amounts during a period of three f) In case of any other event of force majeure or disaster
years from the due date shall be paid at the prevailing NAV. that in the opinion of the AMC affects the normal functioning
Thus, after a period of three years, this amount can be transferred of the AMC or the Registrar.
to a pool account and the investors can claim the said amounts
at the NAV prevailing at the end of the third year. In terms of g) If so directed by SEBI.
the circular, the onus is on the AMC to make a continuous effort In any of the above eventualities, the time limits for processing
to remind investors through letters to take their unclaimed requests for subscription and Redemption of Units will not be
amounts. The details of such unclaimed amounts shall be applicable. All types of subscription and Redemption of Units
disclosed in the annual report sent to the Unit Holders. will be processed on the basis of the immediately next Applicable
NAV after the resumption of dealings in Units.
H. Suspension of the Purchase and
Redemption of Units I. Right to Limit Redemptions
Subject to the approval of the Boards of the AMC and of the The Trustee may, in the general interest of the Unit Holders of
Trustee, and subject also to necessary communication of the the Scheme and when considered appropriate to do so based
same to SEBI, the determination of the NAV of the Units of the on unforeseen circumstances / unusual market conditions, limit
Scheme, and consequently of the Purchase, Redemption and the total number of Units which may be redeemed on any
switching of Units, may be temporarily suspended in any of the Business Day to 5% of the total number of Units then in issue,
conditions described below. under the Scheme and option(s) thereof, or such other percentage
as the Trustee may determine. Any Units which consequently
a) When one or more stock exchanges or markets which
are not redeemed on a particular Business Day, will be carried
provide the basis of valuation for a substantial portion of
forward for Redemption to the next Business Day, in order of
the assets of the Scheme is closed otherwise than for
receipt. Redemptions so carried forward will be priced on the
ordinary holidays.
basis of the Applicable NAV (subject to the prevailing Load) of
b) When, as a result of political, economic or monetary events the Business Day on which Redemption is made. Under such
or any other circumstances outside the control of the Trustee circumstances, to the extent multiple Redemption requests are
and the AMC, the disposal of the assets of the Scheme is received at the same time on a single Business Day, redemptions
not considered to be reasonably practicable or might will be made on a pro-rata basis, based on the size of each
otherwise be detrimental to the interests of the Unit Holders. Redemption request, the balance amount being carried forward
for Redemption to the next Business Day. In addition, the Trustee
c) In the event of breakdown in the means of communication reserves the right, in its sole discretion, to limit redemptions
used for the valuation of investments of the Scheme, so with respect to any single account to an amount of Rs. 1 Lakh
that the value of the securities of the Scheme cannot be in a single day.
accurately or reliably arrived at.
Units and the Offer
38

VIII. Unit Holders' Rights All Units will rank pari passu, among Units within the same
option in the Scheme, as to assets and earnings.
and Services
D. NAV Information
A. Unit Holders' Rights The NAVs of the Scheme will be calculated by the Fund on all
i) Unit Holders of the Scheme(s) have a proportionate right Business Days and details may be obtained by calling the investor
in the beneficial ownership of the assets of the Scheme(s). line of the AMC at "1800 180 8000" (toll-free from a MTNL /
BSNL landline) or 30309800 (at local call rate from your mobile
ii) If the Fund declares a dividend under the Scheme, it is phone prefixing the local city code or non - MTNL / BSNL landline)
bound to dispatch the dividend warrants within 30 days or 0124 2542022 (at long distance rates). The Fund will publish
from the date of declaration of the dividend. on a daily basis the NAVs, Purchase Price and Redemption
iii) The Trustee is bound to disclose to the Unit Holders any Price of the Scheme in at least two daily newspapers. The NAV
important information known to the Trustee which may have of the Scheme will also be updated on the website of the
a material adverse bearing on their investments. Fund i.e. www.fidelity.co.in and on the AMFI website i.e.
www.amfiindia.com.
iv) The appointment of the AMC for the Fund can be terminated
by the Trustee or by 75% of the Unit Holders of the Scheme, E. Disclosure of Information under
and any change in the appointment of the AMC is subject the Regulations
to the prior approval of SEBI and the Unit Holders.
An annual report of the Scheme will be prepared as at the end
v) The Trustee is obliged to convene a meeting on a requisition of each financial year (March 31) and copies of the report or an
of 75% of the Unit Holders of the Scheme / options. abridged summary thereof will be mailed to all Unit Holders as
soon as possible but not later than 6 months from the closure
vi) 75% of the Unit Holders can pass a resolution to wind up
of the relevant financial year. If the report is mailed in a summary
the relevant Scheme.
form, the full report will be available for inspection at the registered
vii) Unit Holders have the right to inspect all the documents office of the Trustee and a copy thereof on request to the Unit
listed under the paragraph "Documents Available for Holders on payment of a nominal fee.
Inspection" in the Offer Document.
In addition, the Fund shall before the expiry of one month from
viii) The Trustee shall obtain the consent of the Unit Holders: the close of each half year (March 31 and September 30) publish
its unaudited financial results in one national English daily
a) whenever required to do so by the Regulations or newspaper circulating in the whole of India and in a Marathi
otherwise by SEBI, in the interest of Unit Holders; daily newspaper. These shall also be displayed on the website
b) whenever required to do so on a requisition made by of the Fund and that of AMFI.
75% of the Unit Holders of the relevant Scheme; and Full portfolio details, in the prescribed format, shall also be
c) if the Trustee decides to propose the winding-up of disclosed either by publishing it in the newspapers or by sending
the Fund or of the relevant Scheme. to the Unit Holders within one month from the end of each half-
year and it shall also be displayed on the website of the Fund.
In circumstances requiring the approval of Unit Holders, the
AMC shall be guided by the directions issued by SEBI and / or F. Duration of the Scheme
the Trustee, under the Regulations about the manner of obtaining The duration of the Scheme is perpetual. However, in accordance
such approval. with the Regulations, the Scheme may be wound up, after
repaying the amount due to the Unit Holders:
B. Voting Rights of the Unit Holders
Subject to the provisions of the Regulations as amended from a) on the happening of any event which, in the opinion of the
time to time, the consent of the Unit Holders shall be obtained, Trustee, requires the Scheme to be wound up; or
entirely at the option of the Trustee, either at a meeting of the b) if 75% of the Unit Holders of the Scheme pass a resolution
Unit Holders or through postal ballot. Only one Unit Holder in that the Scheme be wound up; or
respect of each folio or account representing a holding shall
vote and he shall have one vote in respect of each resolution c) if SEBI so directs in the interests of Unit Holders.
to be passed.
If the Scheme is so wound up, the Trustee shall give notice of
the circumstances leading to the winding up of the Scheme:
Unit Holders' Rights
C. Account Statements and Unit Certificates

Full allotment of the initial Units of the Scheme will be made to a) to SEBI; and
all valid applications within 30 days from the date of closure of b) in two daily newspapers having a circulation all over India,
the NFO Period. An account statement will be sent by ordinary and in a vernacular newspaper with circulation in Mumbai.
post / courier / secured encrypted electronic mail to each Unit
Holder, stating the number of Units purchased, not later than On and from the date of the publication of notice of winding up,
30 days from the close of the NFO Period. the Trustee or the AMC, as the case may be, shall
Unit Holders will also be sent an annual account statement by a) cease to carry on any business activities in respect of the
the AMC, within 30 days after March 31. The annual account Scheme so wound up;
statement will show all transactions during the 12 month period
b) cease to create or cancel Units in the Scheme; and
from April 1 of the preceding year and will also indicate the
closing balance of Units held and their NAV as on March 31. c) cease to issue or redeem Units in the Scheme.
Account statements to be issued in lieu of Unit Certificates under
the Scheme shall be non-transferable. The account statement G. Procedure and Manner of Winding Up
shall not be construed as a proof of title. The Trustee shall call a meeting of the Unit Holders to approve,
by simple majority of the Unit Holders present and voting at the
A non-transferable Unit Certificate will be sent to the Unit Holder meeting, a resolution authorising the Trustee or any other person
within 6 weeks following the receipt of a written request. to take steps for winding up of the Scheme.
Units are non-transferable. The Trustee reserves the right to The Trustee, or other person authorised as above, shall dispose
make the Units transferable at a later date, subject to the of the assets of the Scheme concerned in the best interest of
Regulations.
39

Offer Document
Unit Holders of the Scheme. The proceeds of sale shall be first Any complaints should be addressed to Mr. Vinod Venkateswaran,
utilised towards discharge of such liabilities as are due and who has been appointed as the Investor Relations Officer. He
payable under the Scheme, and, after meeting the expenses can be contacted at:
connected with the winding up, the balance shall be paid to the
Unit Holders in proportion to their respective interests in the Address : 1st Floor, Ganesha Towers,
assets of the Scheme, as on the date when the decision for Old No. 90, New No. 104,
winding up was taken. Dr. Radhakrishnan Salai,
Mylapore, Chennai - 600 004.
On completion of the winding up, the Trustee shall forward to Telephone : 91-44- 39172801
SEBI and Unit Holders a report on the winding up, detailing, Fax : 91-44- 39180031
the circumstances leading to the winding up, the steps taken E-mail : investor.line@fidelity.co.in
for disposal of the assets of the Scheme before winding up,
net assets available for distribution to the Unit Holders and a 2. Investor Grievances Redressal Mechanism
certificate from the Auditors of the Fund. Investor Complaints till August 22, 2007.
Notwithstanding anything contained herein above, the provisions Nature of Complaint No. of Complaints
of the SEBI Regulations in respect of disclosures of half-yearly
reports and annual reports shall continue to be applicable until Received Redressed Pending
winding up is completed or the Scheme ceases to exist.
Complaints received from SEBI 2 2 0
After the receipt of the Trustee's report referred to above, and
if SEBI is satisfied that all measures for winding up of the Scheme Correction in Investor details 19,790 19,789 1
have been complied with, the Scheme shall cease to exist. Non Allotment of units 620 619 1
H. Services to Unit Holders Non receipt of account statements 636 636 0
1. Investor Services Non Receipt of dividend warrant 715 714 1
Investors can enquire about NAVs, Unit Holdings, Valuation, Non Receipt of redemption warrant 760 753 7
Dividends, etc or lodge any service request by calling the investor
line of the AMC at "1800 180 8000" (toll-free from a MTNL / Other Complaints 433 430 3
BSNL landline) or 30309800 (at local call rate from your mobile
Total 22,956 22,943 13
phone prefixing the local city code or non - MTNL / BSNL landline)
or 0124 2542022 (at long distance rates). In order to protect
confidentiality of information, the service representatives may The investor complaints received by the Fund are redressed
require personal information of the investor for verification of by the Investor Relations Officer and CAMS, the Registrar. The
his / her identity. The AMC will at all times endeavour to handle Compliance Officer regularly reviews the redressal of complaints
transactions efficiently and to resolve any investor grievances for assessing the quality and timeliness of the redressal.
promptly.
Unit Holders' Rights
40

IX. Tax Benefits of Investing – In case of foreign companies at the rate of 2.5% where
the income exceeds Rs.10,000,000,
in the Fund – In case of domestic company at the rate of 10% where the
The information furnished below outlines briefly the tax income exceeds Rs.10,000,000,
implications with respect to the unit holders of the Scheme and – In the case of an individual, HUF or Association of Persons
with respect to the Fund and is based on relevant provisions of ('AOP'), where the income exceeds Rs. 1,000,000, at the
the Income Tax Act, 1961 and Wealth Tax Act, 1957 (collectively rate of 10%, of such tax liability is also payable and
called 'the relevant provisions') as at July 12, 2007. For this
purpose, the provisions of the Finance Act, 2007 as assented – In case of Artificial Juridical Person a surcharge of 10%.
by the President of India have been considered.
An education cess of 3% (inclusive of 1 % of additional cess
The implications stated herein have been reviewed and certified for Secondary and Higher education) on total income tax payable
by the Auditors of the Scheme and are found in agreement (including surcharge) is payable by all categories of taxpayers.
with the relevant provisions vide their letter dated July 12, 2007.
However, the Fund does not make any representations on the 3.2. Short-term capital gains
procedures for ascertaining the tax benefits nor do they make Short-term capital gains arising to a unit holder will be taxed at
any representation regarding any legal interpretations. Since the normal rate applicable to that unit holder as per the provisions
the information below is based on the relevant provisions as of the Act.
on July 12, 2007, any subsequent changes in the said provisions
could affect the tax benefits. In case of an individual or HUF, being a resident, where the
total income as reduced by the short term capital gains is below
Except for the above procedure, the auditor has not performed the maximum amount not chargeable to tax (i.e. upto Rs. 195,000
any other services in connection with any other data or information for all senior citizens, upto Rs.145,000 in case of women not
included in this Offer document. being a senior citizen and upto Rs.110,000 in case of other
individuals), the short term capital gains shall be reduced by
THE FOLLOWING INFORMATION IS PROVIDED FOR
the amount by which the total income as so reduced falls short
GENERAL INFORMATION PURPOSES ONLY AND APPLIES
of the maximum amount which is not chargeable to income tax
TO THE SCHEME. IN VIEW OF THE INDIVIDUAL NATURE
and the tax on the balance of such short term capital gains
OF TAX BENEFITS, EACH INVESTOR IS ADVISED TO
shall be computed at the applicable slab rates. A reference
CONSULT HIS OR HER OWN TAX CONSULTANT WITH
may also be made to the provisions of section 112 of the Act,
RESPECT TO THE SPECIFIC TAX IMPLICATIONS ARISING
which provides for a similar treatment in case of long-term capital
OUT OF HIS OR HER PARTICIPATION IN THE SCHEMES.
gains.
A) FOR UNIT HOLDERS In case of domestic companies the short-term capital gains
are taxable @30%, in case of foreign companies @40% and in
1. Income from units
case of FII as per section 115AD of the Act @30%.
Under the provisions of section 10(35) of the Income Tax Act,
1961 ('the Act'), income received in respect of the units of a In addition to the aforesaid tax, surcharge and education cess
Mutual Fund (other than income on redemption / transfer of is also payable as mentioned in para 3.1 above.
units) specified under section 10(23D) will be exempt from income
tax in the hands of all unit holders. 4. Deduction under Section 54EC of the Act
The long-term capital gains on transfer of units would be exempt
2. Characterization of Income from tax under Section 54EC of the Act, subject to fulfillment of
The characterization of gains / losses arising from sale / transfer certain conditions specified in the section. This section requires
of units as capital gains or business income would depend on investments in specified bonds. However, if the amount invested
the classification of the said units by the unit holder. It would is less than the capital gains realized, only proportionate capital
depend on whether the unit holder has classified such units as gains would be exempt from tax.
capital assets or as stock in trade.
5. Set-off and carry forward of losses
3. Capital Gains The capital loss resulting from sale of units would be available
Under Section 2(29A) read with 2(42A) of the Act, units of a for set off against other capital gains made by the investor and
mutual fund are treated as a long-term capital asset if they are would reduce the tax liability of the investor to that extent.
held for a period of more than twelve months preceding the However, losses on transfer of long-term capital assets would
date of transfer. Units held for not more than 12 months preceding be allowed to be set-off only against gains from transfer of long-
the date of their transfer are short-term capital assets. term capital assets and the balance long-term capital loss shall
be carried forward separately for a period of eight assessment
3.1. Long-term capital gains years to be set off only against long-term capital gains.
As per section 112 of the Act, income arising on transfer of
6. Dividend Stripping
units being long-term capital assets by resident and non-resident
investors [other than Foreign Institutional Investor ('FII')], would Where a person buys any units within a period of three months
be chargeable to tax at the rate of 20% after indexation or at before the record date, sells such units within nine months after
10% without indexation, if applicable. In case of FII, such income such date and the income distributed on such units is exempt
Tax Benefits
is chargeable to tax at the rate of 10% under section 115AD of from tax, the loss on such sale to the extent of the income
the Act. distributed on units shall be ignored while computing the income
chargeable to tax.
In case of an individual or Hindu Undivided Family ('HUF'), being
a resident, where the total income as reduced by the long-term 7. Bonus Stripping
capital gains is below the maximum amount not chargeable to Where a person buys units (original units) within a period of
tax (i.e. upto Rs. 195,000 for all senior citizens, upto Rs.145,000 three months before the record date, receives bonus units on
in case of women not being a senior citizen and upto Rs.110,000 such original units, and then sells the original units within a
in case of other individuals), the long term capital gains shall period of nine months from the record date and continues to
be reduced to the extent of the shortfall and only the balance hold the bonus units, then the loss incurred on the original units
long term capital gains will be subject to the flat rate of taxation. shall be ignored while computing the income chargeable to tax
In addition to the aforesaid tax, surcharge at the following rates but shall be deemed to be the cost of acquisition of the bonus
is also payable: units.
41

Offer Document
8. Switching from one scheme to another Trusts is an eligible investment under Section 11(5) of the Act,
As stated in Chapter VII - Units and the Offer, switching from read with Rule 17C of the Income Tax Rules, 1962.
one Scheme/option to another Scheme/option will be effected 11. Wealth Tax Act, 1957
by way of redemption of units of the relevant Scheme/option
and reinvestment of the redemption proceeds in the other Units held under the Scheme of the Fund are not treated as
Scheme/option selected by the unit holder. Hence switching assets as defined under section 2(ea) of the Wealth-Tax Act,
will attract the same implications as applicable on transfer of 1957 and therefore, would not be liable to wealth- tax.
such units.
B) FOR THE FUND
9. Tax withholding
1. Income of the Mutual Fund
No deduction of tax at source shall be made from income credited
Fidelity Mutual Fund is a Mutual Fund registered with the
or paid by a mutual fund to a Unit holder. However, dividend
Securities and Exchange Board of India and its entire income
distribution tax, as applicable would be payable by the mutual
is exempt from tax under section 10(23D) of the Act.
fund.
The scheme may be impacted by the rates of taxation on capital
9.1. Resident Investors gains, interest and other corporate actions on investments, in
As per Circular no. 715 dated August 8, 1995 issued by the different countries, in line with the prevailing tax laws in those
CBDT in case of resident Unit holders, no tax is required to be countries of investment, as also in line with the respective tax
deducted at source from capital gains arising at the time of treaties in existence with India.
repurchase or redemption of the units.
2. Income Distribution Tax
9.2. Foreign Institutional Investors Under Section 115R(2) of the Act, a Mutual Fund shall be liable
Under section 196D of the Act, no tax is required to be deducted to pay Distribution Tax (including applicable Surcharge and
at source on income by way of capital gains earned by a FII. Education Cess) at the rate of
9.3. Non-resident Investors other than FIIs – 14.1625% on income distributed to any person being an
individual or Hindu Undivided Family and
Under Section 195 of the Act, the Mutual Fund is required to
deduct tax at source at the rate of 20% on any long-term capital – 22.66% on income distributed to any other person.
gains arising from units chargeable to tax if the payee Unit holder
is a non-resident. In respect to short-term capital gains, tax is However, in case of 'money market mutual fund' or 'liquid fund'
required to be deducted at source at the rate of 30% if the the income distribution tax is payable at 28.325% irrespective
payee Unit holder is a non-resident non-corporate and at the of the category of investor. In this regard, 'money market mutual
rate of 40% if the payee Unit holder is a foreign company in fund' is defined as a fund, which has been set-up with an objective
case of schemes other than equity oriented scheme. of investing exclusively in money market mutual instruments
and 'liquid fund' is defined as plan or scheme, which is classified
Further, the aforesaid tax to be deducted is required to be as liquid fund by SEBI.
increased by surcharge and education cess, as applicable.
If Fidelity Liquid Plus Fund invests exclusively in money market
As per circular no. 728 dated October 30, 1995 issued by the instruments then it would be regarded as a 'money market mutual
CBDT, in the case of a remittance to a country with which a fund' as per the Securities and Exchange Board of India (Mutual
Double Tax Avoidance Agreement ('DTAA') is in force, the tax Fund) Regulations, 1996 and shall be liable to pay income
should be deducted at the rate provided in the Finance Act of distribution tax at the rate of 28.325% irrespective of the category
the relevant year or at the rate provided in the DTAA, whichever of investor.
is more beneficial to the assessee.
3. Securities Transaction Tax ('STT')
10. Religious and Charitable Trusts As the Schemes are predominantly made up of debt/ money
Investment in units of the Fund by Religious and Charitable market instruments, no STT would be payable by it in respect
of purchase and sale of such underlying asset by the Schemes.
Tax Benefits
42

X. Other Matters shall be reported to the Boards of AMC and trustees and shall
also be disclosed in the Annual Report of the Scheme.
A. Transactions with the Sponsor / The Fund will appoint a dedicated Fund Manager for making
Associates investments in overseas fixed income securities and where
necessary, shall appoint other intermediaries of repute as
Fidelity Mutual Fund was registered on February 17, 2005 and advisors, sub-managers, or sub-custodians for managing and
has not had any transactions with the Sponsor or any of the administering such investments. The appointment of such
Sponsor's associates from the date of registration till the date intermediaries shall be in accordance with the applicable
of the Offer Document. requirements, if any, of SEBI.
The AMC may however, for purposes of providing certain services
utilise the services of Sponsor, group companies and any other C. Dividends and Distributions
subsidiary or associate company of the Sponsor established The Trustee may decide to distribute by way of dividend, the
or to be established at a later date, who is in a position to provide surplus by way of realised profit, dividends and interest, net of
the requisite services to the AMC. losses, expenses and taxes, if any, to Unit Holders in the dividend
option of the Scheme if such surplus is available and adequate
The AMC, on behalf of the Fund, shall conduct its business
for distribution in the opinion of the Trustee. The frequency of
with the aforesaid companies (including their employees or
declaration of dividend under the Plans will be as follows:
relatives) on commercial terms and on arms-length basis and
at mutually agreed terms and conditions to the extent permitted Dividend payout facility:
under the SEBI Regulations.
The dividend payout facility offers the following dividend
The AMC, has entered into an agreement with Fidelity declaration frequency:
Investments Management (Hong Kong) Limited ("FIMHKL"),
appointing them for execution of equity trade orders placed by Monthly - (The record date shall be 25th of each calendar month)
the fund manager for schemes of the Fund. FIMHKL places If any of the days mentioned above is a non Business Day, the
the orders with the brokers registered with SEBI in India. The dividend will be declared on the next Business Day.
cost of obtaining such services is entirely borne by the AMC
and is not charged to the schemes. Dividend re-investment facility:
The AMC has entered into an agreement with Fidelity Business The dividend re-investment facility offers the following dividend
Services India Private Limited, for the purpose of availing certain declaration frequencies:
services in the nature of some of the back office operations of (a) Daily (The record date for declaration of dividend
the AMC. The fees for the services will be borne by the AMC shall be all days for which NAV is published on
and not charged to the Scheme. www.amfiindia.com / www.fidelity.co.in websites)
B. Policy on Offshore Investments (b) Weekly (The record date for declaration of dividend shall
be every Monday)
by the Scheme
SEBI has vide its circular dated August 02, 2006 read with circulars (c) Monthly (The record date for declaration of dividend shall
dated May 14, 2007, permitted mutual funds to invest in ADRs/ be 25th of each calendar month)
GDRs issued by Indian companies, equity of overseas companies
If any of the days mentioned above is a non Business Day, the
listed on stock exchanges overseas, foreign debt securities in
dividend will be declared on the next Business Day.
countries with fully convertible currencies, short term as well
as long term debt instruments with highest rating (foreign currency However, in case of Retail Plan, under the dividend re-investment
credit rating) by accredited/registered credit rating agencies, facility the dividend will be declared only monthly.
say A-1/AAA by Standard & Poor, P-1/AAA by Moody's, F1/
AAA by Fitch IBCA, etc, government securities where the The Trustee's decision with regard to availability and adequacy
countries are AAA rated, units/securities issued by the overseas and rate, of distribution shall be final. The dividend will be due
mutual funds or unit trusts which invest in the aforesaid securities to only those Unit Holders whose names appear in the register
or are rated as mentioned above and are registered with overseas of Unit Holders in the Dividend option of the Scheme on the
regulators. The mutual funds can make investments in ADRs/ day(s) as mentioned above or the next Business Day as the
GDRs/Foreign Securities within an overall ceiling of US$4bn. case may be. These days will be considered as the Record
with a sub-ceiling for individual mutual funds which shall not Dates. The Unit Holders have the option of receiving the dividend
exceed 10% of the net assets managed by them as on March or reinvesting the same. The dividend will be reinvested at the
31 of each relevant year, subject to a maximum of US$ 200 mn Applicable NAV of the immediately following Business Day.
per mutual fund. In respect of Unit Holders opting for the dividend payout facility,
It is the Investment Manager's belief that overseas securities the AMC shall despatch the dividend warrants within 30 days
offer new investment and portfolio diversification opportunities of the date of declaration of dividend.
into multi-market and multi-currency products. However, such The dividend proceeds under the Scheme may be paid by way
investments also entail additional risks as specified under of direct credit / EFT / SEFT / RTGS / Wired Transfer / any
paragraph "Risk factors associated with investments in Foreign other manner through which the investor's bank account specified
Securities". Such investment opportunities will be pursued by in the Registrar's records is credited with the dividend proceeds.
the Investment Manager provided they are considered appropriate
in terms of the overall investment objectives of the Scheme. D. Inter-Scheme Transfers
The Scheme will seek applicable permission from SEBI to invest
abroad in accordance with the investment objectives of the Transfers of investments from one Scheme to another Scheme
Scheme and in accordance with any guidelines issued by SEBI may be made only if:
from time to time. (a) such transfer is done at the prevailing market price for
Offshore investments shall be made subject to any necessary quoted instruments on spot basis; and
Other Matters
approvals or conditions stipulated by SEBI and the expenses (b) the security(ies) so transferred is / are in conformity with
charged to the Scheme shall not exceed the total limits on the investment objective of the scheme to which such transfer
expenses as prescribed under the Regulations and guidelines has been made.
thereunder. The details of calculation for charging such expenses
43

Offer Document
E. Disclosure under Regulation 25(11)

In case any company has invested more than 5% of the Net Asset Value of any scheme of the Fund, investment made by that
scheme or any other scheme of the Fund in that company or its subsidiaries is required to be disclosed as required by Regulation
25(11).
As on August 22, 2007, the following companies have invested more than 5 per cent of the net asset value of a scheme and the
schemes of the fund have invested in the company during the period specified by Regulation 25 (11).
Company name Schemes in which Investment made by Aggregated for Outstanding as

investment is the schemes of the Fund the period under at August 22, 2007
made by the Company in that Company / its subsidiary Regulation 25 (11) at Market /
At Cost Fair Value
(Rupees in Lakhs) (Rupees in Lakhs)
Gujarat Fluorochemicals Ltd. Fidelity MultiManager Fidelity Equity Fund 2,556.17 2,834.69
Cash Fund Fidelity India Special
Situations Fund 1,777.81 2,003.17
Fidelity Tax Advantage Fund 702.58 730.97
Industrial Dev. Bank Fidelity Cash Fund Fidelity India Special 1,542.37 5,788.50
of India Ltd. Situations Fund
Fidelity International
Opportunities Fund 1,155.87 1,370.51
Fidelity Cash Fund 3,383.25 496.32
Fidelity Short Term
Income Fund 481.01 –
IDBI Home Finance Fidelity Cash Fund Fidelity Cash Fund 998.36 –
(Subsidiary of IDBI Ltd.)
Allahabad Bank Fidelity Cash Fund Fidelity India Special

Situations Fund 1,760.16 3,029.01
Fidelity Cash Fund 6,222.19 1,938.93
Fidelity Short Term
DSP Merrill Lynch Fidelity Cash Fund Fidelity Cash Fund 23,500.00 –
Capital Limited
Bank of Baroda Fidelity Cash Fund Fidelity India Special

Situations Fund 934.51 6,025.07
Fidelity Equity Fund – 4,635.59
State Bank of Hyderabad Fidelity Cash Fund Fidelity Cash Fund 4,243.72 –
Indian Bank Fidelity Cash Fund Fidelity India Special

Situations Fund 473.54 617.33
Fidelity Cash Fund 5,917.92 –
Punjab National Bank Fidelity Cash Fund Fidelity Cash Fund 26,073.16 14,114.41
Fidelity Equity Fund – 5,383.21
Fidelity India Special
Situations Fund 634.80 4,829.65
Fidelity Tax Advantage Fund 276.60 1,293.56
Fidelity Short Term
Income Fund 1,966.40 –
HCL Technologies Limited Fidelity Cash Fund Fidelity Equity Fund 2,797.70 2,645.62
Fidelity India Special
Situations Fund 1,194.72 882.75
Fidelity Cash Fund 1,464.52 –
Export-Import Bank of India Fidelity Cash Fund Fidelity Short Term

Other Matters
The aforesaid investments are made by the Fund based on the strong fundamentals of the companies.
44

F. General Information before registration, even though there was no active
marketing or promotion of the products at that time. The
1. Power to make Rules
issue first arose in 1998, when Fidelity Investments
Subject to the Regulations, the Trustee may, from time to time, International was simply informed by the French regulatory
prescribe terms and make rules for the purpose of giving effect authority (La Commission des Operations de Bourse
to the Scheme and may authorise the AMC to add to, alter or ("COB")) that an investigation was proceeding. No investor
amend all or any of such terms and rules. complaints were received by Fidelity Investments
International and the notification from the COB did not
2. Power to remove Difficulties
indicate that any such complaints had been made to the
If any difficulties arise in giving effect to the provisions of the COB. The funds have since all been registered. Fidelity
Scheme, the Trustee may, subject to the Regulations, do anything Investments International is a subsidiary of Fidelity
not inconsistent with such provisions, which appears to it to be Investment Management Limited, also incorporated in
necessary, desirable or expedient, for the purpose of removing England and Wales, which in turn is a subsidiary of Fidelity
such difficulty. International Limited, the holding company of FIIA.
3. Penalties and Pending Litigation B. A Director of the Sponsor, Mr. Brett Goodin, has been the
All penalties awarded by SEBI under the SEBI Act or any of the subject of various vexatious actions made to the Taipei
Regulations against the Sponsor or any company associated District Attorney's Office, Taipei, Taiwan by an ex-employee
with the Sponsor in any capacity (including the AMC, the Trustee of Fidelity Investments (Taiwan) Limited. A Director of the
Company, or any of the directors or key personnel (specifically Sponsor, Mr. Brett Goodin, has been the subject of various
the fund managers) of the AMC and the Trustee Company) vexatious actions made to the Taipei District Attorney’s Office,
shall be disclosed. The nature of the penalty must also be Taipei, Taiwan by an ex-employee of Fidelity Investments
disclosed. - None (Taiwan) Limited.This ex-employee has also brought actions
directly against Mr. Brett Goodin and other senior employees.
For the Sponsor and its associates - other than any penalties Fidelity has successfully defended against approximately
mentioned above - the penalties awarded by any financial 100 actions. Five actions remain pending against Mr. Goodin
regulatory body, including stock exchanges, for defaults in respect and Fidelity continues to vigorously defend these allegations.
of shareholders, debenture holders and depositors shall also
be disclosed. Additionally, penalties awarded for any economic 4. Scheme to be binding on the Unit Holders
offence and violation of any securities laws shall be disclosed. Subject to the Regulations, the Trustee may, from time to time,
- Please see (A) below. add or otherwise vary or alter all or any of the features of
Any pending material litigation proceedings incidental to the investment options and terms of the Scheme, if necessary, after
business of the Fund to which the Sponsor or any company obtaining the prior permission of SEBI and Unit Holders and
associated with the Sponsor in any capacity (including the AMC, the same shall be binding on all the Unit Holders of the Scheme
the Trustee Company or any of the directors or key personnel and any person or persons claiming through or under them as
as above) is a party. - None if each Unit Holder or such person expressly had agreed that
such features and terms shall be so binding. Any additions /
Any pending criminal cases against the Sponsor or any company variations / alternations shall be done only in accordance with
associated with the Sponsor in any capacity (including the AMC, the Regulations.
the Trustee Company or any of the directors or key personnel
as above) should also be disclosed separately. - Please see 5. Register of the Scheme's Unit Holders
(B) below. Registers of Unit Holders, containing necessary particulars, will
Any deficiency in the systems and operations of the Sponsor be maintained at the Registered office of the AMC at Mumbai,
or any company associated with the Sponsor in any capacity and at the office of the Registrar at Chennai and at such other
(including the AMC or the Trustee Company) which SEBI has places as the Trustee may decide.
specifically advised to be disclosed in the Offer Document, or
6. Website
which has been notified by any other regulatory agency, shall
be disclosed. - None The website of the Fund / AMC is intended solely for the use of
Resident Indians, NRIs, PIOs and FIIs registered with SEBI. It
Any enquiry / adjudication proceedings under the SEBI Act and should not be regarded as a solicitation for business in any
the Regulations that are in progress against the Sponsor or jurisdiction other than India. In particular, the information is not
any company associated with the Sponsor in any capacity for distribution and does not constitute an offer to sell or the
(including the AMC, the Trustee Company or any of the directors solicitation of an offer to buy securities in any jurisdiction where
or key personnel as above) shall be disclosed. - None such activity is prohibited, including the United States of America.
A. Fidelity Investments International, a company incorporated Any persons resident outside India who nevertheless intend to
in England and Wales and regulated by the Financial respond to this material must first satisfy themselves that they
Services Authority, received a warning ("avertissement") are not subject to any local requirements which restrict or prohibit
from the Conseil de Discipline de la Gestion Financiere them from so doing. Information other than that relating specifically
Other Matters
(Financial Management Disciplinary Committee) in France to the AMC / the Fund and its products, is for information purposes
on May 12, 2003. The basis of the warning was that, between only and should not be relied upon as a basis for investment
1994 and 1998, Fidelity Currency Funds (a Bermuda- decisions. The AMC cannot be held responsible for any
domiciled range of funds) were publicly offered in France information contained in any website linked from this website.
45

Offer Document
7. Omnibus Clause u Copy of the Registrar and Transfer Agent Agreement dated
Besides the AMC, the Trustee / Sponsor may also absorb September 10, 2004 between the AMC and CAMS.
expenditures in addition to the limits laid down under Regulation u Copy of letter of consent of Auditors and Legal Advisors.
52 of the SEBI Regulations.
NOTES:
Further, any amendment / clarification and guidelines including
NOTWITHSTANDING ANYTHING CONTAINED IN THIS OFFER
in the form of notes or circulars issued from time to time by
DOCUMENT, THE PROVISIONS OF THE SEBI (MUTUAL
SEBI for the operation and management of mutual fund shall
FUNDS) REGULATIONS, 1996 AND THE GUIDELINES
be applicable.
THEREUNDER SHALL BE APPLICABLE.
8. Documents Available for Inspection ALL POINTS MENTIONED IN THE STANDARD
Copies of the following documents will be available for inspection OBSERVATIONS ISSUED BY SEBI VIDE THEIR
on all Business Days during the NFO Period and afterwards, 'INSTRUCTIONS FOR FILING OFFER DOCUMENT WITH SEBI'
between 10 a.m. and 3 p.m. at the Registered Office of the DATED DECEMBER 26, 2003 HAVE BEEN INCORPORATED
AMC at 56, 5th Floor, Maker Chambers VI, 220, Nariman Point, IN THIS OFFER DOCUMENT.
Mumbai - 400 021.
THE TERMS OF THE SCHEME WERE APPROVED BY THE
u Copy of Memorandum and Articles of Association of the TRUSTEE AT THEIR MEETING HELD ON JULY 25, 2007. THE
Trustee Company and of the AMC. TRUSTEES HAVE ENSURED THAT THE SCHEME APPROVED
IS A NEW PRODUCT OFFERED BY FIDELITY MUTUAL FUND
u Copy of the Custodian Agreement dated February 17, 2005 AND IS NOT A MINOR MODIFICATION FOR ITS EXISTING
between the Trustee and J P Morgan Chase Bank. SCHEMES.
u Copy of the Investment Management Agreement dated For and on behalf of the Board of Directors of
August 9, 2004 between the Fund and the AMC. Fidelity Fund Management Private Limited
(Asset Management Company for Fidelity Mutual Fund)
u Copy of the Trust Deed dated August 9, 2004.
u Copy of the Fund Registration Certificate dated February Ashu Suyash

17, 2005 from SEBI. Managing Director and Country Head
u Copy of Securities and Exchange Board of India (Mutual
Funds) Regulations, 1996.
Place : Mumbai
u Copy of Indian Trusts Act, 1882. Date : September 12, 2007
Other Matters
46

LIST OF INVESTOR SERVICE CENTRES
FIDELITY FUND MANAGEMENT PRIVATE LIMITED – During NFO and Ongoing Offer
u Ahmedabad : 301, Raindrops Building, Opp. Cargo Motors, C. G. Road, Ellis Bridge, Ahmedabad - 380 006.
u Bangalore : #205-207, 2nd Floor, Phoenix Towers, 16 & 16/1, Museum Road, Bangalore - 560 025.
u Chandigarh : SCO 180-182, First Floor, Sector9 C, Chandigarh - 160 017.
u Chennai : Old No. 90, New No. 104, Ganesha Towers, Dr. Radhakrishnan Salai, Mylapore, Chennai - 600 004.
u Kolkata : 408, 4th Floor, Azimganj House, 7 Camac Street, Kolkata - 700 017.
u Lucknow : North West Side, GroundFloor, Dube Complex, 1, Sapru Marg, Lucknow - 226 001.
u Mumbai : 57, 5th Floor, Maker Chambers VI, 220, Nariman Point, Mumbai - 400 021.
u New Delhi : 4th Floor, Narain Manzil, 23, Barakhamba Road, New Delhi - 110001.
u Pune : Unit No. 406, 4thFloor, Nucleus Mall, 1, Church Road, Camp, Pune - 411 001.
u Secunderabad : No. 1-8-304-307, 3rd Floor, Kamala Towers, Pattigadda Street No. 1, (above Mody Ford showroom),
Begumpet, Secunderabad - 500 003.
CAMS – During Ongoing Offer Only

u Ahmedabad : 402-406, 4th Floor - Devpath Building, Off C G Road, Behind Lal Bungalow, Ellis Bridge, Ahmedabad - 380 006.
u Bangalore : Trade Centre, 1st Floor, 45, Dikensen Road, (Next to Manipal Centre), Bangalore - 560 042.
u Bhubaneswar : 101/5, Janpath, Unit – III, Near Hotel Swosti, Bhubaneswar - 751 001.
u Chandigarh : Deepak Towers, SCO 154-155, 1st Floor, Sector 17-C, Chandigarh - 160 017.
u Chennai : Ground Floor No.178/10, Kodambakkam High Road, Opp. Hotel Palmgrove, Nungambakkam,Chennai - 600 034.
u Cochin : 40 / 9633 D, Veekshanam Road, Near International Hotel, Cochin - 682 035.
u Coimbatore : Old # 66 New # 86, Lokamanya Street (West), Ground Floor, R.S.Puram, Coimbatore - 641 002.
u Durgapur : 4/2, Bengal Ambuja HousingDevelopment Ltd, Ground Floor, City Centre,
Dist - Burdwan, West Bengal, Durgapur - 713 216.
u Goa : No.108, 1st Floor, Gurudutta Bldg, Above Weekender, M G Road, Panaji (Goa) - 403 001.
u Indore : 101, Shalimar Corporate Centre, 8-B, South Tukogunj, Opp.Greenpark, Indore - 452 001.
u Jaipur : G-III, Park Saroj, Behind Ashok Nagar Police Station, R-7, Yudhisthir Marg,C-Scheme, Jaipur - 302 001.
u Kanpur : G – 27,28 – Ground Floor, City Centre, 63/ 2, The Mall, Kanpur - 208 001.
u Kolkata : "LORDS Building",7/1,Lord Sinha Road, Ground Floor, Kolkata - 700 071.
u Lucknow : Off # 4,1st Floor,Centre Court Building, 3/C, 5 - Park Road, Hazratganj, Lucknow - 226 001.
u Ludhiana : U/ GF, Prince Market, Green Field, Near Traffic Lights, Sarabha Nagar Pulli, Pakhowal Road,
Above Dr. Virdi's Lab, P.O Model Town, Ludhiana - 141 002.
u Madurai : 86/71A, Tamilsangam Road, Madurai - 625 001.
u Mangalore : No. G 4 & G 5, Inland Monarch, Opp. Karnataka Bank, Kadri Main Road, Kadri, Mangalore - 575 003.
u Mumbai : Rajabahdur Compound, Ground Floor, Opp Allahabad Bank, Behind ICICI Bank, 30,
Mumbai Samachar Marg, Fort, Mumbai - 400 023.
u Nagpur : 145 Lendra, Behind Indus Ind Bank, New Ramdaspeth, Nagpur - 440 010.
u New Delhi : 304-305 III Floor, KanchenjungaBuilding, 18, Barakhamba Road, Cannaugt Place, New Delhi - 110 001.
u Patna : Kamlalaye Shobha Plaza (1st Floor), Behind RBI Near Ashiana Tower, Exhibition Road, Patna - 800 001.
u Pune : Nirmiti Eminence, Off No. 6, I Floor, Opp Abhishek Hotel MehandaleGarage Road, Erandawane, Pune - 411 004.
u Secunderabad : 102, First Floor, Jade Arcade, Paradise Circle, Secunderabad - 500 003.
u Surat : Office No 2 Ahura -Mazda Complex, First Floor, Sadak Street, Timalyawad, Nanpura, Surat - 395 001.
u Vadodara: 109 - Silver Line, Besides world Trade Centre, Sayajigunj, Vadodara - 390 005.
u Vijayawada : 40-1-68, Rao & Ratnam Complex, Near Chennupati Petrol Pump, M.G Road, Labbipet, Vijayawada - 520 010.
u Visakhapatnam : 47/ 9 / 17, 1st Floor, 3rd Lane,Dwaraka Nagar, Visakhapatnam - 530 016.
47

Offer Document
COLLECTION BANK - DURING NFO ONLY

Citibank N.A.
u Ahmedabad : 3rd Floor, "Rembrandt" C. G. Road, Near Panchvati Circle.
u Bangalore : 506/507, 5th Floor, Prestige Meridian 2, 30 Mahatma Gandhi Road.
u Chandigarh : SCO132/133,Sector 9C, Madhya Marg.
u Chennai : GTS, 3rd Floor, No. 2, Club HouseRoad.
u Hyderabad : Queens Plaza, S. P. Road, Begumpet, Hyderabad - 500 003.
u Kolkata : (a) 9, Brabourne Road (b) Kanak Building,1st Floor 41,Chowringhee Road.
u Lucknow : 17/1, Amren House, Ashok Marg.
u Mumbai : Bombay Mutual Building, Mezzanine Floor, 293 D. N. Road,Fort.
u New Delhi : 4th Floor, Jeevan Bharti Building 124, Connaught Circus.
u Pune : Parmar House, 2413 East Street, Camp.
48

New Fund Offer opens and closes: September 19, 2007

Fidelity Liquid Plus Fund

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OFFER DOCUMENT

AN OPEN ENDED DEBT SCHEME

Presented by Fidelity Mutual Fund

Issue of Units at Rs. 10 per Unit for cash during the

New Fund Offer Opens and Closes: September 19, 2007

This Offer Document is dated September 12, 2007. Kkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk

Sponsor: Trustee: Asset Management Company:

ASSET MANAGEMENT COMPANY

REGISTRAR AND TRANSFER AGENT

AUDITORS TO THE FUND

FIDELITY LIQUID PLUS FUND 1

2 FIDELITY LIQUID PLUS FUND

Name of the Scheme Fidelity Liquid Plus Fund

Purchase Price for Rs.10 per Unit for cash

Plans Retail, Institutional and Super Institutional Plans

Dividend Frequency Retail Plan:

Minimum Initial Application Retail Plan: Rs. 5,000 per application

Minimum Amount/No. of Retail Plan: Rs. 1000 or 100 Units

Minimum Balance Amount/ Retail Plan: Rs. 1000 or 100 Units

Entry Load: NIL

Exit Load: For Redemption Load (% of Applicable NAV)

Within 5 calendar days from the date of 0.10%

FIDELITY LIQUID PLUS FUND 3

4 FIDELITY LIQUID PLUS FUND

Definitions and Abbreviations

Business Day A day not being:

Fidelity International The Sponsor of Fidelity Mutual Fund.

FIDELITY LIQUID PLUS FUND 5

MF/050/05/01 dated February 17, 2005.

Purchase / Subscription Subscription to / Purchase of Units by an investor from the Fund.

Redemption Repurchase of Units by the Fund from a Unit Holder.

Sponsor FIIA, being the Settlor of Fidelity Mutual Fund.

6 FIDELITY LIQUID PLUS FUND

Definitions and Abbreviations

Valuation Day Business Day

Words and Expressions Same meaning as in the Trust Deed.

FIDELITY LIQUID PLUS FUND 7

8 FIDELITY LIQUID PLUS FUND

FIDELITY LIQUID PLUS FUND 9

10 FIDELITY LIQUID PLUS FUND

FIDELITY LIQUID PLUS FUND 11

DUE DILIGENCE CERTIFICATE

12 FIDELITY LIQUID PLUS FUND

Constitution of the Fund

FIDELITY LIQUID PLUS FUND 13

14 FIDELITY LIQUID PLUS FUND

Constitution of the Fund

FIDELITY LIQUID PLUS FUND 15

16 FIDELITY LIQUID PLUS FUND

Constitution of the Fund

VI. Key Employees of the AMC and relevant experience

FIDELITY LIQUID PLUS FUND 17

Employee Designation Age Qualifications Total no. Assignments held Period

(Dealer in fixed income products) 1997-2000

Personnel of Investment Department

18 FIDELITY LIQUID PLUS FUND

Constitution of the Fund

FIDELITY LIQUID PLUS FUND 19

The performance of the Scheme will be benchmarked against

20 FIDELITY LIQUID PLUS FUND

FIDELITY LIQUID PLUS FUND 21

Forward Contracts F. Procedure and Recording of

to day investment management decision will solely be of the