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SCHEME INFORMATION DOCUMENT FIDELITY INCOME SAVER FUND An open-ended income scheme Presented by Fidelity Mutual Fund Offer

of Units of Rs. 10 each for cash during the New Fund Offer and offer of Units at NAV based prices thereafter New Fund Offer opens on: ___, 2011 New Fund Offer closes on: ____, 2011 Scheme re-opens on:------, 2011

Name of Mutual Fund: Fidelity Mutual Fund Office: 6th Floor, Mafatlal Centre, Nariman Point, Mumbai 400 021 Name of Asset Management Company: FIL Fund Management Private Limited Registered Office: 6th Floor, Mafatlal Centre, Nariman Point, Mumbai 400 021 Name of Trustee Company: FIL Trustee Company Private Limited Registered Office: 6th Floor, Mafatlal Centre, Nariman Point, Mumbai 400 021 Website: www.fidelity.co.in The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, as amended till date, and filed with SEBI, along with a Due Diligence Certificate from the AMC. The Units being offered for public subscription have not been approved or recommended by SEBI nor has SEBI certified the accuracy and adequacy of the Scheme Information Document. The Scheme Information Document sets forth concisely the information about the Scheme that a prospective investor ought to know before investing. Before investing, investors should ascertain about any further changes to this Scheme Information Document after the date of this Document from the Mutual Fund / Investor Service Centres / Website / Distributors or Brokers. The investors are advised to refer to the Statement of Additional Information (SAI) for details of Fidelity Mutual Fund, Tax and Legal issues and general information on www.fidelity.co.in. SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of the current SAI, please contact your nearest Investor Service Centre or log on to our website. The Scheme Information Document should be read in conjunction with the SAI and not in isolation. The Scheme Information Document is dated ___, 2011

TABLE OF CONTENTS

I.

INTRODUCTION ............................................................................................................ 4 Risk Factors .................................................................................................................. 4 Requirement of minimum investors in the Scheme...................................................... 7 Special Considerations.................................................................................................. 8 Definitions................................................................................................................... 11 Due diligence by the asset management company ..................................................... 15 Abbreviations.............................................................................................................. 16 Interpretation............................................................................................................... 17 II. INFORMATION ABOUT THE SCHEME.................................................................... 17 D. Where will the Scheme invest?...................................................................................... 18 E. Investment Strategy ...................................................................................................... 19 F. Policy on investment in Foreign Securities .................................................................... 29 G. Fundamental attributes................................................................................................... 30 H. Benchmark ..................................................................................................................... 31 I. Fund Managers ................................................................................................................ 31 J. Investment Restrictions ................................................................................................... 31 K. Scheme performance...................................................................................................... 33 L. Investment in the Scheme by the AMC, Sponsor or their Affiliates............................ 33 III. UNITS AND OFFER.................................................................................................. 34 A. New Fund Offer (NFO) .............................................................................................. 34 B. Ongoing Offer Details................................................................................................. 38 C. Periodic Disclosures.................................................................................................... 46 D. Computation of NAV.................................................................................................. 48 IV. FEES AND EXPENSES............................................................................................. 48 A. Expenses during the NFO ........................................................................................... 48 B. Annual Scheme Recurring Expenses .......................................................................... 48 C. Load Structure............................................................................................................. 50 V. Rights of Unit holders..................................................................................................... 51 VI. Penalties, pending litigation or proceedings, findings of inspections or investigations for which action may have been taken or is in the process of being taken by any regulatory authority .................................................................................................................................. 51 A. B. C. D. E. F. G.
HIGHLIGHTS OF THE SCHEME Name of the Scheme Type of the Scheme Investment Objective Fidelity Income Saver Fund An open ended income fund The investment objective of the Scheme is to generate reasonable returns primarily through investments in government securities, corporate bonds and money market instruments. There is no assurance that the objective of the Scheme will be realised and the Scheme does not assure or guarantee any returns.

Options

The Scheme offers Growth option and Dividend option. The Dividend option offers Dividend Payout and Reinvestment facilities.

Liquidity

Benchmark Transparency Disclosure

NAV

The Scheme will offer Units for Purchase and Redemption at Applicable NAV on every Business Day on an ongoing basis, commencing not later than 5 Business Days from the date of allotment of Units under the Scheme. The Mutual Fund will endeavour to despatch the Redemption proceeds within 3 Business Days from the acceptance of the Redemption request. Crisil Composite Bond Fund Index. The AMC will calculate and disclose the first NAVs of the Scheme within a period of 5 Business Days from the date of allotment of Units under the Scheme. 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.

Load For Purchases (including SIP) during the NFO Period and Ongoing Offer Period the following Exit Load shall be applicable. For Redemption: Within 6 months from the date of allotment or Purchase applying First in First Out basis Load Chargeable (as % of Applicable NAV) 0.5%

A switch-out or a withdrawal under SWP or a transfer under STP may also attract an Exit Load / CDSC like any Redemption. No Exit Load / CDSC will be chargeable in case of switches made between different options of the Scheme. No Exit Load will be chargeable in case of redemption of; (i) Units allotted on account of dividend re-investments; and (ii) Units issued by way of bonus, if any. Minimum Amount Application Rs. 5,000 per application

Minimum Additional Application Amount

Rs. 1,000 and thereafter in multiples of Re. 1

Minimum Amount / No. of Units for Redemption Minimum balance amount / No. of Units

Rs. 1,000 or 100 Units

Rs.1000 or 100 Units

I. INTRODUCTION

A. Risk Factors
1. Standard Risk Factors Investment in Mutual Fund Units involves investment risks such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of principal. As the price / value / interest rates of the securities in which the Scheme invests fluctuates, the value of your investment in the Scheme may go up or down. Past performance of the Sponsor/AMC/Mutual Fund does not guarantee future performance of the Scheme. The name of the Scheme does not in any manner indicate either the quality of the Scheme or its future prospects and returns. The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme beyond the initial contribution of Rs. 1,00,000 (Rupees One Lakh) made by it towards setting up the Fund. The Scheme is not a guaranteed or assured return Scheme.

2. Scheme Specific Risk Factors

a) Risk associated with investing in debt securities Investments in money market instruments would involve a moderate credit risk i.e. risk of an issuer's liability to meet the principal payments. Additionally, money market securities, while fairly liquid, lack a well-developed secondary market, which may restrict the selling ability of the Scheme and may lead to the Scheme incurring losses till the security is finally sold. Money market instruments are also subject to price volatility due to factors such as changes in interest rates (when interest rates in the market rise, the value of a portfolio of money market instruments can be expected to decline), general levels of market liquidity, market perception of credit worthiness of the issuer of such instruments and risks associated with settlement of transactions and reinvestment of intermediate cash flows. The NAV of the Scheme's Units, to the extent that the Scheme is invested in money market instruments, will consequently be affected by the aforesaid factors. The AMC endeavors to manage such risk by the use of in house credit analysis. The performance of the Scheme may be affected by changes in Government policies, general levels of interest rates and risks associated with trading volumes, liquidity and settlement systems. Investments in different types of securities are subject to different levels and kinds of risk. Accordingly, the Scheme's risk may increase or decrease depending upon its investment pattern. E.g. investments in corporate bonds carry a higher level of risk than investments in Government securities. Further, even among corporate bonds, bonds which have a higher rating are comparatively less risky than bonds which have a lower rating. Interest rate risk: As with all debt securities, changes in interest rates may affect the NAV of the Scheme since the price of a fixed income instrument falls when the interest rates move up and vice a versa. The effect is more prominent when the duration of the instrument is higher. Hence the NAV movement of the Scheme consisting of predominantly fixed income securities is likely to have inverse correlation with the movement in interest rates. In case of a floating rate instrument, this risk is lower as a result of periodic reset of the coupon. Spread risk: Though the sovereign yield curve might remain constant, investments in corporate bonds are exposed to the risk of spread widening between corporate bonds and gilts. Typically, if this spread widens, the prices of the corporate bonds tend to fall and so could the NAV of the Scheme. Similar risk prevails for the investments in the floating rate

bonds, where the benchmark might remain unchanged, but the spread over the benchmark might vary. In such an event, if the spread widens, the price and the NAV could fall. Credit risk or default risk: This refers to inability of the issuer of the debt security to make timely payments of principal and / or interest due. It is reflected in the credit rating of the issuer. Hence if the credit rating of the issuer is downgraded, the price of the security will suffer a loss and the NAV will fall. Credit risk factors pertaining to lower rated securities also apply to lower rated zero coupon and deferred interest kind bonds. Lower rated zero coupon and deferred interest kind bonds carry an additional risk in that, unlike bonds that pay interest through the period of maturity, the Scheme by investing in these bonds will realize no cash till the cash payment date and if the issuer defaults, the Scheme may obtain no return on its investment. Liquidity risk: This represents the possibility that the realised price from selling the security might be lesser than the valuation price as a result of illiquid market. If a large outflow from the Scheme is funded by selling some of the illiquid securities, the NAV could fall even if there is no change in interest rates. Illiquid securities are typically quoted at a higher yield than the liquid securities and have higher bid offer spreads. Investment in illiquid securities results in higher current yield for the portfolio. Liquidity risk is a characteristic of the Indian fixed income market today. In addition, money market securities, while fairly liquid, lack a well-developed secondary market, which may restrict the selling ability of the Scheme and may lead to the Scheme incurring losses till the security is finally sold. Reinvestment risk: This is associated with the fact that the intermediate cash flows (coupons, prepayment of principal in case of securitised transactions or principal payment in case a security gets called or repurchased) may not be reinvested at the same yield as assumed in the original calculations. Settlement risk: Different segments of Indian financial markets have different settlement periods and such periods may be extended significantly by unforeseen circumstances. Delays or other problems in settlement of transactions could result in temporary periods when the assets of the Scheme are uninvested and no return is earned thereon. The inability of the Scheme to make intended securities purchases, due to settlement problems, could cause the Scheme to miss certain investment opportunities. Similarly, the inability to sell securities held in the Schemes portfolio, due to the absence of a well developed and liquid secondary market for debt securities, may result at times in potential losses to the Scheme in the event of a subsequent decline in the value of securities held in the Schemes portfolios. Market risk: Lower rated or unrated securities are more likely to react to developments affecting the market and the credit risk than the highly rated securities which react primarily to movements in the general level of interest rates. Lower rated or unrated securities also tend to be more sensitive to economic conditions than higher rated securities. In addition to the factors that affect the values of securities, the NAV of Units of the Scheme will fluctuate with the movement in the broader fixed income market, money market and derivatives market and may be influenced by factors influencing such markets in general including but not limited to economic conditions, changes in interest rates, price and volume volatility in the bond and stock markets, changes in taxation, currency exchange rates, foreign investments, political, and closure of the stock exchanges.

b) Risk associated with investing in derivatives The Scheme may invest in derivative products in accordance with and to the extent permitted under the Regulations and by RBI. Derivative products are specialized instruments that require investment techniques and risk analysis different from those associated with stocks and bonds. The use of a derivative requires an understanding not only of the underlying instrument but of the derivative itself. Trading in derivatives carries a high degree of risk although they are traded at a relatively small amount of margin which provides the possibility of great profit or loss in comparison with the principal investment amount. Thus, derivatives are highly leveraged instruments. Even a small price movement in the underlying security could have an impact on their value and consequently, on the NAV of the Units of the Scheme.

The derivatives market in India is nascent and does not have the volumes that may be seen in other developed markets, which may result in volatility to the values. The Scheme bears a risk that it may not be able to correctly forecast future market trends or the value of assets, indices or other financial or economic factors in establishing derivative positions for the Scheme. Interest Rate Swaps (IRS) are highly specialized instruments that require investment technique and risk analysis different from those associated with equity shares and other traditional securities. The use of a IRS requires not only an understanding of the referenced asset, reference rate, or index but also of the swap itself, without the benefit of observing the performance of the swap under all possible market conditions. Swap agreements are also subject to liquidity risk, which exists when a particular swap is difficult to purchase or sell. Swap agreements may be subject to pricing risk, which exists when a particular swap becomes extraordinarily expensive (or cheap) relative to historical prices or the prices of corresponding cash market instruments. IRS agreements are also subject to counterparty risk on account of insolvency or bankruptcy or failure of the counterparty to make required payments or otherwise comply with the terms of the agreement. There is the possibility that a loss may be sustained by the portfolio as a result of the failure of another party (usually referred to as the "counter party") to comply with the terms of the derivatives contract. Other risks in using derivatives include the risk of mispricing or improper valuation of derivatives and the inability of derivatives to correlate perfectly with underlying assets, rates and indices. Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor. Execution of such strategies depends upon the ability of the fund manager to identify such opportunities. Identification and execution of the strategies to be pursued by the fund manager involve uncertainty and decision of fund manager may not always be profitable. No assurance can be given that the fund manager will be able to identify or execute such strategies. The risks associated with the use of derivatives are different from or possibly greater than, the risks associated with investing directly in securities and other traditional investments.

c) Risks associated with investing in foreign securities/overseas investments/offshore securities Subject to necessary approvals and within the investment objectives of the Schemes, the Schemes may invest in overseas markets which carry risks related to fluctuations in the foreign exchange rates, the nature of the securities market of the country, repatriation of capital due to exchange controls and political circumstances. Since the Schemes would invest only partially in foreign securities, there may not be readily available and widely accepted benchmarks to measure performance of such Schemes. To manage risks associated with foreign currency and interest rate exposure, the Fund may use derivatives for efficient portfolio management including hedging and portfolio rebalancing and in accordance with conditions as may be stipulated under the Regulations or by RBI from time to time. To the extent that the assets of the Schemes will be invested in securities denominated in foreign currencies, the Indian Rupee equivalent of the net assets, distributions and income may be adversely affected by changes in the value of certain foreign currencies relative to the Indian Rupee. The repatriation of capital to India may also be hampered by changes in regulations concerning exchange controls or political circumstances as well as the application to it of other restrictions on investment. d) Risks associated with investing in securitised debt The underlying assets in securitised debt may assume different forms and the general types of receivables include auto finance, credit cards, home loans or any such receipts. Credit risks relating to such receivables depend upon various factors, including macro-economic factors of these industries and economies. Further, specific factors like the nature and adequacy of property

mortgaged against these borrowings, the nature of loan agreement / mortgage deed in case of home loans, adequacy of documentation in case of auto finance and home loans, capacity of a borrower to meet his obligations on borrowings in case of credit cards and intentions of the borrower also influence the risks relating to asset borrowings underlying securitised debt. Additionally, the nature of the asset borrowings underlying the securitised debt also influences the underlying risk, for instance while residential mortgages tend to have lower default rates, repossession and recovery is easier in case of commercial vehicles. Credit rating agencies take into account a series of such factors and follow an elaborate system involving stipulation of margins, over-collateralisation and guarantees to provide a rating for securitised debt. In case of securitised debt, changes in market interest rates and pre-payments may not change the absolute amount of receivables for the investors but may have an impact on the re-investment of the periodic cash flows that an investor receives on securitised papers. Risk due to prepayment: Asset securitization is a process whereby commercial or consumer credits are packaged and sold in the form of financial instruments. In the event of pre-payment of the underlying debt, investors may be exposed to changes in tenor and yield. Liquidity Risk: Presently, despite recent legal developments permitting the listing of securitised debt instruments, the secondary market for securitised debt in India is not very liquid. Even if a more liquid market develops in the future, secondary transactions in such instruments may be at a discount to initial issue price due to changes in the interest rate structure. Limited Recourse and Credit Risk: Certificates issued on investment in securitised debt represent a beneficial interest in the underlying receivables and there is no obligation on the issuer, seller or the originator in that regard. Defaults on the underlying loan can adversely affect the pay outs to the investors and thereby, adversely affect the NAV of the Scheme. While it is possible to repossess and sell the underlying asset, various factors can delay or prevent repossession and the price obtained on sale of such assets may be low. Bankruptcy Risk: If the originator of securitised debt instruments in which the Scheme invests is subject to bankruptcy proceedings and the court in such proceedings concludes that the sale of the assets from originator to the trust was not a 'true sale', then the Scheme could experience losses or delays in the payments due. Normally, care is taken in structuring the securitization transaction so as to minimize the risk of the sale to the trust not being construed as a 'true sale'. Risk of Co-mingling: Servicers in a securitization transaction normally deposit all payments received from the obligors into a collection account. However, there could be a time gap between collection by a servicer and depositing the same into the collection account. In this interim period, collections from the loan agreements by the servicer may not be segregated from other funds of the servicer. If the Servicer fails to remit such funds due to investors, investors in the Scheme may be exposed to a potential loss.

B. Requirement of minimum investors in the Scheme


The Scheme shall have a minimum of 20 investors and no single investor shall account for more than 25% of the corpus of the Scheme. However, if such limit is breached during the NFO of the Scheme, the Fund will endeavour to ensure that within a period of three months or the end of the succeeding calendar quarter from the close of the NFO of the Scheme, whichever is earlier, the Scheme complies with these two conditions. In case the Scheme does not have a minimum of 20 investors in the stipulated period, the provisions of Regulation 39(2)(c) of the Regulations would become applicable automatically without any reference from SEBI and accordingly the Scheme shall be wound up and the units would be redeemed at applicable NAV. The two conditions mentioned above shall also be complied within each subsequent calendar quarter thereafter, on an average basis, as specified by SEBI. If there is a breach of the 25% limit by any investor over the quarter, a rebalancing period of one month would be allowed and thereafter the investor who is in breach of the rule shall be given 15 days notice to redeem his

exposure over the 25 % limit. Failure on the part of the said investor to redeem his exposure over the 25 % limit within the aforesaid 15 days would lead to automatic redemption by the Fund on the applicable Net Asset Value on the 15th day of the notice period. The Fund shall adhere to the requirements prescribed by SEBI from time to time in this regard.

C. Special Considerations
The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme beyond the initial contribution of an amount of Rs.1,00,000 (Rupees One Lakh) collectively made by them towards setting up the Fund or such other accretions and additions to the initial corpus set up by the Sponsor. Neither this Scheme Information Document nor the Units have been registered in any other jurisdiction. The distribution of this Scheme Information Document in certain jurisdictions may be restricted or totally prohibited and accordingly, persons who come into possession of this Scheme Information Document are required to inform themselves about, and to observe, any such restrictions. Prospective investors should review / study this Scheme Information Document carefully and in its entirety and shall not construe the contents hereof or regard the summaries contained herein as advice relating to legal, taxation or financial / investment matters and are advised to consult their own professional advisor(s) as to the legal, tax, financial or any other requirements or restrictions relating to the subscription, gifting, acquisition, holding, disposal (by way of sale, switch or Redemption or conversion into money) of Units and to the treatment of income (if any), capitalisation, capital gains, any distribution and other tax consequences relevant to their subscription, acquisition, holding, capitalisation, disposal (by way of sale, transfer, switch or conversion into money) of Units within their jurisdiction of nationality, residence, incorporation, domicile etc. or under the laws of any jurisdiction to which they or any managed funds to be used to Purchase / gift Units are subject, and also to determine possible legal, tax, financial or other consequences of subscribing / gifting, purchasing or holding Units before making an application for Units. Fidelity Mutual Fund / the AMC have not authorised any person to give any information or make any representations, either oral or written, not stated in this Scheme Information Document in connection with issue of Units under the Scheme. Prospective investors are advised not to rely upon any information or representations not incorporated in this Scheme Information Document as the same have not been authorised by the Fund or the AMC. Any subscription, Purchase or sale made by any person on the basis of statements or representations which are not contained in this Scheme Information Document or which are inconsistent with the information contained herein shall be solely at the risk of the investor. Subject to the Regulations, from time to time, funds managed by the affiliates / associates of the Sponsor may invest either directly or indirectly in the Scheme. The funds managed by these affiliates / associates may acquire a substantial portion of the Scheme's Units and collectively constitute a major investment in the Scheme. Accordingly, Redemption of Units held by such funds may have an adverse impact on the value of the Units of the Scheme because of the timing of any such Redemption and may affect the ability of other Unit Holders to redeem their respective Units. As the liquidity of the Schemes investments may sometimes be restricted by trading volumes settlement periods and transfer procedures, the time taken by the Fund for Redemption of Units may be significant in the event of an inordinately large number of Redemption requests or of restructuring of the Schemes portfolios. In view of this, the Trustee has the right, in its sole discretion, to limit redemptions under certain circumstances as described in the paragraphs Suspension of the Purchase and Redemption of Units and Right to Limit Redemptions in the Statement of Additional Information.

Anti Money Laundering and Know Your Customer (KYC):

Fidelity is committed to complying with all applicable anti money laundering and KYC laws and regulations in all of its operations. Fidelity recognises the value and importance of creating a business environment that strongly discourages money launderers from using Fidelity. To that end, certain policies have been adopted by the AMC. The need to KYC is vital for the prevention of money laundering. In terms of the Prevention of Money Laundering Act, 2002 ("PMLA") the rules issued there under and the guidelines / circulars issued by SEBI regarding the Anti Money Laundering (AML) Laws, all intermediaries, including mutual funds, are required to formulate and implement a client identification programme, and to verify and maintain the record of identity and address(es) of the investors. The AMC has entrusted the responsibility of collection of documents relating to identity and address and record keeping to an independent agency (presently CDSL Ventures Limited) that will act as central record keeping agency ('Central Agency'). As a token of having verified the identity and address and for efficient retrieval of records, the Central Agency will issue a KYC compliance letter to each investor who submits an application and the prescribed documents to the Central Agency. As per AMFI Guidelines with effect from January 01, 2011, KYC formalities under the PMLA and the related guidelines issued by SEBI must be completed by all investors (including Power of Attorney holder and guardian in case of minor) intending to invest in units of mutual funds. This one-time verification is valid for transactions across all mutual funds. The process to complete KYC formalities is as follows: A completed KYC application form along with the documents/information as mentioned below should be submitted to any designated 'Points of Service' (POS) - Fidelity Investor Service Centres, CAMS Investor Service Centres or CVL Centres (CDSL Ventures Ltd.). The POS list is available at www.fidelity.co.in. and at cvlindia.com. A KYC application form can be obtained from any designated POS. The completed KYC application form along with PAN card copy and other necessary documents should be submitted at a POS. (The list of all documents/information required, instructions to fill the form and the detailed process for submission can be found in the KYC application form). After verification of the KYC application form and accompanying documents, investors will receive a letter certifying their KYC compliance. There is no charge for this verification. When investing with the Fund, a copy of the KYC compliance letter should be attached to the Scheme's application form to avoid rejection. All investors, including Power of Attorney holder and guardian in case of minor (for individual investors) intending to invest in units of mutual funds are required to submit a copy of the KYC compliance letter for the transactions in units of the Scheme. Applications submitted without a copy of the KYC compliance letter could be rejected. However, investors investing through Micro SIP i.e. SIP upto Rs. 50,000 per year per investor and also investors residing in the State of Sikkim shall not be subject to KYC formalities as stated above.

Permanent Account Number ("PAN"): As per provisions of SEBI, all investors (resident and non-resident) transacting in the Schemes of Fidelity Mutual Fund, irrespective of the amount of transaction, are required to provide the PAN (supported by a certified* copy of the PAN card) to the AMC. In case of investors who do not provide a certified* copy of the PAN card, the application for transaction in units of the Schemes will be rejected by the Fund. Alternatively, the investor may provide the KYC acknowledgement letter in lieu of the copy of the PAN card.

*Investors are requested to submit a copy along with the original for verification at the investor service centres of the Fund/CAMS, which will be returned across the counter. Alternatively, a distributor empanelled with the Fund can attest a copy. A true copy bearing a Bank Managers or a Notary Publics attestation will also be accepted.

This clause does not apply to investors residing in the state of Sikkim, officials of Central Government, State Government and those appointed by the Courts e.g. Official Liquidator, Court Receiver, etc. (under the category of Government) and investors investing in Micro SIP.

Investors investing in a Micro SIP shall, in lieu of PAN and KYC requirements, be required to furnish an attested copy (self attested / attested by the AMFI registered distributor bearing its AMFI Registration Number) of any of the following photo identification documents and proof of address:

(a) Voter Identity Card; (b) Driving License; (c) Government / Defense identification card; (d) Passport; (e) Photo Ration Card; (f) Photo Debit Card; (g) Employee Identity cards issued by companies registered with Registrar of Companies; (h) Photo identification issued by bank managers of scheduled commercial banks / gazetted officer / elected representatives to the Legislative Assembly / Parliament; (i) Identity card issued to employees of scheduled commercial / state / district co-operative banks; (j) Senior Citizen / Freedom Fighter identity card issued by Government; (k) Cards issued by universities / deemed universities or institutes under statutes like The Institute of Chartered Accountants of India, The Institute of Cost and Works Accountants of India, The Institute of Company Secretaries of India; (l) Permanent Retirement Account Number (PRAN) card issued to new pension system (NPS) subscribers by the central recordkeeping agency (National Securities Depositories Limited); (m) Any other photo identity card issued by Central Government / State Governments / municipal authorities / Government organizations like Employees State Insurance Corporation / Employees Provident Fund Organisation. It is clarified that where photo identification documents contains the address of the investor, a separate proof of address is not required. The aforesaid exemption shall be applicable to (i) investments only by individuals (including Non Resident Indians, but not Persons of Indian Origin), minors and sole proprietary firms; and (ii) joint holders.

Suspicious Transaction Reporting: If after due diligence, the AMC believes that the transaction is suspicious in nature as regards money laundering, the AMC shall report any suspicious transactions to competent authorities under the PMLA and rules / guidelines issued there under by SEBI and / or RBI, furnish any such information in connection therewith to such authorities and take any other actions as may be required for the purposes of fulfilling its obligations under the PMLA without obtaining the prior approval of the investor / Unit Holder / a person making the payment on behalf of the investor.

Investor Protection: As the Scheme is a Income scheme, it is designed to offer investors liquidity and the Fund anticipates that investors will come in and out of the Scheme frequently. Such frequent purchases and redemptions by investors can reduce the returns to long term investors by increasing expenses of the Scheme and can also disrupt portfolio management strategies. Therefore, the Scheme is proposed to be managed with these risks in mind.

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Though the Scheme have no limit on the number of purchases and redemptions by any investor, the AMC reserves the right, under powers delegated by the Trustee, to reject any application, prevent further transactions by a Unit Holder, or redeem the Units held by the Unit Holder at any time prior to the expiry of 30 Business Days from the date of submission of the application if, in the AMC's opinion, a Unit Holder has been indulging in excessively frequent trading or if his trading has been or may be disruptive for the Schemes.

If in the opinion of the AMC, a Unit Holder is indulging in excessively frequent trading or if his trading has been or may be disruptive for the scheme, it shall, under powers delegated by the Trustee, have absolute discretion to reject any application, prevent further transaction by the Unit Holder or redeem the Units held by the Unit Holder at any time prior to the expiry of 30 Business Days from the date of the application. Investors are urged to study the terms of the Scheme Information Document carefully before investing in the Scheme and to retain this Scheme Information Document for future reference.

D. Definitions
In this Scheme Information Document the following terms will have the meanings indicated there against, unless the context suggests otherwise. 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. In respect of valid Purchase applications accepted at the Designated Collection Centre for an investment amount equal to or more than Rs. 1 crore, the NAV of the Business Day on which the funds are available for utilisation shall be applicable subject to the following: (1) Purchase application is accepted before the Cut off time; (2) funds for the entire amount of Purchase/Subscription applications are credited to the bank account of the respective Scheme / Plan before the Cut - off time; and (3) the funds are available for utilisation by the respective Scheme / Plan before the Cut off time without availing any credit facility, whether, intraday or otherwise.

Application Form / Key A form meant to be used by an investor to open a folio and Purchase Units in the Scheme. Any modifications to the Application Form will be made by Information Memorandum 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.

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Application Supported by Blocked Amount / ASBA An application as defined in clause (d) of sub-regulation (1) of regulation 2 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009. Asset Management Company / AMC / Investment Manager Business Day FIL Fund Management Private Limited, the asset management company, set up under the Companies Act 1956, having its registered office at 6th Floor, Mafatlal Centre,, Nariman Point, Mumbai - 400 021 and authorised by SEBI to act as Asset Management Company / Investment Manager to the schemes of Fidelity Mutual Fund. 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 Sales Charge / CDSC A charge to the Unit Holder upon exiting (by way of Redemption) based on the 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. 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. A time prescribed in this Scheme Information 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. 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 Scheme Information Document.

Custodian

Cut-off time

Collection Bank(s)

Designated Collection During the NFO: ISCs and branches of Collection Bank(s) designated by the AMC where the applications shall be received. Centres 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 Scheme Information Document.

Exit Load

A Load (other than CDSC) charged to the Unit Holder on exiting (by way of Redemption) based on period of holding or any other criteria decided by the AMC.

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Foreign Institutional Investors / FII FIL Investment Advisors / FIA Fund of Funds / FOF Foreign Securities

An entity registered with SEBI under Securities and Exchange Board of India (Foreign Institutional Investors) Regulations, 1995 as amended from time to time. The Sponsor of the Fidelity Mutual Fund. A mutual fund scheme that invests primarily in other schemes of the same mutual fund or other mutual funds. Debt and money market securities with rating not below investment grade by accredited/registered credit agencies or such other related securities as are permitted by SEBI vide its circular SEBI/IMD/ Cir. No. 7/10453/07 dated September 26, 2007 and as may be specified from time to time by SEBI and / or RBI. Fidelity Mutual Fund, a Trust registered with SEBI under the Regulations, vide Registration No. MF/050/05/01 dated February 17, 2005. The agreement dated August 9, 2004, entered into between Fidelity Mutual Fund and the AMC, as amended from time to time.

Fund / Mutual Fund

Investment Management Agreement / IMA Investor Service Centre / ISC Load

Official points of acceptance of transaction / service requests from investors. These will be designated by the AMC from time to time. A charge that may be levied 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 options there under) calculated in the manner provided in this Scheme Information 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 ______xx, 2011 to ______xx, 2011 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 as amended from time to time. Ongoing Offer Ongoing Offer Period Offer of Units under the Scheme when it becomes open- ended after the closure of the New Fund 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.

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Purchase Price

The price (being Applicable NAV) at which the Units can be purchased and calculated in the manner provided in this Scheme Information Document. 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. Repurchase of Units by the Fund from a Unit Holder. The price (being Applicable NAV minus Exit Load / CDSC) at which the Units can be redeemed and calculated in the manner provided in this Scheme Information Document. Sale / Purchase of securities with a simultaneous agreement to repurchase/ sell them at a later date. Fidelity Income Saver Fund (including as the context permits, the options there under). This document issued by Fidelity Mutual Fund, offering Units of Fidelity Income Saver Fund for subscription. Any modifications to the Scheme Information Document will be made by way of an addendum which will be attached to the Scheme Information Document. On issuance of addendum, the Scheme Information Document will be deemed to be updated by the addendum. Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 as amended from time to time, including by way of circulars or notifications issued by SEBI and the Government of India.

Registrar

Redemption Redemption Price

Repo/Reverse Repo Scheme Scheme Information Document

SEBI Regulations / Regulations

Statement of Additional The document issued by Fidelity Mutual Fund containing details of Fidelity Information/SAI Mutual Fund, its constitution and certain tax, legal and general information. SAI is legally a part of the Scheme Information Document. Sponsor FIL Investment Advisors, being the Settlor of Fidelity Mutual Fund.

Systematic Investment A plan enabling investors to save and invest in the Scheme on a Plan / SIP monthly/ quarterly/semi annual/annual basis by submitting post-dated cheques / payment instructions. Systematic Transfer Plan / STP A plan enabling Unit Holders to transfer sums on a daily/weekly/ fortnightly/monthly/ 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 /quarterly / half yearly / yearly basis by giving a single instruction. Plan / SWP 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. FIL Trustee Company Private Limited, a company set up under the Companies Act, 1956, to act as the Trustee to Fidelity Mutual Fund. 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.

Trustee / Trustee Company Trust Deed

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Trust Fund Unit Unit Holder Valuation Day

Amounts settled / contributed by the Sponsor towards the corpus of Fidelity Mutual Fund and additions / accretions thereto. The interest of an investor, which consists of one undivided share in the net assets of the Scheme. A person holding Units of the Scheme of Fidelity Mutual Fund offered under this Scheme Information Document. Business Day

Words and Expressions Same meaning as in the Trust Deed. used in this Scheme Information Document and not defined

E. Due diligence by the asset management company


It is confirmed that: i. the draft Scheme Information 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. all legal requirements connected with the launching of the Scheme as also the guidelines, instructions, etc., issued by the Government and any other competent authority in this behalf, have been duly complied with. the disclosures made in the Scheme Information Document are true, fair and adequate to enable the investors to make a well informed decision regarding investment in the proposed scheme. the intermediaries named in the Scheme Information Document and Statement of Additional Information are registered with SEBI and their registration is valid, as on date.

ii.

iii.

iv.

For FIL Fund Management Private Limited Place: Mumbai Date: March xxx, 2011 Name Designation : : Hemang Bakshi Director - Legal and Compliance

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F. Abbreviations
In this Scheme Information Document the following abbreviations have been used. AMC AMFI AOP ASBA BOI CBLO CDSC EFT FII FIA FOF HUF IMA ISC NAV NECS NEFT NRI PIO POA RBI RTGS SEBI SEBI Act SI SIP STP SWP : Asset Management Company : Association of Mutual Funds in India : Association of Persons : Application Supported by Blocked Amount : Body of Individuals : Collateralised Borrowing and Lending Obligation : Contingent Deferred Sales Charge : Electronic Funds Transfer : Foreign Institutional Investor : FIL Investment Advisors, the Sponsor of Fidelity Mutual Fund : Fund of Funds : Hindu Undivided Family : Investment Management Agreement : Investor Service Centre : Net Asset Value : National Electronic Clearing Services : National Electronic Funds Transfer : Non-Resident Indian : Persons of Indian Origin : Power of Attorney : Reserve Bank of India : Real Time Gross Settlement : Securities and Exchange Board of India established under the SEBI Act, 1992 : Securities and Exchange Board of India Act, 1992 : Standing Instructions : Systematic Investment Plan : Systematic Transfer Plan : Systematic Withdrawal Plan

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G. Interpretation
For all purposes of this Scheme Information Document, except as otherwise expressly provided or unless the context otherwise requires: The terms defined in this Scheme Information Document include the plural as well as the singular. Pronouns having a masculine or feminine gender shall be deemed to include the other. 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". 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.

II. INFORMATION ABOUT THE SCHEME (a) Type of the Scheme An open-ended income scheme (b) Investment objective To generate reasonable returns primarily through investments in government securities, corporate bonds and money market instruments. There is no assurance that the objective of the Scheme will be realised and the Scheme does not assure or guarantee any returns.

(c) Asset allocation pattern Under normal circumstances, it is anticipated that the asset allocation shall be as follows: Instruments Indicative Allocation (% of net assets) Maximum Debt Instruments and money market instruments* 100% Minimum 0 Low Medium to Risk Profile

* The Scheme may invest in securitized debt upto 50 % of its net assets. The average maturity profile of the portfolio of the Scheme will generally be in the range of 2-8 years. The Scheme may, subject to applicable regulations from time to time, invest in offshore securities up to 25% of net assets of the Scheme. The Scheme may invest in derivatives up to 100% of the net assets of the Scheme for the purpose of hedging and portfolio balancing purposes. The cumulative gross exposure through equity, debt and derivative positions will not exceed 100% of the net assets of the Scheme Please refer paragraph "Overview of Debt Markets" to understand the debt markets and the instruments available in the debt markets.

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D. Where will the Scheme invest? The Scheme will invest the entire corpus in debt and money market securities. There will be no investment in equity and equity related products. The Scheme may also invest in permitted offshore instruments for diversification in accordance with the requirements stipulated by SEBI/RBI from time to time. The Scheme may also invest in derivatives for the purpose of hedging and portfolio balancing purposes. For details and limits applicable to investment in derivatives please refer paragraph "Investments in Derivatives ". Subject to regulations and prevailing laws as applicable, the portfolio will consist of permissible domestic or international fixed income instruments, most suitable to meet the investment objectives. The instruments listed below could be listed, unlisted, privately placed, secured, unsecured, rated or unrated acquired through primary or secondary market through stock exchanges, over the counter or any other dealing mechanisms. The following investment categories are likely to cover most of the available investment universe. The investments could be coupon bearing (fixed or floating), zero coupon discounted instruments, instruments with put and/or call options or any other type. Weights in the portfolio may not have any correlation to the order of listing. 1. Securities issued or guaranteed by central government, state governments or local governments and / or repos / reverse repos / ready forward contracts in such government securities as are or may be permitted under the Regulations and RBI from time to time (including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills). 2. Securities issued (including debt obligations) by domestic government agencies and statutory bodies, which may or may not be guaranteed by central or state government. 3. Corporate bonds of public sector or private sector undertakings. 4. Debt obligation of banks (public or private sector) and financial institutions. 5. Convertible debentures. (Though the Scheme will not invest in equity and equity related products, the Scheme may have some exposure to equity or equity related instruments to the extent of conversion of these debentures into equity or equity related instruments.) 6. Money market instruments (which includes but is not limited to commercial papers, commercial bills, treasury bills, usance bills, government securities having unexpired maturity upto one year, certificates of deposit, bills rediscounting, CBLO, repo, call money and any other like instruments as are or may be permitted under the Regulations and RBI from time to time.) 7. Deposits of scheduled commercial banks as permitted under the extant Regulations. 8. Securitised debt (asset backed securities, mortgage backed securities, pass through certificates, collateralised debt obligations or any other instruments as may be prevailing and permissible under the Regulations from time to time). 9. Derivatives (which includes but is not limited to interest rate derivatives, currency derivatives, credit derivatives and forward rate agreements or such other derivatives as are or may be permitted under the Regulations and RBI from time to time). 10. Any international fixed income securities as are or may be permitted under the Regulations, RBI or any other applicable laws as may be applicable from time to time. 11. Overseas mutual fund units which are permissible under the Regulations or by any other regulatory body. 12. Any other domestic or any other international instrument as may be permitted under the Regulations or any other regulatory body from time to time.

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For the purpose of further diversification and liquidity, the Scheme may invest in debt/liquid schemes managed by the same AMC or by the asset management company of any other mutual fund without charging any fees on such investments, provided that aggregate inter-scheme investment made in all debt/liquid schemes managed by the same AMC or in debt/liquid schemes managed by the AMC of any other mutual fund shall not exceed 5% of the net asset value of the Fund. For applicable regulatory investment limits please refer paragraph "Investment Restrictions". All investments in the Scheme shall be made in accordance with the regulations and guidelines issued by SEBI/RBI/any other regulatory authority. The above list is only indicative and the Mutual Fund / AMC reserve the right to change the same in the interest of the investors depending on the market conditions, market opportunities, applicable regulations and political and economic factors, but subject to the investment objective as set out in paragraph Investment Objective.

E. Investment Strategy The portfolio will be constructed and actively managed to generate returns to match the investment objective and to maintain adequate liquidity to accommodate funds movement. Capital appreciation opportunities could be explored by extending credit and duration exposure. The average maturity profile of the Scheme will generally be in the range of 2-8 years and will be actively managed subject to the limits prescribed in this Scheme Information Document. The fund management team will take an active view of the interest rate movement supported by quantitative research, to include various parameters of the Indian economy, as well as developments in global markets. Investment views/decisions will be a combination of credit analysis of individual exposures and analysis of macro economic factors to estimate the direction of interest rates and level of liquidity and will be taken, inter alia, on the basis of the following parameters: 1. Prevailing interest rate scenario 2. Returns offered relative to alternative investment opportunities. 3. Quality of the security/instrument (including the financial health of the issuer) 4. Maturity profile of the instrument 5. Liquidity of the security 6. Any other factors considered relevant in the opinion of the fund management team. The fund management team, supported by credit research group will generally adopt a bottom-up approach for securities identification to optimise the risk adjusted returns on the diversified portfolio. The credit quality of the portfolio will be maintained and monitored using the in-house research capabilities as well as the inputs from the independent credit rating agencies. The bottom-up approach for credit issuer and security selection will be complemented by a top-down view for overall duration and credit allocation decisions. Investments in debt instruments carry various risks such as interest rate risk, liquidity risk, default risk, reinvestment risk etc. Whilst such risks cannot be eliminated, they may be minimized by diversification and effective use of hedging techniques. Further, the portfolio of the Scheme will be constructed in accordance with the investment restriction specified under the Regulations which would help in mitigating certain risks relating to investments in securities market.

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The Scheme may invest upto 100% of the net assets of the Scheme in derivatives for the purpose of hedging and portfolio balancing purposes. Hedging does not mean maximization of returns but only attempts to reduce systemic or market risk that may be inherent in the investment. The Scheme may also invest in permitted offshore instruments for diversification. Investments in Securitised Debt I The various asset classes which are generally available for securitisation in India are: Commercial Vehicles Construction equipments Auto and two wheeler pools Mortgage pools Personal loan, credit cards and other retail loans Micro finance loans Corporate loans / receivables

As and when new asset classes of securitised debt are introduced, the investments in such instruments will be evaluated on a case by case basis. The dedicated credit research team which supports the Fund Manager will generally adopt a bottom up approach while assessing the originator and will consider various factors for the purpose of identification of the securitised debt to which the Scheme could take exposure which will include profile of the issuer / originator, nature of asset class, analysis of underlying loan portfolio, seasoning of loans, geographical distribution of loans, coverage provided by credit-cum-liquidity enhancements, pre-payment risks (if any), assessment of credit risk associated with the underlying borrower and other associated risks. The internal credit research team is integrated with Fidelitys global research team and regular interaction with the global team enables them to get timely updates on various developments on fixed income markets including securitisation. Investments in securitised debt will be done in accordance with the overall investment objective and the risk profile of a Fund and will primarily be for the purposes of achieving portfolio diversification and optimising returns. Securitisation enables end investors to obtain exposure to large number of smaller size retail loans, which can help diversify idiosyncratic risk. Carefully created portfolio of good quality loans, combined with adequate credit enhancements can, from time to time, provide good riskadjusted investment opportunities for the investing scheme. It must be noted that the Securitised debt instruments are relatively less liquid in the secondary market, but the Scheme has an exit load which will provide adequate flexibility to the Scheme to prudently manage liquidity risks while investing in such instruments. The various disclosures with respect to securitised debt made in this Scheme Information Document will help the investors to assess and understand the risks which the Scheme will be subject to as a result of investments in securitised debt.

The credit research team awards an internal rating for various issuers based on the independent research and by following Fidelity's internal credit process taking into account issuer's / originator's historical track record, prevailing rating and financial statements.

The issuer / originator will be evaluated based on various parameters including but not limited to track record - the Fund Manager will generally consider investing in securitised debt wherein the originators / its parents normally have a track record of at least 2 years. In conjunction with the track record, other relevant factors which will be considered are level of credit enhancement, support from the parent and the ownership structure of the securitization vehicle. the willingness and ability to pay For transactions with recourse to the originator, internal credit assessment of the originator would play a crucial role in determining the willingness and ability to pay. For transactions without recourse to the originator, credit enhancement facilities in

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the form of cash collateral, such as fixed deposits, bank guarantee etc could be obtained as a risk mitigation measure. A detailed financial risk assessment of the issuer / originator will be carried out by identifying the financial risks specific to the issuer / originator including assessment of the issuer's financial statements. Also the following critical evaluation parameters would be considered by the Fund Manager / the credit research team: High default track record/ frequent alteration of redemption conditions / covenants High leverage ratios of the ultimate borrower (for single-sell downs) both on a standalone basis as well on a consolidated level/ group level Higher proportion of reschedulement of underlying assets of the pool or loan, as the case may be Higher proportion of overdue assets of the pool or the underlying loan, as the case may be Poor corporate governance Insufficient track record of servicing of the pool or the loan, as the case may be.

After the evaluation of the aforesaid parameters at the of the time of investment, the monitoring of investments in securitised debt is done on regular intervals by the credit team and in case of any major event, the assessment of the critical evaluation parameters is done again.

The underlying assets in securitised debt may assume different forms and the general types of receivables include auto finance, credit cards, home loans or any such receipts. Credit risks relating to such receivables depend upon various factors, including macro-economic factors of these industries and economies. Further, specific factors like the nature and adequacy of property mortgaged against these borrowings, the nature of loan agreement / mortgage deed in case of home loans, adequacy of documentation in case of auto finance and home loans, capacity of a borrower to meet his obligations on borrowings in case of credit cards and intentions of the borrower also influence the risks relating to asset borrowings underlying securitised debt. Additionally, the nature of the asset borrowings underlying the securitised debt also influences the underlying risk, for instance while residential mortgages tend to have lower default rates, repossession and recovery is easier in case of commercial vehicles. Credit rating agencies take into account a series of such factors and follow an elaborate system involving stipulation of margins, over-collateralisation and guarantees to provide a rating for securitised debt. Risks associated with investments in securitised debt: Risk due to prepayment: In case of securitised debt, changes in market interest rates and prepayments may not change the absolute amount of receivables for the investors but may have an impact on the re-investment of the periodic cash flows that an investor receives on securitised papers. In the event of pre-payment of the underlying debt, investors may be exposed to changes in tenor and yield. Liquidity Risk: Presently, despite recent legal developments permitting the listing of securitised debt instruments, the secondary market for securitised debt in India is not very liquid. Even if a more liquid market develops in the future, secondary transactions in such instruments may be at a discount to initial issue price due to changes in the interest rate structure. Limited Recourse and Credit Risk: Certificates issued on investment in securitised debt represent a beneficial interest in the underlying receivables and there is no obligation on the issuer, seller or the originator in that regard. Defaults on the underlying loan can adversely affect the pay outs to the investors and thereby, adversely affect the NAV of the Scheme. While it is possible to repossess and sell the underlying asset, various factors can delay or prevent repossession and the price obtained on sale of such assets may be low. Bankruptcy Risk: If the originator of securitised debt instruments in which the Scheme invests is subject to bankruptcy proceedings and the court in such proceedings concludes that the sale of the assets from originator to the trust was not a 'true sale', then the Scheme could experience losses or

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delays in the payments due. Normally, care is taken in structuring the securitization transaction so as to minimize the risk of the sale to the trust not being construed as a 'true sale'. Risk of Co-mingling: Servicers in a securitization transaction normally deposit all payments received from the obligors into a collection account. However, there could be a time gap between collection by a servicer and depositing the same into the collection account. In this interim period, collections from the loan agreements by the servicer may not be segregated from other funds of the servicer. If the Servicer fails to remit such funds due to investors, investors in the Scheme may be exposed to a potential loss.

Risk Mitigation: Investments in securitised debt will be done based on the assessment of the originator and the securitised debt which is carried out by the credit research team based on the in-house research capabilities as well as the inputs from the independent credit rating agencies and by following Fidelity's internal credit process. Further, the AMC has appointed investment committees (which have as its members the Global Chief Investment Officer and Group Leader - Asia Fixed Income) for the debt / fixed income schemes which meets periodically to review the investments made by the Scheme including securitised debt. In order to mitigate the risk at the issuer / originator level the credit team will consider various factors which will include size and reach of the issuer / originator; collection process; the infrastructure and follow up mechanism; the quality of information disseminated by the issuer / originator; and the credit enhancement for different types of issuer / originator. The examples of securitized assets which may be considered for investment by the Scheme and the various parameters which will be considered include; A) Asset backed securities issued by banks or non-banking finance companies. Underlying assets may include receivables from loans against cars, commercial vehicles, construction equipment or unsecured loans such as personal loans, consumer durable loans. The various factors which will be usually considered while making investments in such type of securities include profile of the issuer, analysis of underlying loan portfolio nature of asset class, seasoning of loans, geographical distribution of loans and coverage provided by credit-cum-liquidity enhancements. B) Mortgage backed securities issued by banks or housing finance companies, where underlying assets are comprised of mortgages / home loan. The various factors which will be usually considered while making investments in such type of securities include issuer profile of the issuer, quality of underlying portfolio, seasoning of loans, coverage provided by credit-cum-liquidity enhancements and prepayment risks. C) Single loan securitization, where the underlying asset comprises of loans issued by a bank / nonbanking finance company. The factor which will be usually considered while making investments in such type of securities include assessment of credit risk associated with the underlying borrower as well as the originator. The dedicated credit research team will adhere to the Fidelity's internal credit process and perform a detailed review of the underlying borrower prior to making investments. The Fund Manager will invest in securitised debt which are rated investment grade and above by a credit rating agency recognised by SEBI. While the risks mentioned above cannot be eliminated completely, they may be minimized by considering the diversification of the underlying assets and credit and liquidity enhancements. Further, investments in securitised debt will be done in accordance with the investment restrictions specified under the Regulations / this Scheme Information Document which would help in mitigating certain risks. Currently, as per the Regulations, the Scheme cannot invest more than 15% of its net assets in debt instruments (irrespective of residual maturity) issued by a single issuer which are

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rated not below investment grade by a credit rating agency authorised to carry out such activity under the Act. Such investment limit may be extended to 20% of the net assets of the Scheme with the prior approval of the Board of Trustees and the Board of the AMC. In addition, a detailed review and assessment of the ratings of the securitised debt will also be carried out which could include interactions with the issuer / originator and the rating agency. The rating agency would normally take in to consideration the following factors while rating a securitised debt: Credit risk at the asset / originator / portfolio / pool level Various market risks like interest rate risk, macro economic risks Counterparty risk Legal risks assessment of risks related to business for example outlook for the economy, outlook for the industry and factors specific to the issuer / originator.

The framework which will generally be applied by the Fund Manager while evaluating the investment decision with respect to securitised debt will be as follows:

Characteristics/Type of Pool

Mortgag e Loan

Commercial Vehicle and Construction Equipment

CAR

2 wheelers

Micro Finance Pools

Persona l Loans

Single loan Sell Downs

Others

Approximate Average maturity (in Months)

6 months to 120 months In excess of 3%

3 months to 60 months

Collateral margin (including cash ,guarantees, excess interest spread , subordinate tranche) Average Loan to Value Ratio Average seasoning of the Pool Maximum single exposure range * Average single exposure range %*

In excess of 5%

3 months to 60 months In excess of 5%

3 months to 36 months In excess of 5%

1month to 12 months In excess of 10%

3 months to 12 months In excess of 10%

1 month to 120 months Case by case basis

95% or lower Minimum 3 months < 2.5% < 1%

90% or lower Minimum months < 1% < 0.5% 3

90% or lower Minimu m 3 months < 1% < 0.5%

90% or lower Minimum 3 months < 1% < 0.5%

Unsecur ed Minimu m 2 months <0.5% < 0.25%

Unsecur ed Minimu m 3 months <0.5% < 0.25%

Case by case basis Case by case basis Not Applicable Not Applicable

As and when new asset classes of securitised debt are introduced, the investments in such instruments will be evaluated on a case by case basis.

*denotes % of a single ticket / loan size to the overall assets in the securitised pool. Note: The information illustrated in the table above is based on current scenario relating to securitised debt market and is subject to change depending upon the change in the related factors. In addition to the framework stated in the table above, in order to mitigate the risks associated with the underlying assets where the diversification is less, at the time of investment the credit team could consider various factors including but not limited to Size of the loan - the size of each loan is generally analysed on a sample basis and an analysis of the static pool of the originator is undertaken to ensure that the same matches with the static pool characteristics. It also indicates whether there is high reliance on very small ticket size borrower which could result in delayed and expensive recoveries.

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Average original maturity of the pool of underlying assets - the analysis of average maturity of the pool is undertaken to evaluate whether the tenor of the loans are generally in line with the average loans in the respective industry and repayment capacity of the borrower. Loan to value ratio, average seasoning of the pool of underlying assets - these parameters would be evaluated based on the asset class as mentioned in the table above. Default rate distribution - the credit team generally ensures that all the contracts in the pool are current to ensure zero default rate distribution. Geographical distribution - the analysis of geographical distribution of the pool is undertaken to ensure prevention of concentration risk. Credit enhancement facility - credit enhancement facilities in the form of cash collateral, such as fixed deposits,bank guarantee etc could be obtained as a risk mitigation measure. Liquid facility - these parameters will be evaluated based on the asset class as mentioned in the table above. Structure of the pool of underlying assets - The structure of the pool of underlying assets would be either single asset class or combination of various asset classes as mentioned in the table above. We could add new asset class depending upon the securitisation structure and changes in market acceptability of asset classes.

Under normal market conditions, the minimum retention period of the debt by the originator prior to securitisation and the minimum retention percentage by originator of debts to be securitised which will be considered by the Fund Manager will be 2- 3 months and 3% -10% respectively, depending on the asset class. However, in case standard guidelines are issued by the Reserve Bank of India on securitisation, then the minimum retention period of the debt by the originator prior to securitisation and the minimum retention percentage by originator of debts to be securitised shall be as specified in the RBI guidelines.

There is a dedicated credit research team which supports the Fund Manager in taking investments decisions. Investments by the scheme in any security are done after detailed analysis by the credit research team and in accordance with the investment objectives and the asset allocation pattern of a scheme. All investments are made on an arms length basis without consideration of any investments (existing / potential) in the schemes made by any party related / involved in the transaction. The robust credit process ensures that there is no conflict of interests when a scheme invests in securitised debt of an originator and the originator in turn makes investments in that particular scheme. The resources for and mechanisms of individual risk assessment with the AMC for monitoring investment in securitized debt are as follows: Team dedicated to credit analysis. Currently, the AMC has a team of 3 credit analysts, who are responsible for credit research and monitoring, for all exposures including securitised debt. Depending upon the asset class that is securitized a dedicated analyst would be responsible for each individual securitised debt investment. Ratings are monitored for any movement Based on the cashflow report and analyst view, periodic review of utilization of credit enhancement shall be conducted and ratings shall be monitored accordingly For legal and technical assistance with regard to the documentation of securitised debt instruments, the team can make use of resources within the internal legal team and if required take help of our external legal counsel as well.

Further, the portfolios of the Funds will be constructed in accordance with the investment restriction specified under the Regulations which would help in mitigating certain risks relating to investments in securities market.

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Investments in derivatives: The Scheme may invest in various derivatives instruments including interest rate swaps, currency swaps and forward contracts which are available for investment in Indian markets from time to time and which are permissible under the Regulations and by the RBI from time to time. Investment in such instruments will be made in accordance with the investment objective and the strategy of the Scheme to protect the value of the portfolio. The investments shall also be subject to the internal limits as may be laid down from time to time and such limits and restrictions as may be prescribed by the Regulations or any other regulatory body.

Concepts and Examples: Derivatives are financial contracts of pre-determined fixed duration, whose values are derived from the value of an underlying primary financial instrument, commodity or index, such as: interest rates, exchange rates, commodities, and equities. Interest Rate Swaps Interest Rate Swaps is an agreement between two parties (counterparties) to exchange payments at specified dates on the basis of a specific amount with reference to a specified reference rate. Swap Agreements provide for period payment dates for both parties where payments are netted and only the net amount is paid to the counterparty entitled to receive the net payment. Consequently, the Schemes current obligations (or rights) under a swap agreement will generally be equal only to the net amount to be paid or received under the agreement, based on the relative values of the possession held by each counterparty. Example of a swap transaction: Assume that the Scheme has a Rs. 50 crore floating rate investment linked to MIBOR (Mumbai Inter Bank Offered Rate). Thus, the Scheme has a potential interest rate risk and stands to incur a loss if the interest rate moves down. To hedge this interest rate risk, the Scheme can enter into a 6 month MIBOR swap on July 1, 2009 for 6 months that is upto January 1, 2010. Through this swap, the Scheme will receive a fixed determined rate (assume 6%) and pays the benchmark rate (MIBOR), which is fixed by an intermediary who runs a book and matches deals between various counterparties, such intermediary could be the NSE or the Reuters. This swap would effectively lock in the interest rate of 6% for the next 6 months, eliminating the daily interest rate risk. On January 1, 2010 the Scheme is entitled to receive interest on Rs. 50 crore at 6% for 180 days i.e., Rs. 1.5 crores (this amount is known at the time the swap is concluded) and will pay the compounded benchmark rate. The counterparty is entitled to receive the daily compounded call rate for 180 days and pay 6% fixed rate. On January 1, 2010, if the total interest on the daily overnight compounded benchmark rate is higher than Rs. 1.5 crore, the Scheme will pay the difference to the counterparty. If the daily compounded benchmark rate is lower, then the counterparty will pay the Scheme the difference. Effectively, the Scheme earns interest at the rate of 6% p.a. for 6 months without lending money for 6 months fixed, whilst the counterparty pays interest @ 6% p.a. for 6 months on Rs. 50 crores without borrowing for 6 months fixed. Forward Rate Agreement Forward rate agreement is a transaction in which the counterparties agree to pay or receive the difference between an agreed fixed rate and the interest rate prevailing on a stipulated future date, based on a notional amount, for an agreed period. As the interest rate is fixed now for a future period, the only payment is the difference between the agreed fixed rate and the reference rate in the future. As in the case of interest rate swaps, only notional amounts are exchanged. Assume that on June 30, 2009, the 90 day commercial paper (CP) rate is 6.75% and the Scheme has an investment in a CP of face value Rs. 25 crores which is going to mature on September 30, 2009.

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If the interest rates are likely to remain stable or decline after September 2006, and if the fund manager, who wants to re-deploy the maturity proceeds for 3 more months, does not want to take the risk of interest rates going down, he can then enter into a following forward rate agreement (FRA) say as on June 30, 2009: He can receive 3 X 6 FRA on June 30, 2009 at 6.75% (FRA rate 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. If the CP benchmark on the settlement date i.e. September 30, 2009 falls to 6.5%, then the Scheme receives the difference 6.75 - 6.5 i.e. 25 basis points on the notional amount Rs. 25 crores for 3 months. The maturity proceeds are then reinvested at say 6.5% (close to the benchmark). The scheme, however, would have locked in the rate prevailing on June 30,2006 (6.75%) as it would have received 25 basis points more as settlement amount from FRA. Thus the fund manager can use FRA to mitigate the reinvestment risk. In this example, if the rates move up by 25 basis points to 7% on the settlement date (September 30,2009), the Scheme loses 25 basis points but since the reinvestment will then happen at 7%, effective returns for the Scheme is unchanged at 6.75%, which is the prevailing rate on June 30,2009. Forward Contracts Forward contract is a transaction in which the buyer and the seller agree upon the delivery of a specified quality (if commodity) and quantity of underlying asset at a predetermined rate on a specified future date. Assume that on June 30, 2009, the scheme has invested 1 million dollars in a US treasury security. Fund manager expects that the yields in the US will come down in the next 6 months and plans to sell the asset on December 31, 2009 to book the gain. Rupee is trading at Rs. 44 to a US Dollar on June 30, 2009. If rupee appreciates compared to the Dollar in these 6 months to say Rs. 43.50 per Dollar, the Scheme will earn lower returns in Rupee terms when the fund manager sells the investments on December 31, 2009 and converts the proceeds into Rupees. He can mitigate this exchange rate risk by entering into a forward contract to sell 1 million dollars on June 30, 2006 for value December 31, 2009 (6 month forward) and receive the prevailing premium of say 40 paise per Dollar i.e. he has locked in a rate of Rs. 44.40 per US Dollar for delivery on December 31,2009. With this the Scheme is not exposed to the loss of Rupee appreciation or profit from Rupee depreciation.

Please note that investments in forward contracts will be made by the Scheme as and when permitted under the Regulations. Please note that the above examples are based on assumptions and are used only for illustrative purposes.

Overview of Debt Markets Indian fixed income market, one of the largest and most developed in South Asia, is now well integrated with the global financial markets. Increase in the limit of foreign institutional investors' investment in the domestic fixed income market to US$ 20 billion (US$ 5 billion in government securities and US$ 15 billion in corporate debt) and a road map for the convertibility of Rupee will certainly result in attracting global investors to the Indian Market. Screen based order matching system developed by the Reserve Bank of India (RBI) for trading in government securities, straight through settlement system for the same, settlements guaranteed by the Clearing Corporation of India and innovative instruments like CBLO have contributed in reducing the settlement risk and increasing the confidence level of the market participants. The RBI reviews the monetary policy four times a year giving the guidance to the market on direction of interest rate movement, liquidity and credit expansion. The central bank has been operating as an independent authority, formulating the policies to maintain price stability and adequate liquidity. Bonds are traded in dematerialised form and institutional investors' preference for listed instruments

26

has resulted in most of the bonds getting listed. This has improved the disclosure standards by the issuers. Credit rating agencies have been playing an important role in the market and are an important source of information to manage the credit risk. Government (Central and State) is the largest issuer of debt in the market. Public sector enterprises, quasi government bodies and private sector companies are other issuers. Insurance companies, provident funds, banks, mutual funds, financial institutions, corporates and FIIs are major investors in the market. Government loans are available up to 30 years maturity. Variety of instruments available for investments including plain vanilla bonds, floating rate bonds, money market instruments, structured obligations and interest rate derivatives, make it possible to manage the interest rate risk effectively. Daily average turnover in gilts ranges from Rs.5000 crores to Rs. 15,000 crores. Further, the volume in corporate bonds excluding commercial papers and certificate of deposits is around Rs. 250 crores. The securities available are listed or unlisted, secured or unsecured, public issue or private placements.

Indicative levels of the instruments currently trading are as follows: Instrument CBLO / Repo CP / CD / T Bills Securitised Debt PSU bonds / Corporate Bonds Central / State Govt. Securities Maturity Short One Year One Year Medium Low to High Yield 5.50 % to 6.60% 7.60% to 11.00% 11.00% to 12.50% 9.00% to 9.80% 7.50% to 8.60% Medium High Liquidity Very High High Low

These are only indicative levels in February 2011 and are likely to change depending upon the prevailing market conditions.

Investments in debt and money market instruments Investments in debt and money market instruments shall be made in line with achieving the stated investment objectives and for managing liquidity. The Schemes investment strategy is different from the investment strategies of the existing debt schemes of the Fund as stated below and therefore the Scheme is different from the existing debt schemes:

Product Differentiation

No.

Name of the Scheme

Asset Allocation Pattern

Primary Pattern

Investment

Differentiation

AUM as on February 28, 2011 (Rs. in crores)

Number o Folios a on February 28, 2010

1.

Fidelity Flexi Bond Fund

Debt and Money market instruments including securitized debt upto 100% of the net assets

The portfolio will be constructed and actively managed to generate returns to match the investment objective and to maintain adequate liquidity to accommodate funds

The scheme is an open-ended income scheme that invests in debt and money market instruments to generate reasonable returns.

36.58

1386

27

movement. Capital appreciation opportunities could be explored by extending credit and duration exposure. The fund management team will take an active view of the interest rate movement supported by quantitative research, to include various parameters of the Indian economy, as well as developments in global markets.

The portfolio is constructed and actively managed to generate returns to match the investment objective and to maintain adequate liquidity to accommodate funds movement. The scheme could invest in debt /money market securities with varying maturities (currently 0-30 years)

2.

Fidelity Cash Fund

Debt and Money market instruments including securitized debt upto 100% of the net assets.

The portfolio will be constructed and managed to generate returns to match the investment objective and to maintain adequate liquidity to accommodate funds movement. As the interest rate risk of the portfolio is likely to be similar to that of the money market curve, in line with the investment objective, a significant proportion of the total returns is likely to be in the form of income yield or accrual.

The scheme is an open-ended liquid scheme as defined under the SEBI Regulations and the scheme invests only in debt/money market securities with maturity of up to 91 days. The interest rate risk of the portfolio of the scheme is likely to be similar to that of money market curve.

385.75

2935

3.

Fidelity Ultra Short Term Debt Fund

a) Money market and debt instruments with average maturity of not greater than 1 year, 65- 100% of net assets b) Debt Instruments with average maturity more than 1 year., 0-35% of the net assets

The portfolio will be constructed and actively managed to generate returns to match the investment objective and to maintain adequate liquidity to accommodate funds movement. As the interest rate risk of the portfolio is likely to be similar to that of the shorter end of the maturity spectrum, in line with the investment objective, a significant proportion of the total returns is likely to be in the form of income yield or accrual. Selective capital appreciation opportunities could be explored by extending credit and

The scheme is an open-ended debt scheme that invests maximum of 35% of its net assets in debt/money market instruments with average maturity greater than 1 year and minimum of 65% of its net assets in debt/money market instruments with average maturity not greater than 1 year. The interest rate risk of the portfolio is likely to be similar to that of the shorter end of

792.31

2939

28

duration exposure above that offered by a cash fund.

the spectrum.

maturity

4.

Fidelity Flexi Gilt Fund

Securities, issued by Central Government/ State Government(s) including reverse repo in Medium such securities as may be permitted by SEBI/RBI from time to time and money market instruments - upto 100% of net assets. a) Debt Instruments and money market instruments with average maturity less than or equal to two years - 65% - 100% of the net assets b) Debt Instruments and money market instruments with average maturity of more than two years - 0- 35%

The portfolio will be constructed and managed to generate sovereign linked returns to match the investment objective and to maintain adequate liquidity to accommodate funds movement.

The scheme is an open-ended gilt scheme. The scheme predominantly invests in securities issued by the Central Government/State Government(s) including reverse repo in such securities.

37.19

515

5.

Fidelity Short Term Income Fund

The portfolio will be constructed and actively managed to generate returns to match the investment objective and to maintain adequate liquidity to accommodate funds movement. The fund management team, supported by credit research group will generally adopt a bottom-up approach for securities identification to optimise the risk adjusted returns on the diversified portfolio. The credit quality of the portfolio will be maintained and monitored using the inhouse research capabilities as well as the inputs from the independent credit rating agencies.

The scheme is an open-ended debt scheme that invests minimum of 65% of its net assets in debt/money market instruments with average maturity less than or equal to two years and maximum of 35% of its net assets in debt/money market instruments with average maturity not greater than two years. The modified duration of the portfolio of the Scheme is likely to be up to 3 years, while the maximum residual maturity of the portfolio will be up to 5 years.

373.38

1156

For details on investment strategy of each of the schemes, please refer the respective scheme information documents F. Policy on investment in Foreign Securities

29

It is the Investment Manager's belief that overseas securities offer new investment and portfolio diversification opportunities into multi-market and multi-currency products. However, such investments also entail additional risks. Such investment opportunities may be pursued by the Investment Manager provided they are considered appropriate in terms of the overall investment objectives of the Schemes of the Fund. The Schemes may then, if necessary, seek applicable permission from SEBI to invest abroad in accordance with the respective investment objectives and in accordance with any guidelines issued by SEBI from time to time. Offshore/overseas investments will be made subject to any/all approvals or conditions stipulated under the Regulations or by RBI and provided such investments do not result in expenses to the Fund in excess of the ceiling on expenses prescribed by and are consistent with costs and expenses attendant to international investing. The details of calculation for charging such expenses shall be reported to the Boards of AMC and trustees and shall also be disclosed in the Annual Report of the Schemes. The Fund may, where necessary, appoint dedicated fund managers and other intermediaries of repute as advisors, custodian/sub-custodians etc. for managing and administering such investments. The appointment of such intermediaries shall be in accordance with the applicable requirements of SEBI and within the permissible ceilings of expenses. The fees and expenses would illustratively include, besides the investment management fees, custody fees and costs, fees of appointed advisors and sub-managers, transaction costs and overseas regulatory costs. G. Fundamental attributes The following are the fundamental attributes of the Scheme, in terms of Regulation 18 (15A) of the Regulations: i. ii. Type of the Scheme: an open - ended income fund Investment Objective under the Scheme: o Main Objective : (Please refer to paragraph Investment Objective of the Scheme above for details) Investment pattern: The tentative investment pattern with minimum and maximum asset allocation, while retaining the option to alter the asset allocation for a short term period on defensive considerations. (Please refer to paragraph Asset Allocation Pattern above for details)

iii.

Terms of Issue: o o Liquidity provisions of the Scheme such as listing, repurchase, redemption; and Aggregate fees and expenses charged to the Scheme (Please refer to paragraph Fees and Expenses for details).

In accordance with Regulation 18(15A) of the Regulations, the Trustees shall ensure that no change in the fundamental attributes of the Scheme or the trust or fee and expenses payable or any other change which would modify the Scheme and affect the interests of Unit holders is carried out unless:

A written communication about the proposed change is sent to each Unit holder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the Head Office of the Mutual Fund is situated; and The Unit holders are given an option for a period of 30 days to exit at the prevailing Net Asset Value without any exit load.

30

H. Benchmark The performance of the Scheme will be benchmarked against the CRISIL Composite Bond Fund Index. The Scheme can invest in government and corporate debt and money market instruments across the maturity spectrum and therefore the CRISIL Composite Bond Fund Index which tracks the returns on the constituents like the Call Index, the CP Index, the AAA Index, AA Index and the Gilt Fund Index is an appropriate choice of benchmark for the Scheme.

I. Fund Managers The Scheme will be managed by Mr. Shriram Ramanathan Name

Age

Qualification

Shriram 34 Ramanathan

CFA (CFA Institute), PGDBM (XLRI, Jamshedpur ) Bachelors Degree in Electrical Engineering (Sardar Patel College of Engineering, Mumbai)

Total no. Assignments held during last 10 Period of years of years From - To experience ING Investment Management Asia Pacific 2008 10 to - Hong Kong 2009 (Senior Investment Manager Global Emerging Market Debt (Asia) ING Investment Management Asia Pacific 2005 - Hong Kong 2008 (Investment Manager Global Emerging Market Debt (Asia) ING Investment Management (India) 2003 Private Limited. (Portfolio Manager - Fixed 2005 Income (India) Zurich (India) Asset Management Company (Dealer / Research, Fixed Income (India) ICICI Bank Limited - (Treasury) Larsen & Toubro Limited (Design Department, Switchgear Group ) 2001 2003 to

to

to

2000 2001 1997 1998

to to

Mr. Shriram Ramanathan is also the Fund Manager for Fidelity Cash Fund, Fidelity Ultra Short Term Debt Fund, Fidelity Flexi Bond Fund, Fidelity Flexi Gilt Fund, Fidelity Wealth Builder Fund, Fidelity Fixed Maturity Plan - Series II- Plan D., Fidelity Fixed Maturity Plan - Series III - Plans E and F and Fidelity Fixed Maturity Plan - Series IV - Plans B - F, Fidelity Fixed Maturity Plan - Series V - Plans A F and Fidelity India Childrens Plan - Saving Fund.

J. Investment Restrictions As per the Trust Deed read with the Regulations, the following investment restrictions apply in respect of the Scheme at the time of making investments. However, all investments by the Scheme will be made in accordance with the investment objective, investment strategy and investment pattern described previously.

31

Further, the Trustees / AMC may alter the above restrictions from time to time, and also to the extent the Regulations change and as permitted by RBI, so as to permit the Scheme to make its investments in the full spectrum of permitted investments in order to achieve its investment objective as deemed fit in the general interest of the Unit Holders. 1) The Scheme shall not invest more than 15% of its net assets in debt instruments (irrespective of residual maturity) issued by a single issuer which are rated not below investment grade by a credit rating agency authorised to carry out such activity under the Act. Such investment limit may be extended to 20% of the net assets of the Scheme with the prior approval of the Board of Trustees and the Board of the AMC. Provided that such limit shall not be applicable for investments in government securities. Provided further that investments in debt securities issued by public bodies/institutions such as electricity boards, municipal corporations, state transport corporations etc. guaranteed by the state or central government would be included within the aforesaid limit Provided further that investment within such limit can be made in mortgaged backed securitised debts which are rated not below investment grade by a credit rating agency registered with SEBI. In case of investments made in securitised debt (mortgage backed securities/asset backed securities), restrictions at the originator level would not be applicable.

2) The Scheme shall not invest more than 30% of its net assets in money market instruments issued by an issuer. Provided that such limit shall not be applicable for investments in Government securities, treasury bills and collateralized borrowing and lending obligations.

3) The Scheme shall not invest more than 10% of its net assets in unrated debt instruments (irrespective of residual maturity) issued by a single issuer and the total investment in such instruments shall not exceed 25% of the net assets of the Scheme.

4) Transfers of investments from one scheme to another scheme in the Fund shall be made only if, (a) such transfers are done at the prevailing market price for quoted instruments on spot basis. Explanation - "spot basis" shall have the same meaning as specified by stock exchange for spot transactions. (b) the securities so transferred shall be in conformity with the investment objective of the scheme to which such transfer has been made. 5) The Scheme may invest in other schemes managed by the same AMC or by the asset management company of any other mutual fund without charging any fees, provided that aggregate interscheme investment made in all schemes under the same management or in schemes under the management of any such other asset management company shall not exceed 5% of the net asset value of the Fund. 6) The Scheme shall buy and sell securities on the basis of deliveries and shall in all cases of purchases, take delivery of relative securities and in all cases of sale, deliver the securities. Provided further that a Scheme may enter into derivatives transactions in accordance with the guidelines issued by SEBI from time to time. Provided further that sale of government security already contracted for purchase shall be permitted in accordance with the guidelines issued by RBI in this regard. 7) The Fund shall, get the securities purchased or transferred in the name of the Fund on account of the Scheme, wherever investments are intended to be of long term nature. 8) A Scheme shall not make any investment in; a) any unlisted security of an associate or group company of the Sponsor; or

32

b) any security issued by way of private placement by an associate or group company of the Sponsor; or c) the listed securities of group companies of the Sponsor which is in excess of 25% of the net assets. 9) The Scheme shall not make any investment in any fund of funds scheme. 10) No term loans for any purpose may be advanced by the Fund and the Fund shall not borrow except to meet temporary liquidity needs of the Scheme for the purpose of payment of dividends to Unit Holders, provided that the Fund shall not borrow more than 20% of the net assets of a Scheme and the duration of such a borrowing shall not exceed a period of 6 months. 11) Pending deployment of funds of the Scheme in terms of the investment objectives, a Scheme may invest such funds in short term deposits of schedule commercial banks, subject to such guidelines as may be specified by SEBI. The Fund / AMC shall abide by the following guidelines for parking of funds of the Scheme in short term deposits of scheduled commercial banks: i. ii. iii. "Short Term" for parking of funds shall be treated as a period not exceeding 91 days. Such short-term deposits shall be held in the name of the Scheme. The Scheme shall not park more than 15% of its net assets in short term deposit(s) of all the scheduled commercial banks put together. However, such limit may be raised to 20% with the approval of the Trustee. Parking of funds in short term deposits of associate and sponsor scheduled commercial banks together shall not exceed 20% of total deployment by the Mutual Fund in short term deposits. The Scheme shall not park more than 10% of its net assets in short term deposit(s) with any one scheduled commercial bank including its subsidiaries. The Scheme shall not park funds in short-term deposit of a bank which has invested in the said Scheme. The AMC will not charge any investment management and advisory fees for funds under a Scheme parked in short term deposits of scheduled commercial banks. The above norms do not apply to term deposits placed as margins for trading in cash and derivatives market.

iv.

v. vi. vii. viii.

12) Transactions in government securities can only be undertaken in dematerialised form. 13) Investments in foreign securities are subject to a limit of USD 300 million per mutual fund and USD 7 billion across all mutual funds. 14) The Scheme will comply with any other Regulations applicable to the investments of mutual funds from time to time. The Trustee Company / AMC may alter these above stated limitations from time to time, and also to the extent the Regulations change and as permitted by RBI, so as to permit the Scheme to make its investments in the full spectrum of permitted investments in order to achieve the investment objective.

K. Scheme performance This Scheme is a new scheme and does not have any performance track record. L. Investment in the Scheme by the AMC, Sponsor or their Affiliates Subject to the Regulations the AMC, the Sponsor, the Trustee and their associates or affiliates, may invest either directly or indirectly in the Scheme during the NFO and / or Ongoing Offer Period. However, AMC shall not charge any investment management and advisory services fee on its own investment in the Scheme.

33

III. UNITS AND OFFER This section provides details you need to know for investing in the Scheme.

A. New Fund Offer (NFO)


1. New Fund Offer Period: This is the period during which a new scheme sells its units to the investors. NFO opens on: NFO closes on:

2. New Fund Offer Price: This is the price per unit that the investors have to pay to invest during the NFO. The Units can be purchased at Rs. 10 each for cash during the NFO Period.

3. Minimum Amount for Application in the NFO An initial application for purchase of Units under the Scheme must be as follows: An initial application for purchase of Units under the Scheme must be for a minimum amount of Rs. 5,000 per application. Additional application for purchase of Units under the Scheme must be for a minimum amount of Rs.1, 000 per application.

4. Minimum Target amount This is the minimum amount required to operate the Scheme and if this is not collected during the NFO period, then all the investors would be refunded the amount invested without any return. However, if AMC fails to refund the amount within 5 Business Days from the closure of NFO period, interest as specified by SEBI (currently 15% p.a.) will be paid to the investors from the expiry of 5 Business Days from the date of closure of the subscription period. The Fund seeks to collect a minimum subscription amount of Rs. One Crore under the Scheme during the NFO Period. In the event this amount is not raised during the NFO Period, the amount collected under the Scheme will be refunded to the applicants as mentioned in the paragraph Refund.

5. Investment of Subscription Money The AMC can commence investment of the funds received in accordance with the investment objective of the Scheme on or after the closure of the NFO. The income earned from such investments will be merged with the income of the Scheme on completion of the allotment of the Units.

34

6. Maximum Amount to be raised There is no upper limit on the total amount to be collected under the Scheme during the NFO Period. 7. Options available under the Scheme The Scheme offers two options - Growth Option and Dividend Option. The Dividend Option offers dividend payout and dividend re-investment facilities. Growth Option: under this option no dividend will be declared. Dividend Option: under this option, a dividend may be declared by the Trustee, at its discretion, from time to time (subject to the availability of distributable surplus as calculated in accordance with the Regulations). If the investor does not clearly specify the choice of option at the time of investing, it will be treated as a Growth Option. If the investor does not clearly specify the facility within the Dividend option i.e. Payout or Reinvestment at the time of investing then: a. In case of first time investment in the Scheme within a folio, it will be treated as Reinvestment option. b. For all other cases, it will be treated as the option applicable for the earlier investments in the Scheme within the folio. In case the Unit Holder chooses a different Dividend facility (i.e. Payout / Reinvestment) at the time of subsequent investments in the Scheme, the facility so chosen shall be applicable for all units in the Scheme in the folio. In case a Unit Holder requests for a change in Dividend facility (i.e. Payout / Reinvestment), the change shall be applicable for all units in the Scheme in the folio.

8.

Dividend Policy

The Trustee may decide to distribute, by way of dividend, the surplus by way of realised profit, dividends and interest, net of losses, expenses and taxes, if any, to Unit Holders in the Dividend Option of the Scheme if such surplus is available and adequate for distribution in the opinion of the Trustee. The dividend under the Dividend option will be declared quarterly. If that day is a non Business Day, the dividend will be declared on the immediately next Business Day. The Trustee's decision with regard to availability and adequacy, rate, timing and frequency of distribution shall be final. The dividend will be due to only those Unit Holders whose names appear in the register of Unit Holders in the Dividend Option of the Scheme on the record date which will be fixed by the Trustees and announced in advance. The Unit Holders will have the option of receiving the dividend or reinvesting the same. In case of Unit Holders opting for dividend re-investment facility, the dividend will be reinvested at the Applicable NAV of the immediately following Business Day. No Exit Load will be charged on account of redemption of Units allotted by way of dividend re-investments. In case of investors opting for dividend payout facility, the AMC shall dispatch to the Unit Holders, the dividend warrants within 30 days of the date of declaration of dividend.

35

If the amount of dividend payable to the Unit Holder is less than Rs. 100, then the dividend amount will be compulsorily reinvested in the Scheme. Further, the dividend proceeds may be paid by way of direct credit / NEFT/ RTGS / any other manner through which the investor's bank account specified in the Registrar's records is credited with the dividend proceeds. 9. Allotment

(i) Allotment Subject to the receipt of the specified minimum subscription amount, full allotment of Units applied for will be made within 5 Business Days from the date of closure of the NFO Period for all valid applications received during the NFO Period.

On allotment, in respect of applicants who have made applications through the ASBA facility, the amounts towards subscription of Units blocked in the respective bank accounts as mandated by the applicants will be unblocked to the extent of Units allotted and the amounts so unblocked will be transferred to the bank account of the Scheme / Fund. (ii) Account Statements An account statement will be sent by ordinary post / courier / secured encrypted electronic mail to each Unit Holder, stating the number of Units purchased, not later than 5 Business Days from the close of the NFO Period. 10. Refund

If the Scheme fails to collect the minimum subscription amount of Rs. One Crore, the Fund shall be liable to refund the money to the applicants. In addition to the above, the refund of subscription money to the applicants whose applications are treated as invalid or rejected for any other reason whatsoever, will commence immediately after the allotment process is completed. Refunds will be completed within 5 Business Days of the closure of the NFO Period. If the Fund refunds the amount after such 5 Business Days period, interest at 15% per annum shall be liable to be paid by the AMC. Refund orders will be marked "A/c Payee only" and drawn in the name of the applicant (in the case of a sole applicant) and in the name of the first applicant in all other cases. All refund cheques will be mailed by registered post or as per the applicable Regulations. However, in respect of applicants who have made applications through the ASBA facility, the refund will be by way of unblocking of the subscription amounts in the bank accounts mandated by the applicants on receipt of information from the AMC/ Registrar.

11.

Who can invest

This is an indicative list and prospective investors are advised to satisfy themselves that they are not prohibited by any law governing them and any Indian law from investing in the Scheme and are authorised to purchase units of mutual funds as per their respective constitutions, charter documents, corporate / other authorisations and relevant statutory provisions. The following is an indicative list of persons who are generally eligible and may apply for subscription to the Units of the Scheme. The investors are requested to consult their financial advisor(s) to ascertain whether the Scheme is suitable to their risk profile. Indian resident adult individuals, either singly or jointly (not exceeding three); Sole proprietorship Minor through parent / lawful guardian; (please see the note below)

36

Companies, bodies corporate, public sector undertakings, association of persons or bodies of individuals and societies registered under the Societies Registration Act, 1860; Religious and Charitable Trusts, Wakfs or endowments of private trusts (subject to receipt of necessary approvals as required) and Private Trusts authorised to invest in mutual fund schemes under their trust deeds; Partnership Firms constituted under the Partnership Act, 1932; A Hindu Undivided Family (HUF) through its Karta; Banks (including Co-operative Banks and Regional Rural Banks) and Financial Institutions; Non-Resident Indians (NRIs) / Persons of Indian Origin (PIO) on full repatriation basis or on non-repatriation basis; Foreign Institutional Investors (FIIs) registered with SEBI on full repatriation basis; Army, Air Force, Navy and other para-military funds and eligible institutions; Scientific and Industrial Research Organisations; Provident / Pension / Gratuity and such other Funds as and when permitted to invest; International Multilateral Agencies approved by the Government of India / RBI; and The Trustee, AMC or Sponsor or their associates (if eligible and permitted under prevailing laws). A Mutual Fund through its schemes, including Fund of Funds schemes.

Note: Minor Unit Holder on becoming major may inform the Registrar about attaining majority and provide his specimen signature duly authenticated by his banker as well as his details of bank account and a certified true copy of the PAN card as mentioned under the paragraph "Permanent Account Number (PAN)" to enable the Registrar to update their records and allow him to operate the Account in his own right. Who cannot invest: IT SHOULD BE NOTED THAT THE FOLLOWING ENTITIES CANNOT INVEST IN THE SCHEME: 1. Any individual who is a Foreign national or any other entity that is not an Indian resident under the Foreign Exchange Management Act, 1999, except where registered with SEBI as a FII or FII sub account. 2. Overseas Corporate Bodies (OCBs) shall not be allowed to invest in the Scheme. These would be firms and societies which are held directly or indirectly but ultimately to the extent of at least 60% by NRIs and trusts in which at least 60% of the beneficial interest is similarly held irrevocably by such persons (OCBs.) 3. Non-Resident Indians residing in the United States of America and Canada. 4. Non-Resident Indians residing in the Financial Action Task Force (FATF) Non Compliant Countries and Territories (NCCTs) The Fund reserves the right to include / exclude new / existing categories of investors to invest in the Scheme from time to time, subject to SEBI Regulations and other prevailing statutory regulations, if any. Subject to the Regulations, any application for Units may be accepted or rejected in the sole and absolute discretion of the Trustee. For example, the Trustee may reject any application for the Purchase of Units if the application is invalid or incomplete or if, in its opinion, increasing the size of any or all of the Scheme's Unit capital is not in the general interest of the Unit Holders, or if the Trustee for any other reason does not believe that it would be in the best interest of the Scheme or its Unit Holders to accept such an application. The AMC, under powers delegated by the Trustee, shall have absolute discretion to reject any application if after due diligence, the investor/Unit Holder/a person making the payment on behalf of the investor does not fulfill the requirements of the "Know Your Customer" programme of the AMC or the AMC believes that the transaction is suspicious in nature as regards money laundering.

37

The AMC / Trustee may need to obtain from the investor verification of identity or such other details relating to a subscription for Units as may be required under any applicable law, which may result in delay in processing the application. 12. Where can you submit the filled up Applications Applications filled up and duly signed by all applicants should be submitted to a Designated Collection Centre. The names and addresses of the Designated Collection Centres are mentioned on the back cover page.

13.

How to apply

Please refer to SAI and the application form for the instructions. 14. Listing The Scheme being open - ended, the Units are not proposed to be listed on any stock exchange and no transfer facility is provided. However, the Fund may at its sole discretion list the Units on one or more stock exchanges at a later date.

15. Facilities offered during the NFO During the NFO, the investor will be able to invest through SIP and by switching - in into the Scheme from other schemes of the Fund. For details on SIP and switching, please refer paragraph Systematic Investment Plan and Switching. Further, during the NFO the investors can subscribe to the Units of the Scheme under the ASBA facility. Under the ASBA facility, the amount towards subscription of the Units shall be blocked in the bank accounts of the applicants as mandated till the allotment of Units. For details regarding the procedure for applying through the ASBA facility please refer SAI. 16. Restrictions, if any, on the right to freely retain or dispose of units being offered.

The Units of the Scheme are not transferable. Please refer paragraph Listing and Transfer of Units in SAI for further details.

B. Ongoing Offer Details


1. Ongoing Offer Period This is the date from which the Scheme will reopen for subscriptions/redemptions after the closure of the NFO period. The Scheme will reopen for subscriptions / redemptions with effect from xx xxxxx, 2011 / within 5 Business Days of the date of allotment of Units under the Scheme..

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2. Ongoing Offer Purchase price The Purchase Price of the Units is the price at which an investor can purchase Units of the Scheme. It will be calculated as described below: Purchase Price = Applicable NAV Purchase Price will be calculated for up to four decimal places for the Scheme For details on load structure for the Scheme, please refer paragraph Load Structure.

3. Ongoing Offer Redemption Price The Redemption Price of the Units is the price at which a Unit Holder can redeem Units of a scheme. It will be calculated as described below: Redemption Price = Applicable NAV x (1 - Exit Load* or CDSC*) * Either Exit Load or CDSC, whichever is applicable, will be charged. Redemption Price will be calculated for up to four decimal places for the Scheme. 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 as follows: Redemption Price = 10 x (1 - 2.00%) i.e. 10 x 0.98 = 9.8000 If the scheme has no Exit Load and no CDSC, the Redemption Price will be equal to the Applicable NAV.

4. Cut off time for Purchase / Redemption / Switches This is the time up to which your application (complete in all respects) should be accepted by the Designated Collection Centres. The Cut-off time for the Scheme is 3 p.m., and the Applicable NAV will be as under: For Purchase / Redemption 1. In respect of valid Purchase applications (along with cheques / drafts / other payment instruments) / Redemption applications accepted at a Designated Collection Centre up to 3 p.m. on a Business Day, the NAV of such day will be applicable. 2. In respect of valid Purchase applications (along with cheques / drafts / other payment instruments) / Redemption applications accepted at a Designated Collection Centre after 3 p.m. on a Business Day, the NAV of the next Business Day will be applicable. 3. In respect of Purchase applications along with cheques / drafts / other payment instruments with amount equal to or more than Rs. 1 crore, the NAV of the Business Day on which the funds are available for utilisation shall be applicable subject to the following: (1) Purchase application is accepted before the Cut-off time; (2) funds for the entire amount of Purchase/Subscription applications are credited to the bank account of the respective Scheme/Plan before the Cut-off time; and (3) the funds are available for utilisation by the respective Scheme/Plan before the Cutoff time without availing any credit facility, whether, intra-day or otherwise. The above will be applicable only for cheques / drafts / payment instruments payable locally in the city in which ISC is located. No outstation cheques will be accepted. Further an Application Form accompanied by a payment instrument issued from a bank account other than that of the applicant/investor will not be accepted except in certain circumstances. Please refer paragraph "How to Pay" in SAI for further details.

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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 shall be applicable. For Switches Valid applications for 'switch-out' shall be treated as applications for Redemption and valid applications for 'switch-in' shall be treated as applications for Purchase, and the provisions of the Cutoff time, purchase / redemption price, minimum amounts for Purchase / Redemption and the Applicable NAV mentioned in the Scheme Information Document as applicable to Purchase and Redemption shall be applied respectively to the 'switch-in' and 'switch-out' applications.

5. Where can the applications for Purchase / Redemption / switches be submitted Applications filled up and duly signed by all applicants should be submitted to a Designated Collection Centre. In case of a Purchase application, the application must be accompanied along with the cheque / draft / other payment instrument drawn favouring Fidelity Income Saver Fund. The names and addresses of the Designated Collection Centres are mentioned on back cover page.

6. Minimum amounts for Purchase / Redemption a) Purchase An initial application for purchase of Units under the Scheme must be for a minimum amount of Rs. 5,000 per application. Additional application for purchase of Units under the Scheme must be for a minimum amount of Rs.1,000 per application. b) Redemption The minimum amount in rupees for Redemption shall be Rs. 1,000, while the minimum number of Units for Redemption shall be 100 Units.

The Unit Holder has the option to request for Redemption either in amount in rupees or in number of Units. In case the request for Redemption specifies both, i.e. amount in rupees as well the number of Units to be redeemed, then the latter will be considered as the redemption request and redemption will be processed accordingly. In case the request for redemption/switch does not specify the amount or no. of units to be redeemed/switched, the request will be rejected by the Fund. Units can be redeemed (sold back to the Fund) at the Redemption Price. If an investor has purchased Units of a Scheme on more than one Business Day the Units will be redeemed on a first-in-first-out basis. If multiple Purchases are made on the same day, the Purchase appearing earliest in the account statement will be redeemed first.

7. Minimum balance to be maintained under the Scheme and consequence of non maintenance The minimum balance to be maintained at all times under the Scheme shall be Rs. 5000 or 500 Units . If, in the course of redemption / switch-out from the Scheme, the balance units / amount available under the Scheme falls below the minimum balance size requirement (Rs. 1000 or 100 units), all units in the Scheme would be redeemed / switched-out.

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8. Facilities Offered to Investors under the Scheme (i) Systematic Investment Plan (SIP)

This facility enables investors to save and invest periodically over a longer period of time. It is a convenient way to "invest as you earn" and affords the investor an opportunity to enter the market regularly, thus averaging the acquisition cost of Units. The conditions for investing in SIP will be as follows: 1. In case of SIP started during the NFO, the Fund will accept cheque only for the first instalment and the cheque should be dated on or before the date of submission of the Application Form. The payment for the subsequent SIP instalments (minimum 5 payment instructions), shall be made on 1st, 10th, 15th or 25th of a month only through ECS / NEFT/ RTGS / SI or in any manner acceptable to the AMC. 2. In case of SIP started during the Ongoing Offer period, the date of the first cheque shall be the same as the date of the application while the remaining cheques (minimum 5 cheques) shall be post dated cheques (dated uniformly either the 1st, 10th, 15th or 25th of a month). Alternatively, the payment under SIP may be made through a distributor with whom the AMC has made an arrangement for payment of investment money through ECS / NEFT / RTGS / SI or in any manner acceptable to the AMC. However, investors investing through Micro SIP i.e. SIP upto Rs. 50,000 per year per investor and also investors residing in the State of Sikkim shall not be subject to KYC formalities as stated above

3. At the time of renewal of SIP, where there is no change in the SIP auto debit bank details, the first SIP instalment after renewal can be directly effected through auto debit. Thus, in such cases, it would not be mandatory for the investor to submit a cheque of the same date as the date of application for the first instalment after renewal. However, if at the time of renewal, the bank details for auto debit are different from the bank details earlier registered with the Fund, the Unit Holder would be required to submit a cancelled cheque leaf / copy thereof along with the SIP auto debit application form.

4. There shall be a gap of at least 60 days between the date of closure of the NFO and the date of first instalment through ECS in case of SIP started during the NFO Period. There shall be a gap of at least 30 days between the date of the first and second instalment in the case of SIP started during the Ongoing Offer period.

5. Purchases can be made on monthly / quarterly/semi annul and annual basis.

The minimum number of instalments are as follow: a. Monthly : 6 b. Quarterly : 6 b. Semi-annual : 2 c. Annual : 2 6. The amount of first cheque/payment instruction can be different than the amounts for the subsequent cheques / payment instructions. However, all the subsequent cheques / payment instructions shall be of equal amounts.
7. The minimum amount of each cheque / payment instruction shall be Rs. 500. 8. The aggregate of such cheques / payment instructions shall not be less than Rs. 5,000. There is no upper limit for the Purchase for a single cheque / payment instruction or in aggregate.

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9. An extension of an existing SIP will be treated as a new SIP on the date of such application, and all the above conditions need to be met with. 10. The load structure prevailing at the time of submission of the SIP application (whether fresh or extension) will apply for all the instalments indicated in such application. 11. For cancellation of a SIP, a notice of 30 days shall be required. 12. The SIP renewal request should be submitted atleast 30 days before the due date of first SIP instalment after renewal.

13. In case of the auto debit facility, the default options in case details for the auto debit period, frequency and SIP date are not indicated will be as follows: a. SIP auto debit period: The SIP auto debit will continue till further instructions to the AMC/Registrar to discontinue the SIP. b. SIP date: 10th of the month (commencing 30 days after the first SIP instalment date); and c. SIP frequency: Monthly

13. In case of three or more consecutive instances of cheques returned uncleared for SIP instalments or payment instructions not honoured, the AMC reserves the right to discontinue the SIP /cancel the registration for SIP.

The Units will be allotted to the investor at the Applicable NAV of the respective dates on which the investments are sought to be made. However, if any of the dates on which an investment 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 Unit Holder can avail of this facility subject to certain terms and conditions detailed in the Application Form. This facility is available only if the Application Form / Transaction Slip along with the post-dated cheques / payment instructions is handed over to an ISC. The AMC has the authority to make available SIP by way of a salary savings scheme for a group of employees through an arrangement with their employers.

For applicable load on Purchases through SIP please refer paragraph Load Structure.

(ii)

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 daily/monthly /quarterly / half yearly / yearly 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 nonBusiness 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:

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Date

Amount Amount Assumed++ Investedwithdrawn under NAV per (Rs.) SWP (Rs.) Unit (Rs.) 1,000,000.00 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00 10.000 10.071 10.142 10.214 10.286 10.359 10.432 10.506 10.580 10.655 10.730 10.806 10.883 10.960

Units redeemed 695.065 690.199 685.334 680.537 675.741 671.012 666.286 661.626 656.969 652.377 647.788 643.205 638.686

Unit Balance*

Value after SWP (Rs.)

March 31, 2010 May 10, 2010 June 10, 2010 July 10, 2010 August 10, 2010 September 10, 2010 October 10, 2010 November 10, 2010 December 10, 2010 January 10, 2011 February 10, 2011 March 10, 2011 April 10, 2011 May 10, 2011

100,000.000 1,000,000.00 99,304.935 1,000,100.00 98,614.736 1,000,150.65 97,929.402 1,000,250.91 97,248.865 1,000,301.83 96,573.124 1,000,400.99 95,902.112 1,000,450.83 95,235.826 1,000,547.59 94,574.200 1,000,595.04 93,917.231 1,000,688.10 93,264.854 1,000,731.88 92,617.066 1,000,820.02 91,973.861 1,000,951.53 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. Load is assumed to be NIL for the purpose of the illustration. * Previous Balance less Units redeemed

For applicable load on Redemptions through SWP please refer paragraph Load Structure.

(iii)

Systematic Transfer Plan (STP)

This facility enables Unit Holders to transfer fixed sums from their Unit accounts in the Scheme to the other schemes launched by the Fund from time to time. The transfers under this facility can be made on a weekly / fortnightly / monthly / quarterly basis. The minimum amount in rupees for transfer under the STP facility shall be Rs. 500. The transfer will commence from the date mentioned by the Unit Holder in the Application Form for the facility and will take place every week / fortnight / month / quarter on the day specified by the Unit Holder. A minimum period of 7 days shall be required for registration under STP. The Units will be allotted / redeemed at the Applicable NAV of the respective dates of the Scheme on which such investments / withdrawals are sought from the Scheme. In case the day on which the investment / withdrawal is sought is a non-Business Day for the Scheme, then the application for the facility will be deemed to have been received on the immediately following Business Day.

(iv) Switching a) Inter-scheme Switching The Transaction Slip can be used by investors to make interscheme switches (during the NFO Period / the Ongoing Offer Period) within the Fund. All valid applications for switch-out shall be treated as Redemption and for switch-in as Purchases with the respective Applicable NAVs of the scheme / option. b) Intra-scheme Switching Investors can switch between different options under the Scheme, at the Applicable NAV. All valid applications for switch-out shall be treated as Redemption and for switch-in as Purchases with the respective Applicable NAVs of the options. As per current Load structure, no Exit Load will be charged for intrascheme switching. However, AMC may change the Load prospectively as indicated in the paragraph Load Structure in this document.

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In case of units switched out / systematically transferred to another option and if subsequently redeemed, for the purpose of determining the Exit Load, the date when such units were first allotted in the respective Plan / Scheme will be considered as the purchase/allotment date. (v) Multiple Bank Accounts Under this facility, an investor can register up to five bank accounts in case of individual and HUF and up to ten bank accounts for non individual with the Fund to receive the redemption/dividends proceeds, choosing one of these accounts as the preferred/ default account for receiving redemption/dividend proceeds. The Unit Holder may choose to receive the redemption/dividend proceeds in any of the bank accounts, the details of which are registered under the facility by specifying the same at the time of submitting the redemption request. However, in case an Unit Holder does not specify the same, the redemption proceeds shall be credited to the bank account chosen as the preferred/ default account. In case the investors do not avail of this facility, the bank mandate mentioned in the purchase application may be treated as the preferred/default account for receiving redemption/dividend proceeds.

9. Account Statements For Purchase / Redemption (other than SIP/SWP/STP transactions): The AMC will issue to the Unit Holder whose application for Purchase / Redemption has been accepted, an account statement specifying the number of units allotted. An account statement will be sent by ordinary post / courier / secured encrypted electronic mail to the Unit Holder, stating the number of Units purchased, generally within 3 Business Days, but not later than 30 days from date of acceptance of the valid Application Form / Transaction Slip. In case of Unit Holders who have provided an e-mail address, the AMC will send the account statement by way of an e-mail at the email address provided by the Unit Holder. The Unit Holder may request for a physical account statement by calling the toll free investor line of the AMC at "1800 2000 400" or 0124 3915655 (at long distance rates). For SIP / SWP / STP transactions: Account Statements for transactions under SIP/ SWP/STP will be despatched once every quarter ending March, June, September and December within 10 working days of the end of the respective quarter. A soft copy of the account statement shall be mailed to the Unit Holders under SIP/SWP/STP to the e-mail address provided by the Unit Holder on a monthly basis, if so mandated. The first account statement under SIP/SWP/STP shall be issued within 10 working days of the initial investment/withdrawal/transfer. In case of specific request received from investors, the AMC will provide the account statement to the investors within 5 working days from the receipt of such request without any charges.

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Annual Account Statement: The Mutual Fund will provide the account statement to the Unit Holders who have not transacted during the last six months prior to the date of generation of account statements. The account statement shall reflect the latest closing balance and value of the Units prior to the date of generation of the account statement. The account statement in such cases may be generated and issued along with the portfolio statement or annual report of the Scheme. Alternately, soft copy of the account statements shall be mailed to the investors e-mail address, instead of physical statement, if so mandated. Account statements to be issued in lieu of Unit Certificates under the Scheme shall be nontransferable. The account statement shall not be construed as a proof of title.A non-transferable Unit Certificate will be sent to the Unit Holder within 6 weeks following the receipt of a written request. Units are non-transferable. The Trustee reserves the right to make the Units transferable at a later date, subject to the Regulations. All Units will rank pari passu, among Units within the same option in the Scheme, as to assets and earnings. 10. Dividend Warrants The dividend warrants shall be dispatched to the Unit Holders within 30 days of the date of declaration of the dividend. In case of delay in dispatch of dividend warrants beyond the period specified above, the AMC shall be liable to pay interest to the Unit Holders at such rate as may be specified by SEBI for the period of such delay (presently the interest is paid @15% p.a.).

11. Redemption Proceeds The Mutual Fund will endeavour to despatch to the Unit Holder, the Redemption proceeds within 3 Business Days from the acceptance of the Redemption request, but not beyond 10 Business Days from the date of acceptance of redemption request.

12. Interest on delay in payment of Redemption Proceeds In case of delay in payment of redemption proceeds beyond the period specified above, the AMC shall be liable to pay interest to the Unit Holders at such rate as may be specified by SEBI for the period of such delay (presently the interest is paid @15% p.a.).

13. Bank Mandate It is mandatory for every applicant to provide the name of the bank, branch, address, account type and number as per SEBI requirements and any Application Form without these details will be treated as incomplete. Such incomplete applications will be rejected. The Registrar / AMC may ask the investor to provide a blank cancelled cheque or its photocopy for the purpose of verifying the bank account number.

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C. Periodic Disclosures
1. Net Asset Value This is the value per unit of the Scheme on a particular day. You can ascertain the value of your investments by multiplying the NAV with your unit balance. The NAVs of the Scheme will be calculated by the Fund on all Business Days and details may be obtained by calling the toll free investor line of the AMC at "1800 2000 400" or 0124 3915655 (at long distance rates). The Fund will publish the NAVs, Purchase Price and Redemption Price of the Scheme in at least two daily newspapers on all Business Days. The NAVs of the Scheme will also be updated by 9.00 p.m. on all Business Days on the website of the Fund i.e. www.fidelity.co.in and on the AMFI website i.e. www.amfiindia.com. 2. Half yearly disclosures : portfolios and financial results` Portfolio This is a list of securities where the corpus of the Schemes is invested. The market value of these investments is also stated in the portfolio disclosures. Full portfolio details, in the prescribed format, shall be disclosed either by publishing it in the newspapers or by sending to the Unit Holders within one month from the end of each half-year (i.e. March 31 and September 30 and it shall also be displayed on the website of the Fund. Financial Results The Fund shall before the expiry of one month from the close of each half year (i.e. March 31 and September 30) publish its unaudited financial results in one national English daily newspaper circulating in the whole of India and in a Marathi daily newspaper. These shall also be displayed on the website of the Fund and that of AMFI.

3. Annual Report An annual report of the Scheme will be prepared as at the end of each financial year (March 31) and copies of the report or an abridged summary thereof will be mailed to all Unit Holders as soon as possible but not later than 4 months from the closure of the relevant financial year. If the report is mailed in a summary form, the full report will be available for inspection at the registered office of the Trustee and a copy thereof on request to the Unit Holders on payment of a nominal fee.

4. Associate Transactions Please refer to Statement of Additional Information for transactions with associates.

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5. Taxation The information is provided for general information only. However, in view of the individual nature of the implications, each investor is advised to consult his or her own tax advisors/authorised dealers with respect to the specific amount of tax and other implications arising out of his or her participation in the Scheme. Resident Investors Not Taxable1 10%5/20%6 (plus applicable surcharge and education cess) Normal rate of taxes applicable to investor (plus applicable surcharge and education cess) Mutual Fund Not Taxable2 Nil2

Tax on dividend Capital Gains3 Long Term4

Short Term7

Nil2

1 Under section 10(35) of the Income-tax Act, 1961 ('the Act') 2 Under section 10(23D) of the Act. However, income distributed by a mutual fund would be chargeable to income distribution tax under section 115R of the Act. Additionally, the Fund may be subject to tax outside India on account of its investment outside India, based on the tax laws prevailing in the respective jurisdiction of investment. 3 The characterization of gains/losses arising from sale/transfer of units as 'capital gains' or 'business income' would depend on whether the units are treated as 'capital asset' or 'stock in trade' respectively. The tax rates mentioned above shall apply if the investor holds the asset as 'capital asset'. 4 Units of a mutual fund are treated as a long-term capital asset if they are held for a period of more than to 12 months preceding the date of transfer. 5 Rate of tax if indexation benefit is not claimed 6 Rate of tax if indexation benefit is claimed 7 Units of a mutual fund are treated as a short-term capital asset if they are held for a period not more than 12 months preceding the date of transfer. For further details on taxation please refer to the clause on Taxation in the SAI.

6. Investor Services Any complaints should be addressed to Mr. Vikram Soni, who has been appointed as the Investor Relations Officer. He can be contacted at: Address :Ground Floor, Tower-D, Unitech World Cyber Park, Sector-39, Gurgaon - 122 001

Telephone : 1800 2000 400 Fax E-mail : 0124-4992725 : investor.line@fidelity.co.in

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D. Computation of NAV
The Net Asset Value of the Units of a Scheme will be computed by dividing the net assets of the Scheme by the number of Units outstanding on the valuation date. The Fund shall value its investments according to the valuation norms, as specified in Schedule VIII of the Regulations or such norms as may be prescribed by SEBI from time to time. The NAV will be calculated for up to four decimal places for the Scheme. The NAV will be calculated on all Business Days. The valuation of the Scheme's assets and calculation of the Scheme's NAV shall be subject to audit on an annual basis and such regulations as may be prescribed by SEBI from time to time. The first NAV will be calculated and announced within a period of 5 Business Days from the date of allotment of Units under the Scheme. Subsequently, the NAV shall be calculated on all Business Days.

Investments in Foreign Securities (Debt) shall be valued as per the following policy: In case of investments in foreign debt securities, on the Valuation Day, the securities shall be valued in line with the valuation norms specified by SEBI for Indian debt securities. However, in case valuation of a specific debt security is not covered by SEBI Regulations, then the security will be valued on a fair value basis by the Valuation Committee of the AMC. The NAV for the Scheme will be calculated on all Business Days. The valuation of the Scheme's assets and calculation of the Scheme's NAV shall be subject to audit on an annual basis and such regulations as may be prescribed by SEBI from time to time.

IV. FEES AND EXPENSES

A. Expenses during the NFO


The expenses incurred during the NFO are mainly for the purpose of various activities related to the NFO including but not limited to sales and distribution fees, marketing and advertising, registrar expenses, printing and stationary and bank charges. These expenses will be borne by the AMC.

B. Annual Scheme Recurring Expenses


The annual scheme recurring expenses are the expenses incurred for operating a scheme. These expenses include investment management and advisory fees charged by the AMC, Registrar and Transfer Agents fee, marketing and selling costs etc. as given in the table below: The AMC has estimated that upto 2.25 % of the daily average net assets of the Scheme will be charged to the Scheme as expenses. For the actual current expenses charged to the Scheme, please refer to the website of the Mutual Fund www.fidelity.co.in.

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Nature of Expenses

% p.a. of average daily net assets

Investment Management & Advisory Fee Custodial Fees Registrar & Transfer Agent Fees including cost related to providing accounts statement, dividend/redemption cheques/warrants etc. Marketing & Selling Expenses including Agents Commission and statutory advertisement Brokerage & Transaction Cost pertaining to the distribution of units Audit Fees / Fees and expenses of trustees Costs related to investor communications Costs of fund transfer from location to location Other Expenses* Total Recurring Expenses

0.500 0.010 0.050

0.132

0.5000

0.005 0.0010 0.002

1.200

* Other expenses: Any other expenses which are directly attributable to the Scheme, may be charged with approval of the Trustee within the overall limits as specified in the Regulations except those expenses which are specifically prohibited. These estimates have been made in good faith as per the information available to the AMC based on past experience and are subject to change inter-se or in total subject to prevailing Regulations. The AMC may incur actual expenses which may be more or less than those estimated above under any head and / or in total. As per Regulation 52, the statutory limit on the annual recurring expenses and investment management and advisory fees are as given below. Any excess over these limits will be borne by the AMC. Maximum Recurring Expenses: Average daily net assets Maximum, as a % of Average daily net assets 2.25% 2.00% 1.75% 1.50%

First 100 Crores Next 300 Crores Next 300 Crores Balance Assets

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Maximum Management Fee to be charged by the AMC: Average daily net assets Maximum, as a % of Average daily net assets First 100 Crores Balance Assets 1.25% 1.00%

C. Load Structure
Load is an amount which is paid by the investor to redeem the units from the Scheme. Load is used by the AMC to pay commissions to the distributor and to take care of other marketing and selling expenses. Load amounts are variable and are subject to change from time to time. For the current applicable structure, please refer to the website of the Fund (www.fidelity.co.in) or may call the toll free investor line of the AMC at "1800 2000 400" or 0124 3915655 (at long distance rates) or your distributor.

For Purchases (including SIP) during the NFO Period and Ongoing Offer Period the following Exit Load shall be applicable. For Redemption: Within 6 months from the date of allotment or Purchase applying First in First Out basis Load Chargeable (as % of Applicable NAV) 0.5 %

A switch-out or a withdrawal under SWP or a transfer under STP may also attract an Exit Load / CDSC like any Redemption. No Exit Load / CDSC will be chargeable in case of switches made between different options of the Scheme. No Exit Load will be chargeable in case of redemption of; (i) Units allotted on account of dividend reinvestments; and (ii) Units issued by way of bonus, if any. Exit Load/CDSC is intended to enable the AMC to recover expenses incurred for payment of commissions to the distributors and to take care of other marketing and selling expenses. Of the Exit Load / CDSC charged to the applicant, a maximum of 1% shall be retained by each of the Schemes in a separate account and will be utilised for payment of commissions to the distributors and to take care of other marketing and selling expenses. Any balance amounts in this account shall be credited to the Scheme immediately. The investor is requested to check the prevailing load structure of the Scheme before investing. For any change in load structure AMC will issue an addendum and display it on the website www.fidelity.co.in/ Investor Service Centres.

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The Trustee retains the right to change / impose an Exit Load / CDSC, subject to the provisions below. 1. Any such changes / impositions would be chargeable only for prospective Purchases and Redemptions from such prospective Purchases (applying First in First Out basis). 2. The AMC shall arrange to display a notice in all the ISCs before changing the prevalent Load structure. An addendum detailing the changes in Load structure will be attached to Scheme Information Document and Key Information Memorandum Unit Holders / Prospective investors will be informed of changed / prevailing Load structures through various means of communication such as public notice (given in respect of such changes in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of region where the Head Office of the Mutual Fund is situated) and / or display at ISCs / Distributors' offices, on account statements, acknowledgements, investor newsletters, etc. 3. The Redemption Price will not be lower than 93% of the Applicable NAV and the Purchase Price will not be higher than 107% of the Applicable NAV, provided that the difference between the Redemption Price and the Purchase Price at any point in time shall not exceed the permitted limit as prescribed by SEBI from time to time, which is currently 7% calculated on the Purchase Price. V. Rights of Unit holders Please refer to SAI for details. VI. Penalties, pending litigation or proceedings, findings of inspections or investigations for which action may have been taken or is in the process of being taken by any regulatory authority I. FIL Investments International, a company incorporated in England and Wales and regulated by the Financial Services Authority, received a warning ("advertisement") from the Conseil de Discipline de la Gestion Financiere (Financial Management Disciplinary Committee) in France on May 12, 2003. The basis of the warning was that, between 1994 and 1998, Fidelity Currency Funds (a Bermuda-domiciled range of funds) were publicly offered in France before registration, even though there was no active marketing or promotion of the products at that time. The issue first arose in 1998, when FIL Investments International was simply informed by the French regulatory authority (La Commission des Operations de Bourse ("COB")) that an investigation was proceeding. No investor complaints were received by FIL Investments International and the notification from the COB did not indicate that any such complaints had been made to the COB. The funds have since all been registered. FIL Investments International is a subsidiary of FIL Investment Management Limited, also incorporated in England and Wales, which in turn is a subsidiary of FIL Limited, the holding company of FIA.

For details on how to pay, applications under power of attorney, applications by a nonindividual investor, mode of holding, how to redeem, payment of redemption proceeds, effect of redemptions, suspension of the purchase and redemption of units, right to limit redemptions, please refer Statement of Additional Information. Notwithstanding anything contained in this Scheme Information Document, the provisions of the SEBI (Mutual Funds) Regulations, 1996 and the guidelines there under shall be applicable. The directors on the board of the Trustee Company have ensured that the Scheme approved is a new product offered by Fidelity Mutual Fund and is not a minor modification of its existing schemes.

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For and on behalf of the Board of Directors of FIL Fund Management Private Limited (Asset Management Company for Fidelity Mutual Fund)

Ashu Suyash Country Head Place: Mumbai Date: xxxxx xx, 2011

FIL Fund Management Private Limited (During NFO and Ongoing Offer) Ahmedabad: 301, Raindrops Building, Opp. Cargo Motors, C. G. Road, Ellis Bridge, Ahmedabad 380 006. Bangalore: #205-207, 2nd Floor, Phoenix Towers, 16 & 16/1, Museum Road, Bangalore 560 025. Chennai: Ground Floor, 'Ramaniyam Siddharth', No.45, North Phase, Thiru vi ka Industrial Estate, Ekattuthangal, Guindy, Chennai - 600 097. Kolkata: 408, 4th Floor, Azimganj House, 7 Camac Street, Kolkata - 700 017. Mumbai: 6th Floor, Mafatlal Centre , Nariman Point, Mumbai - 400 021. Gurgaon: Ground Floor, Tower-D, Unitech World Cyber Park, Sector-39, Gurgaon - 122001 Pune: Unit No. 406, 4th Floor, Nucleus Mall, 1, Church Road, Camp, Pune - 411 001. Secunderabad: No. 1-8-304-307, 3rd Floor, Kamala Towers, Pattigadda Street No. 1, (above Mody Ford showroom), Begumpet, Secunderabad - 500 003.

Computer Age Management Services Private Limited (CAMS) Agartala: Advisor Chowmuhani (Ground Floor), Krishnanagar, Agartala - 799001. Agra: No. 8, II Floor, Maruti Tower, Sanjay Place, Agra 282 002. Ahmedabad: 402-406, 4th Floor - Devpath Building, Off C. G. Road, Behind Lal Bungalow, Ellis Bridge, Ahmedabad 380 006. Ahmednagar: 203-A, Mutha Chambers, Old Vasant Talkies, Market Yard Road, Ahmednagar 414 001. Ajmer: Shop No.S-5, Second Floor, Swami Complex, Ajmer 305 001. Akola: Opp. RLT Science College, Civil Lines, Akola 444 001. Aligarh: City Enclave, Opp. Kumar Nursing Home, Ramghat Road, Aligarh 202 001. Allahabad: No.7 Ist Floor, Bihari Bhawan, 3, S.P. Marg, Civil Lines, Allahabad 211 001. Alwar: 256A, Scheme No.:1, Arya Nagar, Alwar 301 001. Amaravati: 81, Gulsham Tower, 2nd Floor, Near Panchsheel Talkies, Amaravati 444 601. Ambala: Opposite PEER, Bal Bhavan Road, Ambala - 134 003. Amritsar: 378-Majithia Complex, 1st Floor, M. M. Malviya Road, Amritsar 143 001. Anand: 101, A.P. Tower, B/H, Sardhar Gunj, Next to Nathwani Chambers, Anand 388 001. Anantapur: 15-570-33, I Floor, Pallavi Towers, Anantapur 515 001. Angul: Similipada, Angul 759 122. Ankleshwar: G-34, Ravi Complex, Valia Char Rasta, G.I.D.C., Ankleshwar- Bharuch 393 002. Asansol: Block G, 1st Floor, P. C. Chatterjee Market Complex, Rambandhu Talab, P. O. Ushagram, Asansol 713 303. Aurangabad: Office No. 1, 1st Floor, Amodi Complex, Juna Bazar, Aurangabad 431 001. Bagalkot: No.6, Ground Floor, Pushpak Plaza, TP No.52, Ward No.10, Next to Kumatagi Motors, Station Road, Near Basaveshwar Circle, Bagalkot - 587 101. Balasore: B. C. Sen Road, Balasore 756 001. Bangalore: Trade Centre, 1st Floor, 45, Dikensen Road, (Next to Manipal Centre), Bangalore 560 042. Bareilly: F-62-63, Butler Plaza, Civil Lines, Bareilly 243 001. Belgaum: Tanish Tower, CTS No. 192/A, Guruwar Peth, Tilakwadi, Belgaum 590 006. Bellary: No.18A, 1st Floor, Opp. Ganesh Petrol Pump, Parvathi Nagar Main Road, Bellary 583 103. Berhampur: First Floor, Upstairs of Aaroon Printers, Gandhi Nagar Main Road, Berhampur 760 001. Bhagalpur: Dr. R. P. Road, Khalifabag Chowk, Bhagalpur 812 002. Bhatinda: 2907 GH, GT Road, Near Zila Parishad, Bhatinda 151 001. Bhavnagar: 305-306, Sterling Point, Waghawadi Road, Opp. HDFC Bank, Bhavnagar 364 002. Bhilai: 209, Khichariya Complex, Opp. IDBI Bank, Nehru Nagar Square, Bhilai 490 020. Bhilwara: C/o. Kodwani & Associates, F-20-21, Apsara Complex, Azad Market, Bhilwara, 311 001. Bhopal: Plot No.13, Major Shopping Center, Zone-I, M.P. Nagar, Bhopal 462 011. Bhubaneswar: 101/7, Janpath, Unit III, Bhubaneswar 751 001. Bhuj: Data Solution, Office No.:17, I st Floor, Municipal Building, Opp. Hotel Prince, Station Road, Bhuj - Kutch 370 001. Bikaner: 6/7, Yadav Complex, Rani Bazar, Bikaner - 334 001. Bilaspur: Beside HDFC

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Bank, Link Road, Bilaspur - 495 001. Bokaro: Mazzanine Floor, F-4, City Centre, Sector-4, Bokaro Steel City, Bokaro 827 004. Burdwan: 399, G. T. Road, Basement of Talk of the Town, Burdwan 713 101. Calicut: 29/97G 2nd Floor, Gulf Air Building, Mavoor Road, Arayidathupalam, Calicut 673 016. Chandigarh: SCO 80/81, IIIrd Floor, Sector 17-C, Chandigarh 160 017. Chennai: Ground Floor No.178/10, Kodambakkam High Road, Opp. Hotel Palmgrove, Nungambakkam, Chennai 600 034. Cochin: 40/9633 D, Veekshanam Road, Near International Hotel, Cochin 682 035. Coimbatore: Old # 66 New # 86, Lokamanya Street (West), Ground Floor, R.S.Puram, Coimbatore 641 002. Cuttack: Near Indian Overseas Bank, Cantonment Road, Mata Math, Cuttack 753 001. Davenegere: 13, Ist Floor, Akkamahadevi Samaj Complex, Church Road, P.J.Extension, Davenegere 577 002. Dehradun: 204/121 Nari Shilp Mandir Marg, Old Connaught Place, Dehradun 248 001. Deoghar: S. S. M. Jalan Road, Ground Floor, Opp. Hotel Ashoke, Caster Town, Deoghar 814 112. Dhanbad: Urmila Towers, Room No: 111, (1st Floor), Bank More, Dhanbad 826 001. Dhule: H. No. 1793/A, J.B. Road, Near Tower Garden, Dhule 424 001. Durgapur: 4/2, Bengal Ambuja Housing Development Ltd., Ground Floor, City Centre, Durgapur 713 216. Erode: 197, Seshaiyer Complex, Agraharam Street, Erode 638 001. Faridabad: B-49, Ist Floor, Nehru Ground, Behind Anupam Sweet House, NIT, Faridabad 121 001. Ghaziabad: 113/6 I Floor, Navyug Market, Ghaziabad 201 001. Goa: No.108, 1st Floor, Gurudutta Bldg, Above Weekender, M. G. Road, Panaji 403 001. Gorakhpur: Shop No. 3, Second Floor, The Mall, Cross Road, A.D. Chowk, Bank Road, Gorakhpur 273 001. Gulbarga: Pal Complex, Ist Floor, Opp. City Bus Stop, Super Market, Gulbarga 585 101. Guntur: Door No 5-38-44, 5/1 Brodipet, Near Ravi Sankar Hotel, Guntur 522 002. Gurgaon: SCO - 17, 3rd Floor, Sector-14, Gurgaon 122 001. Guwahati: A.K. Azad Road, Rehabari, Guwahati 781 008. Gwalior: 1st Floor, Singhal Bhavan, Daji Vitthal Ka Bada, Old High Court Road, Gwalior 474 001. Hazaribag: Municipal Market, Annanda Chowk, Hazaribagh 825 301. Himmatnagar: C-7/8 Upper Level, New Durga Bazar, Near Railway Crossing, Himmatnagar 383 001. Hisar: 12, Opp. Bank of Baroda, Red Square Market, Hisar 125 001. Hosur: Shop No.8, J. D. Plaza, Opp. TNEB Office, Royakotta Road, Hosur 635 109. Hubli: 206 & 207, 1st Floor, 'A' Block, Kundagol Complex, Opp. Court, Club Road, Hubli 580 029. Hyderabad: 208, II Floor, Jade Arcade, Paradise Circle, Secunderabad 500 003. Haldwani: Durga City Centre, Nainital Road, Haldwani - 263 139. Indore: 101, Shalimar Corporate Centre, 8-B, South Tukogunj, Opp.Greenpark, Indore 452 001. Itarsi: 1st Floor, Shiva Complex, Bharat Talkies Road, Itarsi - 467 111. Jabalpur: 975,Chouksey Chambers, Near Gitanjali School, 4th Bridge, Napier Town, Jabalpur 482 001. Jaipur: R-7, Yudhisthir Marg, C-Scheme, Behind Ashok Nagar Police Station, Jaipur 302 001. Jalandhar: 367/8, Central Town, Opp. Gurudwara Diwan Asthan, Jalandhar 144 001. Jalgaon: Rustomji Infotech Services, 70, Navipeth, Opp. Old Bus Stand, Jalgaon 425 001. Jammu: 660- Gandhi Nagar, Jammu 180 004. Jamnagar: 217/218, Manek Centre, P.N. Marg, Jamnagar 361 001. Jamshedpur: Millennium Tower, "R" Road, Room No. 15, First Floor, Bistupur, Jamshedpur 831 001. Jhansi: Opp. SBI Credit Branch, Babu Lal Kharkana Compound, Gwalior Road, Jhansi 284 001. Jodhpur: 1/5, Nirmal Tower, Ist Chopasani Road, Jodhpur 342 003. Junagadh: Circle Chowk, Near Choksi Bazar Kaman, Junagadh 362 001. Kadapa: Door No.1-1625, DNR Laxmi Plaza, Opp. Rajiv Marg, Railway Station Road, Yerramukkapalli, Kadapa 516 004. Kakinada: No.33-1, 44 Sri Sathya Complex, Main Road, Kakinada - 533 001. Kalyani: A - 1/50, Block - A, Dist Nadia, Kalyani 741 235. Kannur: Room No.14/435, Casa Marina Shopping Centre, Talap, Kannur 670 004. Kanpur: I Floor 106 to 108, City Centre Phase II, 63/ 2, The Mall, Kanpur 208 001. Karimnagar: HNo.7-1-257, Upstairs S. B. H., Mangammathota, Karimnagar 505 001. Karur: # 904, 1st Floor, Jawahar Bazaar, Karur 639 001. Kestopur: AA 101, Prafulla Kanan, Sreeparna Apartment, Ground Floor, Kestopur 700 101. Kolhapur: AMD Sofex Office No.7, 3rd Floor, Ayodhya Towers, Station Road, Kolhapur 416 001. Kolkata: "LORDS Building", 7/1, Lord Sinha Road, Ground Floor, Kolkata 700 071. Kollam: Kochupilamoodu Junction, Near VLC, Beach Road, Kollam 691 001. Kota: B-33, 'Kalyan Bhawan, Triangle Part,Vallabh Nagar, Kota 324 007. Kottayam: Door No. IX/1276, Amboorans Building, Manorama Junction, Kottayam 686 001. Kumbakonam: Jailani Complex, 47, Mutt Street, Kumbakonam 612 001. Kurnool: H.No.43/8, Upstairs, Uppini Arcade, N. R. Peta, Kurnool 518 004. Latur: Kore Complex, 2nd Cross Kapad Line, Near Shegau Patsanstha, Latur 413 512. Lucknow: Off # 4,1st Floor,Centre Court Building, 3/C, 5 - Park Road, Hazratganj, Lucknow 226 001. Ludhiana: U/GF, Prince Market, Green Field, Near Traffic Lights, Sarabha Nagar Pulli, Pakhowal Road, Ludhiana 141 002. Madurai: 86/71A, Tamilsangam Road, Madurai 625 001. Malda: Daxhinapan Abasan, Opp. Lake of Hotel Kalinga, S M Pally, Malda - 732 101. Mangalore: No. G 4 & G 5, Inland Monarch, Opp. Karnataka Bank, Kadri Main Road, Kadri, Mangalore 575 003. Manipal: Academy Annex, First Floor, Opposite Corporation Bank, Upendra Nagar, Manipal 576 104. Margao: Virginkar Chambers I Floor, Near Kamath Milan Hotel, New Market, Near Lily Garments, Old Station Road, Margao 403 601. Mathura: 159/160, Vikas Bazar, Mathura 281 001. Meerut: 108 Ist Floor,

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Shivam Plaza, Opposite Eves Cinema, Hapur Road, Meerut 250 002. Mehsana: 1st Floor, Subhadra Complex, Urban Bank Road, Mehsana 384 002. Moga: Plot No.991, Lower Ground Floor, G. T. Road, Adj. Sky Lark Tower, Opp. State Bank of Patiala, Moga - 142 001. Moradabad: B-612 'Sudhakar', Lajpat Nagar, Moradabad 244 001. Mumbai: Rajabahadur Compound, Ground Floor, Opp. Allahabad Bank, Behind ICICI Bank, 30, Mumbai Samachar Marg, Fort, Mumbai 400 023. Muzaffarpur: Brahman Toli, Durgasthan, Gola Road, Muzaffarpur 842 001. Mysore: No.1, 1st Floor, Ch.26 7th Main, 5th Cross, (Above Trishakthi Medicals), Saraswati Puram, Mysore 570 009. Morbi: 108, Galaxy Complex, Opp. K.K. Steel, Sanala Road, Morbi - 363 641. Nagpur: 145 Lendra Park, Behind Indus Ind Bank, New Ramdaspeth, Nagpur 440 010. Nasik:"Ruturang Bungalow", 2 Godavari Colony, Behind Big Bazar, Near Town School, Off College Road, Nasik 422 005 Navsari: Dinesh Vasani & Associates, 103 Harekrishna Complex, Above IDBI Bank, Nr. Vasant Talkies, Chimnabai Road, Navasari 396 445. Nellore: 97/56, I Floor Immadisetty Towers, Ranganayakulapet Road, Santhapet, Nellore 524 001. New Delhi: 304-305, III Floor, Kanchenjunga Building, 18, Barakhamba Road, Connaught Place, New Delhi 110 001. Namakkal: 156A/1, First Floor, Lakshmi Vilas Building, Opp. to District Registrar Office, Trichy Road, Namakkal - 637 001. Palakkad: 10/688, Sreedevi Residency, Mettupalayam Street, Palakkad 678 001. Palanpur: Jyotindra Industries Compound, Near Vinayak Party Plot, Deesa Road, Palanpur - 385 001. Panipat: 83, Devi Lal Shopping Complex, Opp. ABN AMRO Bank, G.T. Road, Panipat 132 103. Patiala: 35, New lal Bagh Colony, Patiala 147 001. Patna: Kamlalaye Shobha Plaza, Ground Floor, Near Ashiana Tower, Exhibition Road, Patna 800 001. Pondicherry: S-8, 100, Jawaharlal Nehru Street, (New Complex, Opp. Indian Coffee House), Pondicherry 605 001. Porbandar: II Floor, Harikrupa Towers, Opp. Vodafone Store, M.G. Road, Porbandar 360 575. Pune: Nirmiti Eminence, Off No. 6, I Floor, Opp. Abhishek Hotel, Mehandale Garage Road, Erandawane, Pune 411 004. Raichur: # 12 10 51/3C, Maram Complex, Besides State Bank of Mysore, Basaveswara Road, Raichur 584 101. Raipur: C-24, Sector 1, Devendra Nagar, Raipur 492 004. Rajahmundry: Cabin 101 D.No 7-27-4, 1st Floor, Krishna Complex, Baruvari Street, T. Nagar, Rajahmundry 533 101. Rajkot: Office 207-210, Everest Building, Harihar Chowk, Opp. Shastri Maidan, Limda Chowk, Rajkot 360 001. Ranchi: Near Student's College, Pee Pee Compound, Ranchi 834 001. Ratlam: Dafria & Co, 81, Bajaj Khanna, Ratlam 457 001. Ratnagiri: Kohinoor Complex, Near Natya Theatre, Nachane Road, Ratnagiri 415 639. Rohtak: 205, 2nd Floor, Blg. No. 2, Munjal Complex, Delhi Road, Rohtak 124 001. Rourkela: 1st Floor, Mangal Bhawan, Phase II, Power House Road, Rourkela 769 001. Rae Bareli: 17, Anand Nagar Complex, Rae Bareli - 229 001. Ropar: SCF - 17, Zail Singh Nagar, Ropar - 140 001. Sagar: Opp. Somani Automobiles, Bhagwanganj, Sagar 470 002. Salem: No.2, I Floor, Vivekananda Street, New Fairlands, Salem 636 016. Sambalpur: C/o Raj Tibrewal & Associates, Opp.Town High School, Sansarak, Sambalpur 768 001. Satara: 117/A/3/22, Shukrawar Peth, Sargam Apartment, Satara 415 002. Satna: 1st Floor, Shri Ram Market, Besides Hotel Pankaj, Birla Road, Satna 485 001. Shimoga: Nethravathi, Near Gutti Nursing Home, Kuvempu Road, Shimoga 577 201. Shimla: I Floor, Opp. Panchayat Bhawan Main Gate, Bus Stand, Shimla 171 001. Siliguri: No. 8, Swamiji Sarani, Ground Floor, Hakimpara, Siliguri 734 001. Solapur: 4, Lokhandwala Tower, 144, Sidheshwar Peth, Near Z.P., Opp. Pangal High School, Solapur 413 001. Sriganganagar: 18 L Block, Sri Ganganagar, Sri Ganganagar 335 001. Surat: Office No. 2, Ahura-Mazda Complex, First Floor, Sadak Street, Timalyawad, Nanpura, Surat 395 001. Surendranagar: 2 M. I. Park, Near Commerce College, Wadhwan City, Surendranagar 363 035. Saharanpur: I Floor, Krishna Complex, Opp. Hathi Gate Court Road, Saharanpur - 247 001. Srikakulam: Door No 5 - 6 - 2, Punyapu Street, Palakonda Road, Near Krishna Park, Srikakulam 532 001. Thiruppur: 1(1), Binny Compound, II Street, Kumaran Road, Thiruppur 641 601. Tirunelveli: III Floor, Nellai Plaza, 64-D, Madurai Road, Tirunelveli 627 001. Tirupathi: Shop No.14, Boligala Complex, 1st Floor, Door No. 18-8-41B, Near Leela Mahal Circle, Tirumala Byepass Road, Tirupathi 517 501. Trichur: Adam Bazar, Room No.49, Ground Floor, Rice Bazar (East), Trichur 680 001. Trichy: No. 8, I Floor, 8th Cross West Extn, Thillainagar, Trichy 620 018. Trivandrum: R. S. Complex, Opposite LIC Building, Pattom PO, Trivandrum 695 004. Udaipur: 32 Ahinsapuri, Fatehpura Circle, Udaipur 313 004. Vadodara: 103, Aries Complex, BPC Road, Off R.C. Dutt Road, Alkapuri, Vadodara 390 007. Valsad: Ground Floor, Yash Kamal -"B", Near Dreamland Theatre, Tithal Road, Valsad 396 001. Vapi: 215-216, Heena Arcade, Opp. Tirupati Tower, Near G.I.D.C., Char Rasta, Vapi - 396 195. Varanasi: C 27/249 - 22A, Vivekanand Nagar Colony, Maldhaiya, Varanasi 221 002. Vashi: Mahaveer Center, Office No.:17, Plot No.:77, Sector 17, Vashi 400 703. Vellore: No.:54, Ist Floor, Pillaiyar Koil Street, Thotta Palayam, Vellore 632 004. Vijayawada: 40-168, Rao & Ratnam Complex, Near Chennupati Petrol Pump, M.G Road, Labbipet, Vijayawada 520 rd 010. Visakhapatnam: 47/9/17, 1st Floor, 3 Lane, Dwaraka Nagar, Visakhapatnam 530 016. Veraval: Opp. Lohana Mahajan, WadiSatta Bazar, Veraval - 362 265. Warangal: F13, 1st Floor,

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BVSS Mayuri Complex, Opp. Public Garden, Lashkar Bazaar, Hanamkonda, Warangal 506 001. Yamuna Nagar: 124-B/R Model Town, Yamuna Nagar 135 001. The Funds website viz; www.fidelity.co.in will be an official point of acceptance for accepting transactions in the units of the schemes of the Fund. Further CAMS will be the official points of acceptance for electronic transactions received from specified banks, financial institutions, distribution channels, etc (mobilsed on behalf of their clients) with whom the AMC has entered / may enter into specific arrangements for purchase / sale / switch of units. Applications from institutional investors will be accepted via facsimile by FFMPL, subject to satisfaction of requirements specified by FFMPL. For further details please call at 1800 2000 400.

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