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Fidelity MF Merges Funds

FMMCF will cease to exist after the merger is put into effect

Fidelity Mutual Fund, renowned for its innovative structure, has decided to merge its Fidelity Multi-Manager Cash Fund (FMMCF) with Fidelity Cash Fund (FCF).

The merger is being carried out due to similarities between the investment objectives of the two schemes, which are to provide reasonable returns with low risk.

While the FMMCF is a cash fund of funds scheme, the FCF is an open-ended liquid scheme. The merger will be effective from July 10 after which FMMCF shall cease to exist from that date.

The FMMCF was launched in January 2006, ahead of the launch of FCF. Over time, the FCF has grown in size and this merger would allow investors in FMMCF to benefit.

The FCF aims to deliver reasonable returns with lower volatility and higher liquidity through a portfolio of debt and money market instruments. While on the other hand, Fidelity International's Indian asset management company started operations in the country in 2004, its first fund, the Fidelity Equity Fund, was launched in March 2005.

However, investors who are into FMMCF need not panic. According the company, those who wish to exit from FMMCF can do so without an exit load from June 3 to July 8, both days inclusive.

For investors in FMMCF who choose not to redeem by July 8, there will be a fresh issue of units of FCF in lieu of units held on July 9 in FMMCF.

The units allotted in FCF shall be treated as a fresh subscription in FCF. There will be no change in the fundamental attributes of FCF and there will be no new scheme as a result of the merger, the release added.