Date:20/12/2005 URL: http://www.thehindubusinessline.com/2005/12/20/stories/2005122002491500.htm

Back Fidelity unveils new tax fund

Our Bureau

Mumbai , Dec. 19

RESPONDING to the Government's announcement on December 13 on equity-linked savings schemes, Fidelity Fund Management has announced that its Fidelity Tax Advantage Fund will open on January 5, 2006.

The company had received SEBI approval for this fund in October itself, but it had decided to hold back the launch and wait for clarification in the tax rules to safeguard investor interest, said Mr Ashu Suyash, Country Head of Fidelity's Asset Management Company.

The fund will be an open-ended growth scheme aimed at generating long-term capital growth from a diversified portfolio of predominantly equity and equity-linked securities, said a statement from Fidelity.

This is in accordance with the regulation that allows tax savings on investments in open-ended ELSS of up to Rs 1 lakh. The fund will have a lock-in period of three years, as in all ELSS funds.