Fidelity to enter fixed-income segment
Kolkata: Fidelity Mutual Fund is planning an entry into the fixed-income segment through an open-end income scheme suitable for short to medium term investors. It proposes to introduce a Fidelity Short Term Income Fund, which will offer two plans (named institutional and non-institutional), and will be benchmarked against Crisil Short Term Bond Index.
According to the offer document filed with SEBI.

The fund management team will take an active view of the interest rate movement while investment decisions will be a combination of credit analysis of individual exposures and analysis of macro economic factors. The prevailing interest rate scenario, quality of the security, maturity profile and liquidity will be among the important considerations.

Fidelity Short Term Income Fund will invest entirely in debt and money market securities. Debt instruments (including securitised debt) may account for 100 per cent of the allocations. The fund can scale up its exposure to money market instruments to 100 per cent as well. It may invest in various derivatives instruments, subject to limits.
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Sundaram BNP plans small cap fund
Mumbai: Sundaram BNP Paribas Mutual plans to launch its close-ended Small Cap Mutual Fund in the market. The fund is being launched against the backdrop of the recent fall in the markets. The Small-cap index has fallen by 38 per cent since May 10 and current valuations of most shares are attractive for mutual fund investors.

T P Raman, managing director, Sundaram BNP Paribas Mutual, said: "A small-cap fund has to be close-ended to avoid the implications of volatility, particularly going by the nature of small-cap markets."

Majority of funds came from the northern and western regions of the country and the net asset value for the month of May was Rs9.86. A portion of the fund still remains to be invested.
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FIIs, banks to be allowed to trade in commodities
New Delhi: Foreign institutional investors (FIIs), banks and mutual funds will shortly be allowed to trade in the commodity futures market, particularly in crude oil and bullion, to provide a fillip to the growing commodities sector, said. S. Sundareshan, chairman, Forward Markets Commission (FMC).

The commodities futures market trade exceeded Rs21 lakh crore in 2005-06.
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