MUMBAI: Fidelity Asset Management Company, the Indian arm of Fidelity International, today announced the launch of its first fixed maturity plan (FMP), the Fidelity Fixed Maturity, Series 1 - Plan A with a duration of 370 days from the date of allotment of units.

According to an official release issued today, the scheme is a close-ended debt scheme, and the performance of the plan will be benchmarked against the Crisil Short Term Bond Fund Index.

Ashu Suyash, managing director and country head (India), Fidelity International, said: "Fixed maturity plans provide investors a good alternative to fixed deposits given that they are more tax efficient. This is especially so during volatile times when investors are likely to be more risk averse."

The new fund offer opens for subscription on August 20, 2008, and will close on August 27, 2008. The fund offers both retail and institutional plans. The minimum application amount for the retail plan is Rs 5,000 and under the institutional plan it is Rs 1 crore. The fund would offer redemption facility on the maturity date without the payment of any load. Redemptions before the maturity date will be subject to an exit load of 2%.