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Investment Disciplines of the RIC's
Each RIC offers a distinct investment discipline (or
objective), or a distinct service feature (e.g., required minimum
investment, checkwriting, etc.) different, to a greater or lesser
extent, from every other RIC in the Fidelity family. Although
each RIC is different, the differences in the investment
disciplines and objectives can be minor, such as the difference
between a New York and New Jersey bond fund, or major, such as
the difference between investing in low grade corporate
securities and Treasury bills. The investment disciplines and
features are described in the offering prospectus for each RIC.
Petitioner classifies the RIC's that it manages according to
three general types of financial instruments the RIC invests in:
Equity funds, money market funds, and fixed income funds. Equity
funds (also known to the public as "stock funds") are RIC's that
invest in corporate stocks (equities). The category of equity
funds can be further subdivided into: Growth funds, growth and
income funds, international funds, asset allocation funds, and
sector funds. Typically, the stated investment discipline for a
RIC in the equity group also permits investment in bonds and
money market instruments. Money market funds are RIC's that
invest in money market instruments such as short-term corporate
and governmental obligations. Money market funds are
subclassified into "taxable" and "municipal" (or "tax-free")
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Last modified: May 25, 2011