I thought a recent M* study was quite interesting. It describes a historical analysis of Fidelity's new fund launches. A summary below:

• The author (Lefkovitz) views fund launches in a similar vein as IPOs. Just as companies and their bankers time their initial public offerings to get the biggest possible pop, fund companies have a vested interest in pushing what's hot and saleable rather than what makes sense for long-term investors.

• There's a different view out there. Some Fidelity watchers believe that Fidelity's new funds are actually excellent buys. So I decided to look at the issue systematically.

• The theory, presented by Jim Lowell in his book What Every Fidelity Investor Needs to Know, holds that new Fidelity funds are poised for success. They have been incubated and only open to the public if the concept and manager show promise. Because they are small and growing, new funds are easier to manage. Lowell also speculates that Fidelity has a real interest in seeing its new funds do well, and therefore directs analytical attention and maybe even some favorable stock allocation their way.

There is more in the article, but I don't want to give that away, so read the article. However, I would be interested in everyone's views here on this subject as well as what you think of the new Fido Income Replacement Fund idea. Best Regards ..... Anil