CORRECTED - Scandal hurts Lynch more than Fidelity-analysts

(Corrects paragraph 9 to show Peter Lynch is a vice chairman not a vice president)

By Muralikumar Anantharaman

BOSTON, March 6 (Reuters) - The reputation of Fidelity Investments' most famous fund manager, Peter Lynch, will be hurt more by the scandal involving gifts from Wall Street brokers to staffers of the world's biggest mutual fund company than Fidelity itself, analysts said this week.

Privately owned Fidelity agreed on Wednesday to pay $8 million, and Peter Lynch, who ran its main Magellan Fund from 1977 to 1990, agreed to pay about $20,000 to settle charges brought by the U.S. Securities and Exchange Commission (SEC).

The SEC charged Lynch, Fidelity and 12 other current or former employees with improperly accepting travel, entertainment and other gifts paid for by Wall Street brokers and accused Fidelity of allowing business to be swayed to these brokers.

"Far more damage has been done to Peter Lynch than the fine," said John Bonnanzio, editor of independent newsletter Fidelity Insight.

Lynch's involvement in the scandal came to light on Wednesday. However, many aspects of it were revealed a year ago after brokerage regulator NASD ended its probe into the matter and fined four Fidelity-affiliated companies $3.75 million.

Once known as America's most successful fund manager because Magellan at times generated returns more than five times that of the Standard & Poor's 500-stock index, 64-year-old Lynch relied on two Fidelity traders to procure 61 tickets worth $15,948 for various events from 1999 to 2004, the SEC said. These included sold-out Ryder Cup golf tournaments, a Santana rock concert, and 11 tickets to see Irish rock band U2, according to the SEC.

"In asking the Fidelity equity trading desk for occasional help locating tickets, I never intended to do anything inappropriate, and I regret having made those requests," Lynch said in a statement on Wednesday.