LIC MF had an AUM of Rs 18,400 crore and IDBI MF had Rs 3,650 crore as of June. After completion of the merger, out of 20 schemes of IDBI MF, 10 schemes can be merged with comparable schemes of LIC MF and the remaining 10 can be taken over by LIC MF on standalone foundation, which is able to take its complete scheme depend to 38.
With this merger, buyers invested in IDBI MF schemes will get entry to LIC MF’s diversified basket of product choices overlaying fairness, debt, hybrid, resolution oriented themes, ETF and Index funds.
“It is a vital milestone in our journey as we’re working in direction of creating our capabilities to function a diversified mutual fund home catering to funding wants throughout key markets in India, » mentioned TS Ramakrishnan, MD and CEO, LIC MF.
The competitors fee of India (CCI) had in March this 12 months authorized this takeover by LIC MF. Offers past a sure threshold require approval from the regulator, which retains a tab on unfair enterprise practices within the market.
IDBI Financial institution is the sponsor of IDBI MF and IDBI AMC acts because the asset administration firm to IDBI MF whereas IDBI Trustee Firm acts because the trustee firm of IDBI MF.
Put up transaction, the schemes of IDBI MF will kind a part of LIC MF with LIC AMC appearing because the asset administration firm for the schemes of IDBI MF. LIC TC will act because the trustee firm of the schemes of IDBI MF. »The merger enhances our purpose to strengthen our scheme choices within the mid-cap, small-cap, gold fund, passive fund segments, and many others. It’s going to assist us construct a wider market presence and provide a extra intensive vary of product baskets. The mixed energy will assist us seize rising alternatives within the thriving asset administration trade and drive worth for buyers and distribution companions,” Ramakrishnan mentioned.
“Our imaginative and prescient is to be a trusted accomplice in wealth creation and a mutual fund of selection. The monitor report of managing funds for over three a long time has enabled us to realize belief of buyers. We are going to stay targeted and work in direction of delivering long-term efficiency by adopting ample threat management mechanisms,” he added