LIC Mutual Fund (LICMF) is all set to take over the schemes of IDBI Mutual Fund (IDBIMF). IDBIMF has despatched a letter to all unitholders of its schemes to this impact. The communication additionally specifies the proposed change in sponsorship, trusteeship, administration, and administration of the IDBIMF schemes. Since these modifications are basic in nature, as per norms, the unitholders of IDBIMF are additionally supplied an exit possibility with none exit load.

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Out of the 20 schemes of IDBIMF, 10 can be merged with schemes of LICMF in the identical classes. For instance, the IDBI Fairness Benefit Fund, an ELSS, can be merged with the LICMF Tax Plan. These 10 embrace 5 fairness funds, one hybrid, and the remaining debt merchandise. The remaining 10 schemes of the fund home can be transferred to LICMF and renamed. These embrace two schemes that spend money on gold, one hybrid, and the remaining, fairness schemes.

As per the scheme of association between the 2 fund homes, going ahead, LICMF will handle, function, and administer all of IDBIMF’s schemes. The unitholders of IDBIMF have additionally been despatched a poll type searching for their approval for this scheme of association. “The voting window will stay open from June 20, 2023, till July 19, 2023 (each days inclusive). All duly signed and filled-up poll papers acquired by the Registrar and votes acquired electronically throughout this era can be accepted and thought of, if discovered legitimate, for the aim of figuring out the outcomes of the poll,” the letter mentioned. Every unitholder can be entitled to 1 vote for each unit held.

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Since these modifications, together with the merger and switch of schemes of IDBIMF and the change of asset administration firm (AMC) of IDBIMF schemes, quantity to modifications in basic attributes, the unitholders of schemes of IDBIMF are supplied the choice to exit their investments with out paying an exit load, if any, earlier than July 19, 2023. Although this feature is supplied to the unitholders, it’s not necessary for them to train it. Unitholders can stay invested if they’re content material with the modifications.

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On the finish of the exit window interval and voting train, IDBIMF will notify the unitholders in regards to the date on which the scheme mergers and transfers will happen.

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As per Worth Analysis, as of Might 31, 2023, LICMF managed property price Rs 18,719 crore, whereas IDBI MF had property price Rs 3,805 crore.

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