Aditya Birla Sun Life MF and HDFC MF have proposed to merge their maturing fixed maturity plans (FMP) with existing schemes. While ABSL MF intends to merge 17 FMPs with two of its schemes — Low Duration Fund and Nifty SDL Apr 2027 Index Fund, HDFC MF is set to merge six fixed maturity schemes with its corporate bond fund.
The fund houses will merge the assets of only those investors who will provide consent. "Unit holders of the merging scheme who provide consent for the merger will be allotted units under the corresponding plan / option of the transferee scheme at the NAV of the respective effective dates of the merger," HDFC MF said in an addendum.
ABSL MF has also issued a similar direction.
To give consent, investors will have to fill the consent form mailed to them by the respective fund houses and submit it either physically or via email.
HDFC MF said the merger is in favour of investors. "The merger will be more tax efficient as it will not force capital gains on them on maturities and investors can continue to avail of the indexation benefits till the time they choose to remain invested. Further, the unit holders are free to choose their date of redemption any time after merger to meet their liquidity requirements," the fund house said.
For more details you can refer to the addendum of both fund houses by clicking here and here.
