Despite repeated nudges by the capital market regulator, Securities and Exchange Board of India (Sebi), and some progress being made by the mutual fund (MF) industry, it seems that scheme mergers have hit a little snag. How should fund houses merge their multiple tax-saving or equity-linked savings schemes (ELSS)?
Although most fund houses have only one tax-saving scheme, some such as HDFC Asset Management Co. Ltd and Birla Sun Life Asset Management Co. Ltd, have more. This is because over the years they had acquired other fund houses, and such acquisitions brought with them other tax-saving schemes. Since these schemes offer tax deduction benefits under section 80C of the income tax Act, fund houses had, so far, chosen to let all schemes continue.
