LIC Mutual Fund on July 31, 2023, announced the successful completion of the takeover of schemes of IDBI Mutual Fund. The merger is effective from July 29, 2023, LIC Mutual Fund announced in a press statement.
With the completion of the merger, 10 of the 20 schemes of IDBI MF will be merged with similar schemes of LIC MF, while the remaining 10 will be taken over on a standalone basis. The total scheme count of LIC MF will come to 38.
LIC Mutual Fund on July 31, 2023, announced the successful completion of the takeover of schemes of IDBI Mutual Fund. The merger is effective from July 29, 2023, LIC Mutual Fund announced in a press statement.
The move is in line with LIC Mutual Fund’s mission to strengthen and diversify its product offerings, expand its footprint, and grow its assets under management (AUM). As on June 30, 2023, LIC MF had an AUM of Rs 18,400 crore and IDBI MF had an AUM of Rs 3,650 crore.
With the completion of the merger, the 20 schemes of IDBI MF will either be merged or taken over by LIC Mutual Fund. According to the press statement, 10 out of these 20 schemes will be merged with similar schemes of LIC MF, while the remaining 10 will be taken over on a standalone basis. The total scheme count of LIC MF will come to 38 after the complete merger or takeover.
With this merger, investors invested in IDBI MF schemes will get access to LIC MF’s diversified basket of product offerings covering equity, debt, hybrid, solution-oriented themes, exchange-traded funds (ETFs) and index funds, LIC MF said in statement.
TS Ramakrishnan, managing director and CEO, LIC Mutual Fund said: “It is an important milestone in our journey, as we are working towards developing our capabilities to serve as a diversified mutual fund house catering to investment needs across key markets in India. The merger complements our goal to strengthen our scheme offerings in the mid-cap, small-cap, gold fund, and passive fund segments. The merger will help us build wider market presence and offer a more extensive range of product basket. The combined strength will help us capture emerging opportunities in the thriving asset management industry and drive value for investors and distribution partners.”
He added: “Our vision is to be a trusted partner in wealth creation and a mutual fund of choice. Our track record of managing funds for over three decades has enabled us to gain trust of investors. We will remain focused and work towards delivering long-term performance by adopting adequate risk control mechanisms."