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Updated on: Dec 7th, 2022
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13 min read
In India, there are 44 Asset Management Companies (AMCs) or mutual fund houses operating. Out of these 44 AMCs, there has been a merger between L&T Mutual fund and HSBC Mutual fund on November 26th, 2022. In this document, we will be explaining what all changes that have occurred due to this merger and how this is going to affect the investors.
Typically, two types of changes have happened:
- Some L&T funds got renamed to HSBC funds, some HSBC funds got renamed. It is merely a name change. No change in NAV. No change in investment value.
- Some funds of L&T are merged with HSBC funds which means NAV will be recomputed while the investment value does NOT change.
Along with the above 2 changes, some of the details of the surviving funds (funds that remained after the merger) like minimum investment amount, exit load ..etc have been updated.
Type of change | Number of funds | Impact on NAV | Impact on Investment value | List of funds |
Name change | 45 | No impact | No impact | Scroll to ‘Funds with name change’ |
Funds merging | 25 | NAV will be updated | No impact | Scroll to ‘Funds that got merged’ |
Funds deleted | 0 | – | – | – |
FAQs
- When is the merger expected to happen?
The merger between L&T Mutual fund and HSBC Mutual fund took place on 26th November, 2022.
- Which AMC has been acquired?
L&T Mutual fund has been acquired by HSBC Mutual fund and all the L&T funds have been migrated to HSBC.
- What happens to my existing L&T and HSBC investments?
All your funds are absolutely safe and there is nothing to be worried about. You can redeem as usual from ClearTax’s Black app. Just watch out for the fund name when you redeem funds. Also, there would be no impact on the investment value.
- How does this impact existing users?
There is no impact on the investment value as of 26th November. However, NAV and no. of units might have been adjusted. But that won’t impact your investment value.
Investment Value = NAVold X (No. of Units.) = NAVnew X (New No. of Units)
- What will happen to existing L&T, HSBC SIP registrations?
All SIP registrations which are active as on the Effective Date of the transaction will continue except for the ones where the SIP amount is less than the revised minimum SIP amount required by the scheme. In case of scheme merger, future systematic transactions will be triggered in the surviving schemes.
(After the merger, the minimum SIP amount of all the HSBC funds is Rs.1000)
Change in the minimum SIP amount of the scheme | Previous minimum SIP amount | Updated minimum SIP amount | SIP amount of the user | If A>Y | If A<Y | Comment |
Yes | X | Y | A | SIP will continue as usual | SIP will be auto canceled (users can redeem the amount whenever they wish). | User has to create a New SIP to continue investing in the fund. |
No | X | X | A | – | – | SIP will continue as usual |
- Does the user have to do anything from his/her side?
There is no actionable at the user’s end, all the changes will be done by AMC or channel partner (ClearTax).
- Will there be a change in the Folio Number post-merger?
No, there will be no change in the Folio Number. Folio numbers of both L&T and HSBC would remain the same post-merger.
- What does this mean for my upcoming investments?
They will run as usual, however, you may see name changes i.e. if you were investing in L&T Tax Saver Fund earlier, you will see that this fund would now have been renamed to HSBC Tax Saver Fund in the app, so when you want to search and invest, you should search for the new name. If you want to invest from the dashboard, you will find your previous investments with the updated scheme name and you can proceed to invest in that fund.
- What will be the transaction type related to merger?
There will be a separate transaction entry denoting the merger. Description will be “Switch out – Merger”, “Switch in – Merger”.
Changes in the funds
Funds with no Impact
Fund Name |
HSBC Ultra Short Duration Fund Direct-Growth |
HSBC Overnight Fund – Growth Direct Plan |
HSBC Flexi Cap Fund – Growth Direct Plan |
- There is no impact on investment value or NAV for the above funds
Funds that got merged
Transferor funds are merged with Transferee funds resulting in the surviving funds.
Transferor funds | Transferee funds | Surviving funds |
L&T Ultra Short Term Fund Direct Plan – Growth | HSBC Ultra Short Duration Fund Direct Growth | HSBC Ultra Short Duration Fund – Direct Growth |
L&T Ultra Short Term Fund Direct Plan – Bonus | HSBC Ultra Short Duration Fund Direct Growth | HSBC Ultra Short Duration Fund – Direct Growth |
L&T Overnight Fund Direct Plan – Growth | HSBC Overnight Fund – Growth Direct Plan | HSBC Overnight Fund – Direct Growth |
L&T Liquid Fund Direct Plan – Growth | HSBC Cash Fund – Growth Direct Plan | HSBC Liquid Fund – Direct Growth |
L&T Conservative Hybrid Fund Direct Plan – Growth | HSBC Regular Savings Fund – Growth Direct Plan | HSBC Conservative Hybrid Fund – Direct Growth |
L&T India Large Cap Fund Direct Plan – Growth | HSBC Large cap Equity Fund – Growth Direct Plan | HSBC Large Cap Fund – Direct Growth |
L&T Large and MidCap Fund Direct Plan – Growth | HSBC Large and Midcap Equity Fund Direct Plan Growth | HSBC Large & Mid Cap Fund – Direct Growth |
L&T Flexicap Fund Direct Plan – Growth | HSBC Flexi Cap Fund – Growth Direct Plan | HSBC Flexi Cap Fund – Direct Growth |
L&T Focused Equity Fund Direct Plan – Growth | HSBC Focused Equity Fund Direct Plan Growth | HSBC Focused Fund – Direct Growth |
HSBC Corporate Bond Fund Direct Growth | L&T Flexi Bond Fund Direct Plan – Growth | HSBC Dynamic Bond Fund – Direct Growth |
HSBC Short Duration Fund – Growth Direct Plan | L&T Short Term Bond Fund Direct Plan – Growth | HSBC Short Duration Fund – Direct Growth |
HSBC Low Duration Fund – Growth Direct Plan | L&T Low Duration Fund Direct Plan – Growth | HSBC Low Duration Fund – Direct Growth |
HSBC Equity Hybrid Fund Direct Plan Growth | L&T Hybrid Equity Fund Direct Plan – Growth | HSBC Aggressive Hybrid Fund – Direct Growth |
HSBC Midcap Fund Direct Plan Growth | L&T Midcap Fund Direct Plan – Growth | HSBC Midcap Fund – Direct Growth |
HSBC Infrastructure Equity Fund – Growth Direct Plan | L&T Infrastructure Fund Direct Plan – Growth | HSBC Infrastructure Fund – Direct Growth |
HSBC Small Cap Equity Fund – Growth Direct Plan | L&T Emerging Businesses Fund Direct Growth | HSBC Small Cap Fund – Direct Growth |
HSBC Flexi Debt Fund – Growth Direct Plan | L&T Flexi Bond Fund Direct Plan – Growth | HSBC Dynamic Bond Fund – Direct Growth |
L&T Ultra Short Term Fund – Regular Growth | HSBC Ultra Short Duration Fund Growth | HSBC Ultra Short Duration Fund – Regular Growth |
L&T Overnight Fund – Growth | HSBC Overnight Fund – Growth | HSBC Overnight Fund – Regular Growth |
L&T Liquid Fund – Regular Growth | HSBC Cash Fund – Growth | HSBC Liquid Fund – Regular Growth |
L&T Conservative Hybrid Fund – Growth | HSBC Regular Savings Fund – Growth | HSBC Conservative Hybrid Fund – Regular Growth |
L&T India Large Cap Fund – Growth | HSBC Large cap Equity Fund – Growth | HSBC Large Cap Fund – Regular Growth |
L&T Large and MidCap Fund – Growth | HSBC Large and Midcap Equity Fund Growth | HSBC Large & Mid Cap Fund – Regular Growth |
L&T Flexicap Fund – Growth | HSBC Flexi Cap Fund – Growth | HSBC Flexi Cap Fund – Regular Growth |
L&T Focused Equity Fund – Growth | HSBC Focused Equity Fund Growth | HSBC Focused Fund – Regular Growth |
- For the above funds, there is no impact on the Investment value but the NAV will be updated with respect to the merger.
- Transactions related to the merger happen in switch-out and switch-in transactions i.e funds will be switched out from the transferor fund, and they will be switched into surviving funds after the merger.
- Final units will be calculated based on the NAV update and investment value after merging.
Example:
Let’s assume there is a Transferor fund A that is merging with Transferee fund B resulting in surviving fund C. The investment value is then switched out from fund A before the merger and switched into fund C after the merger.
If an investor has 100 units in fund A on the day of switch-out, with NAV of 50, and fund C has a NAV of 100 on the day of switch-in. then the number of units will be calculated as per the method mentioned below:
Let’s say the number of units in the surviving fund = X
Fund | NAV | Number of units | Investment value |
Transferor fund A | 50 | 100 | 5000 |
Surviving fund B | 100 | X | 100*X = 5000 X = 5000/100 X = 50 |
Hence, the final number of units in the surviving fund = 50 with NAV of 100.
Funds with Name change
Scheme | Revised Scheme Name |
L&T Arbitrage Opportunities Fund Direct Growth | HSBC Arbitrage Fund – Direct Growth |
L&T Resurgent India Bond Fund Direct Growth | HSBC Medium Duration Fund – Direct Growth |
L&T Banking and PSU Debt Fund Direct Plan – Growth | HSBC Banking and PSU Debt Fund – Direct Growth |
L&T Triple Ace Bond Fund Direct Plan – Growth | HSBC Corporate Bond Fund – Direct Growth |
L&T Credit Risk Fund Direct Plan – Growth | HSBC Credit Risk Fund – Direct Growth |
L&T Money Market Fund Direct Plan – Growth | HSBC Money Market Fund – Direct Growth |
L&T Equity Savings Fund Direct Plan – Growth | HSBC Equity Savings Fund – Direct Growth |
L&T Gilt Fund Direct Plan – Growth | HSBC Gilt Fund – Direct Growth |
L&T India Value Fund Direct Plan – Growth | HSBC Value Fund – Direct Growth |
L&T Business Cycles Fund Direct Growth | HSBC Business Cycles Fund – Direct Growth |
L&T Balanced Advantage Fund Direct Plan – Growth | HSBC Balanced Advantage Fund – Direct Growth |
L&T Nifty 50 Index Fund Direct Plan – Growth | HSBC NIFTY 50 INDEX FUND – Direct Growth |
L&T Nifty Next 50 Index Fund Direct Plan – Growth | HSBC NIFTY NEXT 50 INDEX FUND – Direct Growth |
L&T Tax Advantage Fund Direct Plan – Growth | HSBC ELSS Fund – Direct Growth |
HSBC Tax Saver Equity Fund – Growth Direct Plan | HSBC Tax Saver Equity Fund – Direct Growth |
HSBC Debt Fund – Growth Direct Plan | HSBC Medium to Long Duration Fund – Direct Growth |
HSBC CRISIL IBX 50:50 Gilt Plus SDL Apr 2028 Index Fund Direct Plan Growth | HSBC CRISIL IBX 50:50 Gilt Plus SDL Apr 2028 Index Fund – Direct Growth |
HSBC Asia Pacific Dividend Yield Fund Direct Plan Growth | HSBC Asia Pacific(Ex Japan)Div YieldFund – Direct Growth |
HSBC Brazil Fund – Growth Direct Plan | HSBC Brazil Fund – Direct Growth |
HSBC Global Equity Climate Change Fund of Fund Direct Plan Growth | HSBC Global Equity Climate Change Fund of Fund – Direct Growth |
HSBC Global Emerging Markets Fund – Growth Direct Plan | HSBC Global Emerging Markets Fund – Direct Growth |
HSBC Managed Solutions India Conservative Fund Direct Plan Growth | HSBC Managed Solution India-Conservative – Direct Growth |
HSBC Managed Solutions India Growth Fund Direct Plan Growth | HSBC Managed Solutions India – Growth – Direct Growth |
HSBC Managed Solutions India Moderate Fund Direct Plan Growth | HSBC Managed Solutions India – Moderate – Direct Growth |
L&T Arbitrage Opportunities Fund Growth | HSBC Arbitrage Fund – Regular Plan – Growth |
L&T Resurgent India Bond Fund Growth | HSBC Medium Duration Fund – Regular Plan – Growth |
L&T Banking and PSU Debt Fund – Growth | HSBC Banking and PSU Debt Fund – Regular Plan – Growth |
L&T Triple Ace Bond Fund – Growth | HSBC Corporate Bond Fund – Regular Plan – Growth |
L&T Credit Risk Fund – Growth | HSBC Credit Risk Fund – Regular Plan – Growth |
L&T Money Market Fund – Growth | HSBC Money Market Fund – Regular Plan – Growth |
L&T Equity Savings Fund – Growth | HSBC Equity Savings Fund – Regular Plan – Growth |
L&T Gilt Fund – Growth Plan | HSBC Gilt Fund – Regular Plan – Growth |
L&T India Value Fund – Growth | HSBC Value Fund – Regular Plan – Growth |
L&T Business Cycles Fund Growth | HSBC Business Cycles Fund – Regular Plan – Growth |
L&T Balanced Advantage Fund – Growth | HSBC Balanced Advantage Fund – Regular Plan – Growth |
L&T Nifty 50 Index Fund – Growth | HSBC NIFTY 50 INDEX FUND – Regular Plan – Growth |
L&T Nifty Next 50 Index Fund – Growth | HSBC NIFTY NEXT 50 INDEX FUND – Regular Plan – Growth |
L&T Tax Advantage Fund – Growth | HSBC ELSS Fund – Regular Plan – Growth |
L&T Flexi Bond Fund – Growth | HSBC Dynamic Bond Fund – Regular Plan – Growth |
L&T Short Term Bond Fund – Growth | HSBC Short Duration Fund – Regular Plan – Growth |
L&T Low Duration Fund – Growth | HSBC Low Duration Fund – Regular Plan – Growth |
L&T Hybrid Equity Fund – Growth | HSBC Aggressive Hybrid Fund – Regular Plan – Growth |
L&T Midcap Fund – Growth | HSBC Midcap Fund – Regular Plan – Growth |
L&T Infrastructure Fund – Growth | HSBC Infrastructure Fund – Regular Plan – Growth |
L&T Emerging Businesses Fund Growth | HSBC Small Cap Fund – Regular Plan – Growth |
- There is no impact on investment value and the NAV for the above funds. Only the scheme name gets updated.
As an expert in the field of mutual funds and financial investments, I bring a wealth of knowledge and experience to shed light on the merger between L&T Mutual Fund and HSBC Mutual Fund, as outlined in the article by Mayashree Acharya. My expertise is rooted in a comprehensive understanding of the intricacies of mutual fund operations, financial market dynamics, and the implications of mergers in the asset management industry.
Firstly, let's delve into the key concepts and changes mentioned in the article:
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Merger Overview:
- L&T Mutual Fund and HSBC Mutual Fund completed their merger on November 26th, 2022.
- L&T Mutual Fund was acquired by HSBC Mutual Fund, resulting in the migration of all L&T funds to HSBC.
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Types of Changes:
- Name Changes: Some L&T funds were renamed as HSBC funds, and vice versa. This change did not affect the Net Asset Value (NAV) or investment value.
- Fund Mergers: Certain funds from L&T were merged with HSBC funds, leading to a recomputation of NAV. However, the investment value remained unaffected.
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Impact on Investors:
- Existing investors were assured that their funds were safe, and there would be no impact on the investment value as of November 26th, 2022.
- No action was required from the investor's side; all changes would be handled by the Asset Management Company (AMC) or channel partner (ClearTax).
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SIP Registrations:
- Active Systematic Investment Plan (SIP) registrations as of the merger date would continue, except for those with SIP amounts below the revised minimum required by the scheme.
- Future systematic transactions would be triggered in the surviving schemes post-merger.
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Folio Number and Investments:
- There would be no change in the Folio Number for investors post-merger.
- Existing investments and upcoming investments would run as usual, with only changes in fund names for the affected schemes.
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Transaction Types and Units Calculation:
- Transactions related to the merger would be denoted as "Switch out – Merger" and "Switch in – Merger."
- Final units in the surviving fund would be calculated based on the NAV update and investment value after merging.
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Funds with Name Change:
- Numerous funds underwent name changes, with revised scheme names reflecting the transition from L&T to HSBC.
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Funds Merged:
- Transferor funds from L&T were merged with transferee funds from HSBC, resulting in surviving funds. This affected the scheme names, but not the investment value.
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Author's Credentials:
- Mayashree Acharya, the Senior Content Writer, is identified as an advocate by profession with expertise in writing across various categories, including legal, business, personal finance, and investments.
In summary, the merger between L&T Mutual Fund and HSBC Mutual Fund involved both name changes and fund mergers, with a focus on ensuring a seamless transition for investors. The article provides comprehensive information on the changes, their impact on investors, and the steps taken by the AMC to handle the transition effectively.