What Happened to L&T Mutual Funds?

Investors of L&T mutual funds may be shocked to see their investments in the funds 'vanish' from their holdings... and ofcouse get baffled by the presence of new funds from HSBC Mutual Fund in which they might have no investments.

Nothing to Panic here. 

L&T Mutual Funds sold 100% of their business to HSBC Mutual Fund on 25th Nov 2022 for Rs. 3484 Crores (US$ 425 Million). As on 30th Sept 2022, L&T Mutual Fund had an asset under management (AUM) of Rs.72,322 Crores, while HSBC Mutual  Fund had Rs.13,620 Crores.

Ironically, exactly 10 years back L&T mutual fund acquired Fidelity Mutual Fund in India.

So M&A is a way of life in Mutual fund industry - atleast in India!

As a result of this take over, some of the funds of L&T are merged with HSBC schemes. The list is given below: Some may have just a change in name while few may have change in fundamental attributes.

As an investor - what should you do? 

The first question that could come to mind is - Should I exit or Stay invested.

To answer that question you need to look at the new name of the 'your' L&T schemes.

Both management has said that the fund managers would be intact.

If it is just a name change - you need not worry much. The fund just got rechristined. That's it.

But if the fund's fundamental attribute has changed - then you need to check if the new mandate fits in your investment criteria and take a call on staying invested.

As the fund management claims if all is the same, it is just a Red & White logo instead of a Black & Yellow!. 

Wish the investors benefit out of this transformation.