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.
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