LIC Mutual Fund (LICMF) is set to acquire IDBI Mutual Fund (IDBIMF) schemes. IDBIMF has informed about the merger with LICMF via an email to its investors. The communication also specifies the proposed change in sponsorship, trusteeship, management and administration of the IDBIMF schemes.
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Accordingly, the schemes of IDBI MF will form part of LIC MF. Notably, LIC AMC will be acting as the asset management for the schemes of IDBI MF.
Out of the 20 schemes of IDBIMF, 10 will be merged with schemes of LICMF in the same categories. The remaining 10 schemes of the fund house will be transferred to LICMF and renamed. The unitholders of IDBIMF will be offered an exit option without any exit load. The window for the same will be available till July 19, 2023.
Here's a look at the schemes of IDBI Mutual Fund:
| Sr.No. | Name of Scheme | Scheme category as per SEBI circular dated October 6, 2017 |
| 1. | IDBI Dividend Yield Fund | Dividend Yield Fund |
| 2. | IDBI Equity Advantage Fund | ELSS |
| 3. | IDBI Flexi Cap Fund | Flexi Cap Fund |
| 4. | IDBI Focused 30 Equity Fund | Focused Fund |
| 5. | IDBI India Top 100 Equity Fund | Large Cap Fund |
| 6. | IDBI Midcap Fund | Mid Cap Fund |
| 7. | IDBI Healthcare Fund | Sectorial Fund |
| 8. | IDBI Banking & Financial Services Fund | Sectorial Fund |
| 9. | IDBI Small Cap Fund | Small Cap Fund |
| 10. | IDBI Long Term Value Fund | Value Fund |
| 11. | IDBI Liquid Fund | Liquid Fund |
| 12. | IDBI Short Term Bond Fund | Short Duration Fund |
| 13. | IDBI Ultra Short Term Fund | Ultra Short Duration Fund |
| 14. | IDBI Hybrid Equity Fund | Aggressive Hybrid Fund |
| 15. | IDBI Equity Savings Fund | Equity Savings |
| 16. | IDBI Nifty 50 Index Fund | Index Fund |
| 17. | IDBI Nifty Next 50 Index Fund | Index Fund |
| 18. | IDBI Gold Exchange Traded Fund | ETF |
| 19. | IDBI Gold ETF Fund of Fund | FOF (Domestic) |
| 20. | IDBI Credit Risk Fund | Credit Risk Fund |
As per the communication, LICMF will manage, operate, and administer all of IDBIMF’s schemes. The unitholders of IDBIMF have also been sent a ballot form seeking their approval for this scheme of arrangement.
"All duly signed and filled-up ballot papers received by the Registrar and votes received electronically during this period will be accepted and considered, if found valid, for the purpose of determining the results of the ballot," the letter said. Each unitholder will be entitled to one vote for every unit held.
Earlier in March, the Competition Commission of India (CCI) had approved the proposal of LIC Mutual Fund Asset Management to acquire management rights over the schemes of IDBI MF from IDBI Asset Management.
In 2019, LIC completed the takeover of IDBI Bank, the sponsor of IDBI Mutual Fund. However, LIC has its own asset management company, LIC Mutual Fund, under the Securities and Exchange Board of India (Sebi) rules.
LIC is the ultimate parent company of LIC AMC and LIC TC. LIC AMC and LIC TC belong to the LIC Group. LIC AMC acts as the asset management company to LIC MF, while LIC TC acts as the trustee company of LIC MF in India. LIC AMC acts as an investment management advisor to LIC MF. It manages the investment portfolio and provides various administrative services to LIC MF.
First Published: Jun 21, 2023 4:46 PM IST
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