Taking forward its deal to acquire the assets of Morgan Stanley Mutual Fund in India, HDFC Mutual Fund has begun the process of merging the schemes of the smaller rival with itself.
HDFC MF will merge the four schemes offered by Morgan Stanley MF with itself, while it would change the name of another four schemes.
The changes are announced pursuant to the acquisition of Morgan Stanley MF schemes and to avoid similar products being offered to the investors. However, these changes to the schemes are subject to completion of the proposed deal.
Besides, HDFC MF has given an exit option to the unit holders of Morgan Stanley MF.
"An exit option from May 22, 2014 to June 20, 2014 has been provided to the unit holders who are not agreeable to the transaction/changes to the schemes wherein they may submit redemption request to MSMF (Morgan Stanley MF) to exit the scheme without any exit load," HDFC MF said in a latest update on its website.
In December last year, HDFC MF had announced the acquisition of Morgan Stanley MF running a total of eight schemes with assets worth Rs 3,290 crore, a major consolidation exercise in the highly-dispersed sector.
