DHFL Pramerica Mutual Fund merges two schemes exposed to sponsor

The MF industry has been facing mark-to-market hit on its exposure to DHFL

DHFL Pramerica Mutual Fund (MF), which has seen some of its schemes’ exposure to its sponsor Dewan Housing Finance (DHFL) rise sharply due to a fall in asset size, has decided to merge two such schemes with larger schemes.

"This is in the best interests of the investors. Both from investors’ and fund managers’ points of view, dealing with a larger scheme is better. Concentrated exposure in these schemes had gone up due to a fall in their asset size. These schemes are being merged into schemes with similar investment mandate and an increase in exposure levels of the larger