Baroda BNP Paribas Mutual Fund announces merger of medium duration and credit risk fund
Baroda BNP Paribas Mutual Fund has announced the merger of Baroda BNP Paribas Medium Duration Fund and Baroda BNP Paribas Credit Risk Fund. The fund house informed about the merger to its unitholders through a notice-cum-addendum.
Baroda BNP Paribas Medium Duration Fund is an open ended medium term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between three and four years with a relatively high interest rate risk and moderate credit risk scheme. Baroda BNP Paribas Credit Risk Fund is an open-ended debt scheme predominantly investing in AA and below rated corporate bonds (excluding AA+ rated corporate bonds) with a relatively high interest rate risk and relatively high credit risk.
The merger of these two schemes will be effective from September 11. Individual communication is also being sent to existing unitholders of both schemes over email, wherever email ID is available. As a result of the merger, no new scheme will come into effect.
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The proposed merger will be considered as a change in the fundamental attributes of the merging and surviving scheme, in terms of Regulation 18(15A) of SEBI (Mutual Funds) Regulations. In this regard, unitholders of both schemes will be given 30 days written notice of the merger and provided an option to exit the scheme(s) with no exit load,
