LIC Mutual Fund completes takeover of IDBI MF schemes

economictimes.indiatimes.com:

LIC Mutual Fund has completed the takeover of schemes of IDBI Mutual Fund. The effective date of merger was July 29. The move is in line with LIC's mission to strengthen and diversify its product offerings, expand its footprint and grow its assets under management (AUM) to emerge as a leading MF house in the country.LIC MF had an AUM of Rs 18,400 crore and IDBI MF had Rs 3,650 crore as of June.

After completion of the merger, out of 20 schemes of IDBI MF, 10 schemes will be merged with similar schemes of LIC MF and the remaining 10 will be taken over by LIC MF on standalone basis, which will take its total scheme count to 38. With this merger, investors invested in IDBI MF schemes will get access to LIC MF’s diversified basket of product offerings covering equity, debt, hybrid, solution oriented themes, ETF and Index funds. “It is an important milestone in our journey as we are working towards developing our capabilities to serve as a diversified mutual fund house catering to investment needs across key markets in India," said TS Ramakrishnan, MD and CEO, LIC MF.

The competition commission of India (CCI) had in March this year approved this takeover by LIC MF. Deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices in the marketplace.IDBI Bank is the sponsor of IDBI MF and IDBI AMC acts as the asset management company to IDBI MF while IDBI Trustee Company acts as the trustee company of IDBI MF. Post transaction, the schemes of IDBI MF will form part of LIC MF with LIC AMC acting as the asset management company for the schemes of IDBI MF.