Merger of IDBI Mutual Fund with LIC Mutual Fund

In India, 40 Asset Management Companies (AMCs) or mutual fund houses operate. Out of these 40 AMCs, there has been a merger between IDBI Mutual fund and LIC Mutual fund on July 29th 2023. In this document, we will explain all the changes due to this merger and how this will affect the investors.

Typically, two types of changes have happened:

• Some IDBI funds were renamed to LIC funds. It is merely a name change. No change in NAV. No change in investment value.
• Some funds of IDBI are merged with LIC funds, which means NAV will be recomputed while the investment value does NOT change.

Along with the above 2 changes, some details of the surviving funds (funds that remained after the merger), like minimum investment amount, exit load, etc., have been updated.

Click here to learn more about the transfer of schemes between IBDI Mutual Fund and LIC Mutual Fund.

FAQs

When is the merger expected to happen?

The merger between IDBI Mutual Fund and LIC Mutual Fund occurred on 29th July, 2023. 

Which AMC has been acquired?

IDBI Mutual fund has been acquired by LIC Mutual fund, and all the IDBI funds have been migrated to LIC.

What happens to my existing IDBI and LIC investments?

All your funds are absolutely safe, and there is nothing to be worried about. You can redeem as usual from ClearTax’s Black app. Just watch out for the fund name when you redeem funds. Also, there would be no impact on the investment value.

How does this impact existing users?

There is no impact on the investment value as of 29th July. However, NAV and no. of units might have been adjusted. But that won’t impact your investment value.

Investment Value = NAVold X (No. of Units.) = NAVnew X (New No. of Units)

What will happen to existing IDBI and LIC SIP registrations?

All SIP registrations active as of the Effective Date of the transaction will continue except for the ones where the SIP amount is less than the revised minimum SIP amount required by the scheme. In case of a scheme merger, future systematic transactions will be triggered in the surviving schemes.

(After the merger, the minimum SIP amount of all the LIC funds is Rs.1000, except the ELSS fund).

Does the user have to do anything from his/her side?

There is no actionable at the user’s end, all the changes will be done by AMC or a channel partner (ClearTax).

Will there be a change in the Folio Number post-merger?

No, there will be no change in the Folio Number. Folio numbers of both IDBI and LIC would remain the same post-merger.

What does this mean for my upcoming investments?

They will run as usual. However, you may see name changes, i.e., if you were investing in the IDBI Tax Saver Fund (IDBI Equity Advantage Fund) earlier, you will see that this fund would now have been renamed to LIC ELSS Fund in the app, so when you want to search and invest, you should search for the new name. If you want to invest from the dashboard, you will find your previous investments with the updated scheme name, and you can proceed to invest in that fund.

What will be the transaction type related to a merger?

There will be a separate transaction entry denoting the merger. The description will be “Switch out – Merger”, or “Switch in – Merger”.

Click here to learn more about the transfer of schemes between IBDI Mutual Fund and LIC Mutual Fund.