Merger of L&T Mutual Fund with HSBC Mutual Fund

In India, there are 44 Asset Management Companies (AMCs) or mutual fund houses operating. Out of these 44 AMCs, there has been a merger between L&T Mutual fund and HSBC Mutual fund on November 26th, 2022. In this document, we will be explaining what all changes that have occurred due to this merger and how this is going to affect the investors. 

Typically, two types of changes have happened:

1. Some L&T funds got renamed to HSBC funds, some HSBC funds got renamed. It is merely a name change. No change in NAV. No change in investment value. 
2. Some funds of L&T are merged with HSBC funds which means NAV will be recomputed while the investment value does NOT change.

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

Type of change	Number of funds	Impact on NAV	Impact on Investment value	List of funds
Name change	45	No impact	No impact	Scroll to ‘Funds with name change’
Funds merging	25	NAV will be updated	No impact	Scroll to ‘Funds that got merged’
Funds deleted	0	–	–	–

FAQs

• When is the merger expected to happen?

The merger between L&T Mutual fund and HSBC Mutual fund took place on 26^th November, 2022. 

• Which AMC has been acquired?

L&T Mutual fund has been acquired by HSBC Mutual fund and all the L&T funds have been migrated to HSBC.

• What happens to my existing L&T and HSBC 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 26th November. However, NAV and no. of units might have been adjusted. But that won’t impact your investment value. 

Investment Value = NAV_old X (No. of Units.)  = NAV_new X (New No. of Units)

• What will happen to existing L&T, HSBC SIP registrations?

All SIP registrations which are active as on 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 scheme merger, future systematic transactions will be triggered in the surviving schemes.

(After the merger, the minimum SIP amount of all the HSBC funds is Rs.1000)

Change in the minimum SIP amount of the scheme	Previous minimum SIP amount	Updated minimum SIP amount	SIP amount of the user	If A>Y	If A<Y	Comment
Yes	X	Y	A	SIP will continue as usual	SIP will be auto canceled (users can redeem the amount whenever they wish).	User has to create a New SIP to continue investing in the fund.
No	X	X	A	–	–	SIP will continue as usual

• 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 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 L&T and HSBC 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 L&T Tax Saver Fund earlier, you will see that this fund would now have been renamed to HSBC Tax Saver 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 merger?

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

Changes in the funds

Funds with no Impact

Fund Name

HSBC Ultra Short Duration Fund Direct-Growth

HSBC Overnight Fund – Growth Direct Plan

HSBC Flexi Cap Fund – Growth Direct Plan

• There is no impact on investment value or NAV for the above funds

Funds that got merged

Transferor funds are merged with Transferee funds resulting in the surviving funds.

Transferor funds	Transferee funds	Surviving funds
L&T Ultra Short Term Fund Direct Plan – Growth	HSBC Ultra Short Duration Fund Direct Growth	HSBC Ultra Short Duration Fund – Direct Growth
L&T Ultra Short Term Fund Direct Plan – Bonus	HSBC Ultra Short Duration Fund Direct Growth	HSBC Ultra Short Duration Fund – Direct Growth
L&T Overnight Fund Direct Plan – Growth	HSBC Overnight Fund – Growth Direct Plan	HSBC Overnight Fund – Direct Growth
L&T Liquid Fund Direct Plan – Growth	HSBC Cash Fund – Growth Direct Plan	HSBC Liquid Fund – Direct Growth
L&T Conservative Hybrid Fund Direct Plan – Growth	HSBC Regular Savings Fund – Growth Direct Plan	HSBC Conservative Hybrid Fund – Direct Growth
L&T India Large Cap Fund Direct Plan – Growth	HSBC Large cap Equity Fund – Growth Direct Plan	HSBC Large Cap Fund – Direct Growth
L&T Large and MidCap Fund Direct Plan – Growth	HSBC Large and Midcap Equity Fund Direct Plan Growth	HSBC Large & Mid Cap Fund – Direct Growth
L&T Flexicap Fund Direct Plan – Growth	HSBC Flexi Cap Fund – Growth Direct Plan	HSBC Flexi Cap Fund – Direct Growth
L&T Focused Equity Fund Direct Plan – Growth	HSBC Focused Equity Fund Direct Plan Growth	HSBC Focused Fund – Direct Growth
HSBC Corporate Bond Fund Direct Growth	L&T Flexi Bond Fund Direct Plan – Growth	HSBC Dynamic Bond Fund – Direct Growth
HSBC Short Duration Fund – Growth Direct Plan	L&T Short Term Bond Fund Direct Plan – Growth	HSBC Short Duration Fund – Direct Growth
HSBC Low Duration Fund – Growth Direct Plan	L&T Low Duration Fund Direct Plan – Growth	HSBC Low Duration Fund – Direct Growth
HSBC Equity Hybrid Fund Direct Plan Growth	L&T Hybrid Equity Fund Direct Plan – Growth	HSBC Aggressive Hybrid Fund – Direct Growth
HSBC Midcap Fund Direct Plan Growth	L&T Midcap Fund Direct Plan – Growth	HSBC Midcap Fund – Direct Growth
HSBC Infrastructure Equity Fund – Growth Direct Plan	L&T Infrastructure Fund Direct Plan – Growth	HSBC Infrastructure Fund – Direct Growth
HSBC Small Cap Equity Fund – Growth Direct Plan	L&T Emerging Businesses Fund Direct Growth	HSBC Small Cap Fund – Direct Growth
HSBC Flexi Debt Fund – Growth Direct Plan	L&T Flexi Bond Fund Direct Plan – Growth	HSBC Dynamic Bond Fund – Direct Growth
L&T Ultra Short Term Fund – Regular Growth	HSBC Ultra Short Duration Fund Growth	HSBC Ultra Short Duration Fund – Regular Growth
L&T Overnight Fund – Growth	HSBC Overnight Fund – Growth	HSBC Overnight Fund – Regular Growth
L&T Liquid Fund – Regular Growth	HSBC Cash Fund – Growth	HSBC Liquid Fund – Regular Growth
L&T Conservative Hybrid Fund – Growth	HSBC Regular Savings Fund – Growth	HSBC Conservative Hybrid Fund – Regular Growth
L&T India Large Cap Fund – Growth	HSBC Large cap Equity Fund – Growth	HSBC Large Cap Fund – Regular Growth
L&T Large and MidCap Fund – Growth	HSBC Large and Midcap Equity Fund Growth	HSBC Large & Mid Cap Fund – Regular Growth
L&T Flexicap Fund – Growth	HSBC Flexi Cap Fund – Growth	HSBC Flexi Cap Fund – Regular Growth
L&T Focused Equity Fund – Growth	HSBC Focused Equity Fund Growth	HSBC Focused Fund – Regular Growth

• For the above funds, there is no impact on the Investment value but the NAV will be updated with respect to the merger.
• Transactions related to the merger happen in switch-out and switch-in transactions i.e funds will be switched out from the transferor fund, and they will be switched into surviving funds after the merger.
• Final units will be calculated based on the NAV update and investment value after merging.

Example:

Let’s assume there is a Transferor fund A that is merging with Transferee fund B resulting in surviving fund C. The investment value is then switched out from fund A before the merger and switched into fund C after the merger.

If an investor has 100 units in fund A on the day of switch-out, with NAV of 50, and fund C has a NAV of 100 on the day of switch-in. then the number of units will be calculated as per the method mentioned below:

Let’s say the number of units in the surviving fund = X

Fund	NAV	Number of units	Investment value
Transferor fund A	50	100	5000
Surviving fund B	100	X	100*X = 5000 X = 5000/100 X = 50

Hence, the final number of units in the surviving fund = 50 with NAV of 100.

Funds with Name change

Scheme	Revised Scheme Name
L&T Arbitrage Opportunities Fund Direct Growth	HSBC Arbitrage Fund – Direct Growth
L&T Resurgent India Bond Fund Direct Growth	HSBC Medium Duration Fund – Direct Growth
L&T Banking and PSU Debt Fund Direct Plan – Growth	HSBC Banking and PSU Debt Fund – Direct Growth
L&T Triple Ace Bond Fund Direct Plan – Growth	HSBC Corporate Bond Fund – Direct Growth
L&T Credit Risk Fund Direct Plan – Growth	HSBC Credit Risk Fund – Direct Growth
L&T Money Market Fund Direct Plan – Growth	HSBC Money Market Fund – Direct Growth
L&T Equity Savings Fund Direct Plan – Growth	HSBC Equity Savings Fund – Direct Growth
L&T Gilt Fund Direct Plan – Growth	HSBC Gilt Fund – Direct Growth
L&T India Value Fund Direct Plan – Growth	HSBC Value Fund – Direct Growth
L&T Business Cycles Fund Direct Growth	HSBC Business Cycles Fund – Direct Growth
L&T Balanced Advantage Fund Direct Plan – Growth	HSBC Balanced Advantage Fund – Direct Growth
L&T Nifty 50 Index Fund Direct Plan – Growth	HSBC NIFTY 50 INDEX FUND – Direct Growth
L&T Nifty Next 50 Index Fund Direct Plan – Growth	HSBC NIFTY NEXT 50 INDEX FUND – Direct Growth
L&T Tax Advantage Fund Direct Plan – Growth	HSBC ELSS Fund – Direct Growth
HSBC Tax Saver Equity Fund – Growth Direct Plan	HSBC Tax Saver Equity Fund – Direct Growth
HSBC Debt Fund – Growth Direct Plan	HSBC Medium to Long Duration Fund – Direct Growth
HSBC CRISIL IBX 50:50 Gilt Plus SDL Apr 2028 Index Fund Direct Plan Growth	HSBC CRISIL IBX 50:50 Gilt Plus SDL Apr 2028 Index Fund – Direct Growth
HSBC Asia Pacific Dividend Yield Fund Direct Plan Growth	HSBC Asia Pacific(Ex Japan)Div YieldFund – Direct Growth
HSBC Brazil Fund – Growth Direct Plan	HSBC Brazil Fund – Direct Growth
HSBC Global Equity Climate Change Fund of Fund Direct Plan Growth	HSBC Global Equity Climate Change Fund of Fund – Direct Growth
HSBC Global Emerging Markets Fund – Growth Direct Plan	HSBC Global Emerging Markets Fund – Direct Growth
HSBC Managed Solutions India Conservative Fund Direct Plan Growth	HSBC Managed Solution India-Conservative – Direct Growth
HSBC Managed Solutions India Growth Fund Direct Plan Growth	HSBC Managed Solutions India – Growth – Direct Growth
HSBC Managed Solutions India Moderate Fund Direct Plan Growth	HSBC Managed Solutions India – Moderate – Direct Growth
L&T Arbitrage Opportunities Fund Growth	HSBC Arbitrage Fund – Regular Plan – Growth
L&T Resurgent India Bond Fund Growth	HSBC Medium Duration Fund – Regular Plan – Growth
L&T Banking and PSU Debt Fund – Growth	HSBC Banking and PSU Debt Fund – Regular Plan – Growth
L&T Triple Ace Bond Fund – Growth	HSBC Corporate Bond Fund – Regular Plan – Growth
L&T Credit Risk Fund – Growth	HSBC Credit Risk Fund – Regular Plan – Growth
L&T Money Market Fund – Growth	HSBC Money Market Fund – Regular Plan – Growth
L&T Equity Savings Fund – Growth	HSBC Equity Savings Fund – Regular Plan – Growth
L&T Gilt Fund – Growth Plan	HSBC Gilt Fund – Regular Plan – Growth
L&T India Value Fund – Growth	HSBC Value Fund – Regular Plan – Growth
L&T Business Cycles Fund Growth	HSBC Business Cycles Fund – Regular Plan – Growth
L&T Balanced Advantage Fund – Growth	HSBC Balanced Advantage Fund – Regular Plan – Growth
L&T Nifty 50 Index Fund – Growth	HSBC NIFTY 50 INDEX FUND – Regular Plan – Growth
L&T Nifty Next 50 Index Fund – Growth	HSBC NIFTY NEXT 50 INDEX FUND – Regular Plan – Growth
L&T Tax Advantage Fund – Growth	HSBC ELSS Fund – Regular Plan – Growth
L&T Flexi Bond Fund – Growth	HSBC Dynamic Bond Fund – Regular Plan – Growth
L&T Short Term Bond Fund – Growth	HSBC Short Duration Fund – Regular Plan – Growth
L&T Low Duration Fund – Growth	HSBC Low Duration Fund – Regular Plan – Growth
L&T Hybrid Equity Fund – Growth	HSBC Aggressive Hybrid Fund – Regular Plan – Growth
L&T Midcap Fund – Growth	HSBC Midcap Fund – Regular Plan – Growth
L&T Infrastructure Fund – Growth	HSBC Infrastructure Fund – Regular Plan – Growth
L&T Emerging Businesses Fund Growth	HSBC Small Cap Fund – Regular Plan – Growth

• There is no impact on investment value and the NAV for the above funds. Only the scheme name gets updated.