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Merger of L&T Mutual Fund with HSBC Mutual Fund

Updated on :  

08 min read.

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 changeNumber of fundsImpact on NAVImpact on Investment valueList of funds
Name change45No impactNo impactScroll to ‘Funds with name change’
Funds merging25NAV will be updatedNo impactScroll to ‘Funds that got merged’
Funds deleted0

FAQs

  • When is the merger expected to happen?

The merger between L&T Mutual fund and HSBC Mutual fund took place on 26th 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 = NAVold X (No. of Units.)  = NAVnew 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 schemePrevious minimum SIP amountUpdated minimum SIP amountSIP amount of the userIf A>YIf A<YComment
YesXYASIP will continue as usualSIP 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.
NoXXASIP 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 fundsTransferee fundsSurviving funds
L&T Ultra Short Term Fund Direct Plan – GrowthHSBC Ultra Short Duration Fund Direct GrowthHSBC Ultra Short Duration Fund – Direct Growth
L&T Ultra Short Term Fund Direct Plan – BonusHSBC Ultra Short Duration Fund Direct GrowthHSBC Ultra Short Duration Fund – Direct Growth
L&T Overnight Fund Direct Plan – GrowthHSBC Overnight Fund – Growth Direct PlanHSBC Overnight Fund – Direct Growth
L&T Liquid Fund Direct Plan – GrowthHSBC Cash Fund – Growth Direct PlanHSBC Liquid Fund – Direct Growth
L&T Conservative Hybrid Fund Direct Plan – GrowthHSBC Regular Savings Fund – Growth Direct PlanHSBC Conservative Hybrid Fund – Direct Growth
L&T India Large Cap Fund Direct Plan – GrowthHSBC Large cap Equity Fund – Growth Direct PlanHSBC Large Cap Fund – Direct Growth
L&T Large and MidCap Fund Direct Plan – GrowthHSBC Large and Midcap Equity Fund Direct Plan GrowthHSBC Large & Mid Cap Fund – Direct Growth
L&T Flexicap Fund Direct Plan – GrowthHSBC Flexi Cap Fund – Growth Direct PlanHSBC Flexi Cap Fund – Direct Growth
L&T Focused Equity Fund Direct Plan – GrowthHSBC Focused Equity Fund Direct Plan GrowthHSBC Focused Fund – Direct Growth
HSBC Corporate Bond Fund Direct GrowthL&T Flexi Bond Fund Direct Plan – GrowthHSBC Dynamic Bond Fund – Direct Growth
HSBC Short Duration Fund – Growth Direct PlanL&T Short Term Bond Fund Direct Plan – GrowthHSBC Short Duration Fund – Direct Growth
HSBC Low Duration Fund – Growth Direct PlanL&T Low Duration Fund Direct Plan – GrowthHSBC Low Duration Fund – Direct Growth
HSBC Equity Hybrid Fund Direct Plan GrowthL&T Hybrid Equity Fund Direct Plan – GrowthHSBC Aggressive Hybrid Fund – Direct Growth
HSBC Midcap Fund Direct Plan GrowthL&T Midcap Fund Direct Plan – GrowthHSBC Midcap Fund – Direct Growth
HSBC Infrastructure Equity Fund – Growth Direct PlanL&T Infrastructure Fund Direct Plan – GrowthHSBC Infrastructure Fund – Direct Growth
HSBC Small Cap Equity Fund – Growth Direct PlanL&T Emerging Businesses Fund Direct GrowthHSBC Small Cap Fund – Direct Growth
HSBC Flexi Debt Fund – Growth Direct PlanL&T Flexi Bond Fund Direct Plan – GrowthHSBC Dynamic Bond Fund – Direct Growth
L&T Ultra Short Term Fund – Regular GrowthHSBC Ultra Short Duration Fund GrowthHSBC Ultra Short Duration Fund – Regular Growth
L&T Overnight Fund – GrowthHSBC Overnight Fund – GrowthHSBC Overnight Fund – Regular Growth
L&T Liquid Fund – Regular GrowthHSBC Cash Fund – GrowthHSBC Liquid Fund – Regular Growth
L&T Conservative Hybrid Fund – GrowthHSBC Regular Savings Fund – GrowthHSBC Conservative Hybrid Fund – Regular Growth
L&T India Large Cap Fund – GrowthHSBC Large cap Equity Fund – GrowthHSBC Large Cap Fund – Regular Growth
L&T Large and MidCap Fund – GrowthHSBC Large and Midcap Equity Fund GrowthHSBC Large & Mid Cap Fund – Regular Growth
L&T Flexicap Fund – GrowthHSBC Flexi Cap Fund – GrowthHSBC Flexi Cap Fund – Regular Growth
L&T Focused Equity Fund – GrowthHSBC Focused Equity Fund GrowthHSBC 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

FundNAVNumber of unitsInvestment value
Transferor fund A501005000
Surviving fund B100X100*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

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