InvestorQ : What is the impact on Investor if any two AMC merge?
Ria Jain made post

What is the impact on Investor if any two AMC merge?

Answer
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Anusha Savla answered.
8 months ago


Generally, when two mutual funds merge the schemes of the mutual funds also get merged if they are similar. If there are any changes in the fundamental attributes of the scheme, the AMCs shall send notices to the unitholders regarding that. However, they do not require the investor’s approval for any change. The notice shall contain all information regarding the merger and its consequences, this will help investors to make a rational decision.

If the terms of the new scheme are such that it does not decrease the benefit for the investors and is almost similar or more beneficial than the previous scheme, the investors shall remain in the scheme, otherwise not.

So, the first thing one should do post-merger shall be the assessment of both the schemes and their benefits.