3.33.1.3 Merger

This topic provides information on merger.

A merger involves the merging of unit balances from one or more parent funds into a resultant fund. It can be put through either according to a predetermined user –input ratio or a system derived ratio of parent fund(s) to the resultant fund.

If you wish the system to derive the merger ratio, you should specify the fund(s) being merged (Parent Fund) and the fund into which the merger is happening (Resultant Fund). The system will derive the merger ratio based on the available net asset values of the specified funds.

The merger ratio could result in fractional balances in the new fund, and in the event of the AMC not allowing such fractional balances, the fractions are redeemed and the proceeds paid out to the unit holders.