Document

Merger of Schemes of LIC Mutual Fund and IDBI Mutual Fund


Dear Investor,

LIC Mutual Fund Asset Management Limited (“LIC AMC”) the investment manager of LIC Mutual Fund (“LICMF”) has acquired the Schemes of IDBI Mutual Fund (“IDBI MF”) from IDBI Asset Management Limited (“IDBI AMC”). Following this acquisition, 10 of the 20 schemes of IDBI MF gets merged with existing schemes of LIC MF, while the remaining 10 schemes gets added as is to the LICMF product basket. This will expand total product offering of LICMF from 28 schemes to 38 schemes.

Sr.No. Surviving Scheme Category Transferor Scheme Transferee Scheme Proposed New Name of the Transferee Scheme SID
Equity Oriented Funds
1 ELSS IDBI Equity Advantage Fund LIC MF Tax Plan LIC MF ELSS
2 Flexi Cap Fund IDBI Flexi Cap Fund LIC MF Flexi Cap Fund LIC MF Flexi Cap Fund
3 Large Cap Fund IDBI India Top 100 Equity Fund LIC MF Large Cap Fund LIC MF Large Cap Fund
4 Sectoral Fund IDBI Banking & Financial Services Fund LIC MF Banking and Financial Services Fund LIC MF Banking and Financial Services Fund
Hybrid Oriented Funds
5 Aggressive Hybrid Fund IDBI Hybrid Equity Fund LIC MF Equity Hybrid Fund LIC MF Aggressive Hybrid Fund
Other Funds (Passive)
6 Index Fund IDBI Nifty Index Fund LIC MF Nifty 50 Index Fund LIC MF Nifty 50 Index Fund
Liquid & Debt Oriented Funds
7 Liquid Fund IDBI Liquid Fund LIC MF Liquid Fund LIC MF Liquid Fund
8 Short Duration Fund IDBI Short Term Bond Fund LIC MF Short Term Debt Fund LIC MF Short Duration Fund
9 Ultra Short Duration Fund IDBI Ultra Short Term Fund LIC MF Ultra Short Term Fund LIC MF Ultra Short Duration Fund
10 Medium to Long duration fund IDBI Credit Risk Fund LIC MF Bond Fund LIC MF Medium to Long Duration Bond Fund

The following IDBI MF Schemes gets carried over by LIC MF and formed part of the LIC MF Schemes and there is no change in character or features of the schemes except undergoing a change of name as detailed below:

Sr. No. Surviving Scheme category Scheme Acquired from IDBI Mutual Fund Scheme Name post transfer to LIC Mutual Fund SID
1 Dividend Yield Fund IDBI Dividend Yield Fund LIC MF Dividend Yield Fund
2 Focused Fund IDBI Focused 30 Equity Fund LIC MF Focused 30 Equity Fund
3 Mid cap Fund IDBI Midcap Fund LIC MF Mid cap Fund
4 Sectoral Fund IDBI Healthcare Fund LIC MF Healthcare Fund
5 Small Cap Fund IDBI Small Cap Fund LIC MF Small Cap Fund
6 Value Fund IDBI Long Term Value Fund LIC MF Long Term Value Fund
7 Equity Savings IDBI Equity Savings Fund LIC MF Equity Savings Fund
8 Exchange Traded Fund (ETF) IDBI Gold Exchange Traded Fund LIC MF Gold Exchange Traded Fund
9 Index Fund IDBI Nifty Junior Index Fund LIC MF Nifty Next 50 Index Fund
10 FOF - Domestic IDBI Gold Fund LIC MF Gold ETF Fund of Fund

Note : We will upload an updated SID of above mentioned scheme shortly.

Notice and Addendum

Merger FAQs

LIC Mutual Fund Asset Management Limited (“LIC AMC”), and LIC Mutual Fund Trustee Private Limited (“LIC Trustee”), the asset management company, and trustee company, respectively, of LIC MF, entered into a Scheme Transfer Agreement with IDBI Asset Management Limited (“IDBI AMC”) and IDBI MF Trustee Company Limited (“IDBI Trustee”), the asset management company and trustee company, respectively, of IDBI Mutual Fund (“IDBI MF”).

Pursuant to successful completion of the acquisition, out of the 20 schemes of IDBI MF, 10 schemes will merge with existing schemes of LIC MF, and the rest 10 schemes will be added as it is in the LICMF product basket. Thereafter, the total product basket of LICMF will expand from 28 schemes to 38 schemes.

The effective date for the proposed merger of IDBI MF with LIC MF is 29thJuly 2023

Yes, Only One Scheme

IDBI Credit Risk Fund is proposed to merge with LIC MF Bond Fund and will undergo category change from credit risk fund to medium to long duration fund.

No, there is no action required if you are in-agreement with the proposed changes.

For units held in dematerialized mode, the redemption/switch request will have to be submitted to the respective Depository Participant.

You will receive account statements from LIC Mutual Fund. Additionally, SMS/ email will also be sent to you by LICMF on your registered mobile number / email ID registered in the existing folio.

Yes, the change should reflect in your client account with the DP as the DP will be intimated about the changes.

Folio numbers for all IDBI MF investors will be retained as it is. There will be no changes in the folio numbers due to this merger.

All systematic registrations which are active in transferor schemes will be continued in transferee schemes and systematic installments will continue post-merger as before.

OTM/NACH registered in favour of IDBI MF prior to AMC merger will continue to remain active and investors can use the same to transact with LIC AMC.

Yes, post-merger, IDBI MF folios will be accessible from LICMF login credentials

There will be no impact of scheme merger on capital gains, as the transactions is not considered as transfer of capital asset as per Income Tax Act. Further, for any redemption/switch-out post-merger, the cost shall be considered as per the corresponding purchase made in the source scheme, while computing capital gains.

The period of holding for the purpose of exit load will be computed from the date of allotment of such units in the Transferor Scheme. Accordingly, all provisions under the “surviving scheme” will apply including exit load.

The units so purchased will undergo a scheme merger procedure and investors will receive units in surviving scheme.

Investors can visit the below URL to view balance under Unclaimed Dividend and Redemption plan in their folios https://online.licmf.com/General/unclaimeddividend.aspx Investors may claim the unclaimed amount unitized in LIC Money Fund by regularizing the folio and by submitting a redemption request at any of the offices of LIC/RTA branches. In this regard, we request you to kindly contact us at any of the offices of LIC/RTA branches to assist you in the payment of the unclaimed amount.

Illustration of the manner in which units of Transferor scheme would be allotted as units in (Transferee/Surviving scheme) is as below:

The market value of units of Transferor scheme as on the merger date shall be treated as the subscription value to determine the number of units to be allotted at the NAV of Transferee/Surviving scheme on the effective date. An illustration explaining the same is as follows: (All figures in the table below are purely for illustrative purposes only).

Assumed date of the merger 31-July

NAV of Transferor scheme (IDBI MF) as on May 31 (A) – Face Value Rs.10 Rs 22.50
Units outstanding in Transferor Scheme as on May 31(B) 10,000
Outstanding value in Transferor before merger (C)=(A)X(B) Rs.225,000
NAV of Transferee Scheme (LIC MF) as on May 31 (D) – Face Value Rs.10 Rs.15.00
Allotment of units in Transferee Scheme (E)=(C)/(D) 15,000
Value of units post merger (F)=(D)X(E) Rs 225,000

In case of any pledge/ lien/ other encumbrance marked on any units in the Transferor scheme, the same shall be marked on the corresponding number of units allotted in the Surviving scheme.

Investor can approach Investor Service Centre of LICMF/Kfin branches for getting the unpaid warrants revalidated.

If investors have submitted Form 15G/H only for IDBI MF for FY 2023-24, then such investors should submit the same again to LICMF on or after effective date i.e 29-Jul-2023

You may contact any of the nearest LIC Mutual Fund Investor Service Centers, the details of which are available on the www.licmf.com or you can call on the customer service number - 1800-258-5678 or email to service_licmf@kfintech.com .

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Please note : On account of closure of banks & capital markets on 22nd January 2024 (Monday), it will be a non-business day for all schemes of LIC Mutual Fund. The office of LIC Mutual Fund, Coimbatore, will be closed on 15th and 16th January 2024 on account of Pongal Festival.   The office of LIC Mutual Fund, Salem, will be closed on 15th and 16th January 2024 on account of Pongal Festival.   The office of LIC Mutual Fund, Madirai, will be closed on 15th and 16th January 2024 on account of Pongal Festival.   The office of LIC Mutual Fund, Chennai, will be closed on 15th and 16th January 2024 on account of Pongal Festival.