LIC Mutual Fund completes merger of IDBI Mutual Fund schemes

New Delhi: LIC Mutual Fund (LIC MF) on Monday said it has completed the takeover of schemes of IDBI Mutual Fund.

The move is in line with LIC MF's aim to strengthen and diversify its product offerings, expand footprint and grow its assets under management (AUM) to emerge as a leading fund house in the country, according to a statement.

The merger is effective from July 29.

As of June 2023, LIC MF had an AUM of Rs 18,400 crore, while IDBI MF had Rs 3,650 crore.

With the completion of the merger, out of 20 schemes of IDBI MF, 10 will be merged with similar schemes of LIC MF and the remaining 10 will be taken over by LIC MF on standalone basis, which will take its total scheme count to 38, the statement noted.

With this merger, investors who have invested in IDBI MF schemes, will get access to LIC MF’s diversified basket of product offerings covering equity, debt, hybrid, solution oriented themes, ETF and Index funds.

"The merger complements our goal to strengthen our scheme offerings in the mid-cap, small-cap, gold fund, passive fund segments, etc. The merger will help us build a wider market presence and offer a more extensive range of product baskets. The combined strength will help us capture emerging opportunities in the thriving asset management industry,"  TS Ramakrishnan, Managing Director and CEO of LIC Mutual Fund, said.

LIC MF is an AMC with Life Insurance Corporation of India (LIC) as its sponsor and other stakeholders being LIC Housing Finance Ltd, GIC Housing Finance Ltd and Union Bank of India.