What Is The Aditya Birla Sunlife Mutual Fund Merger?

Date : 30/06/2023
Read: 4 mins

Aditya Birla Sun Life Mutual Fund creates a merger of two schemes into one. Read on to know more.

The merger of the two schemes, and when it will be effective.
The different mutual funds involved in the merger, and the numbers associated with them.
Understanding Aditya Birla Sun Life International Equity Fund – Plan A

A mutual fund merger is the process of combining two or more mutual funds into a single fund. Recently, Aditya Birla Sun Life Mutual Fund has been in the news for similar reasons. And in this article, we will focus on everything about the merger!

What is the News?

Aditya Birla Sun Life Mutual Fund issued a notice to financial backers for consolidation of Aditya Birla Sun Life Commodity Equities Fund - Global Agri Plan and Aditya Birla Sun Life International Equity Fund - Plan B. This merger will be effective from July 28, 2023.

Also Read: All You Need To Know About Aditya Birla Sun Life CRISIL IBX SDL And Index Fund

How does it change things?

Following the merger of the schemes, individuals holding units in the merging schemes will be allocated units in the surviving scheme. This allocation does not constitute a transfer and, as a result, does not trigger any capital gains tax.

However, if the unitholders opt to sell their units, they may be required to pay capital gains tax in accordance with the income tax rules. Finally, the merger will be done into the Aditya Birla Sun Life International Equity Fund – Plan A (ABSA)

What are the two funds?

Aditya Birla Sun Life International Equity Fund - Plan B

This fund focuses primarily on making investments in businesses that meet the narrow investment mandate outlined in its investment objective. The asset gives a potential chance to develop your cash by putting resources into world-class organisations across the globe.

Aditya Birla Sun Life Commodity Equities Fund - Global Agri Plan

Aditya Birla Sun Life Item Values Asset Worldwide Agri Plan-Development is an International mutual fund scheme. The asset has most of its cash put resources into Consumer Staples, Synthetic substances, Auto, and Capital Merchandise areas.

Also Read: Should You Really Invest In A Mutual Fund NFO?

What Is Plan A?

This should interest investors who have good knowledge of large-scale drifts and like to take specific bets for more significant yields than other equity funds. Simultaneously, these investors should likewise be prepared for the probability of moderate to high misfortunes in their ventures, despite the fact that the general market is performing better.

The plan would only put resources into worldwide stocks. The plan aims to make a geographically diverse portfolio, take advantage of the low correlation between countries, and is high-quality and high-growth.

ABSA has invested INR 105 crore in international stocks and has achieved a return of 9.33 per cent over the same duration.

The term mutual fund merger refers to the process by which two or more mutual fund schemes are combined to form a new one. One of the significant explanations behind common asset consolidations in India is to prevent overlapping schemes. The Aditya Birla Sun Life Mutual Fund merger into Plan A is a recent example.

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