SBI Mutual Fund will soon be merging two of its schemes after receiving market regulator Sebi's approval.
The merger is part ofthe group's drive to give better returns to investors.
SBI Mutual Fund Managing Director Deepak Chatterje said that usually a merger of schemes will be beneficial to investors.
"When a merger is done, it is usually between a non- performing fund with a performing one, which is beneficial to investors.
"Also, if an investor doesn't want to be part of the merged scheme, he or she can do so without paying any exit load to the fund house," he said, adding that an asset management company does all kinds of due diligence before applying for approval.
"We have received one merger approval for two schemes from the market regulator recently, for which, we have applied for quite some time," SBI MF Managing Director Deepak Chatterjee told PTI here.
Sebi Chairman U K Sinha announced it would allow merger of schemes to avoid overlapping and ensuring better returns to investors.
He, however, declined to name the schemes saying the fund house has to follow some processes like informing the investors after the approval.
Concerned over non-performance of some schemes over a long period of time, Sinha had said fund houses need to look into the matter and consider the merger of some schemes.
"Management (of mutual funds) should look into the areas of non-performance," Sinha had said, adding he was in favour of merger of schemes on case to case basis.
Chatterjee also said the fund house is not mulling to come up with any new fund offer in the equity space in the current financial year.
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