Stanchart Mutual Fund investors continue with IDFC

As per regulations, an acquirer mutual fund has to provide a notice period of one month to the investors of the mutual fund being acquired and offer them an exit without imposing any charges.     

Rajiv Anand, Head-Investments at IDFC Mutual Fund said "An insignificant number of investors have opted out of Stanchart funds during the notice period (that ran from April 29 to May 30)".     

IDFC Mutual has come to acquire assets under management (AUM) of about Rs 13,000 crore of Stanchart Mutual with 30 per cent of the corpus in equity schemes last month.     

He said in some of the earlier acquisitions in the mutual fund industry also, the exits by investors were minimal. The reason could be that in most cases the brand of the company which was taking over was also strong enough prompting investors to stay put.     

When asked what the change in ownership of Stanchart Mutual would mean to investors, Anand said "Nothing changes and everything changes".     

He said the fund managers have not changed as the new owners have retained the existing team. Service standard won't change.

"But now we are part of an Indian company engaged in infrastructure building. You will see us opening many new branches, launching many new products and growing our business offshore," he added.