Union Mutual Fund explores merger with BOI AXA

Fund heads deny; such a move could lead to cost synergies, help meet net worth norms for both

State-sponsored fund houses Union Mutual Fund and BOI AXA Mutual Fund are exploring an option to merge. The talks are at a nascent stage.

The former is sponsored by Union Bank of India (UBI). The latter is a joint venture between Bank of India (BoI) and AXA Investment Managers, a part of the Paris-headquartered AXA Group.

While a merger might not lead to any meaningful addition in assets, it would mean cost synergies, economies of scale and wider distribution, said sources.

The net worth requirement as mandated by the Securities and Exchange Board of India (Sebi) will effectively halve after