MF schemes merger: Stay invested if new fund fits your goal, risk appetite

Fund houses also merge schemes to cut costs and focus scarce fund management resources on their flagship schemes

Tata Mutual Fund has announced the merger of Tata Quant Fund into Tata Flexi Cap Fund. The merger will come into effect on March 21, 2025.

 

"The Quant Fund has small assets under management (AUM) of ₹67.51 crore. Moreover, this niche strategy has underperformed relative to the broader flexicap category. Tata Mutual Fund probably aims to consolidate resources and reduce its cost of operation,” says Abhishek Kumar, a Securities and Exchange Board of India (Sebi)-registered investment adviser and founder, SahajMoney.com.

 

Why are funds merged?

 

A variety of reasons can lead to fund houses merging schemes. One is to