Ch.5 · SID, SAI and KIM Documents · medium
What is 'scheme merger' in mutual funds and when does it occur?
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EXPLANATION
Scheme merger occurs when one scheme (the merging scheme) is folded into another scheme (the surviving scheme). Mergers happen due to SEBI's categorisation mandates, small scheme size, or strategic decisions. Unit holders of the merging scheme receive units of the surviving scheme based on the NAV ratio. They also get a 30-day exit option without load.
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