UTI Mutual Fund to Merge Four Closed-Ended Schemes
UTI Mutual Fund has decided to merge four of its closed-ended schemes with effect from March 25, 2025. The goal of this decision is to simplify the fund’s products, improve operational effectiveness, and offer more diversified and powerful investment opportunities to investors.
Information about the Mergers
1. Quarterly Interval Funds: The funds UTI Quarterly Interval Fund – I, UTI Quarterly Interval Fund – II, and UTI Quarterly Interval Fund – III will be merged with the UTI Liquid Fund.
2. Annual Interval Funds: The UTI Annual Interval Fund – II will be merged with the UTI Annual Interval Fund – I.
The said schemes would not continue individually as separate schemes following the merging. Therefore, the unitholders of those schemes merging together will become the unitholders of the relevant continuing funds, i.e., the UTI Liquid Fund and the UTI Annual Interval Fund – I.
For the unit holders of the schemes that are consolidating, this consolidation means their investments shifting to the corresponding surviving schemes. The UTI Liquid Fund is liquid and has low risk with high liquidity levels, so it is popular among those who are looking for short-term investment products. The other choice is the UTI Annual Interval Fund – I, whose goal is to provide regular income.
Unitholder Exit Option
Some of the investors might not like to continue with the merged schemes; UTI Mutual Fund is providing an exit window. Investors who want to exit or switch investments can do so without incurring an exit load between February 24, 2025, and March 25, 2025.
This gives the investors a choice to review their investment strategies and make decisions according to their financial goals.
This merger is one of the measures being undertaken by UTI Mutual Fund to simplify its product range and reduce unnecessary elements. By consolidating similar schemes, the fund house aims to simplify the investment process for its customers, reduce administrative expenses, and focus on delivering consistent performance through a leaner product portfolio.
Investors are advised to go through the comprehensive communication issued by UTI Mutual Fund in relation to this merger. For personalized guidance, it is recommended that investors approach financial advisors to measure the impact of this merger on personal investment portfolios and take well-informed decisions accordingly.
