HDFC Mutual Fund recently announced the acquisition of the schemes of Morgan Stanley Mutual Fund
HDFC Mutual Fund today announced the signing of a definitive agreement for it to acquire all the eight schemes of Morgan Stanley Mutual Fund in India. Morgan Stanley has been into the business for nearly a decade and has at present eight schemes with the average assets under management equalling Rs3290 crores. HDFC Mutual Fund has been among the top asset managers and has the largest assets under management.
According to a press release by the company, “The agreement is subject to regulatory approvals as required.” Mr. Milind Barve, Managing Director of HDFC Asset Management Company Limited said, “HDFC Mutual Fund has acquired a portfolio of strong performing domestic mutual fund schemes from Morgan Stanley and this acquisition is another step towards expanding our mutual fund customer base. We look forward to welcoming the investors in the eight schemes of Morgan Stanley Mutual Fund into the HDFC family.”
Morgan Stanley has done reasonably well as a fund house, and out of the 47 fund houses in existence, it has been among the better half of fund houses in terms of performance of its equity schemes. However, with the heavy outflow of assets over the recent few years, many fund houses have found the business unviable. Last year, we saw Fidelity Mutual Fund exiting the business selling its assets to L&T Mutual Fund. The regulator has tried hard to induce new fund inflows but has failed in its efforts. Over the past 12 months equity mutual funds have registered a net outflow of Rs12,949 crore.
Moneylife has been constantly highlighting declining sales of mutual funds which has a lot do with the attitude of both fund companies and the regulator. The actions of the Securities and Exchange Board of India (SEBI) have been consistently ill-informed and capricious. After the regulator abruptly banned upfront commissions in August 2009, SEBI has been trying to tinker around with the rules without any clue about how the buyers (investors) and the sellers (distributors) perceive equity funds.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )
