Description

Notice cum Addendum for merger of Tata Equity Savings Fund into Tata Balanced Advantage Fund with record date of 20 February 2026 and exit option available to unitholders.

Summary

The Trustees of Tata Mutual Fund have approved the merger of Tata Equity Savings Fund (Merging Scheme) into Tata Balanced Advantage Fund, an open-ended dynamic asset allocation fund (Surviving Scheme). The record date for the merger is 20 February 2026. Unitholders of both schemes are provided a 30-day exit option at prevailing NAV without exit load. Sale of units in the Merging Scheme will be suspended from 19 January 2026, and the merger will be effective from 21 February 2026.

Key Points

  • Tata Equity Savings Fund will merge into Tata Balanced Advantage Fund
  • Record date: 20 February 2026
  • Effective date: 21 February 2026
  • 30-day exit option without exit load provided to unitholders of both schemes
  • Sale of units (including switch-in and SIP registrations) in Merging Scheme suspended from 19 January 2026
  • Units will be allotted in Surviving Scheme based on closing NAV of record date
  • All plan options (Direct/Regular, Growth/IDCW Payout/IDCW Reinvestment) will have corresponding mapping
  • Existing SIP/STP/SWP registrations will continue in the Surviving Scheme
  • Fresh account statements will be issued post-merger

Regulatory Changes

This merger is conducted in accordance with Regulation 18(15A) of the SEBI (Mutual Funds) Regulations, 1996, which mandates providing an exit option to unitholders during scheme mergers.

Compliance Requirements

For Unitholders:

  • Unitholders opposing the merger must exercise exit option during 22 January 2026 to 20 February 2026 period
  • Exit requests must be received by 3:00 PM on 20 February 2026
  • No action required if unitholders consent to merger - units will be automatically converted

For Fund House:

  • Written communication to be sent to unitholders of both schemes with merger details, basis of allocation, tax implications, and financial information
  • Fresh account statements to be issued after merger completion

Important Dates

  • 19 January 2026: Sale of units suspended in Tata Equity Savings Fund
  • 22 January 2026: Exit option period begins
  • 20 February 2026: Record date for merger; Exit option period ends (by 3:00 PM)
  • 21 February 2026: Effective date of merger; Tata Equity Savings Fund ceases to exist

Impact Assessment

For Tata Equity Savings Fund Unitholders:

  • Automatic conversion to corresponding plan/option in Tata Balanced Advantage Fund unless exit option exercised
  • No entry load on allotted units
  • Systematic facilities (SIP/STP/SWP) will continue without fresh registration requirement
  • Tax implications to be communicated separately

For Tata Balanced Advantage Fund Unitholders:

  • No change unless they choose to exit during the exit period
  • Will continue to hold existing units
  • Exit option available without exit load if opposed to merger

Unit Allocation Mapping:

  • Direct Growth → Direct Growth
  • Direct IDCW Payout → Direct IDCW Payout
  • Direct IDCW Reinvestment → Direct IDCW Reinvestment
  • Regular Growth → Regular Growth
  • Regular IDCW Payout → Regular IDCW Payout
  • Regular IDCW Reinvestment → Regular IDCW Reinvestment

Impact Justification

Scheme merger affecting Tata Equity Savings Fund unitholders with structured exit option and automatic unit conversion process