Description
Tata Mutual Fund announces merger of Tata Equity Savings Fund into Tata Balanced Advantage Fund with record date of February 20, 2026, providing 30-day exit option 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 (Surviving Scheme), an open-ended dynamic asset allocation fund. The record date for the merger is February 20, 2026, with an effective date of February 21, 2026. In compliance with SEBI (Mutual Funds) Regulations, 1996, unitholders of both schemes will receive a 30-day exit option at prevailing NAV without exit load. Sale of units in the Merging Scheme will be suspended from January 19, 2026.
Key Points
- Merger of Tata Equity Savings Fund into Tata Balanced Advantage Fund approved by Trustees
- 30-day exit option available to unitholders of both schemes at prevailing NAV without exit load
- Sale of units (including switch-in and SIP registration) in Merging Scheme suspended from January 19, 2026
- Units will be allotted at closing NAV of record date with matching plan/option mapping (Direct/Regular, Growth/IDCW)
- Existing SIP/STP/SWP registrations will automatically continue in the Surviving Scheme
- No entry load applicable on units allotted in the merger
- Tata Equity Savings Fund will cease to exist after effective date
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
- Written communication will be sent to unitholders of both schemes detailing merger basis, unit allocation, tax implications, and financial information
- Unitholders must submit redemption/switch requests by February 20, 2026 (up to 3:00 PM) if they wish to exit
- Fresh Account Statements will be issued to unitholders post-merger reflecting their holdings in Tata Balanced Advantage Fund
- Unitholders not exercising exit option will be deemed to have consented to the merger
Important Dates
- January 19, 2026: Sale of units suspended in Tata Equity Savings Fund (Merging Scheme)
- January 22, 2026: Exit option period begins
- February 20, 2026:
- Record date for merger
- Exit option period ends (requests accepted until 3:00 PM)
- February 21, 2026: Effective date of merger
Unit Allocation Mapping
| Merging Scheme Plan/Option | Surviving Scheme Plan/Option |
|---|---|
| Tata Equity Savings Fund - Direct - Growth | Tata Balanced Advantage Fund - Direct - Growth |
| Tata Equity Savings Fund - Direct - IDCW Payout | Tata Balanced Advantage Fund - Direct - IDCW Payout |
| Tata Equity Savings Fund - Direct - IDCW Reinvestment | Tata Balanced Advantage Fund - Direct - IDCW Reinvestment |
| Tata Equity Savings Fund - Regular - Growth | Tata Balanced Advantage Fund - Regular - Growth |
| Tata Equity Savings Fund - Regular - IDCW Payout | Tata Balanced Advantage Fund - Regular - IDCW Payout |
| Tata Equity Savings Fund - Regular - IDCW Reinvestment | Tata Balanced Advantage Fund - Regular - IDCW Reinvestment |
Impact Assessment
For Tata Equity Savings Fund Unitholders:
- Must decide within 30-day window whether to exit or accept automatic merger
- Units will be automatically converted to equivalent plans in Tata Balanced Advantage Fund if no action taken
- No new investments possible after January 19, 2026
- Existing systematic investment facilities (SIP/STP/SWP) will continue in Surviving Scheme without fresh registration
For Tata Balanced Advantage Fund Unitholders:
- Can exercise exit option during 30-day window if opposed to merger
- Otherwise, will continue holding existing units with no changes
- Scheme will absorb assets from Tata Equity Savings Fund
Market Impact: Moderate impact limited to unitholders of these specific Tata Mutual Fund schemes. The merger consolidates two schemes on the BSE StAR MF platform, streamlining Tata Mutual Fund’s product offerings.
Impact Justification
Scheme merger affects unitholders of Tata Equity Savings Fund with mandatory exit window and automatic unit conversion. Medium impact as it requires investor action within specified timeframe.