Description

TRUST Asset Management announces merger of TRUSTMF Banking & PSU Fund into TRUSTMF Corporate Bond Fund effective February 11, 2026, with 30-day exit window without load.

Summary

TRUST Asset Management Private Limited has announced the merger of TRUSTMF Banking & PSU Fund (Merging Scheme) into TRUSTMF Corporate Bond Fund (Surviving Scheme), effective February 11, 2026. The merger has received SEBI’s no objection via email dated December 26, 2025. Unitholders of both schemes are provided a 30-day exit window from January 12, 2026 to February 10, 2026 with no exit load, as this constitutes a fundamental attribute change under SEBI Mutual Funds Regulations, 1996.

Key Points

  • Board of Directors of TRUST Asset Management Private Limited and TRUST AMC Trustee Private Limited have approved the merger
  • SEBI issued “No Objection” to the merger via email dated December 26, 2025
  • Merging Scheme: TRUSTMF Banking & PSU Fund - open ended debt scheme investing in debt instruments of Banks, PSUs, Public Financial Institutions and Municipal Bonds
  • Surviving Scheme: TRUSTMF Corporate Bond Fund - open-ended debt scheme investing in AA+ and above rated corporate bonds
  • Unitholders not required to take action if they agree with the merger
  • Units in Merging Scheme will be converted to units in Surviving Scheme at last available NAV or Face Value
  • Original allotment date in Merging Scheme will be considered for exit load calculation in Surviving Scheme
  • Pledges, liens, or encumbrances on units will be transferred to corresponding units in Surviving Scheme

Regulatory Changes

The merger is considered a change in fundamental attributes under Regulation 18(15A) of SEBI Mutual Funds Regulations, 1996. SEBI has provided its no objection to the proposed merger, confirming regulatory compliance.

Compliance Requirements

  • Individual communication is being sent to existing unitholders of both schemes
  • 30-day written notice provided to unitholders as per regulatory requirements
  • Unitholders who disagree with the merger must exit during the notice period to avoid automatic conversion
  • No action required from unitholders who agree with the merger
  • All provisions of Surviving Scheme will automatically apply to transferred unitholders from effective date

Important Dates

  • December 26, 2025: SEBI issued “No Objection” to the merger
  • January 12, 2026: Commencement of 30-day notice period and exit window (no exit load)
  • February 10, 2026: End of notice period and exit window
  • February 11, 2026: Effective date of merger - Merging Scheme ceases to exist

Impact Assessment

For Merging Scheme (Banking & PSU Fund) Unitholders:

  • Automatic conversion to Corporate Bond Fund units unless exit option exercised
  • Change in investment universe from Banks/PSUs/Municipal Bonds to AA+ corporate bonds
  • Shift from relatively low credit risk to moderate credit risk profile
  • Both schemes maintain relatively high interest rate risk
  • Units treated as fresh subscriptions but original allotment date retained for exit load purposes

For Surviving Scheme (Corporate Bond Fund) Unitholders:

  • No change in investment objective, asset allocation, or scheme provisions
  • No change in annual recurring expenses
  • Potential increase in AUM due to merger

Operational Impact:

  • TRUSTMF Banking & PSU Fund will cease operations from February 11, 2026
  • No new scheme created - consolidation of existing schemes
  • Streamlined fund structure for TRUST Asset Management
  • Investments received during exit window period will also be converted to Surviving Scheme

Impact Justification

High importance and impact due to fundamental scheme change affecting all unitholders of both schemes, requiring investor action decision within notice period