Description

TATA Mutual Fund announces merger of Tata Short Term Bond Fund into Tata CRISIL-IBX Gilt Index-April 2026 Index Fund effective February 14, 2026, with exit load waiver period for investors.

Summary

TATA Mutual Fund has announced the merger of Tata Short Term Bond Fund (Merging Scheme) into Tata CRISIL-IBX Gilt Index-April 2026 Index Fund (Surviving Scheme) effective February 14, 2026. Investors who do not favor the merger can redeem or switch their investments without exit load during the designated period. No new inflows will be allowed in the merging scheme from January 12, 2026.

Key Points

  • Tata Short Term Bond Fund will merge into Tata CRISIL-IBX Gilt Index-April 2026 Index Fund
  • Merger effective date: February 14, 2026
  • Record date for merger: February 13, 2026
  • Exit load waiver period: January 15, 2026 to February 13, 2026 (30 days, both days inclusive)
  • No inflows allowed in merging scheme from January 12, 2026
  • All existing SIP/STP/SWP to trigger in surviving scheme from February 14, 2026
  • Existing SIP/XSIP/SWP will continue in merging scheme during exit load period
  • Investors consenting to merger must submit positive consent form between January 15-February 13, 2026 (up to 3 pm)

Regulatory Changes

No regulatory changes. This is a scheme merger initiated by TATA Mutual Fund with Trustee approval in compliance with SEBI mutual fund regulations.

Compliance Requirements

For Investors in Favor of Merger:

  • Fill and submit positive consent letter form between January 15, 2026 to February 13, 2026 (up to 3 pm)
  • Submit at nearest Investor Service Centre of Tata AMC or CAMS, or online through AMC/RTA website
  • Form available at www.tatamutualfund.com

For Investors Not in Favor of Merger:

  • No action required
  • Can redeem investments or switch to other TATA Mutual Fund schemes without exit load during January 15-February 13, 2026
  • If no action taken by dissenting investors, investments will be automatically redeemed at applicable NAV on effective date
  • Redemption proceeds will be remitted within 3 working days from effective merger date

For NSE MF Invest Platform Members:

  • Inform clients about merger details and exit options
  • Process redemptions/switches during exit load waiver period

Important Dates

  • January 12, 2026: No new inflows allowed in merging scheme
  • January 15, 2026: Start of exit load waiver period and positive consent submission period
  • February 13, 2026:
    • End of exit load waiver period (up to 3 pm for consent forms)
    • Record date for merger
  • February 14, 2026:
    • Merger effective date
    • Merging scheme ceases to exist
    • SIP/XSIP/STP/SWP shift to surviving scheme

Impact Assessment

For Investors:

  • Investors in Tata Short Term Bond Fund must decide whether to accept merger or exit without penalty
  • 30-day window provided for redemption/switch without exit load
  • Change in fund characteristics from short-term bond fund to gilt index fund tracking CRISIL-IBX Gilt Index-April 2026
  • Automatic shift of systematic plans (SIP/STP/SWP) to surviving scheme post-merger

For Market Operations:

  • Impacts all investors holding units in Tata Short Term Bond Fund on NSE MF Invest platform
  • Streamlines TATA Mutual Fund’s debt scheme offerings
  • Requires coordination between NSE, TATA AMC, and CAMS for smooth transition
  • Investors who take no action and don’t consent will receive redemption proceeds automatically

Impact Justification

Scheme merger affects existing investors in Tata Short Term Bond Fund with exit load waiver period provided. Medium impact as it involves fund restructuring and requires investor action for those not in favor.