Description

Trust Mutual Fund merges TRUSTMF Banking & PSU Fund into TRUSTMF Corporate Bond Fund effective February 11, 2026, with 30-day exit window without exit load for unitholders.

Summary

National Stock Exchange has informed members about 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” dated December 26, 2025. Unitholders who do not favor the merger can redeem investments or switch to other Trust Mutual Fund schemes without exit load during the 30-day notice period from January 12, 2026 to February 10, 2026 through NSE MF Invest platform.

Key Points

  • TRUSTMF Banking & PSU Fund will merge into TRUSTMF Corporate Bond Fund
  • Merger effective date: February 11, 2026
  • SEBI issued “No Objection” on December 26, 2025
  • 30-day exit window: January 12, 2026 to February 10, 2026 (both days inclusive)
  • Exit load waived for redemptions/switches during exit period
  • Existing SIP/XSIP/SWP will continue processing in merging scheme during exit period
  • All registered SIP/XSIP/STP/SWP will automatically shift to surviving scheme on February 11, 2026
  • Redemptions and switches available through NSE MF Invest platform

Regulatory Changes

The merger is considered a change in fundamental attributes under Regulation 18(15A) of SEBI Mutual Funds Regulations, 1996. Trust Asset Management Private Limited Board and TRUST AMC Trustee Private Limited Board have approved the merger.

Merging Scheme Details:

  • TRUSTMF Banking & PSU Fund: Open-ended debt scheme predominantly investing in debt instruments of Banks, Public Sector Undertakings, Public Financial Institutions and Municipal Bonds
  • Risk Profile: Relatively high interest rate risk and relatively low credit risk

Surviving Scheme Details:

  • TRUSTMF Corporate Bond Fund: Open-ended debt scheme predominantly investing in AA+ and above rated corporate bonds
  • Risk Profile: Relatively high interest rate risk and moderate credit risk

Compliance Requirements

For NSE Members:

  • Take note of the merger details and inform clients accordingly
  • Facilitate redemptions and switches through NSE MF Invest platform during exit period

For Unitholders:

  • Review the merger notice and scheme characteristics
  • If not in favor of merger, redeem investments or switch to other Trust Mutual Fund schemes before February 10, 2026
  • No action required if accepting the merger - units will automatically convert to surviving scheme

For Trust Mutual Fund:

  • Provide 30-day written notice to unitholders
  • Process redemptions and switches without exit load during notice period
  • Continue processing existing SIP/XSIP/SWP during exit period
  • Transfer all systematic plans to surviving scheme on effective date

Important Dates

  • December 26, 2025: SEBI issued “No Objection” to merger
  • January 12, 2026: Start of 30-day exit window (exit load waiver period begins)
  • January 19, 2026: NSE circular date
  • February 10, 2026: Last day of exit load waiver period
  • February 11, 2026: Merger effective date, merging scheme ceases to exist, all systematic plans shift to surviving scheme

Impact Assessment

Unitholder Impact: Unitholders of TRUSTMF Banking & PSU Fund will see their investments automatically transferred to TRUSTMF Corporate Bond Fund unless they opt to exit. The surviving scheme has moderate credit risk compared to relatively low credit risk in the merging scheme, representing a change in risk profile. Both schemes maintain relatively high interest rate risk.

Operational Impact: All existing systematic investment plans (SIP/XSIP/STP/SWP) will continue seamlessly but will be transferred to the surviving scheme. Unitholders who wish to maintain exposure to banking and PSU debt instruments specifically will need to actively switch to alternative schemes during the exit window.

Market Impact: Limited broader market impact as this affects only specific mutual fund schemes. The consolidation reduces scheme duplication within Trust Mutual Fund’s product offerings. Trading and operations continue normally on NSE MF Invest platform throughout the process.

Contact Information:

Impact Justification

Affects unitholders of TRUSTMF Banking & PSU Fund with merger into Corporate Bond Fund, requiring action within 30-day exit window but limited to specific mutual fund schemes