Description
Navi AMC Limited announces the merger of Navi ELSS Tax Saver Fund (active) into Navi ELSS Tax Saver Nifty 50 Index Fund (passive), effective April 10, 2026, with an exit option available from March 10 to April 9, 2026.
Summary
Navi AMC Limited has announced the merger of Navi ELSS Tax Saver Fund (an active open-ended equity linked saving scheme) into Navi ELSS Tax Saver Nifty 50 Index Fund (a passive index-tracking ELSS). The merger was approved by the Boards of Navi AMC Limited and Navi Trustee Limited on December 9, 2025, and SEBI provided its no-objection on February 26, 2026. The effective date of merger is April 10, 2026.
Key Points
- Merging Scheme: Navi ELSS Tax Saver Fund (active, open-ended ELSS with 3-year statutory lock-in)
- Surviving Scheme: Navi ELSS Tax Saver Nifty 50 Index Fund (passive, replicating/tracking Nifty 50 index, 3-year statutory lock-in)
- Board approval obtained: December 9, 2025 (both Navi AMC and Navi Trustee)
- SEBI no-objection received: February 26, 2026
- Effective merger date: April 10, 2026 (close of business)
- Unitholders who do not exit by April 9, 2026 are deemed to have consented to the merger
Regulatory Changes
The merger is executed under Regulation 18(15A) of the SEBI (Mutual Funds) Regulations, 1996, which mandates that existing unitholders of the merging scheme be given an option to exit at applicable NAV without any exit load for a period of 30 days prior to the effective date.
Compliance Requirements
- Unitholders of the Merging Scheme (Navi ELSS Tax Saver Fund) must submit redemption or switch requests online or via physical application at any official point of acceptance, investor service centre, AMC/RTA office, or depository participant (for demat units) during the Exit Option Period.
- Redemption warrants/cheques will be mailed or amounts credited to the registered bank account within 3 working days of receipt of the redemption request.
- Transaction requests received after April 9, 2026 (up to 3:00 p.m.) will be subject to prevailing exit loads.
Important Dates
| Event | Date |
|---|---|
| Board approval (Navi AMC & Navi Trustee) | December 9, 2025 |
| SEBI no-objection | February 26, 2026 |
| Exit Option Period begins | March 10, 2026 |
| Exit Option Period ends (no exit load) | April 9, 2026 (up to 3:00 p.m.) |
| Effective date of merger | April 10, 2026 (close of business) |
Impact Assessment
Existing unitholders of the Navi ELSS Tax Saver Fund will transition from an actively managed ELSS to a passive index-tracking fund (Nifty 50). Investors who prefer active management should evaluate whether to exit during the no-load window (March 10 – April 9, 2026). The 3-year statutory lock-in continues to apply under the surviving scheme, so only unitholders whose lock-in has expired are practically able to redeem. The merger rationalises Navi Mutual Fund’s ELSS product lineup in line with SEBI’s ongoing push for scheme consolidation in the mutual fund industry.
Impact Justification
Affects existing unitholders of Navi ELSS Tax Saver Fund who must decide whether to exit or continue into the surviving passive scheme; limited to a niche mutual fund product with a defined exit window.