HDFC Mutual to acquire all 8 schemes of Morgan Stanley

India’s largest mutual fund by assets, HDFC Mutual Fund, has decided to acquire all the eight schemes of Morgan Stanley Mutual Fund in India.

However, HDFC Mutual Fund did not disclose the deal size.

“We are pleased to announce the signing of a definitive agreement for HDFC Mutual Fund to acquire all the eight schemes of Morgan Stanley Mutual Fund in India,” HDFC Mutual said in a statement.

The agreement is subject to regulatory approvals as required, it added.

The average combined assets under management of the eight schemes for the quarter ended September 30, was Rs 3,290 crore, while HDFC Mutual commands an asset base of Rs 1.01 lakh crore.

Milind Barve, Managing Director of HDFC Asset Management Co, said, “HDFC Mutual Fund has acquired a portfolio of strong performing domestic mutual fund schemes from Morgan Stanley and this acquisition is another step towards expanding our mutual fund customer base. We look forward to welcoming the investors in the eight schemes of Morgan Stanley Mutual Fund into the HDFC family.”

Two decades ago, in 1993, Morgan Stanley had received SEBI’s approval to run mutual fund business in India. Its first scheme was launched in 1994.

Fierce competition and slowdown in the asset management industry have since forced many to quit the business.

Earlier this year, SBI Mutual Fund had acquired Daiwa Mutual Fund while last year L&T Mutual Fund bought Fidelity Mutual Fund.

According to SEBI data, the number of folios (individual investor accounts) with 44 fund houses fell to around 4.07 crore at the end of October, from 4.28 crore in fiscal 2012-13.

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