UTI MF to acquire IL&FS Mutual Fund

UTI Mutual Fund — which completed one year of operations this week — has proposed to acquire the schemes of IL&FS Mutual Fund, subject to regulatory approvals. UTI AMC entered into a MoU with IL&FS AMC for acquiring the schemes of IL&FS MF with assets under management amounting to over Rs 2,500 crore. Post-acquisition, assets of UTI MF will be over Rs 22,000 crore. IL&FS AMC currently manages 10 schemes, while UTI AMC currently manages 41 domestic schemes and 4 off-shore schemes. UTI MF has grown organically over the past 12 months to cross the Rs 20,000 crore AUM mark. This is the second major takeover in the sector. Earlier, Templeton had taken over Kothari Pioneer Mutual Fund. Announcing the acquisition, M. Damodaran, CMD, UTI AMC said “Through this acquisition UTI MF has further consolidated its leadership position in the MF industry. The entire process is expected to get completed over the next four months.”