Confused by Scheme Mergers: Import portfolio into Kuvera
Pursuant to SEBI Guidelines on Scheme Rationalization, fund houses implemented Scheme Mergers across some of their schemes. View the list of scheme mergers and the effective date of merger here. As a result, your holdings could have been impacted. Do check your account now if you haven’t already.
In a merger, units of the Merged Scheme (old scheme) automatically convert into the units of the Surviving Scheme (new scheme). Scheme Mergers related Switch are free of Exit Load. And they are supposed to be tax neutral.
Now look at your AMC Statement again and you will realize why Scheme Mergers are so confusing:
- How do you compare Scheme Performance? Investment Amount went up and XIRR drops to zero! So, how do you compare your holdings in this Scheme with that in other Schemes?
- How many units you can sell without exit load and STCG tax implication? There’s no transaction history information for the New Scheme?
We have implemented Scheme Mergers to preserve historical transaction information for easier analysis.
We like keeping things simple. So, we replace each transaction in the Old scheme with a transaction in the New Scheme. In effect, each of your historical transaction gets updated as if it was a transaction in the new scheme.
How does it help?
- You can see the history of each Unit Purchase in the New Scheme. This makes tax calculations much simpler to follow.
- Your holdings in the scheme retain continuity at their original cost. So, there’s no artificial re-pricing distorting your portfolio performance.