Multiple choice

Which of the following is not applicable if the schemes of one mutual fund are taken over by another mutual fund?

  1. The schemes' offer documents have to be changed and updated

  2. There is a change in the AMC of the schemes that are taken over

  3. There is a change in the sponsor of the schemes that are taken over

  4. The schemes have to be wound up compulsorily
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

When schemes are taken over, offer documents must be updated (A), the AMC changes (B), and the sponsor may change (C). However, schemes do NOT need to be wound up - they continue under the new mutual fund.

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