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Converting Fund Units

Morgan Stanley Growth Fund is getting converted into an open-ended scheme. Will this affect its investors?

I am a regular reader of Mutual Fund Insight. Taking your earlier advice, I had invested in Morgan Stanley Growth Fund by buying units from the secondary market as they were available at a discount to the net asset value (NAV). Now that Morgan Stanley has decided to convert Morgan Stanley Growth Fund into an open-ended fund, what should I do if I have to get them converted to open ended fund units? —Santanu

The delisting procedure of Morgan Stanley Growth Fund (MSGF) would take around 5-6 months. After the AMC completes the regulatory requirements the fund would be de-listed from the exchanges and converted to an open ended scheme. The investors would be able to freely buy and re-purchase units from the fund house directly. You as an investor need not do anything to convert the units to open ended. Once the scheme is delisted, it is expected that Morgan Stanley AMC would send you an account statement which would have your account/folio number. You can then freely transact using that particular account number.

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