What does HDFC's takeover of Morgan Stanley AMC mean for investors in schemes of Morgan Stanley Mutual Fund?
-Bhaarat
This takeover will not make significant difference to investors in the erstwhile schemes of Morgan Stanley Mutual Fund. Morgan Stanley has a range of fixed income funds and not much money there.
At a future date, HDFC will probably realign those funds to their own fixed income funds, they will get merged or combined with those funds. We don't expect a significant difference in the equity funds, because many funds from HDFC have been struggling for a while. The Morgan Stanley funds are not disappointing, but there is nothing inspiring about them either. So it will just be managed by another set of reasonably experienced players who right now look very average.
This article was originally published on January 03, 2014.