HSBC-L&T merger: An update on our recommendation

The acquisition of L&T Finance's mutual fund business by HSBC Asset Management has been in the works for about a year. With scheme-level details now available, we have greater visibility, helping us update our recommendations. So, let's look at the merger's impact on our recommended funds list. Our recommendations Debt We had three L&T funds in our recommendation: their short duration was in our 'Best Buy' list, while overnight & liquid were in the 'Buy' segment. We retain these recommendations for HSBC Short Duration, HSBC Overnight and HSBC Liquid Fund. These pre-merger HSBC funds have been much smaller in scale, so we do not expect any significant impact post their merger. We believe these funds will inherit quality portfolios and expect this to continue. If there is any change in our recommendations, we will return to you. Further, we weren't expecting any major changes in the fund management t