Calcutta, Jan. 23: UTI Mutual Fund is considering a merger of some schemes with common investment objectives, especially those that park their money in stocks.

?We have 53 schemes, some of whose goals overlap. We are considering merging a handful of them but the decision will be taken after looking at various parameters,? said Rajesh Bhojani, president (sales) of UTI Asset Management Company. The similar-plan problem also covers schemes acquired from IL&FS Mutual Fund.

Bhojani said a large number of plans makes marketing and servicing difficult. Investors find it hard to tell the difference between schemes with similar targets.

The nitty-gritty of the product rationalisation has not been worked out, but Bhojani said changes in the fundamental attributes of schemes would require Sebi clearance. Disclosures will have to be made and approvals by the board of the asset management and trustee company sought when the merger plan is considered.

Unit-holders, for instance, must be offered an exit option at the net asset value. The letter to investors must reveal the investment objective, asset allocation and key features of merged schemes. The percentage of net performing and illiquid assets will have to be specified too.

A detailed note highlighting the reason for the merger, a comparison between schemes being merged and tax implications of the consolidation must reach investors.

In addition, UTI Mutual will have to inform Sebi of the number of unit-holders ? including those who chose to leave ? and net assets of schemes being folded into each other. If the reorganisation throws up a new scheme, a draft offer document will have to be furnished.