14. Why should a Mutual Fund inform the investors regarding the merger?
Ans: Before going in for any merger, Mutual Funds should inform the investors and the SEBI about possible post-merger implications. The investors then have a choice of either continuing or exiting at no load. Even if an investors exits, he has to pay the capital gain tax from the sale of securities and the future investment costs for choosing a new investment avenue.SEBI has also issued specifice instructions that the investors should be well informed and have a load -free exit from the Fund.