If I have 977 units of a mutual fund and after 5 years it merges with another mutual fund within same company. How much unit of new mutual fund will I be having?

  • 1
    Typically, the number of shares will change to reflect the NAV of the merged fund. Depending on how the merger is set up, there may be capital gains or capital losses involved. Sep 1, 2015 at 20:55
  • That last point is important. If they have to do any significant amount of selling and re-buying to make the portfolios of the two funds agree, the appropriate percentage of the gains and losses on what was sold will be counted as capital gain you have realized. On the other hand, you'll have a new basis price for what was bought, so in theory that evens out in the long run. But one time I had to sell some shares to cover tax on the gain, which was annoying.
    – keshlam
    Sep 2, 2015 at 1:53

1 Answer 1


There is not enough information in the question to answer it exactly, but --

You can expect to have the same dollar value of shares in the post-merger mutual fund as you did in the pre-merger mutual fund. Exactly how many shares that is depends on the value of a share in the post-merger mutual fund at the time of the merge.

As an example -- you have 977 shares in mutual fund Alpha. They're each worth $1, so you have $977 total.

Bravo takes over Alpha.

If the value of a share in Bravo is $2, you will get 488.5 shares of Bravo -- still worth $977.

Taxes and the exact details of the merger could adjust this, but in the general case you'll wind up with exactly as much in the instant after the merger as you had in the instant before.

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