HDFC Mutual Fund (MF) with assets of Rs 1.03 lakh crore agreed to buy all eight schemes of Morgan Stanley with combined assets of Rs 3,290 crore.

Morgan Stanley is now the second global major to exit India's crowded and barely profitable mutual fund industry after the deal.

The sale of the fund assets marks the latest exit from India by a foreign player. Japan's Daiwa Asset Management offloaded its mutual fund schemes this year and Fidelity Worldwide exited last year. HDFC is believed to have paid Rs 150-170 crore for the transaction which is around 4.5 – 5 percent of Morgan's assets.

HDFC Asset Management is owned by Housing Development Finance Corp and Britain's Standard Life PLC.

JPN

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