The net asset value of UTI Credit Risk Fund moved up by 6.3% on 29
th September, as the scheme got cash inflows for its DHFL bonds in line with the resolution process. A week back the fund had marked up the security to Rs 20.5 in line with the weighted average price given by valuation agencies and the NAV rose by 8.44% on September 22. The fund holds DHFL bonds worth Rs 195 crore in the fund. As per the resolution plan, investors have been paid Rs 42 per bond.
th September, as the scheme got cash inflows for its DHFL bonds in line with the resolution process. A week back the fund had marked up the security to Rs 20.5 in line with the weighted average price given by valuation agencies and the NAV rose by 8.44% on September 22. The fund holds DHFL bonds worth Rs 195 crore in the fund. As per the resolution plan, investors have been paid Rs 42 per bond.
Earlier when the rating of DHFL was downgraded to D, the fund house had marked down the security to zero. Subsequently on Sep 22, the fund house marked it upto Rs 20.5.
On September 17, the fund house had increased exit load in the scheme to 5% if investors exited before a year, to prevent new investors from taking advantage of money coming back to the scheme. With this, the fund’s one year returns now stand at 23.08%. SEBI mandates credit risk funds to invest at least 65% of their corpus in less than AAA instruments. The scheme has assets under management of Rs 411 crore as of August 31, 2021.
