INSUBCONTINENT EXCLUSIVE:
Mumbai: The net asset values (NAVs) of debt schemes of UTI Mutual, Nippon India Mutual and Aditya Birla Sun Life Mutual holding bonds of
Vodafone Idea dipped between 1 per cent and 10 per cent on Saturday after the fund houses marked down the values of their holdings of the
A day earlier, NAVs of six Franklin schemes holding Vodafone securities fell between 4.28 per cent and 6.87 per cent, adjusting for the
in the adjusted gross revenue (AGR) case.
Vodafone Idea is seen as the most impacted by the judgement
The company has a total debt of close to Rs 98,000 crore as of September 2019.
The fall in NAVs of many of these schemes was more than half
of their annual returns of 7-10 per cent.
Among the open-ended schemes, UTI Credit Risk Fund has been hit the hardest due to its 17.55 per
cent exposure to Vodafone Idea debt
UTI Bond fund fell 4 per cent, Nippon Hybrid Bond fell 3.83 per cent, while Aditya Birla Savings and Aditya Birla Equity Hybrid 95 fell by
1.2 and 1.02 per cent, respectively
effect from January 17, 2020
investors.
Mutual funds cumulatively hold Rs 3,348-crore of Vodafone Idea papers
Franklin holds paper worth Rs 2,049 crore, Aditya Birla Sun Life Rs 508 crore, Nippon India Rs 241 crore and UTI MF Rs 551 crore.
The
decline in NAVs after the Supreme Court judgement adds to the list of instances in the last couple of years where mutual fund investors in
debt schemes had to take a hit on account of delayed repayments, defaults or credit rating downgrades by companies.
