net asset value (are not) NS UTI Credit Risk Fund, a debt-oriented scheme rose 8.44% on September 22 as the fund house rated its current value DHFL 20.5 bond at Rs. Earlier, when DHFL’s rating was downgraded from D, the fund house downgraded the security to zero.

“With the ongoing development in the resolution process of DHFL, the valuation of existing DHFL bonds was reviewed and revised upwards by UTI MF in line with the weighted average value given by the valuation agencies. A spokesperson of UTI MF said, Rs 20.50 per face value of Rs 100. The fund has bonds worth Rs 195 crore in DHFL. According to industry sources, if the NCLT resolution in DHFL’s case is passed, the fund house could get 42% of the money back.

On September 17, to prevent new investors from taking advantage of coming back into the scheme, the fund house had increased the exit load in the scheme to 5% if they exit before one year.

As per SEBI classification rules, credit risk funds should invest at least 65% of their corpus in instruments less than AAA. The scheme has assets worth Rs 411 crore as on August 31, 2021.