The asset manager’s decision hits the NAV of six funds run by it — Low Duration Fund, Dynamic Accrual Fund, Credit Risk Fund, Short Term Income Plan, Ultra Short Bond Fund and Income Opportunities Fund. Their NAV has come down between 4-7 per cent after the move.
“The large quantum of AGR dues and the immediate payment timeline is resulting in significant uncertainty with respect to our exposure to Vodafone Idea… while relief avenues do exist, the situation remains unclear,” said the mutual fund house.
“A limit on purchases will help ensure that once clarity emerges and as resolution takes place, the interest of existing unitholders has not been significantly diluted in the interim through fresh purchase activity while limiting the inconvenience to retail investors,” it said.
The asset manager is in touch with Vodafone Idea and is closely tracking developments in this matter, it said.
The government has estimated Vodafone Idea’s dues at over Rs 53,000 crore, including over Rs 28,000 crore in licence fee, interest and penalties and the rest on spectrum usage charges.
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1 Comment on this Story
Praveen Gorthi414 days ago
At last investors taste the bitter. Amen...