Aditya Birla MF’s 4 debt schemes see NAVs rise by up to 3.98% in a day

Now, all the three rating agencies — CARE, Crisil and India Ratings — have a C rating on Jharkhand Road Projects. As a result, as per external valuation agencies’ matrix, the paper will now get valued at 65% instead of the earlier 50% valuation.

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The net asset values (NAV) of four debt funds of Aditya Birla Sun Life Mutual Fund moved up by 0.32-3.98% in a single day after rating agency CARE upgraded Jharkhand Road Projects, a security held in the schemes’ portfolios, from CARE D to CARE C.

ABSL Medium Term Plan with assets of Rs 2,065 crore rose 3.98% while ABSL Dynamic Bond Fund with assets of Rs 1,820 crore inched up 0.81%. ABSL Credit Risk Fund, having assets of Rs 1,949 crore, gained 0.55%, and ABSL Short Term Fund with assets of Rs 1,862 crore rose 0.32%.

  • 9.48%Annualized Return for 1 year
  • >3 years Suggested Investment Horizon
  • 8.6 YearsTime taken to double money
  • 1.99%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 7.6 YearsTime taken to double money
Now, all the three rating agencies — CARE, Crisil and India Ratings — have a C rating on Jharkhand Road Projects. As a result, as per external valuation agencies’ matrix, the paper will now get valued at 65% instead of the earlier 50% valuation.


However, analysts believe there is room for more gains.

“Jharkhand Road has been classified as a green asset and has been paying regular interest with no defaults. There could be a significant upside from here over the next 12 months,” says Vineet Nanda, founder, Sift Capital.

He believes investors should be patient and stick to fund houses with a strong risk management process. Many debt funds have seen markdowns of paper due to rating downgrades as the economic environment turned weak post the IL&FS crisis since September 2018.
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Aditya Birla Sun Life MF stopped accepting fresh money in two of these debt schemes — Medium Term Fund and Credit Risk Fund — temporarily from May 22 in the interest of existing investors. The fund house believed it could see substantial gains and did not want to dilute returns for existing investors, and hence, temporarily stopped fresh subscriptions in these funds.

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