UTI MF segregates Zee Learn papers in two schemes

UTI MF segregated debt securities of Zee Learn into two schemes - UTI Credit Risk Fund and UTI Medium Term Fund - from July 07 onwards.

This was done following the downgrade of debt instruments of Zee Learn from ‘AA(CE)’ to ‘B’ (i.e. ‘below investment grade’) by CARE Ratings on the same date.

UTI MF is yet to seek approval from the Board of Trustees for the same.


"Upon recovery of money from Zee Learn in the segregated portfolio, whether partial or in full, the money so recovered will be distributed to investors in proportion to their holdings in the segregated portfolio," the mutual fund house said.

Existing investors shall be allotted an equal number of units in the segregated portfolio as those held in the main portfolio, it said, adding no subscription or redemption will be allowed in the segregated portfolio of the said schemes.

Market regulator Sebi in its circular, dated December 28, 2018 had allowed mutual fund schemes to create segregated portfolios for debt and money market instruments in order to ensure fair treatment to all investors in case of a credit event and to deal with liquidity risk.