UTI Mutual Fund has received a partial payment of ₹12 crore from Altico Capital India on October 8 in segregated portfolio of UTI Credit Risk Fund and certain UTI’s Fixed Term Income Funds, which have an exposure to the said issuer.
The debt instruments of Altico Capital India were downgraded to below investment grade by credit rating agencies. In case of UTI - Fixed Term Income Fund - Series XXVII - Plan II (1161 Days) and UTI Credit Risk Fund, the recovery proceeds will be distributed to investors in proportion to investors’ unit holdings. In case of other UTI Fixed Term Income Funds, the recovery proceeds would get credited to the scheme, which would be reflected in the respective NAV of the schemes, said UTI MF.