BOI AXA Credit Risk Fund writes off IL&FS exposure

The net asset value (NAV) of the credit risk fund took a hit of 5.17 per cent on Friday

BOI AXA MF has taken a haircut in its credit risk fund against the scheme’s entire exposure to IL&FS, effective October 5. The BOI AXA Credit Risk Fund has exposure to commercial papers of IL&FS which are maturing on October 29. In a note to distributors, the fund house said that the write-off was being taken as the revival plan for IL&FS was unlikely to be announced before the maturity date.  

“With the government intervention, we expect to recover our investment in IL&FS Ltd in due course. However, given that the maturity of our holding in IL&FS CP is