How one mutual fund joined forces with KKR with disastrous consequences
BOI Axa Credit Risk Fund was launched in collaboration with global private equity player KKR
The inflection point in the fund’s history came in September 2018 before which it had in fact delivered a heady CAGR of around 9.49%
If you had invested ₹100 in this fund at its launch in Feb 2015, you would have been left with ₹36 now. It has delivered a return of -17.86% since launch with much of the collapse coming after the IL&FS crisis erupted in India in September 2018. On 24th April 2020, the fund dropped by a heart-stopping 50.22% overnight as it proactively marked down various securities.