The UTI Short Term Plan, which is part of Mint30, is one of the schemes with exposure to the debt securities of DHFL Ltd. UTI AMC has decided to mark down the downgraded securities by 100%.
The fund house has imposed an exit load on subscriptions into the scheme from 7 June 2019. This is expected to curtail speculative activity in the scheme that would enter and exit to take advantage of a possible re-rating of the paper. The NAV of the scheme has fallen around 13% since the write-down of the downgraded securities, given the 11.6% DHFL securities exposure.
You should stay invested till there is some clarity on whether DHFL will be able to honour its commitments, albeit with a delay. Any recovery will be written back to the scheme on actual receipts and will benefit the investors who have seen a sharp cut in their returns. Once this is clear, investors should consider moving their investments to funds recommended in the category in the upcoming Mint basket of funds that holds less concentrated portfolios.