In recent announcement, ICRA placed the rating of six mutual fund schemes under watch. Mutual fund schemes across three fund houses—HDFC, UTI and Aditya Birla—have announced a reduction in the valuation of their investments (haircut), which has led to a fall in the net asset values.
The reason for this is the rating downgrade announced by CRISIL. The downgrade is caused by non-payment of interest and principal obligations by Jharkhand Road Projects Implementation Company (JRPICL), which is a subsidiary of IL&FS Transportation Networks (ITNL), and a part of the Infrastructure Leasing and Financial Services (IL&FS) Group.
