In a communication sent to distributors and unitholders, BOI AXA MF has admitted that it had made a mistake in calculating NAV in BOI AXA Conservative Hybrid Fund while writing off its exposure to a Sintex group company.
According to the communication, on June 26, 2019, the fund house had notified that it marked down its exposure to Sintex BAPL Limited to zero following downgrade of its credit rating. In a recent notification, the fund house admitted that it marked down an excess amount for some of the bonds of Sintex BAPL resulting in a lower NAV in the affected scheme.
The fund house has announced that it will pay all unitholders who redeemed or switched out between June 26, 2019 and February 14, 2020 an additional amount owing to the lower than applicable NAV received by them.
Further, all unitholders who purchased units in the affected fund have received additional units due to the lower than applicable NAV. The AMC is crediting these funds wherever applicable for all purchases made by investors after June 26, 2019.
