HDFC Mutual Fund writes down exposure to Simplex Infrastructures

In yet another episode of mutual funds being hit by debt downgrades and defaults, HDFC Mutual Fund has written down its exposure to Simplex Infrastructures, a company enganged in Engineering Procurement Construction (EPC) and turnkey projects for civil construction. The paper was present in HDFC Credit Risk Fund but constituted a relatively modest 0.73% of assets on the date of the downgrade or ₹124.11 crore. HDFC Credit Risk Fund has a large AUM of 14,625 crore (as of 31st October 2019). As per data from Rupeevest, other mutual funds did not have exposure to Simplex Infrastructure (as of 31st October).

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