Scheme Name* Exposure of DHFL (Apr 19) Market Value of DHFL holding as of April 2019 (Crs.) April scheme AUM (Rs crore) NAV 1-day fall (4th June 2019) DHFL Pramerica Medium Term Fund 37.41% 12.91 34.51 -52.99% DHFL Pramerica Floating Rate Fund 31.94% 4.18 13.10 -48.39% DHFL Pramerica Short Maturity Fund 30.46% 91.43 300.13 -13.55% Tata Corporate Bond Fund 28.21% 51.93 184.06 -29.69% JM Equity Hybrid Fund 24.61% 4.90 19.91 -11.64% Baroda Treasury Advantage Fund - Plan A 21.16% 114.74 542.19 -17.15% DHFL Pramerica Low Duration Fund 20.12% 62.19 309.16 -16.57% Principal Low Duration Fund 19.24% 46.29 240.61 0.09% JM Low Duration Fund 18.96% 27.93 147.31 -10.20% Edelweiss Corporate Bond Fund 15.00% 22.43 149.57 0.08% BNP Paribas Medium Term Fund 14.84% 20.69 139.39 -12.88% Tata Medium Term Fund 14.60% 8.99 61.60 -12.31% JM Income Fund 13.15% 2.94 22.35 -9.63% Baroda Dynamic Bond Fund 12.97% 3.11 23.96 -8.37% BNP Paribas Corporate Bond Fund 12.39% 8.99 72.59 -10.83% Edelweiss Low Duration Fund 12.16% 31.76 261.18 0.09% Principal Short Term Debt Fund 10.94% 24.98 228.30 0.11% Edelweiss Short Term Fund 10.73% 2.95 27.47 0.10% HSBC Short Duration Fund 10.24% 86.34 843.01 0.10%

Many mutual fund investors are anxious after their schemes incurred heavy losses due to their exposure to DHFL securities. The net asset value of several debt schemes fell by as much as 53 per cent in one day after DHFL delayed interest payments. Many mutual funds, including DHFL Pramerica mutual fund and some other fund houses, have large exposure to papers issued by the troubled DHFL. Mutual fund investors are yet again facing the same question- what to do with their bleeding schemes?"I believe what had to happen is past us. For mutual fund investors, redeeming the money out of the scheme would mean taking losses. There is no better way out than to just wait for the fund manager and the company to come up with a rescue plan. Taking a hasty decision right now can cost you too much," says Suresh Sadagopan, Founder, Ladder7 Financial Advisors, a Mumbai-based wealth management firm.Around 19 debt mutual fund schemes had an exposure more than 10 per cent in the troubled housing finance company's securities. Apart from DHFL Pramerica schemes that lost 13-53 per cent in one day, Tata Corporate Bond Fund had 28.21 per cent exposure in DHFL papers, followed by JM Equity Hybrid Fund with an exposure of 24.61 per cent. See table below for the list of schemes whose NAV's were hit by the DHFL fiasco.(Source: FundsIndia.com ) * Regular/growth optionHowever, mutual fund analysts believe that pulling out your money from the schemes is not the way out of this trouble. They also believe that this situation is not similar to the IL&FS downgrades. "We can't compare DHFL problem with the IL&FS situation. DHFL is a very much operating company as compared to a collapsed IL&FS. Investors need to understand the distinction that not every crisis can be put under the same umbrella and believe that the money is gone. DHFL problem is basically a company facing liquidity crisis and not insolvency," says Vidya Bala, Head of mutual fund research, FundsIndia.com, a mutual fund investment platform.Moreover, DHFL has already started the rescue operations. "They are already in process of the sale of their education loan company, they are also looking at other asset monetisation. So, I think the investors have to wait as the company has asked for a seven day period," adds Vidya Bala.Tata AMC has proposed to create segregated portfolio of securities of DHFL held by captioned schemes immediately after expiry of mandatory load-free exit period of 30 days, subject to approval by Trustees of Tata Mutual Fund.Tata AMC has also allowed a 30 days load-free exit period to investors of Tata Corporate Bond Fund, Tata Medium Term Fund and Tata Treasury Advantage Fund. However, mutual fund advisors believe that until and unless you have a near-term goal attached to your invested money, you should not redeem your investments in the troubled debt mutual fund schemes. "If you are in a situation where you are one year or 6 months away from your goal, you can take the losses and redeem. Otherwise, just wait for the rescue to happen. We believe that waiting would be the best option for investors at this point," says Suresh Sadagopan.