Mumbai: Tata Money Market Fund saw its net asset value dip as much as 5.94 per cent on October 29 after the fund wrote off the balance 50 per cent of its investment in the commercial paper of ILFS which was to mature on October 29.Since we did not receive maturity proceeds on October 29, we have made 100 per cent provision against the ILFS exposure, says Murthy Nagarajan, head (fixed income), Tata Mutual Fund.As on October 29, the fund had an exposure of Rs 24.83 crore to ILFS, which constituted 6 per cent of the assets under management of Rs 430 crore.
Earlier on September 17, when the rating of ILFS was first downgraded to D, the scheme had marked down 50 per cent of the instrument.Money market funds invest in instruments having a maturity up to a year.
This includes assets such as commercial papers and certificates of deposit.