August 9, 2022
mayank
L&T Credit Risk Fund Guidance
NAV Growth : Rs 25.0666
NAV IDCW Yearly : Rs 12.4290
NAV IDCW Monthly : Rs 10.7397
Suitable For Which Investors ?
“Credit risk funds invest mainly in bonds which are rated AA or below by credit rating agencies. The lower rating indicates a higher possibility of these bonds defaulting on repayment of investors’ money. Therefore, these funds are the riskiest among debt fund categories. But they compensate for this additional risk with a higher return potential as these bonds offer better rates of interest than the highest rated bonds.
However, retail investors can avoid these funds altogether. There are far too many kinds of debt funds with a highly nuanced classification based on the type or duration of bonds they can invest in. We believe that so many fund categories add to complexity which is easily avoidable. Retail investors can simply invest in Liquid funds for an investment horizon of up to one year and Short Duration funds for the fixed income allocation (which should be 100 per cent for an investment horizon of up to three years) in their longer-term portfolios.”
Fund’s Investment Strategy :
The scheme seeks to generate regular returns and capital appreciation by investing predominantly in AA and below rated corporate bonds, debt, government securities and money market instruments.
Fund Manager :
— Jalpan Shah
Education : Mr. Shah is a B.E. (Mechanical) and holds a PGDM.
Experience : Prior to joining L&T Mutual Fund, he was associated with FIL Fund Management Private Limited (Dec 2007-Nov 2012), Lotus India Asset Management Company Private Limited (Sep 2007-Nov 2007) as a Research Analyst, UTI Asset Management Company Private Limited (July 2006-Aug 2007) as a Research Analyst and UTI Asset Management Company Private Limited(May 2004-June 2006) as a Sales & Marketing Manager.
— Shriram Ramanathan
Education : Shriram is a B.E. (Electrical), PGDBM from XLRI Jamshedpur and CFA.
Experience : Prior to joining L&T Mutual Fund he has worked with FIL Fund Management Pvt. Ltd., ING Investment Management, Zurich Asset Management Co., ICICI Ltd., and L&T Ltd.
Investment Details
| Min. Investment (Rs) | 10,000 |
| Min. Addl Investment (Rs) | 1,000 |
| Min. SIP Investment (Rs) | 1,000 |
| Min. No of Cheques | 6 |
| Min. Withdrawal (Rs) | 500 |
| Min. Balance (Rs) | 500 |
| Lock-in Period | Not Applicable |
| Exit Load | For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days |
Basic Details
| Fund House: | L&T Mutual Fund |
| Launch Date: | 01-Jan-13 |
| Return Since Launch: | 7.19% |
| Benchmark: | NIFTY Credit Risk Bond Index C-III |
| Riskometer: | Moderate |
| Type: | Open-ended |
| Assets: | Rs 164 Cr |
| (As on 31-Jul-2022) | |
| Expense Ratio: | 0.86% |
| (As on 30-Jun-2022) | |
| Risk Grade: | Above Average |
| Return Grade: | Below Average |
L&T Credit Risk Fund Guidance Trailing Returns (%)
| YTD | 1-Day | 1-W | 1-M | 3-M | 6-M | 1-Y | 3-Y | 5-Y | 7-Y | 10-Y | |
| L&T Credit Risk Direct-G | 1.45 | 0.05 | 0.09 | 0.5 | 1.46 | 1.45 | 5.06 | 4.72 | 4.99 | 6.46 | — |
| CCIL T Bill Liquidity Weight | 1.19 | -0.02 | 0.07 | 0.2 | 0.64 | 1.04 | 1.99 | 2.59 | 3.27 | 3.63 | — |
| Debt: Credit Risk | 11.59 | 0.04 | 0.08 | 0.76 | 1.76 | 10.46 | 16.31 | 6.16 | 4.84 | 6.35 | — |
| Rank within category | 12 | 6 | 8 | 13 | 10 | 13 | 8 | 12 | 9 | 8 | — |
| Number of funds in category | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 14 | 0 |
L&T Credit Risk Fund Guidance Peer Comparison
| Fund name | Rating | Launch Date | 1-Year Return | 3-Year Return | 5-Year Return | Expense Ratio | Assets (Cr) |
| L&T Credit Risk Fund | 2 star | Jan-13 | 5.06 | 4.72 | 4.99 | 0.86 | 164 |
| HDFC Credit Risk Debt Fund | 4 star | Mar-14 | 4.31 | 8.01 | 7.5 | 0.95 | 8,631 |
| ICICI Prudential Credit Risk Fund | 4 star | Jan-13 | 5.61 | 8.24 | 8.04 | 0.88 | 7,943 |
| SBI Credit Risk Fund | 4 star | Jan-13 | 4.54 | 7.09 | 6.86 | 0.92 | 2,964 |
| Axis Credit Risk Fund | 4 star | Jul-14 | 4.66 | 7.4 | 6.71 | 0.81 | 671 |
Portfolio Breakup
| Fund | 1Y High | 1Y Low | Category | |
| Number of Securities | 21 | 24 | 19 | 35 |
| Modified Duration (yrs) | 1.17 | 2.06 | 1.17 | 1.7 |
| Average Maturity (yrs) | 2.1 | 2.55 | 1.47 | 2.32 |
| Yield to Maturity (%) | 7.34 | 7.34 | 5.51 | 7.33 |
| Avg Credit Rating | AAA | — | — | — |
L&T Credit Risk Fund Guidance by Chanakya :
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