October 18, 2022
mayank
SBI Credit Risk Fund
NAV Growth: Rs 39.0157
NAV IDCW Quarterly: Rs 18.1567
NAV IDCW Daily: Rs 12.3786
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 provide the investors an opportunity to predominantly invest in corporate bonds rated AA and below(excluding AA+ rated corporate bonds) so as to generate attractive returns while maintaining moderate liquidity in the portfolio through investment in money market securities.
Fund Manager:
1) Lokesh Mallya
Education: Mr. Mallya is MBA and FRM.
Experience: Prior to SBI Mutual Fund, he has worked with Aditya Birla Sun Life AMC as fund manager (Sept 2009-Sept 2014) and as Credit Analyst (July 2006 – Aug 2009).
Investment Details
| Min. Investment (Rs) | 5,000 |
| Min. Addl Investment (Rs) | 1,000 |
| Min. SIP Investment (Rs) | 500 |
| Min. Withdrawal (Rs) | 500 |
| Min. No of Cheques | 12 |
| Min. Balance (Rs) | 1,000 |
| Lock-in Period | NA |
| Exit Load | For units in excess of 8% of the investment, 3% will be charged for redemption within 365 days |
| For units in excess of 8% of the investment, 1.5% will be charged for redemption between 366 – 730 days | |
| For units in excess of 8% of the investment, 0.75% will be charged for redemption between 731 – 1095 days |
Basic Details
| Fund House | SBI Mutual Fund |
| Launch Date | 01-Jan-13 |
| Return Since Launch | 8.59% |
| Benchmark | NIFTY Credit Risk Bond Index C-II |
| Riskometer | High |
| Type | Open-ended |
| Assets | Rs 2,917 Cr |
| (As on 30-Sep-2022) | |
| Expense Ratio | 0.92% |
| (As on 30-Sep-2022) | |
| Risk Grade | Below Average |
| Return Grade | Average |
SBI Credit Risk Fund Trailing Returns (%)
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| SBI Credit Risk Dir | 3.3 | 0.11 | 0.31 | 1.43 | 2.24 | 4.1 | 6.86 | 6.8 | 7.67 | — |
| CCIL T Bill Liquidity Weight | 1.67 | 0.04 | 0.19 | 0.67 | 1.07 | 2.08 | 2.52 | 3.21 | 3.56 | — |
| Debt: Credit Risk | 12.5 | 0.14 | 0.16 | 1.31 | 1.97 | 13.27 | 6.32 | 4.76 | 6.15 | — |
| Rank within category | 6 | 13 | 2 | 5 | 4 | 8 | 7 | 5 | 5 | — |
| Number of funds in category | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 14 | 0 |
SBI Credit Risk Fund Peer Comparison
| Fund name | Rating | 1 Year Returns | 3 Year Returns | 5 Year Returns | Expense Ratio (%) | Net Assets (Rs Cr) | Return Since Launch (%) | Exit Load (Days) | Fund Age |
| SBI Credit Risk Dir | 4 star | 4.10 | 6.86 | 6.80 | 0.92 | 2,917 | 8.59 | 3.00 (365) | 9yrs 9mo |
| HDFC Credit Risk Debt Dir | 4 star | 3.66 | 7.96 | 7.44 | 0.96 | 8,616 | 8.99 | 1.00 (365) | 8yrs 6mo |
| ICICI Pru Credit Risk Dir | 4 star | 5.07 | 7.96 | 7.95 | 0.88 | 7,903 | 8.95 | 1.00 (365) | 9yrs 9mo |
| Axis Credit Risk Dir | 4 star | 4.13 | 7.19 | 6.62 | 0.81 | 653 | 8.15 | 1.00 (365) | 8yrs 3mo |
| Kotak Credit Risk Dir | 2 star | 1.18 | 5.48 | 6.43 | 0.73 | 1,504 | 8.22 | 1.00 (365) | 9yrs 9mo |
Portfolio Breakup
| Fund | Category | |
| Number of Securities | 46 | 31 |
| Modified Duration (yrs) | 1.60 | 1.71 |
| Average Maturity (yrs) | 2.63 | 2.42 |
| Yield to Maturity (%) | 8.00 | 7.96 |
| Avg Credit Rating | AAA | — |
Chanakya’s Mutual Fund Guidance For SBI Credit Risk Fund
Apply Online: https://www.sbimf.com/en-us/quick-invest?action=panverification&SubBrokerCode=&EUIN=E455804&arn_code=ARN-245610&subbrokerARN=&utm_source=EasyLink
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