April 15, 2023
mayank
IDBI Credit Risk Fund
NAV Growth: Rs 17.2520
NAV IDCW Yearly: Rs 13.2033
NAV IDCW Quarterly: Rs 11.7670
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 income and opportunities for capital appreciation by investing predominantly in AA and below rated corporate bonds across maturity spectrum.
Fund Manager:
1) Raju Sharma
Education: Mr. Sharma is a Commerce Graduate and holds a degree of CA and LLB.
Experience: Prior to joining IDBI Mutual Fund, he has worked with Tata Mutual Fund, Indiabulls Mutual Fund, JM Morgan Stanley and DHFL.
Investment Details
| Min. Investment (Rs) | 5,000 |
| Min. Addl Investment (Rs) | 1,000 |
| Min. SIP Investment (Rs) | 500 |
| Min. Withdrawal (Rs) | 1,000 |
| Min. No of Cheques | 12 |
| Min. Balance (Rs) | 5,000 |
| Lock-in Period | NA |
| Exit Load | For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days |
Basic Details
| Fund House | IDBI Mutual Fund |
| Launch Date | 03-Mar-14 |
| Return Since Launch | 6.14% |
| Benchmark | NIFTY Credit Risk Bond Index C-III |
| Riskometer | Moderately High |
| Type | Open-ended |
| Assets | Rs 23 Cr |
| (As on 28-Feb-2023) | |
| Expense | 0.61% |
| (As on 28-Feb-2023) | |
| Risk Grade | Above Average |
| Return Grade | Above Average |
IDBI Credit Risk Fund Trailing Returns (%)
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| IDBI Credit Risk Dir | 2.29 | 0.10 | 1.16 | 1.84 | 4.37 | 5.78 | 11.37 | 3.62 | 4.95 | — |
| CCIL T Bill Liquidity Weight | 1.16 | 0.07 | 0.57 | 1.03 | 2.12 | 3.17 | 2.57 | 3.24 | 3.52 | — |
| Debt: Credit Risk | 2.60 | 0.04 | 1.41 | 2.25 | 4.38 | 6.29 | 8.35 | 5.00 | 6.10 | — |
| Rank within category | 8 | 1 | 7 | 11 | 5 | 12 | 2 | 13 | 12 | — |
| Number of funds in category | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 14 | 6 |
IDBI 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 |
| IDBI Credit Risk Dir | 3 star | 5.78 | 11.37 | 3.62 | 0.61 | 23 | 6.14 | 1.00 (365) | 9yrs 1mo |
| ICICI Pru Credit Risk Dir | 4 star | 6.74 | 7.83 | 8.14 | 0.88 | 7,767 | 8.92 | 1.00 (365) | 10yrs 3mo |
| ABSL Credit Risk Dir | 4 star | 9.25 | 9.10 | 7.14 | 0.69 | 1,029 | 8.23 | 3.00 (365) | 8yrs 0mo |
| Nippon Ind Credit Risk Dir | 4 star | 6.33 | 9.32 | 4.50 | 0.98 | 1,000 | 7.18 | 1.00 (365) | 10yrs 3mo |
| Axis Credit Risk Dir | 4 star | 6.36 | 7.27 | 6.86 | 0.81 | 590 | 8.19 | 1.00 (365) | 8yrs 9mo |
Portfolio Breakup
| Fund | Category | |
| Number of Securities | 9 | 37 |
| Modified Duration (yrs) | 2.15 | 1.75 |
| Average Maturity (yrs) | 3.01 | 2.61 |
| Yield to Maturity (%) | 8.34 | 8.44 |
| Avg Credit Rating | AA | — |
Chanakya’s Mutual Fund Guidance For IDBI Credit Risk Fund
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