March 26, 2024
mayank
HSBC Credit Risk Fund details, NAV, Portfolio, Returns, Peer Comparison, Fund Managers & Guidance by Chanakyamfguidance.com
NAV Growth: Rs 28.0493
Yearly NAV IDCW: Rs 13.1561
Monthly NAV IDCW: Rs 11.1104
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:
1) Kapil Punjabi
Education: Mr. Kapil Punjabi is MMS from Mumbai University.
Experience: Prior to joining HSBC Asset Management (India) Pvt. Ltd., he has worked with Taurus Asset Management Co. Ltd., Edelweiss Asset Management Ltd., Edelweiss Securities Ltd. and Trans Market Group Research (India) Pvt. Ltd.
2) Shriram Ramanathan
Education: Shriram is a B.E. (Electrical), PGDBM from XLRI Jamshedpur and CFA.
Experience: Prior to joining HSBC Mutual Fund, he has worked with L&T MF, FIL Fund Management Pvt. Ltd., ING Investment Management, Zurich Asset Management Co., ICICI Ltd., and L&T Ltd.
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) | 500 |
| Lock-in Period | NA |
| Exit Load | For units in excess of 10% of the investment, 3% will be charged for redemption Within 1 year |
| For units in excess of 10% of the investment, 2% will be charged for redemption After 1 year and Within 2 years |
Basic Details
| Fund House | HSBC Mutual Fund |
| Launch Date | 01-Jan-13 |
| Return Since Launch | 7.19% |
| Benchmark | NIFTY Credit Risk Bond Index B-II |
| Riskometer | Moderately High |
| Type | Open-ended |
| Assets | Rs 570 Cr |
| (As on 29-Feb-2024) | |
| Expense | 0.86% |
| (As on 29-Feb-2024) | |
| Risk Grade | Average |
| Return Grade | Below Average |
Trailing Returns (%) of HSBC Credit Risk Fund
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| HSBC Credit Risk Dir | 1.68 | -0.03 | 0.58 | 1.85 | 3.42 | 7.48 | 6.42 | 5.31 | 5.78 | 7.23 |
| CCIL T Bill Liquidity Weight | 1.05 | 0.01 | 0.39 | 1.13 | 2.29 | 4.70 | 3.23 | 3.28 | 3.53 | 4.01 |
| Debt: Credit Risk | 2.02 | -0.01 | 0.76 | 2.18 | 4.67 | 9.29 | 10.43 | 5.77 | 5.99 | 7.25 |
| Rank within category | 14 | 10 | 12 | 14 | 14 | 12 | 12 | 11 | 10 | 4 |
| Number of funds in category | 14 | 14 | 14 | 14 | 14 | 14 | 14 | 14 | 14 | 6 |
Peer Comparison of HSBC Credit Risk Fund
| Rating | 1 Year Returns | 3 Year Returns | 5 Year Returns | Expense Ratio (%) | Net Assets (Rs Cr) | Return Since Launch (%) | Exit Load (Days) | Fund Age | |
| HSBC Credit Risk Dir | 2 star | 7.48 | 6.42 | 5.31 | 0.86 | 570 | 7.19 | 3.00 (365) | 11Y 2M |
| Nippon India Credit Risk Dir | 4 star | 9.16 | 9.20 | 4.70 | 0.83 | 1,031 | 7.28 | 1.00 (365) | 11Y 2M |
| UTI Credit Risk Dir | 4 star | 7.85 | 11.69 | -0.72 | 0.91 | 406 | 4.89 | 1.00 (365) | 11Y 2M |
| HDFC Credit Risk Debt Dir | 2 star | 8.29 | 6.88 | 8.01 | 0.91 | 8,191 | 8.83 | 1.00 (365) | 10Y |
| ICICI Pru Credit Risk Dir | 3 star | 8.87 | 7.42 | 8.31 | 0.88 | 7,250 | 8.89 | 1.00 (365) | 11Y 2M |
Portfolio Breakup
| Fund | Category | |
| Number of Securities | 40 | 36 |
| Macaulay Duration (yrs) | 1.96 | 2.11 |
| Average Maturity (yrs) | 2.68 | 2.75 |
| Yield to Maturity (%) | 8.30 | 8.39 |
| Avg Credit Rating | AAA | — |
How to Invest in HSBC Credit Risk Fund?
Chanakya’s Mutual Fund Guidance For HSBC Credit Risk Fund
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