July 7, 2022
mayank
ICICI Prudential Credit Risk Fund Guidance
NAV Growth : Rs 27.3587
NAV IDCW Yearly : Rs 10.3487
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 income through investing predominantly in AA and below rated corporate bonds while maintaining the optimum balance of yield, safety and liquidity.
Fund Manager :
— Akhil Kakkar
Education : Mr. Kakkar is B.Tech (IIT Roorkee) and PGDM (Finance)
Experience : Prior to Joining ICICI Prudential Mutual Fund he has worked with Kotak Mahindra Bank in Debt Capital Markets, SBI Capital Markets in Project Advisory & Structured Finance and Goldman Sachs Services Pvt Ltd as Analyst Developer.
— Manish Banthia
Education : Mr. Banthia is B.Com, CA and MBA
Experience : He is associated with ICICI Prudential Asset Management Company since Oct 2005, ICICI Prudential AMC – Fixed Income Investments – Aug 2007 to Oct 2009, ICICI Prudential AMC – New Product Development – Oct 2005 to Jul 2007, Aditya Birla Nuvo Ltd. – From May 2005 to Oct 2005, Aditya Birla Management Corporation Ltd. – From May 2004 to May 2005.
Investment Details
| Min. Investment (Rs) | 100 |
| Min. Addl Investment (Rs) | 100 |
| Min. SIP Investment (Rs) | 100 |
| Min. No of Cheques | 6 |
| Min. Withdrawal (Rs) | 1 |
| Min. Balance (Rs) | — |
| 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: | ICICI Prudential Mutual Fund |
| Launch Date: | 01-Jan-13 |
| Return Since Launch: | 9.05% |
| Benchmark: | CRISIL Credit Risk Fund CII Index |
| Riskometer: | High |
| Type: | Open-ended |
| Assets: | Rs 8,022 Cr |
| (As on 31-May-2022) | |
| Expense: | 0.88% |
| (As on 31-May-2022) | |
| Risk Grade: | Below Average |
| Return Grade: | Above Average |
ICICI Prudential 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 | |
| ICICI Pru Credit Risk Direct-G | 2.42 | 0.21 | 0.47 | 0.92 | 0.67 | 2.3 | 5.53 | 8.37 | 8.12 | 8.66 | — |
| CCIL T Bill Liquidity Weight | 0.93 | 0.01 | 0.09 | 0.27 | 0.38 | 0.91 | 1.99 | 2.66 | 3.3 | 3.67 | — |
| Debt: Credit Risk | 10.83 | 0.18 | 0.41 | 0.73 | -0.02 | 10.84 | 16.76 | 6.24 | 4.93 | 6.4 | — |
| Rank within category | 3 | 4 | 3 | 2 | 1 | 3 | 7 | 3 | 1 | 2 | — |
| Number of funds in category | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 14 | 0 |
ICICI Prudential Credit Risk Fund Guidance Peer Comparison
| Fund name | Rating | Launch Date | 1-Year Return | 3-Year Return | 5-Year Return | Expense Ratio | Assets (Cr) |
| ICICI Prudential Credit Risk Fund | 4 star | Jan-13 | 5.53 | 8.37 | 8.12 | 0.88% | 8,022 |
| HDFC Credit Risk Debt Fund | 5 star | Mar-14 | 4.38 | 8.12 | 7.59 | 0.95% | 8,576 |
| SBI Credit Risk Fund | 4 star | Jan-13 | 4.73 | 7.27 | 6.96 | 0.92% | 2,987 |
| Axis Credit Risk Fund | 4 star | Jul-14 | 4.85 | 7.58 | 6.82 | 0.81% | 671 |
| Kotak Credit Risk Fund | 3 star | Jan-13 | 2.16 | 6.12 | 6.64 | 0.74% | 1,578 |
Portfolio Breakup
| Fund | 1Y High | 1Y Low | Category | |
| Number of Securities | 96 | 96 | 85 | 38 |
| Modified Duration (yrs) | 1.77 | 1.97 | 1.57 | — |
| Average Maturity (yrs) | 2.84 | 2.84 | 2.26 | — |
| Yield to Maturity (%) | 7.99 | 7.99 | 6.74 | — |
| Avg Credit Rating | AA | — | — | — |
ICICI Prudential Credit Risk Fund Guidance by Chanakya :
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