August 4, 2022
mayank
Kotak Credit Risk Fund Guidance
NAV Growth : Rs 26.4747
NAV IDCW : Rs 19.8851
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 by investing in debt /and money market securities across the yield curve and predominantly in AA rated and below corporate securities.
Fund Manager :
— Deepak Agrawal
Education : Mr. Agrawal is Post Graduate in Commerce from Mumbai University, Chartered Accountant, Company Secretary and CFA.
Experience : He has been associated with Kotak AMC since 2000.
Investment Details
| Min. Investment (Rs) | 5,000 |
| Min. Addl Investment (Rs) | 1,000 |
| Min. SIP Investment (Rs) | 1,000 |
| Min. No of Cheques | 6 |
| Min. Withdrawal (Rs) | 1,000 |
| Min. Balance (Rs) | 1,000 |
| Lock-in Period | Not Applicable |
| Exit Load | For units in excess of 6% of the investment,1% will be charged for redemption within 365 days |
Basic Details
| Fund House: | Kotak Mahindra Mutual Fund |
| Launch Date: | 01-Jan-13 |
| Return Since Launch: | 8.33% |
| Benchmark: | NIFTY Credit Risk Bond Index C-III |
| Riskometer: | Moderately High |
| Type: | Open-ended |
| Assets: | Rs 1,578 Cr |
| (As on 30-Jun-2022) | |
| Expense Ratio: | 0.74% |
| (As on 30-Jun-2022) | |
| Risk Grade: | Above Average |
| Return Grade: | Average |
Kotak 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 | |
| Kotak Credit Risk Direct-G | -0.19 | 0.02 | 0.33 | 0.91 | 0.38 | -0.48 | 2.17 | 5.94 | 6.56 | 7.79 | — |
| CCIL T Bill Liquidity Weight | 1.16 | 0.01 | 0.11 | 0.24 | 0.48 | 1.03 | 2.01 | 2.61 | 3.27 | 3.64 | — |
| Debt: Credit Risk | 11.58 | 0 | 0.28 | 1.02 | 0.85 | 10.59 | 16.41 | 6.21 | 4.86 | 6.36 | — |
| Rank within category | 15 | 5 | 4 | 6 | 14 | 15 | 15 | 10 | 7 | 6 | — |
| Number of funds in category | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 14 | 0 |
Kotak Credit Risk Fund Guidance Peer Comparison
| Fund name | Rating | Launch Date | 1-Year Return | 3-Year Return | 5-Year Return | Expense Ratio | Assets (Cr) |
| Kotak Credit Risk Fund | 3 star | Jan-13 | 2.17 | 5.94 | 6.56 | 0.74 | 1,578 |
| HDFC Credit Risk Debt Fund | 4 star | Mar-14 | 4.39 | 8.09 | 7.53 | 0.95 | 8,576 |
| ICICI Prudential Credit Risk Fund | 4 star | Jan-13 | 5.6 | 8.3 | 8.05 | 0.88 | 7,925 |
| SBI Credit Risk Fund | 4 star | Jan-13 | 4.5 | 7.14 | 6.87 | 0.92 | 2,987 |
| Axis Credit Risk Fund | 4 star | Jul-14 | 4.68 | 7.46 | 6.73 | 0.81 | 671 |
Portfolio Breakup
| Fund | 1Y High | 1Y Low | Category | |
| Number of Securities | 40 | 49 | 33 | 29 |
| Modified Duration (yrs) | 1.45 | 2.5 | 1.33 | 1.73 |
| Average Maturity (yrs) | 2.71 | 3.9 | 2.46 | 2.52 |
| Yield to Maturity (%) | 7.49 | 7.49 | 6.13 | 7.47 |
| Avg Credit Rating | AA | — | — | — |
Kotak Credit Risk Fund Guidance by Chanakya :
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