September 22, 2022
mayank
Nippon India Credit Risk Fund
NAV Growth: Rs 30.2684
NAV IDCW Quarterly: Rs 30.2684
NAV IDCW: Rs 16.3881
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 aims to generate optimal returns consistent with moderate levels of risk. It will invest atleast 65 per cent of its assets in debt instruments with maturity of more than 1 year and the rest in money market instruments (including cash or call money and reverse repo) and debentures with maturity of less than 1 year. The exposure in government securities will generally not exceed 50 percent of the assets.
Fund Manager:
1) Sushil Budhia
Education: Mr. Budhia has done CA
Experience: Prior to joining Nippon India Mutual Fund, he has worked with YES Bank as Senior President, Axis Bank and UTI Mutual Fund.
Investment Details
| Min. Investment (Rs) | 500 |
| Min. Addl Investment (Rs) | 500 |
| Min. SIP Investment (Rs) | 100 |
| Min. Withdrawal (Rs) | 100 |
| Min. No of Cheques | 60 |
| Min. Balance (Rs) | 1 |
| Exit Load | For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days |
Basic Details
| Fund House | Nippon India Mutual Fund |
| Launch Date | 01-Jan-13 |
| Return Since Launch | 7.12% |
| Benchmark | NIFTY Credit Risk Bond Index C-III |
| Riskometer | High |
| Type | Open-ended |
| Assets | Rs 1,030 Cr |
| (As on 31-Aug-2022) | |
| Expense Ratio | 1.00% |
| (As on 31-Aug-2022) | |
| Risk Grade | Above Average |
| Return Grade | Average |
Nippon India Credit Risk Fund Trailing Returns (%)
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| Nippon Ind Credit Risk Dir | 2.7 | 0.02 | 0.38 | 1.93 | 1.45 | 4.33 | 3.92 | 4.35 | 5.97 | — |
| CCIL T Bill Liquidity Weight | 1.5 | -0.02 | 0.21 | 0.7 | 1.06 | 2.04 | 2.54 | 3.24 | 3.59 | — |
| Debt: Credit Risk | 12.34 | 0.01 | 0.34 | 2.01 | 10.36 | 15.95 | 6.42 | 4.86 | 6.32 | — |
| Rank within category | 8 | 5 | 6 | 6 | 11 | 9 | 14 | 11 | 9 | — |
| Number of funds in category | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 14 | 0 |
Nippon India 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 |
| Nippon Ind Credit Risk Dir | 2 star | 4.33 | 3.92 | 4.35 | 1.00 | 1,030 | 7.12 | 1.00 (365) | 9yrs 8mo |
| HDFC Credit Risk Debt Dir | 4 star | 3.94 | 8.09 | 7.57 | 0.96 | 8,700 | 9.06 | 1.00 (365) | 8yrs 6mo |
| ICICI Pru Credit Risk Dir | 4 star | 5.32 | 8.19 | 8.05 | 0.88 | 8,014 | 9.00 | 1.00 (365) | 9yrs 8mo |
| SBI Credit Risk Dir | 4 star | 4.03 | 7.05 | 6.87 | 0.92 | 2,952 | 8.62 | 3.00 (365) | 9yrs 8mo |
| Axis Credit Risk Dir | 4 star | 4.30 | 7.44 | 6.71 | 0.81 | 666 | 8.20 | 1.00 (365) | 8yrs 2mo |
Portfolio Breakup
| Fund | Category | |
| Number of Securities | 45 | 31 |
| Modified Duration (yrs) | 1.68 | 1.64 |
| Average Maturity (yrs) | 2.01 | 2.34 |
| Yield to Maturity (%) | 7.95 | 7.42 |
| Avg Credit Rating | AAA | — |
Chanakya’s Mutual Fund Guidance For Nippon India Credit Risk Fund
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