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Rating Suspended

Franklin India Credit Risk Fund


1 Lakh

Investment declined to
₹ 0.99 Lakh

₹ 10000

Monthly SIP Declined to
₹ 1.17 Lakh

Analyst's Choice?

Suitability:

Credit risk funds invest mainly in corporate bonds which are below the highest rating assigned 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 of all types of debt funds. However, they compensate for this additional risk with a higher return potential as these bonds offer better rates of interest than highest rated bonds. Moreover, investors can also benefit if the rating of these bonds is subsequently upgraded.

But like most other debt fund categories, we believe that retail investors can avoid this one as well. In our opinion, debt funds make sense for retail investors only if they are investing for 3 years or less. For that kind of investment horizon, Liquid Debt funds and Short Term debt funds are much more suitable.

Taxability of earnings:

Capital gains

  • If the mutual fund units are sold after 3 years from the date of investment, gains are taxed at the rate of 20% after providing the benefit of inflation indexation.
  • If the mutual fund units are sold within 3 years from the date of investment, entire amount of gain is added to the investors' income and taxed according to the applicable slab rate.
  • No tax is to be paid as long as you continue to hold the units.

Dividends

  • Dividends paid by the mutual fund scheme are taxed at the rate of 25% (effectively 29.12%, including surcharge and cess). This is known as Dividend Distribution Tax (DDT). Though the investor does not pay this tax directly, it is deducted from the dividend income before passing on to the investor.

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(₹)
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Trailing Returns (%)

YTD 1-Day 1-W 1-M 3-M 6-M 1-Y 3-Y 5-Y 7-Y 10-Y
Fund -4.00 0.09 0.31 -3.90 -3.52 -2.83 -0.89 5.09 6.60 7.66 --
CCIL T Bill Liquidity Weight 0.25 0.01 0.06 0.25 0.81 1.86 4.14 4.14 4.47 4.78 --
Debt: Credit Risk -0.09 0.07 0.21 -0.03 0.80 1.46 0.14 3.35 6.51 7.25 --
Rank within category 19 2 6 19 19 19 16 8 9 3 --
Number of funds in category 20 20 20 20 20 20 20 17 14 7 2

As on 27-Jan-2020

Best & Worst Performance

Best (Period) Worst (Period)
Week 1.49 (29-Aug-2013 - 05-Sep-2013) -4.86 (09-Jan-2020 - 16-Jan-2020)
Month 2.79 (20-Aug-2013 - 19-Sep-2013) -3.99 (23-Dec-2019 - 22-Jan-2020)
Quarter 5.02 (28-Aug-2013 - 27-Nov-2013) -3.61 (25-Oct-2019 - 24-Jan-2020)
Year 13.71 (19-Aug-2013 - 19-Aug-2014) -1.04 (17-Jan-2019 - 17-Jan-2020)

Risk Measures (%)

Mean Std Dev Sharpe Sortino Beta Alpha
Fund 6.69 1.87 0.52 0.75 3.42 6.58
CCIL T Bill Liquidity Weight 4.08 0.26 -6.21 -10.52 -- --
Debt: Credit Risk 3.83 4.18 -0.14 0.04 2.63 2.43
Rank within category 3 6 3 4 13 3
Number of funds in category 18 18 18 18 18 18

The Risk Measures have been calculated using calendar month returns for the last three years.

As on 31-Dec-2019

Portfolio Aggregates

Fund 1Y High 1Y Low Category
Number of Securities 91 107 91 51
Modified Duration (yrs) 1.92 2.45 1.92 1.51
Average Maturity (yrs) 2.77 3.55 2.77 1.92
Yield to Maturity (%) 12.64 12.64 10.89 9.77

Value Research Fund Style

Credit Rating vis-à-vis Category

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Top Holdings

Company Instrument Credit Rating 1Y Range % Assets
equal 10.25% Shriram Transport Finance 26/04/2024 Debenture AA+ 5.26 - 6.19 6.19
equal Adani Rail Infra 28/04/2023 Debenture AA- 4.33 - 5.90 5.90
equal 10.90% Vodafone Idea 2023 Debenture BBB- 0.00 - 4.34 4.34
equal 11.90% Rishanth Wholesale Trading 20/10/2023 Debenture A 3.18 - 3.92 3.92
equal Piramal Enterprises 15/05/2020 Debenture AA 3.15 - 3.90 3.90
equal 10.32% Andhra Pradesh Capital Region Development Authority 16/08/2026 Debenture A+ 2.82 - 3.34 3.34
equal 11.50% SD Corporation 2022 Debenture AA 0.00 - 2.99 2.99
equal 9.50% Piramal Capital & Housing Finance 15/04/2022 Debenture AA 0.00 - 2.74 2.74
equal 11.25% Aadarshini Real Estate Developers 29/07/2020 Debenture A+ 0.00 - 2.55 2.55
equal 9.50% Yes Bank Bonds BBB 0.00 - 2.30 2.30
equal 8.95% Pipeline Infrastructure 22/03/2024 Non Convertible Debenture AAA 0.00 - 3.81 2.30
equal 10.21% Five-Star Business Finance 28/03/2023 Debenture A 0.83 - 1.07 2.13
equal 9.90% Coastal Gujarat Power 27/08/2028 Debenture AA 1.56 - 1.99 1.99
equal Piramal Enterprises 29/05/2020 Debenture AA 1.58 - 1.95 1.95
equal 8.84% Tata Power 21/02/2023 Debenture AA 0.00 - 1.89 1.89
equal 9.45% Vedanta 17/08/2020 Debenture AA 0.00 - 2.53 1.88
equal 10.32% Andhra Pradesh Capital Region Development Authority 16/08/2027 Debenture A+ 1.58 - 1.83 1.83
equal Sadbhav Infrastructure Project 23/04/2023 Debenture A 0.00 - 1.70 1.70
equal 9.31% Tata Motors 29/09/2023 Debenture AA- 0.00 - 1.66 1.66
equal 9.90% Shriram Transport Finance 21/06/2024 Debenture AA+ 1.31 - 1.54 1.54
equal Renew Wind Energy Delhi 30/09/2030 Structured Obligation A+ 1.14 - 1.35 1.35
equal 9.20% Hinduja Leyland Finance 13/09/2024 Debenture AA- 1.05 - 1.30 1.30
equal 12.30% Sterlite Power Grid Ventures 28/03/2022 Debenture A+ 0.00 - 1.27 1.27
equal 12.80% Nufuture Digital 30/09/2022 Debenture A+ 1.04 - 1.26 1.26
equal PNB Housing Finance 30/08/2022 Debenture AA+ 0.00 - 1.13 1.13

up down equal Indicates an increase or decrease or no change in holding since last portfolio
new Indicates a new holding since last portfolio

As on 31-Dec-2019

Fund Manager

— Kunal Agrawal since 25-Oct-2018

Education: Mr. Agrawal is a B.Tech from IIT Delhi and PGDM from IIM C.

Experience: Prior to joining Franklin India AMC he has worked with Credits- Portfolio Management, CRISIL Ltd., IBM Ltd. & Infosys Ltd.

Funds Managed:

— Santosh Kamath since 15-Apr-2014

Education: Mr. Kamath is a B.E ( Electronics ) from REC Bhopal and PGDM (Management) from XLRI Jamshedpur.

Experience: Prior to joining Franklin Templeton Investments he has worked with ING Vysya AMC, Zurich Asset Management, SBI Mutual, CRISIL and Jardine Fleming Asset Management.

Interviews:

Funds Managed:


0.09%

Change from previous, NAV as on 27-Jan-2020

Growth: ₹ 19.1406

Dividend: ₹ 10.2642


Investment Strategy

The Scheme seeks to provide regular income and capital appreciation through a focus on corporate securities.

Investment Details

Minimum Investment (₹) 5,000
Minimum Addl Investment (₹) 1,000
Minimum SIP Investment (₹) 500
Minimum No of Cheques 12
Minimum Withdrawal (₹) 1,000
Minimum Balance (₹) 1,000
Exit Load For units in excess of 10% of the investment,3% will be charged for redemption within 365 days
For units in excess of 10% of the investment,2% will be charged for redemption between 366 - 730 days
For units in excess of 10% of the investment,1% will be charged for redemption between 731 - 1095 days

Basic Details

Fund House: Franklin Templeton Mutual Fund
Launch Date: 07-Dec-2011
Return Since Launch: 8.30%
Benchmark: NIFTY Credit Risk Bond
Riskometer: Moderate
Type: Open-ended
Assets: ₹ 5,899 Cr (As on 31-Dec-2019)
Expense: 1.63% (As on 31-Dec-2019)
Risk Grade: Below Average
Return Grade: Above Average

Most Recent Dividends

Plan Record Date Dividend (₹ / Unit)  
Dividend20-Dec-20190.1585

 20-Sep-20190.1585
 21-Jun-20190.1585
 22-Mar-20190.1585
 21-Dec-20180.1585
 21-Sep-20180.1585
 15-Jun-20180.1585
 16-Mar-20180.1589
 15-Dec-20170.1589
 15-Sep-20170.1589
 16-Jun-20170.1589
 17-Mar-20170.1589
 16-Dec-20160.1589
 16-Sep-20160.1589
 17-Jun-20160.1589
 28-Mar-20160.1625
 18-Dec-20150.1625
 18-Sep-20150.1625
 19-Jun-20150.1625
 20-Mar-20150.1633
 19-Dec-20140.1633
 19-Sep-20140.1714
 20-Jun-20140.1753
 21-Mar-20140.2338
 27-Dec-20130.2727

Contact Information

AMC: Franklin Templeton Asset Management India Private Ltd

Address: Indiabulls Finance Center, Tower 2, 12th and 13th Floor, Senapati Bapat Marg, Elphinstone Road (West) Mumbai - 400013

Phone: 1800-425-4255 / 60004255

Email: [email protected]

Website: www.franklintempletonindia.com

Registrar & Transfer Agent: Franklin Templeton Asset Management (India) Pvt. Ltd.

Address: Unit 301, III Floor, Campus 4B, RMZ Millenia Business Park, 143 Dr. MGR Road, Kandanchavadi Chennai - 600096

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