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4 star

HDFC Credit Risk Debt Fund - Regular Plan


Debt: Credit Risk

1 Lakh

Investment Grown to
₹ 1.10 Lakh

₹ 10000

Monthly SIP Grown to
₹ 1.26 Lakh

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 5.43 0.32 0.76 3.48 3.59 5.02 9.53 7.21 8.30 -- --
CCIL T Bill Liquidity Weight 2.07 0.03 0.05 0.26 0.89 1.91 3.96 4.16 4.32 -- --
Debt: Credit Risk -2.60 0.15 0.82 2.11 -0.61 -2.87 -0.69 1.10 3.82 -- --
Rank within category 3 2 4 3 4 3 3 2 2 -- --
Number of funds in category 19 19 19 19 19 19 19 17 15 6 3

As on 10-Jul-2020

Peer Comparison

Fund name Rating Launch Date 1-Year Return 3-Year Return 5-Year Return Expense Ratio Assets (Cr)
HDFC Credit Risk Debt Fund - Regular Plan  | Invest Online
4 star
Mar-14 9.53 7.21 8.30 1.57 6,309
ICICI Prudential Credit Risk Fund  | Invest Now
5 star
Dec-10 10.16 7.92 8.35 1.59 6,695
SBI Credit Risk Fund  | Invest Online
4 star
Jul-04 8.90 6.76 7.92 1.54 3,895
Kotak Credit Risk Fund Regular Plan  | Invest Online
4 star
May-10 7.64 6.93 7.95 1.80 2,004
IDFC Credit Risk Fund - Regular Plan
5 star
Mar-17 8.28 6.79 -- 1.51 837

Best & Worst Performance

Best (Period) Worst (Period)
Week 2.37 (24-Mar-2020 - 31-Mar-2020) -1.75 (12-Mar-2020 - 19-Mar-2020)
Month 2.52 (03-Jun-2020 - 03-Jul-2020) -2.24 (25-Feb-2020 - 26-Mar-2020)
Quarter 4.36 (07-Jul-2016 - 06-Oct-2016) -0.89 (10-Feb-2020 - 11-May-2020)
Year 12.68 (24-Nov-2015 - 24-Nov-2016) 3.05 (31-Oct-2017 - 31-Oct-2018)

Risk Measures (%)

Mean Std Dev Sharpe Sortino Beta Alpha
Fund 6.74 2.67 0.54 0.66 -0.50 0.82
CCIL T Bill Liquidity Weight 4.07 0.28 -4.34 -7.86 -- --
Debt: Credit Risk 1.18 6.40 -0.30 -0.09 -2.78 -7.53
Rank within category 2 5 2 2 11 4
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 30-Jun-2020

Portfolio Aggregates

Fund 1Y High 1Y Low Category
Number of Securities 93 208 93 30
Modified Duration (yrs) 2.19 2.19 1.74 1.39
Average Maturity (yrs) 3.02 3.02 2.26 1.84
Yield to Maturity (%) 10.05 10.90 8.47 6.95

Value Research Fund Style

Credit Rating vis-à-vis Category

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Top Holdings

Company Instrument Credit Rating 1Y Range % Assets
equal 8.95% Pipeline Infrastructure 22/03/2024 Non Convertible Debenture AAA 0.00 - 7.07 7.07
equal IndInfravit Trust 2038 Non Convertible Debenture AAA 0.00 - 5.65 5.65
equal 9.10% Power Finance Corp. 23/03/2029 Non Convertible Debenture AAA 0.10 - 4.58 4.58
down 8.98% Punjab National Bank Zero Coupon Bonds A 1.95 - 4.39 4.19
equal 9.70% Shriram City Union Finance 2022 Non Convertible Debenture AA 0.00 - 4.09 4.09
equal 9.25% DLF 17/03/2023 Non Convertible Debenture A+ 0.00 - 3.96 3.96
equal 8.75% Vedanta 15/09/2021 Debenture AA 1.51 - 3.34 3.34
equal 8.50% Tata Motors 29/01/2027 Non Convertible Debenture AA- 0.00 - 3.06 3.06
down 8.50% Tata Motors 30/12/2026 Non Convertible Debenture AA- 0.00 - 3.05 2.92
equal 9.50% DLF 17/03/2023 Non Convertible Debenture A+ 0.00 - 2.33 2.33
equal 9.55% Shriram City Union Finance 30/04/2021 Non Convertible Debenture AA 1.28 - 2.33 2.28
equal 8.50% Vedanta 2021 Debenture AA 1.31 - 2.27 2.27
equal 8.75% Indiabulls Housing Finance 26/09/2021 Debenture AA 0.00 - 1.77 1.77
down 8.95% Punjab National Bank Bonds A 1.05 - 2.37 1.71
equal Shriram Transport Finance Non Convertible Debenture AAA 0.80 - 1.62 1.62
equal 8.40% L&T Infrastructre Finance 29/11/2021 Non Convertible Debenture AAA 0.00 - 1.61 1.61
equal 7.95% REC 2027 Bonds AAA 0.55 - 1.43 1.43
equal JM Fin Asset Reconstruction co 27/09/2021 Zero Coupon Bonds AA- 0.54 - 1.41 1.41
equal Magma Fincorp 27/10/2023 Zero Coupon Bonds AAA 0.64 - 1.29 1.29
equal 8.20% Power Finance Corp. 2025 Bonds AAA 0.00 - 1.28 1.28
down Tata Power 21/08/2072 Debenture AA- 1.18 - 1.54 1.18
equal 9.00% Reliance Jio Infocomm 21/01/2025 Debenture AAA 0.34 - 1.13 1.13
down 8.97% REC 28/03/2029 Non Convertible Debenture AAA 0.69 - 1.63 1.09
equal 2.60% Sadbhav Infrastructure Project 15/04/2021 Structured Obligation A- 0.00 - 1.06 1.06
equal 2.60% Sadbhav Infrastructure Project 15/04/2022 Structured Obligation A- 0.00 - 1.05 1.05

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 30-Jun-2020

Fund Manager

— Shobhit Mehrotra since 06-Mar-2014

Education: He is an MBA from Clemson University, USA.

Experience: Prior to joining HDFC AMC he has worked with Templeton AMC, and ICRA.

Funds Managed:


0.32%

Change from previous, NAV as on 10-Jul-2020

Growth: ₹ 17.1036

Dividend Quarterly: ₹ 10.5030

Dividend: ₹ 15.7486


Investment Strategy

The scheme seeks to generate income/capital appreciation by investing predominantly in AA and below rated corporate debt.

Investment Details

Minimum Investment (₹) 5,000
Minimum Addl Investment (₹) 1,000
Minimum SIP Investment (₹) 500
Minimum No of Cheques 12
Minimum Withdrawal (₹) 500
Minimum Balance (₹) 1
Exit Load For units in excess of 15% of the investment,1% will be charged for redemption within 365 days
For units in excess of 15% of the investment,0.5% will be charged for redemption between 366 - 540 days

Basic Details

Fund House: HDFC Mutual Fund
Launch Date: 25-Mar-2014
Return Since Launch: 8.89%
Benchmark: NIFTY Credit Risk Bond
Riskometer: Moderate
Type: Open-ended
Assets: ₹ 6,309 Cr (As on 30-Jun-2020)
Expense: 1.57% (As on 31-May-2020)
Risk Grade: Below Average
Return Grade: Above Average

Most Recent Dividends

Plan Record Date Dividend (₹ / Unit)  
Dividend Quarterly25-Jun-20200.1970

 18-Mar-20200.0785
 26-Dec-20190.1743
 25-Sep-20190.1577
 25-Jun-20190.1426
 25-Mar-20190.1401
 26-Dec-20180.2168
 25-Sep-20180.0533
 25-Jun-20180.0370
 26-Mar-20180.2889
 25-Sep-20170.3159
 27-Mar-20170.3051
 26-Sep-20160.4842
 28-Mar-20160.1560
 28-Sep-20150.3229
 25-Mar-20150.3397
 25-Sep-20140.3745

Contact Information

AMC: HDFC Asset Management Company Ltd

Address: "HDFC House"-2nd Floor, H.T. Parekh Marg - 165-166, Backbay Reclamation, Churchgate Mumbai - 400020

Phone: 1800-3010-6767 / 1800-419-7676

Fax: 022-22821144

Website: http://www.hdfcfund.com

Registrar & Transfer Agent: Computer Age Management Services Ltd.

Address: 7th Floor, Tower II, Rayala Towers, 158, Anna Salai, Chennai - 600002

Phone: 1800-3010-6767 / 1800-419-7676

Fax: 044-30407101

Email: [email protected]

Website: www.camsonline.com

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