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HDFC Credit Risk Debt Fund - Regular Plan


1 Lakh

Investment Grown to
₹ 1.09 Lakh

₹ 10000

Monthly SIP Grown to
₹ 1.26 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 0.87 0.06 0.34 0.96 2.43 4.52 9.15 6.76 7.99 -- --
CCIL T Bill Liquidity Weight 0.24 0.00 0.07 0.28 0.84 1.91 4.21 4.15 4.45 -- --
Debt: Credit Risk -0.17 -0.01 0.20 -0.10 0.52 1.31 -0.26 3.34 6.44 -- --
Rank within category 2 4 3 1 3 3 4 3 3 -- --
Number of funds in category 20 20 20 20 20 20 20 17 13 7 2

As on 24-Jan-2020

Best & Worst Performance

Best (Period) Worst (Period)
Week 1.09 (09-Nov-2016 - 16-Nov-2016) -0.86 (01-Dec-2016 - 08-Dec-2016)
Month 2.06 (04-Nov-2016 - 05-Dec-2016) -1.17 (17-Apr-2018 - 17-May-2018)
Quarter 4.36 (07-Jul-2016 - 06-Oct-2016) -0.39 (06-Apr-2018 - 06-Jul-2018)
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 6.66 1.85 0.51 0.83 3.84 7.24
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 4 5 4 3 14 2
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 200 229 200 51
Modified Duration (yrs) 1.87 1.97 1.74 1.51
Average Maturity (yrs) 2.51 2.53 2.26 1.92
Yield to Maturity (%) 9.00 9.99 9.00 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 9.30% Tata International Bonds A+ 4.10 - 4.81 4.81
up 9.10% Power Finance Corp. 23/03/2029 Non Convertible Debenture AAA 0.00 - 2.74 2.74
equal 8.45% Sikka Ports and Terminals 2023 Debenture AAA 2.03 - 2.68 2.67
equal 8.75% Muthoot Finance 19/06/2021 Bonds/NCDs AA 1.89 - 2.59 2.59
equal 2.00% Tata Steel 23/04/2022 Debenture AA 1.93 - 2.46 2.46
equal Tata Sky 18/03/2020 Zero Coupon Bonds AA 1.71 - 2.16 2.16
equal 8.85% HDFC Bank 31/12/2099 Bonds AA+ 2.09 - 2.73 2.13
equal 8.98% Punjab National Bank Zero Coupon Bonds A 0.00 - 2.04 2.04
equal 7.85% Talwandi Sabo Power 2020 Structured Obligation AA 1.93 - 2.25 1.96
equal Tata Power 2021 Bonds/NCDs AA- 1.54 - 1.78 1.78
equal 8.95% Jamnagar Utilities and Power 26/04/2023 Debenture AAA 1.63 - 2.29 1.66
equal 8.75% Vedanta 15/09/2021 Debenture AA 1.35 - 1.60 1.60
equal 9.25% Reliance Jio Infocomm 16/06/2024 Debenture AAA 1.35 - 1.56 1.56
equal Tata Power 21/08/2072 Debenture AA- 1.23 - 1.43 1.43
equal 8.50% Vedanta 2021 Debenture AA 1.16 - 1.37 1.37
equal 9.55% Shriram City Union Finance 30/04/2021 Non Convertible Debenture AA 0.00 - 1.34 1.34
equal 8.95% Punjab National Bank Bonds A 0.00 - 1.09 1.09
down 8.97% REC 28/03/2029 Non Convertible Debenture AAA 0.00 - 1.09 1.07
equal 9.90% Coastal Gujarat Power 27/08/2028 Debenture AA 0.89 - 1.06 1.06
equal 9.55% Hindalco Inds. 25/04/2022 Bonds/NCDs AA 0.48 - 0.96 0.96
equal Prism Johnson 22/06/2021 Zero Coupon Bonds A 0.00 - 0.95 0.95
equal 9.55% Hindalco Inds. 27/07/2022 Bonds/NCDs AA 0.36 - 0.94 0.94
equal Shriram Transport Finance Non Convertible Debenture AAA 0.00 - 1.49 0.92
equal 7.50% Tata Motors 22/06/2022 Debenture AA- 0.00 - 0.91 0.91
equal 9.70% Coastal Gujarat Power 27/08/2023 Non Convertible Debenture AA 0.74 - 0.89 0.89

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

— 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:


0.08%

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

Growth: ₹ 16.3767

Dividend Quarterly: ₹ 10.3581

Dividend: ₹ 15.0793


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: 8.80%
Benchmark: NIFTY Credit Risk Bond
Riskometer: Moderate
Type: Open-ended
Assets: ₹ 14,475 Cr (As on 31-Dec-2019)
Expense: 1.47% (As on 31-Dec-2019)
Risk Grade: Average
Return Grade: Above Average

Most Recent Dividends

Plan Record Date Dividend (₹ / Unit)  
Dividend Quarterly26-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: 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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