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2 star

Nippon India Credit Risk Fund


Debt: Credit Risk

1 Lakh

Investment Grown to
₹ 1.10 Lakh

₹ 10000

Monthly SIP Grown to
₹ 1.25 Lakh

Suitability:

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.

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 are added to the income of the investors and taxed according to their respective tax slabs. Further, if an investor's dividend income exceeds Rs. 5,000 in a financial year, the fund house also deducts a TDS of 10% before distributing the dividend.

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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 3.53 -0.09 0.26 0.76 2.34 3.91 9.64 1.12 3.56 5.17 6.40
CCIL T Bill Liquidity Weight 0.87 0.01 0.06 0.18 0.53 0.98 2.15 3.56 3.79 4.22 4.62
Debt: Credit Risk 3.16 -0.11 -0.03 0.58 2.59 3.49 8.87 1.72 3.63 5.84 7.55
Rank within category 5 6 1 4 7 5 8 13 12 6 4
Number of funds in category 16 16 16 16 16 16 16 16 15 8 4

As on 16-Jun-2021

Peer Comparison

Fund name Rating Launch Date 1-Year Return 3-Year Return 5-Year Return Expense Ratio Assets (Cr)
Nippon India Credit Risk Fund
2 star
Jun-05 9.64 1.12 3.56 1.63 1,025
HDFC Credit Risk Debt Fund - Regular Plan  | Invest Online
5 star
Mar-14 12.41 9.15 8.35 1.58 7,631
ICICI Prudential Credit Risk Fund  | Invest Now
5 star
Dec-10 9.93 8.85 8.42 1.56 7,443
SBI Credit Risk Fund  | Invest Online
4 star
Jul-04 8.60 7.61 7.47 1.54 3,497
Kotak Credit Risk Fund Regular Plan  | Invest Online
4 star
May-10 8.68 7.41 7.44 1.69 1,787

Best & Worst Performance

Best Performance Worst Performance
Return (%) Period Return (%) Period
Week 2.33 13-Apr-2009 - 21-Apr-2009 -11.95 04-Mar-2020 - 11-Mar-2020
Month 4.51 20-Mar-2009 - 21-Apr-2009 -13.22 25-Feb-2020 - 26-Mar-2020
Quarter 4.83 12-Mar-2009 - 11-Jun-2009 -12.86 26-Dec-2019 - 26-Mar-2020
Year 11.66 31-Jan-2014 - 02-Feb-2015 -13.03 25-Mar-2019 - 24-Mar-2020

Risk Measures (%)

Mean Std Dev Sharpe Sortino Beta Alpha
Fund 1.34 7.21 -0.41 -0.23 -5.24 -7.01
CCIL T Bill Liquidity Weight 3.52 0.39 -2.00 -4.76 -- --
Debt: Credit Risk 2.03 6.69 0.33 0.45 -3.81 -5.21
Rank within category 13 13 12 11 3 13
Number of funds in category 16 16 16 16 16 16

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

As on 31-May-2021

Portfolio Aggregates

Fund 1Y High 1Y Low Category
Number of Securities 28 29 13 29
Modified Duration (yrs) 1.93 2.37 1.00 1.70
Average Maturity (yrs) 2.43 2.94 1.47 2.04
Yield to Maturity (%) 7.19 12.94 7.19 6.11
Avg Credit Rating AA -- -- --

Value Research Fund Style

Credit Rating vis-à-vis Category

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Top Holdings

Company Instrument Credit Rating 1Y Range % Assets
equal 14.50% Mariposa Agri Ventures And Hospitalities 17/09/2021 Non Convertible Debenture Unrated 3.62 - 11.70 11.77
equal Indiabulls Housing Finance 22/11/2039 Securitised Debt AA 4.86 - 6.67 6.13
equal 9.60% Renew Wind Energy Delhi 31/03/2023 Debenture A+ 4.70 - 11.57 5.45
equal 7.59% GOI 2026 GOI Securities SOV 0.00 - 5.24 5.24
equal 7.32% GOI 28/01/2024 GOI Securities SOV 0.00 - 6.09 5.20
equal 5.53% National Bank Agr. Rur. Devp 22/02/2024 Non Convertible Debenture AAA 0.00 - 4.93 4.93
equal 9.81% L&T Metro Rail (Hyderabad) 18/06/2035 Debenture AAA 0.00 - 4.32 4.32
equal Bharti Hexacom 19/01/2024 Non Convertible Debenture AA 0.00 - 3.88 3.88
new 10.15% Uttar Pradesh Power Corporation 20/01/2025 Debenture A+ 0.00 - 3.53 3.53
new 10.50% Asirvad Microfinance 25/05/2023 Non Convertible Debenture AA- 0.00 - 2.91 2.91
equal 5.83% State Bank of India Additional Tier 2 Bond AAA 0.00 - 4.74 2.87
equal 7.99% State Bank of India Additional Tier 2 Bond AAA 0.00 - 2.59 2.59
equal 5.74% REC 20/06/2024 Debenture AAA 0.00 - 2.47 2.47
equal 6.75% Sikka Ports and Terminals 22/04/2026 Debenture AAA 0.00 - 2.47 2.47
new 6.92% Godrej Industries 14/05/2025 Debenture AA 0.00 - 2.45 2.45
equal 7.50% Vedanta 17/03/2022 Debenture AA- 0.00 - 2.44 2.44
equal 9.50% Piramal Capital & Housing Finance 15/04/2022 Debenture AA 0.00 - 2.37 2.37
new Piramal Enterprises 61-D 28/07/2021 Commercial Paper A1+ 0.00 - 1.93 1.93
equal 9.90% Vivriti Capital 25/03/2024 Non Convertible Debenture AA+ 0.00 - 1.92 1.81
new 2.00% Tata Steel 23/04/2022 Debenture AA 0.00 - 1.75 1.75
equal 7.75% TMF Holdings Perpetual Bond AA- 0.00 - 1.42 1.42
new 11.16% Ess Kay Fincorp 2024 Non Convertible Debenture A 0.00 - 0.99 0.99
new 8.50% Vedanta 15/06/2021 Non Convertible Debenture AA- 0.00 - 0.98 0.98
new 9.50% Nirma Perpetual Bond AA- 0.00 - 1.19 0.97
equal 9.80% Ess Kay Fincorp 19/11/2024 Non Convertible Debenture AA+ 0.00 - 0.85 0.82

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-May-2021

Fund Manager

— Sushil Budhia since 01-Feb-2020

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.

Funds Managed:


-0.09%

Change from previous, NAV as on 16-Jun-2021

Growth: ₹ 25.0516

IDCW Quarterly: ₹ 11.9613

IDCW: ₹ 13.7427


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.

Investment Details

Minimum Investment (₹) 500
Minimum Addl Investment (₹) 500
Minimum SIP Investment (₹) 100
Minimum No of Cheques 60
Minimum Withdrawal (₹) 100
Minimum Balance (₹) 1
Lock-in Period Not Applicable
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: 08-Jun-2005
Return Since Launch: 5.90%
Benchmark: NIFTY Credit Risk Bond TRI
Riskometer: Very High
Type: Open-ended
Assets: ₹ 1,025 Cr (As on 31-May-2021)
Expense: 1.63% (As on 30-Apr-2021)
Risk Grade: Above Average
Return Grade: Below Average

Most Recent Dividends

Plan Record Date Dividend (₹ / Unit)  
IDCW Quarterly23-Dec-20190.1585

 23-Sep-20190.1585
 21-Jun-20190.1585
 22-Mar-20190.1585
 21-Dec-20180.1585
 21-Sep-20180.1585
 21-Jun-20180.1585
 21-Mar-20180.1589
 21-Dec-20170.1589
 21-Sep-20170.2022
 21-Jun-20170.2022
 21-Mar-20170.1589
 21-Dec-20160.2022
 21-Sep-20160.2022
 21-Jun-20160.2022
 21-Mar-20160.1589
 21-Dec-20150.1835
 21-Sep-20150.1589
 22-Jun-20150.1589
 23-Mar-20150.1896
 22-Dec-20140.2032
 22-Sep-20140.2182
 23-Jun-20140.2182
 21-Mar-20140.1714
 24-Dec-20130.2182

Contact Information

AMC: Nippon India Life Asset Management Ltd.

Address: Reliance Centre, 7th Floor, South Wing Off Western Express Highway Santacruz (East) Mumbai - 400055

Phone: 022-68334800 / 18602660111

Fax: 022-33037662

Email: [email protected]

Website: http://www.nipponindiamf.com

Registrar & Transfer Agent: KFin Technologies Pvt Ltd.

Address: 303, Vamsee Estates, Opp. Big Bazaar, Ameerpet, Hyderabad - 500016

Phone: 040-44857874

Email: [email protected]

Website: www.karvymfs.com

Upcoming Video

Investors' Hangout

Your investment strategy after the debt fund fiasco

DateFriday, 18-Jun-2021
Time12:30 PM - 01:00 PM