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2 star

Nippon India Credit Risk Fund


Debt: Credit Risk

1 Lakh

Investment declined to
₹ 0.93 Lakh

₹ 10000

Monthly SIP Declined to
₹ 1.18 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 -7.81 0.03 0.22 1.48 2.48 2.92 -7.43 0.09 3.52 5.29 6.24
CCIL T Bill Liquidity Weight 2.68 0.01 0.05 0.22 0.58 1.34 3.27 3.94 4.14 4.58 4.76
Debt: Credit Risk -1.02 0.05 0.17 1.19 2.24 0.62 -0.15 0.95 3.74 6.10 7.16
Rank within category 16 11 8 7 7 11 15 13 12 5 3
Number of funds in category 18 18 18 18 18 18 18 16 15 6 3

As on 20-Oct-2020

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 -7.43 0.09 3.52 1.64 1,333
ICICI Prudential Credit Risk Fund  | Invest Now
5 star
Dec-10 10.21 8.10 8.26 1.63 6,563
HDFC Credit Risk Debt Fund - Regular Plan  | Invest Online
5 star
Mar-14 10.09 7.44 8.22 1.68 6,189
SBI Credit Risk Fund  | Invest Online
4 star
Jul-04 9.02 6.95 7.79 1.56 3,721
Kotak Credit Risk Fund Regular Plan  | Invest Online
4 star
May-10 6.23 6.71 7.63 1.77 1,905

Best & Worst Performance

Best (Period) Worst (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 0.22 7.17 -0.67 -0.36 -4.85 -10.46
CCIL T Bill Liquidity Weight 3.90 0.32 -3.63 -6.95 -- --
Debt: Credit Risk 1.17 6.57 -0.17 0.01 -3.10 -7.48
Rank within category 14 14 12 11 3 14
Number of funds in category 17 17 17 17 17 17

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

As on 30-Sep-2020

Portfolio Aggregates

Fund 1Y High 1Y Low Category
Number of Securities 17 73 17 26
Modified Duration (yrs) 1.35 1.75 1.35 1.63
Average Maturity (yrs) 1.76 2.56 1.76 1.97
Yield to Maturity (%) 12.66 14.56 12.64 7.97
Avg Credit Rating BBB -- -- --

Value Research Fund Style

Credit Rating vis-à-vis Category

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Top Holdings

Company Instrument Credit Rating 1Y Range % Assets
equal Vineha Enterprises 2021 Zero Coupon Bonds Unrated 4.57 - 23.75 23.75
equal 14.50% Mariposa Agri Ventures And Hospitalities 17/09/2021 Non Convertible Debenture Unrated 0.87 - 9.13 13.24
equal 10.50% Sanghi Industries 2023 Non Convertible Debenture A- 0.00 - 12.33 12.33
down Indiabulls Housing Finance 2020 Securitised Debt AA 0.12 - 5.80 8.90
equal 9.60% Renew Wind Energy Delhi 31/03/2023 Debenture A+ 4.51 - 11.57 8.23
down 8.90% Indiabulls Housing Finance 26/09/2021 Bonds AA 0.00 - 7.98 7.87
equal Indian Receivable Trust 26/01/2040 Securitised Debt A 0.00 - 6.79 6.79
down 9.60% Narmada Wind Energy Pvt. 31/03/2023 Debenture A+ 2.68 - 7.14 2.68
equal 9.75% Uttar Pradesh Power Corporation 20/10/2023 Debenture A+ 0.00 - 2.51 2.51
equal Piramal Enterprises 91-D 23/11/2020 Commercial Paper A1+ 0.00 - 1.48 1.48
equal Clix Capital Services 17/12/2021 Non Convertible Debenture A+ 0.00 - 0.94 0.94
equal 9.95% Narmada Wind Energy Pvt. 31/03/2023 Debenture A+ 0.42 - 0.87 0.66
equal 9.75% Uttar Pradesh Power Corporation 20/10/2021 Debenture A+ 0.28 - 1.73 0.46
down Clix Finance India 17/12/2021 Non Convertible Debenture A+ 0.00 - 1.30 0.38
equal KKR India Financial Services 16/01/2021 Debenture AA 0.03 - 0.13 0.13
equal 8.75% Indiabulls Housing Finance 26/09/2021 Debenture AA 0.00 - 0.09 0.09
equal 9.10% Dewan Housing Fin. Corpn. 16/08/2021 Debenture D 0.00 - 0.00 0.00

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-Sep-2020

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:


0.03%

Change from previous, NAV as on 20-Oct-2020

Growth: ₹ 23.7035

Dividend Quarterly: ₹ 11.3176

Dividend: ₹ 13.0031


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
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: 5.77%
Benchmark: NIFTY Credit Risk Bond
Riskometer: Moderate
Type: Open-ended
Assets: ₹ 1,333 Cr (As on 30-Sep-2020)
Expense: 1.64% (As on 30-Sep-2020)
Risk Grade: Above Average
Return Grade: Below Average

Most Recent Dividends

Plan Record Date Dividend (₹ / Unit)  
Dividend 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

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