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Nippon India Credit Risk Fund


1 Lakh

Investment Grown to
₹ 1.01 Lakh

₹ 10000

Monthly SIP Grown to
₹ 1.21 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 0.37 -0.02 0.12 0.24 0.04 1.20 1.20 4.71 6.48 7.37 7.48
CCIL T Bill Liquidity Weight 0.53 0.01 0.02 0.29 0.84 1.78 4.06 4.10 4.46 4.77 4.71
Debt: Credit Risk 0.67 0.00 0.16 0.78 0.96 1.98 0.53 3.51 6.47 7.12 7.25
Rank within category 18 18 15 19 18 16 14 11 10 5 1
Number of funds in category 20 20 20 20 20 20 20 17 14 7 2

As on 25-Feb-2020

Best & Worst Performance

Best (Period) Worst (Period)
Week 2.33 (13-Apr-2009 - 21-Apr-2009) -2.32 (23-Apr-2019 - 30-Apr-2019)
Month 4.51 (20-Mar-2009 - 21-Apr-2009) -2.58 (05-Apr-2019 - 07-May-2019)
Quarter 4.83 (12-Mar-2009 - 11-Jun-2009) -2.28 (02-Apr-2019 - 02-Jul-2019)
Year 11.66 (31-Jan-2014 - 02-Feb-2015) 1.08 (20-Feb-2019 - 20-Feb-2020)

Risk Measures (%)

Mean Std Dev Sharpe Sortino Beta Alpha
Fund 4.64 2.25 -0.46 -0.42 4.02 5.44
CCIL T Bill Liquidity Weight 4.06 0.27 -6.06 -10.48 -- --
Debt: Credit Risk 3.44 4.43 -0.21 -0.02 2.67 2.06
Rank within category 11 6 12 14 15 6
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-Jan-2020

Portfolio Aggregates

Fund 1Y High 1Y Low Category
Number of Securities 56 102 56 45
Modified Duration (yrs) 1.63 1.75 1.47 1.52
Average Maturity (yrs) 2.19 2.56 1.96 2.00
Yield to Maturity (%) 14.22 14.22 11.04 9.40

Value Research Fund Style

Credit Rating vis-à-vis Category

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Top Holdings

Company Instrument Credit Rating 1Y Range % Assets
equal RMZ Buildcon 14/06/2031 Non Convertible Debenture BBB+ 8.33 - 13.73 13.73
equal Yes Bank Bonds/NCDs BBB 0.00 - 9.50 9.50
equal 14.50% Mariposa Agri Ventures And Hospitalities 17/09/2021 Non Convertible Debenture Unrated 0.62 - 7.26 8.37
down Adani Rail Infra 27/04/2020 Zero Coupon Bonds A+ 3.23 - 6.52 6.43
equal Vineha Enterprises 2021 Zero Coupon Bonds Unrated 2.59 - 5.82 5.82
equal 9.60% Renew Wind Energy Delhi 31/03/2023 Debenture A+ 2.99 - 5.49 5.49
equal 9.70% Piramal Enterprises 24/12/2020 Non Convertible Debenture AA 1.99 - 3.94 3.94
new Indian Receivable Trust 25/09/2026 Securitised Debt A 0.00 - 3.55 3.55
equal 9.60% Narmada Wind Energy Pvt. 31/03/2023 Debenture A+ 1.89 - 3.46 3.46
down Indiabulls Housing Finance Securitised Debt AA 0.00 - 3.07 3.07
equal 9.75% Uttar Pradesh Power Corporation 20/10/2022 Debenture A+ 1.53 - 3.01 3.01
equal 10.50% Sanghi Industries 2023 Non Convertible Debenture A 1.04 - 2.34 2.34
new Indian Receivable Trust 26/01/2040 Securitised Debt A 0.00 - 2.20 2.20
equal 8.90% Indiabulls Housing Finance 26/09/2021 Bonds AA+ 0.00 - 2.20 2.20
equal Clix Capital Services 17/12/2021 Non Convertible Debenture AA- 1.04 - 2.03 2.03
equal 11.95% Aqua Space Developers 27/06/2022 Non Convertible Debenture A 1.68 - 3.84 1.80
equal 9.75% Uttar Pradesh Power Corporation 20/10/2021 Debenture A+ 0.83 - 1.64 1.64
new Piramal Enterprises 28-D 28/02/2020 Commercial Paper A1+ 0.00 - 1.51 1.51
equal 9.50% Yes Bank Bonds BBB 0.00 - 1.45 1.45
down 9.75% Uttar Pradesh Power Corporation 20/10/2023 Debenture A+ 0.69 - 1.33 1.33
new Piramal Enterprises 38-D 27/02/2020 Commercial Paper A1+ 0.00 - 1.01 1.01
equal 8.75% Indiabulls Housing Finance 21/02/2020 Debenture AA+ 0.00 - 1.01 1.01
equal 10.15% Uttar Pradesh Power Corporation 20/01/2023 Debenture A+ 0.49 - 0.96 0.96
down Elena Renewable Energy Ltd. 16/11/2027 Zero Coupon Bonds AA 0.00 - 1.23 0.92
down Pratyash Renewable Pvt. Ltd. 16/11/2027 Zero Coupon Bonds AA 0.00 - 1.23 0.92

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-Jan-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:


-0.02%

Change from previous, NAV as on 25-Feb-2020

Growth: ₹ 25.8077

Dividend Quarterly: ₹ 12.3222

Dividend: ₹ 14.1574


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: 6.65%
Benchmark: NIFTY Credit Risk Bond
Riskometer: Moderate
Type: Open-ended
Assets: ₹ 4,930 Cr (As on 31-Jan-2020)
Expense: 1.55% (As on 31-Jan-2020)
Risk Grade: Average
Return Grade: 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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