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:
|CCIL T Bill Liquidity Weight||0.28||0.03||0.11||0.28||0.84||1.89||4.22||4.14||4.47||--||--|
|Debt: Credit Risk||-0.05||0.04||0.23||0.00||0.84||1.50||0.12||3.36||6.51||--||--|
|Rank within category||14||2||5||14||14||6||9||9||6||--||--|
|Number of funds in category||20||20||20||20||20||20||20||17||14||7||2|
As on 28-Jan-2020
|Best (Period)||Worst (Period)|
|Week||5.26 (26-Sep-2019 - 03-Oct-2019)||-4.55 (12-Sep-2019 - 19-Sep-2019)|
|Month||6.05 (25-Sep-2019 - 25-Oct-2019)||-4.39 (26-Aug-2019 - 25-Sep-2019)|
|Quarter||6.76 (24-Sep-2019 - 24-Dec-2019)||-3.55 (29-Mar-2019 - 28-Jun-2019)|
|Year||11.98 (01-Oct-2014 - 01-Oct-2015)||-1.61 (19-Sep-2018 - 20-Sep-2019)|
|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||9||11||9||10||11||9|
|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
|Fund||1Y High||1Y Low||Category|
|Number of Securities||21||36||21||51|
|Modified Duration (yrs)||1.44||1.62||1.28||1.51|
|Average Maturity (yrs)||1.87||2.15||1.74||1.92|
|Yield to Maturity (%)||10.61||14.08||9.87||9.77|
|Company||Instrument||Credit Rating||1Y Range||% Assets|
|11.25% Hansdeep Industries & Trading 2021||Structured Obligation||AA-||4.30 - 11.03||11.03|
|9.65% Green Infra Wind Energy 2023||Debenture||AA||5.26 - 10.99||10.99|
|10.90% Punjab & Sind Bank 31/12/2099||Bonds||A+||5.22 - 11.78||9.77|
|8.48% Uttar Pradesh Power Corporation 15/03/2021||Structured Obligation||AA||4.64 - 11.84||9.61|
|8.66% NUVOCO Vistas Corp. 14/09/2021||Debenture||AA||4.11 - 10.59||8.25|
|8.19% Tata Housing Devp. Co. 23/04/2020||Debenture||AA||3.67 - 6.97||6.97|
|9.50% Nirma||Non Convertible Debenture||AA-||2.55 - 6.51||6.51|
|6.98% National Bank Agr. Rur. Devp 19/09/2022||Debenture||AAA||0.00 - 5.85||4.83|
|9.50% Yes Bank||Bonds||BBB||0.00 - 3.83||3.83|
|Yes Bank||Bonds/NCDs||BBB||0.00 - 3.34||3.34|
|10.25% SD Corporation 17/04/2021||Debenture||A+||0.00 - 2.90||2.90|
|7.55% REC 26/09/2022||Debenture||AAA||0.00 - 2.77||2.77|
|6.99% HDFC 25/11/2021||Non Convertible Debenture||AAA||0.00 - 2.74||2.74|
|10.50% Sunny View Estates 2021||Debenture||A||0.00 - 2.31||2.31|
|7.55% SBI Cards & Payments Services 2020||Debenture||AAA||1.68 - 4.18||2.06|
|8.02% BPCL 2024||Debenture||AAA||0.00 - 1.42||1.42|
|8.75% State Bank of India||Non Convertible Debenture||AA+||0.00 - 2.68||1.39|
|7.17% Reliance Industries 2022||Non Convertible Debenture||AAA||0.00 - 2.35||1.38|
|8.28% Oriental Nagpur Betul Highway 30/09/2021||Debenture||AAA||0.00 - 1.63||1.37|
|Syndicate Bank||Debenture||A+||0.04 - 1.24||0.06|
|10.75% Dewan Housing Fin. Corpn.||Debenture||D||0.00 - 0.00||0.00|
Indicates an increase or decrease or no change in holding since last portfolio
Indicates a new holding since last portfolio
As on 31-Dec-2019
Education: Mr. Ramakrishnan is a B.E from Mumbai University and MBA from NMIMS (Mumbai).
Experience: Prior to joining PGIM India Mutual Fund he has worked with DWS AMC, Societe Generale and CARE.
Education: Mr. Shah has done Chartered Accountant, PGDM -Finance, SPJIMR.
Experience: Prior to joining PGIM India Mutual Fund, he has worked with HDFC Asset Management Company Limited - Credit Analyst, Senior Credit Analyst - ICRA Limited, Associate Consultant - KPMG India Private Limited.
Personal finance advice and mutual fund ideas delivered to your inbox every Monday
The Scheme seek to generate income and capital appreciation by investing predominantly in AA and below rated corporate debt (excluding AA+ rated corporate bonds).
|Minimum Investment (₹)||5,000|
|Minimum Addl Investment (₹)||1,000|
|Minimum SIP Investment (₹)||500|
|Minimum No of Cheques||10|
|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|
|Fund House:||PGIM India Mutual Fund|
|Return Since Launch:||7.54%|
|Benchmark:||NIFTY Credit Risk Bond|
|Assets:||₹ 364 Cr (As on 31-Dec-2019)|
|Expense:||1.75% (As on 31-Dec-2019)|
|Risk Grade:||Above Average|
|Plan||Record Date||Dividend (₹ / Unit)|
Fund News - 23-May-2019
AMC: PGIM India Asset Management Pvt. Ltd.
Address: 2nd Floor - Nirlon House, Dr. Annie Besant Road, Worli, Mumbai - 400030
Phone: 022-61593000 / 1800-266-2667
Email: [email protected]
Registrar & Transfer Agent: KFin Technologies Pvt Ltd.
Address: Karvy House, No. 46, 8-2-609/K, Avenue 4, Street No.1 Banjara Hills, Hyderabad - 500034
Email: [email protected]