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||--||--||--|
|Debt: Credit Risk*||-0.15||0.04||0.23||-0.09||0.95||1.61||-0.07||3.57||--||--||--|
As on 27-Jan-2020
* As on 28-Jan-2020
|Best (Period)||Worst (Period)|
|Week||1.09 (09-Nov-2016 - 16-Nov-2016)||-3.47 (18-Nov-2019 - 25-Nov-2019)|
|Month||2.07 (26-Oct-2016 - 25-Nov-2016)||-2.79 (25-Oct-2019 - 25-Nov-2019)|
|Quarter||4.34 (25-Aug-2016 - 24-Nov-2016)||-3.08 (19-Sep-2019 - 19-Dec-2019)|
|Year||12.71 (24-Nov-2015 - 24-Nov-2016)||2.91 (15-Jan-2019 - 15-Jan-2020)|
|CCIL T Bill Liquidity Weight||4.08||0.26||-6.21||-10.52||--||--|
|Debt: Credit Risk||4.67||4.19||0.20||0.47||2.64||3.29|
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||118||145||117||51|
|Modified Duration (yrs)||1.56||1.87||1.35||1.51|
|Average Maturity (yrs)||1.99||2.50||1.79||1.92|
|Yield to Maturity (%)||11.20||14.07||10.89||9.77|
|Company||Instrument||Credit Rating||1Y Range||% Assets|
|SP Imperial Star 23/03/2022||Debenture||A-||0.00 - 4.73||4.73|
|6.99% Air India Assets Holdings 16/12/2022||Debenture||AAA||0.00 - 3.27||3.27|
|10.10% L&T Vadodara Bharuch Tollway 30/06/2021||Debenture||A||2.12 - 3.16||3.16|
|7.68% ONGC Petro Additions 18/05/2020||Structured Obligation||AAA||1.88 - 2.80||2.80|
|8.45% Power Finance Corp. 2022||Non Convertible Debenture||AAA||0.00 - 2.78||2.78|
|8.81% JM Financial Products 13/11/2020||Debenture||AA||1.84 - 2.73||2.73|
|Asirvad Microfinance 31/03/2021||Debenture||AA-||0.00 - 2.90||2.49|
|8.90% State Bank of India 2028||Non Convertible Debenture||AAA||1.49 - 2.28||2.28|
|7.35% Power Finance Corp. 15/10/2022||Debenture||AAA||0.00 - 1.87||1.87|
|8.40% JSW Energy 18/09/2020||Non Convertible Debenture||AA-||0.00 - 1.86||1.86|
|Reserve Bank of India 76-D 17/03/2020||Cash Management Bill||SOV||0.00 - 1.85||1.85|
|Adani Properties 27/04/2021||Debenture||AA-||1.83 - 2.82||1.83|
|Axis Bank 13/11/2020||Certificate of Deposit||A1+||0.00 - 1.77||1.77|
|Axis Bank 18/12/2020||Certificate of Deposit||A1+||0.00 - 1.76||1.76|
|8.50% National Bank Agr. Rur. Devp||Debenture||AAA||0.77 - 3.33||1.75|
|7.85% Bhopal Dhule Transmission 2022||Debenture||AAA||1.08 - 1.59||1.59|
|9.37% State Bank of India 21/12/2023||Debenture||AA+||1.33 - 1.91||1.54|
|9.15% Coastal Gujarat Power 14/06/2021||Debenture||AA||0.00 - 1.53||1.53|
|7.61% HUDCO 22/06/2022||Debenture||AAA||0.00 - 1.52||1.52|
|7.62% HUDCO 15/07/2022||Debenture||AAA||0.00 - 1.42||1.42|
|6.90% REC 30/06/2022||Debenture||AAA||0.00 - 1.39||1.39|
|9.21% Punjab National Bank||Bonds||AA||0.91 - 1.38||1.38|
|Indusind Bank 28/03/2024||Non Convertible Debenture||AA||0.00 - 1.30||1.30|
|11.25% Syndicate Bank||Bonds||AA-||0.00 - 1.24||1.24|
|7.03% LIC Housing Fin. 28/12/2021||Non Convertible Debenture||AAA||0.00 - 1.21||1.21|
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. Dangi is an MBA and FRM.
Experience: Prior to joining Birla Sun Life Asset Management Company he has worked with Pioneer Investcorp.
Education: Ms. Cunha is a B.Com (H) and MBA from FMS, Delhi.
Experience: Prior to joining Birla Sun Life Asset Management Company, she has worked with Aditya Birla Management Corporation Ltd.
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The scheme seeks to generate returns by predominantly investing in a portfolio of corporate debt securities with short to medium term maturities across the credit spectrum within the investment grade.
|Minimum Investment (₹)||100|
|Minimum Addl Investment (₹)||100|
|Minimum SIP Investment (₹)||100|
|Minimum No of Cheques||6|
|Minimum Withdrawal (₹)||1|
|Minimum Balance (₹)||--|
|Exit Load||For units in excess of 15% of the investment,3% will be charged for redemption within 365 days
For units in excess of 15% of the investment,2% will be charged for redemption between 366 - 730 days
For units in excess of 15% of the investment,1% will be charged for redemption between 731 - 1095 days
|Fund House:||Aditya Birla Sun Life Mutual Fund|
|Return Since Launch:||8.11%|
|Benchmark:||NIFTY Credit Risk Bond|
|Assets:||₹ 5,362 Cr (As on 31-Dec-2019)|
|Expense:||0.82% (As on 31-Dec-2019)|
|Risk Grade:||Below Average|
|Return Grade:||Above Average|
|Plan||Record Date||Dividend (₹ / Unit)|
AMC: Aditya Birla Sun Life AMC Ltd.
Address: One India Bulls Center - Tower 1, 17th Floor - Jupiter Mills Compound, 841 Senapati Bhawan, Elphinstone Road, Mumbai - 400013
Phone: 022-43568000 / 1800-270-7000 / 1800-22-7000
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
Email: [email protected]