A debt fund returning 150 per cent in a year!

At a time when debt funds are struggling to generate any real (inflation-adjusted) returns for investors, how about a debt fund that gives 150 per cent returns a year? If you think we're kidding, we aren't. Click here to see it for yourself. Given such outsized returns, BOI AXA Credit Risk Fund shines at the top across the entire debt-fund spectrum. However, there's a catch here. These returns are based on writebacks and sales of Amanta Healthcare and Sintex bonds, respectively, which were earlier marked down. Putting things in perspective... From 2018 to 2020, this fund has witnessed significant downgrades in its bond holdings of issuers like Kwality, IL&FS, DHFL, Sintex, Avantha Holdings, Café Coffee Day, Accelarating Education and Development Pvt. Ltd, RKV Enterprise Pvt Ltd, Amanta Healthcare, and Dinram Holdings. In the interim, the fund's AUM nosedived as disappointed investors exited the fund after significant write-offs. Thus, these current recoveries on a small asset size have made this fund look like the best