This Less Than 2 Years Old Corporate Bond Fund Has Given 6.89% Returns

A mutual fund (MF) portfolio aids in giving a wonderful manner of diversification, and asset allocation, and establishes a strong basis for investors, whether they are investing for a financial plan or otherwise. Debt Mutual funds such as Corporate Bond funds are one of the less risk mutual funds that also offer good returns. While investing in a mutual fund, as a first-time investors risk is a always matter of concern. Here, we analysed one newly launched corporate bond fund.

HSBC Corporate Bond Fund - Direct Plan-Growth

This is a Corporate Bond Fund scheme from HSBC Mutual Funds. This fund has only been around for one and half year, having been started on September 14, 2020. Under the Direct Plan-Growth of this fund, the Assets Under Management are worth Rs 214.94 Crore, and the NAV dated 31st March 2022 is Rs 10.66. The expense ratio is 0.36%, higher than its category average. 

CRISIL has given this fund a two-star rating. Investors should be aware that this is a high-risk investment that might result in losses. Its performance is decent, yet it is below average when compared to its peers.
 
This is an open-ended plan that invests in corporate debt instruments to provide appropriate income and risk-adjusted returns. This fund is suitable for individuals who want to invest for the long term yet want to minimize risk.

Absolute And Annualised Returns

Lump-Sum Investment

Since its inception, it has given 4.54% average annual returns.

Investment Tenure	Absolute Returns	Annualised Returns
1 Year	5.12%	5.12%
Since Inception	6.89%	4.54%

SIP Returns

SIP Tenure	Absolute Returns	Annualised Returns
1 Year	2.27%	4.24%

Portfolio

Debt accounts for 87.42 percent of the fund's assets, with 9.32 percent in government securities and 78.1 percent in funds that invest in very low-risk securities.

The credit profile of the fund is excellent, suggesting that it has loaned to high-quality borrowers. Because the majority of funds in this category lend to better borrowers, the risk of default is greater than the category average.

LIC Housing Finance Ltd., Small Industries Development Bank of India Ltd., Rural Electrification Corporation Ltd., HDB Financial Services Ltd., and Indian Oil Corporation Ltd. are among the fund's top holdings.

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme-related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.