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This Top-Rated Credit Risk Fund With 48.57% Returns In 5 Years Is Good For Investment

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There are a variety of investment vehicles that can provide larger returns than others but require a higher risk tolerance. The credit risk fund is one high-risk, high-reward investing option. Credit risk funds are debt funds that invest primarily in bonds. Credit risk funds invest approximately 65 percent of their assets. Interest payments and principal repayment are not guaranteed because these bonds lack the financial strength of higher-rated bonds. This Credit Risk Fund is a top-rated debt fund in this case. The fund has provided good returns on both SIP and lump-sum deposits. Read on to know more!

 

ICICI Prudential Credit Risk Fund - Direct Plan-Growth

ICICI Prudential Credit Risk Fund - Direct Plan-Growth

This is an 11-year-old credit risk debt fund launched on December 03, 2010, by the ICICI Prudential Mutual Fund. It is an open-ended medium-sized fund of its category. It has an Asset Under Management (AUM) of Rs 8316.77 crore, whereas, the Net Asset Value (NAV) declared on 19th May 2022 is Rs 27.0821.

The fund is rated highly risky for investments. Also, it is rated 4 stars by the CRISIL. The fund has performed above average among peer funds. The fund's benchmark is CRISIL Credit Risk Fund CII Index. The fund seeks to generate income through investing predominantly in AA and below rated corporate bonds while maintaining the optimum balance of yield, safety and liquidity. 

You can start investing in this fund with a minimum required amount of Rs 100 for lump-sum payment as well as for SIP. The fund has no lock-in period. However, for the redemption of units in excess of 10 per cent of the investment, the fund charges 1 per cent within 365 days. 

Absolute & Annualised Returns
 

Absolute & Annualised Returns

Lump-Sum Investment Returns

Since its launch, it has delivered 9.07 per cent average annual returns. 

TenureAbsolute ReturnsAnnualised Returns
1 Year5.66%5.66%
2 Year16.75%8.05%
3 Year27.83%8.50%
5 Year48.57%8.24%
Since Inception125.80%9.07%

SIP Returns

TenureAbsolute ReturnsAnnualised Returns
1 Year2.29%4.30%
2 Year6.51%6.21%
3 Year11.69%7.32%
5 Year22.37%8.01%
Portfolio

Portfolio

The fund has an 80.34 per cent debt investment, with 6.35 per cent in government securities and 66.67 per cent in very low-risk securities. The fund's credit profile is poor, meaning that it has lent to borrowers of average quality. The Government of India, Prestige Estates Projects Ltd., Essar Oil Ltd., DME Development Ltd., and Aditya Birla Fashion and Retail Ltd. are among its top holdings.


 

Disclaimer

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.

Story first published: Friday, May 20, 2022, 12:17 [IST]
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