HDFC Credit Risk Debt Fund-(G)-Direct Plan

View the regular plan of this scheme

Rs 23.8749   0.0084(0.035 %) NAV as on 16 Jul 2024
Prime Rating: 4 
Prime Recommendation: Upgrade to see

Fund type:
Debt
AUM (in crores):
₹ 7,859.26
Fund category:
Credit Risk Fund
Fund manager(s):
Shobhit Mehrotra
Benchmark:
NIFTY Credit Risk Bond Index
Minimum investment:
₹ 100
Launch date:
25 Mar 2014
Min. additional investment:
₹ 100
Expense ratio:
0.96 %
Exit load:
Nil for 15% of Units, For excess of limits 1% on or before 12M and 0.50% after 12M but on or before 18M, Nil after 18M

Scheme Objective: To generate income/capital appreciation by investing predominantly in AA and below rated corporate debt. There is no assurance that the investment objective of the Scheme will be realized.


Performance (As on 16 Jul 2024)

>
1 week returns3 month returns6 month returns 1 year returns3 year returns5 year returns Returns since inception
Scheme0.22 % 2.18 %4.12 % 7.85 % 6.42 %7.83 % 8.80 %

Portfolio

Top 10 instruments
Type
Allocation (%)
Rating
9.1% Power Finance Corporation Ltd.^
Corporate Debt
3.73%
CRISIL - AAA
8.5% Tata Projects Ltd.^
Corporate Debt
3.19%
IND - AA
9.9% The Tata Power Company Ltd.^
Corporate Debt
2.95%
CARE - AA+
Net Current Assets
Cash & Cash Equivalents and Net Assets
2.79%
Cash
Embassy Office Parks REIT
REITs & InvITs
2.74%
REITs & InvITs
10.75% Resco Global Wind Services Pvt. Ltd. (Corporate guarantee from Gujarat Fluorochemicals Limited)^
Corporate Debt
2.55%
CRISIL - AA+(CE)
8.12% ONGC Petro additions Ltd. (Letter of Comfort by ONGC Ltd.)^
Corporate Debt
2.54%
CRISIL - AA
8.5% Tata Motors Ltd.^
Corporate Debt
2.54%
CRISIL - AA+
8.85% TVS Credit Services Ltd^
Corporate Debt
2.54%
CRISIL - AA
8.35% Kalpataru Projects International Ltd^
Corporate Debt
2.52%
IND - AA

About this category

Credit risk debt funds invest at least 65% of their portfolio in debt instruments rated below AA+. As such instruments carry higher coupons, returns from these funds are generally higher than other debt categories. These funds, however, carry very high risk. While returns may not be volatile, as low-rated instruments are seldom traded, the risk comes from write-offs due to downgrades in the debt papers or defaults in repayment. Average maturities for these funds may be short at around 2 years but may go higher. Even so, these funds need to be held only with a long horizon as this gives a buffer in the event losses due to downgrades and defaults.

Suitability

These funds suit high-risk investors with at least a 3-year holding period. Investors need to be able absorb shocks of losses. They are not alternatives for fixed deposits and fit only long-term portfolios.

Taxation

For investments made before April 1st, 2023

Short-term: Holding period is less than 36 months.

Taxation: Capital gains are taxed at individuals slab rate


Long-term: Holding period is 36 months or more.

Taxation: Capital gains are taxed at 20% with indexation benefit.

For investments made on and after April 1st, 2023

All capital gains are treated as short-term capital gains irrespective of holding period and will be taxed at individuals slab rate.

How are mutual fundstaxed

How are mutual funds taxed?

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