Credit risk

With SIP returns of 25.05% in 5 years, this credit risk mutual fund is a good buy

Baroda BNP Paribas Credit Risk Fund – Direct Plan-Growth

This Baroda BNP Paribas Mutual Fund House Credit Risk Fund was launched on January 23, 2015. It is a medium-sized open-ended fund in its category. This fund has Rs204.65 Crore of Assets Under Management (AUM). The net asset value (NAV) of this fund declared on May 6, 2022 is Rs 18.8688. The fund has an expense ratio of 0.85%, which is close to the average expense ratio for its category, however, it is slightly higher than the average expense ratio for the category.

This fund is at the top of credit risk funds rated by CRISIL and receives 5 stars. Moreover, it has shown very good performance among its peers. In terms of risk, it is rated moderately high risk for investment. Its benchmark is the CRISIL Credit Risk Fund CII index. To start investing in this fund, the minimum investment amount required is Rs 5,000 for a lump sum payment and Rs 1,000 for an additional investment. While for SIP, it’s Rs 500. There is no blocking period. However, it charges 1% on exceeding the repayment to 10% of the investment within 365 days.

Absolute and annualized returns

Absolute and annualized returns

Flat-rate returns on investment

Over the past year, the fund has generated returns of 13.11%. While since its inception, it has delivered average annual returns of 9.10%.

Mandate Absolute returns Annualized returns
1 year 13.11% 13.11%
2 years 28.01% 13.14%
3 years 25.99% 8.00%
5 years 45.44% 7.77%
Since the creation 88.69% 9.10%

SIP Returns

Mandate Absolute returns Annualized returns
1 year 5.43% 10.25%
2 years 14.57% 13.71%
3 years 18.33% 11.25%
5 years 25.05% 8.88%
Wallet

Wallet

The fund is 86.08% invested in debt securities, of which 11.8% in government securities, and 70.86% in funds invested in very low-risk securities.

The fund’s credit profile is low, indicating that it has lent to borrowers whose quality is not too high. Most funds in this category lend to better borrowers and therefore the risk of default in this fund is higher than in the category.

The fund’s major holdings are in Indian Government, Tata Power Co. Ltd., Tata Motors Ltd., Godrej Properties Ltd. and Aspire Home Finance Corporation Ltd.

Warning

Warning

Investments in mutual funds are subject to market risk. Read all program documents and terms and conditions carefully before investing. The information mentioned above is purely informative and does not guarantee any return. Greynium Information Technology and the author are not responsible for any losses caused as a result of any decision based on the article.