This top notch credit risk fund with returns of 48.57% in 5 years is good for investment
ICICI Prudential Credit Risk Fund – Direct Plan-Growth
It is an 11-year credit risk debt fund launched on December 3, 2010 by ICICI Prudential Mutual Fund. It is a medium-sized open-ended fund in its category. It has an Assets Under Management (AUM) of Rs 8316.77 crore, while the Net Asset Value (NAV) reported on May 19, 2022 is Rs 27.0821.
The fund is classified as high risk for investments. In addition, it is classified 4 stars by CRISIL. The fund outperformed the average of comparable funds. The fund’s benchmark index is the CRISIL Credit Risk Fund CII index. The fund seeks to generate income by investing primarily in corporate bonds rated AA and below while maintaining an optimal 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 SIP. The fund does not have a lock-up period. However, for the redemption of units exceeding 10% of the investment, the fund takes 1% within 365 days.
Absolute and annualized returns
Flat-rate returns on investment
Since launch, it has generated average annual returns of 9.07%.
| Mandate | Absolute returns | Annualized returns |
|---|---|---|
| 1 year | 5.66% | 5.66% |
| 2 years | 16.75% | 8.05% |
| 3 years | 27.83% | 8.50% |
| 5 years | 48.57% | 8.24% |
| Since the creation | 125.80% | 9.07% |
SIP Returns
| Mandate | Absolute returns | Annualized returns |
|---|---|---|
| 1 year | 2.29% | 4.30% |
| 2 years | 6.51% | 6.21% |
| 3 years | 11.69% | 7.32% |
| 5 years | 22.37% | 8.01% |
Wallet
The fund is 80.34% invested in debt securities, including 6.35% in government securities and 66.67% in very low-risk securities. The fund’s credit profile is poor, meaning it has lent to average quality borrowers. The Government of India, Prestige Estates Projects Ltd., Essar Oil Ltd., DME Development Ltd. and Aditya Birla Fashion and Retail Ltd. are among its main holdings.
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.
