Credit risk funds top debt returns chart in the past year, shows data

Yet these schemes have run out of investors' favour since April 2020, especially after the Franklin Templeton episode

Credit risk funds have delivered the best returns in the debt category for domestic mutual funds (MFs) in the past year.
 
Such schemes — which invest in riskier paper to generate higher returns — have delivered average returns of over 9 per cent in one year, the data provided by Value Research shows.
 
On the other hand, categories — such as dynamic bond fund, gilt, and money market — have given average returns of 3-5 per cent.
 
Market participants say in the past year the spread offered by some credit risk schemes over similar tenure short-term bond