Credit Risk Funds

Banks' net profit likely to grow by 16.7% in Q3 due to high credit offtake

High credit offtake, lower credit cost to support bottomline

Private equity company True North enters the private credit segment

True North's 'Performing Credit Regular Income Fund' bridges the supply-demand gaps with custom solutions for middle-market companies

Going long on the bond street

For financial intermediaries globally, interest rate risk seems to be higher than credit risks, of loans turning non-performing assets, at this point. Fortunately, India is a different story

Upbeat outlook amid stable credit environment, high portfolio yield

Take moderate exposure to these funds, given the potential for defaults and downgrades in their lower-rated portfolios

Indian private credit funds, non-bank lenders filling gap left by banks

Private credit funds lend to these companies at 12%-18%, splitting transactions into tranches. The riskiest of such credit can yield up to 20%-24%

Debt fund YTMs stabilise, but peak still a few basis points away

YTMs of all debt fund categories, except credit risk and overnight, in a narrow range of 6.3-7.3%

Sub-par returns in over half the schemes plague credit risk funds

10 out of 16 schemes have delivered below 6% returns in one year; Category AUM still a fraction of pre-pandemic level

BOI AXA to Nippon India: Credit risk funds shine with 17.4% returns

The past few months have seen several debt fund categories delivering subdued returns because of the spike in bond yields.

Investing in credit funds based on past returns would be foolhardy: Experts

Credit risk funds are showing a category average return of 13.2 per cent for the past year

Credit risk funds once again back on investors' radar, shows data

After witnessing sharp outflows in 2020, credit risk funds are once again back on investor radar

Select a credit risk fund that avoided mishap in recent past: Analysts

Given their high-risk nature, take limited exposure in your satellite portfolio

Credit risk funds top league table with 8.4% returns, shows data

This is thanks to economic revival, improving upgrades to downgrades ratio, say experts

Returns of most debt fund categories plummet below 5%, shows data

'Extraordinary scenario' say experts as both, short and long-duration funds give low returns

Limit credit fund exposure to 10%-15% of portfolio, advise experts

Go with a fund manager who negotiated the past 5 years without default or downgrade

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

SBI Magnum Medium Duration Fund: Active management of credit risk, duration

The fund maintained modified duration in the range of 1.7 years to 3.7 years during the past 3 years, averaging 3 years

Credit risk funds report positive flows in January as economy recovers

Debt schemes take significant exposure in not-so-highly rated companies and had lost their appeal after April 2019

MF industry will grow at 20% CAGR for the next five years: Amfi CEO

In a Q&A, N S Venkatesh says there are enough inefficiencies in the market right now, which will help fund managers generate alpha over the index

Credit risk fund outflow reduces as yields rise on rally in rates

Offer significant spread over 'AAA' corporate bond funds over 3-yr period

Consider well-diversified credit risk funds with limited exposure

Investors should observe a few precautions, despite the likely higher returns