Do you know the difference between a “credit risk” fund and “dynamic bond” fund?
“Credit Risk” fund earlier called “Credit Opportunities” fund will have at least 65% of its investment in instruments rated AA or lower.
(Note the word “at least” because it means the fund can have even a higher percentage than 65% in instruments of AA or lower).
Hence this fund is exposed to higher risk instruments as compared to the Dynamic Bond Fund which on the other hand will invest at least 80% in instruments rated AAA or equivalent.
Thus Dynamic Bond Fund focuses a lot more on “safety” as compared to “Credit Risk” fund.
As far as the “Credit Risk” Fund goes, quite rightly its name has been changed from”Credit Opportunities” to “Credit Risk”.
While a lot of us believe that debt funds are safer than equity funds, I have a contra view because the “market” can temporarily hurt the NAV in an equity fund whereas credit default can make a permanent damage to the NAV of a debt fund.
34 replies on “Fund Talk – 1”
Very Good
Very useful sir good on
Very useful sir it’s inhance the knowledge
Too good it make us concept more clear and it has increased base of knowledge
Most advisor’s don’t talk of debt scheme’s this is good as it happened in amtek auto I think
How reliable are our AA or AAA Ratings. We have seen sudden downgrades in the near past, as though things go awry overnight ..!
We all appreciate your efforts for the fraternity.
Makes our ilife simpler. It’s easy to understand
Very useful information. Please continue to enlighten us.
Good initiative but are we sure that all dynamic bond fund holds more than 80 % in AAA
Good initiative
Very useful, keep it up
Very useful, keep it up
Great initiative to spell it out so simply to us
Very useful
Very useful as debt is more complicated than equity to understand for customer
Very useful pls continue sir
Yes… Good initiative… Kep it up.
Great update Sir
Very useful..Great initiative sir…Must continue.
Good one Sir.
Extremely useful sir. It is our luck that, we have such Guru who guides us without any expectations everyday . Please continue sir
Very useful Sir.
Very good initiative. Very useful. Thanks
It’s a good initiative which would help the group to enhance useful fund Info.
Very useful also put some focus on retirement funds for person just retired and never invested in MF
Sir.. really good effort… and also informative… thank you sir.. please keep going…
Very interesting.. keep going sir it will really appreciate
Very useful.
Very useful sir
Great initiatives by you
Good information
Yes sir it’s very helpful please continue
Sir it’s a great initiative, please do continue your valuable guidance…
Great Initiative Sir ???