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Choosing the best mutual fund products for your portfolio has become reasonably challenging in today’s market. Out of the many reasons, the top most reason for this supposedly troublesome situation is the rate of the product inflow in the market being much higher than consumption rate.
This is where knowing about the inside out of different funds comes in real handy, and sabotages the problems related to making fund choices. At MySIPonline, our constant endeavour is to make people aware about the top class products. Hence, today we are reviewing SBI Credit Risk Fund, a unique, one of a kind Debt fund which has been rated very positively by the market timers and other experts of the industry. So, let’s begin!
Defining the Fund
SBI Credit Risk Fund (G) is a Debt-oriented credit opportunities fund, primarily designed for the conservative and cautious class of investors. This fund’s primary objective is to invest in corporate bonds (grade AA and below) to pull attractive returns, while securing moderate liquidity through an investment in money market instruments. This fund is a good way of incorporating stability to your fund, considering it belongs to the Debt lineage.
The Investment Essentials
Whether you are an expert in the investment playground or are still taking baby steps towards learning the market, it is imperative to take account of the essential details attached to every fund that you plan to invest in. This involves knowing the latest NAV as it determines the expenditure per unit, the asset class that the fund handles which denotes the status of the fund (in terms of its size), and some miscellaneous details that help in broadening your decision making horizon. Hence, you ought to take a close look at the details given below:
SBI Credit Risk Fund NAV : The latest NAV of SBI Credit Risk Fund (Growth) was recorded on 25th May, 2018, which stood at Rs. 27.8446 after experiencing a hike of 0.09% in its previously recorded value.
The AUM: The fund has been in the market for nearly 14 years, and over this period it has earned quite a reputation to brag about and huge assets to take care of. As of 30th April, 2018 the net worth of this fund stood at Rs. 5,255 crore.
The Investment Rule Book: Every fund has a different set of rules to be followed. While some have easy entry and exit formalities, the others are quite strict on determining these points. Similarly, while some funds allow an SIP investment of as low as Rs. 500 a month, some may not accept anything below Rs. 1000. As far as SBI Credit Risk Fund (G) is concerned, you can easily start your investments by paying as little as Rs. 500 a month.
The Peer Comparison
As a customer, we always look out for options. Comparing a product with similar products is one of the primary ways of identifying the best amongst the lot. In the case of mutual fund investments, comparing a fund with its peers is one of the essential criteria to understand its worth. Let’s have a look at the following comparison chart drawn for SBI Credit Risk Fund (Growth): -
While the fund has not been able to secure a high rating from CRISIL , but that shouldn’t be a reason to worry. Looking at the long-term values, it is evident that the fund has given remarkable performances and have overtaken the peers by a thick margin.
Hence, by closely examining the past performances of SBI Credit Risk Fund (G) and taking into account the other important factors, MySIPonline’s final word is that those who want a good investment package of returns and risk cover should definitely consider investing in this fund.