AF Applica Finance
Plan My Investments
4. Mutual Funds - Debt

Credit Risk Fund

Credit Risk Fund

Debt fund investing at least 65% in below-highest-rated corporate bonds for higher yield.

Risk Level
High ★★★★☆
Liquidity
🔴 Low
Min Investment
₹500/month SIP
Ticket Size
₹500 SIP / ₹1,000 lump sum
Ideal Horizon
1–3 years
Region
India

📈 Historical Returns (Indicative)

1 Year
6.5–8.5%
3 Years
6.5–8%
5 Years
6.5–8%
10 Years
7–8%
20 Years
7–8%

⚠️ Indicative historical ranges only. Past performance does not guarantee future results. Returns vary significantly across individual instruments.

🧮 XIRR Calculator — Credit Risk Fund

Enter your actual investment dates and amounts to calculate your personal annualised return (XIRR). Use negative values for money invested, positive for money received back.

✅ Pros & ❌ Cons

Advantages

  • ✅ High return potential over long term
  • ✅ Professional fund management
  • ✅ Diversification across securities
  • ✅ Start with ₹500 SIP

Disadvantages

  • ❌ High volatility — value can fall significantly in short term
  • ❌ Low liquidity — funds may be locked in for years
  • ❌ Expense ratio reduces returns
  • ❌ No guaranteed returns

🚀 How to Invest in Credit Risk Fund

  1. Invest directly via AMC website or app (0% commission)
  2. Or use MFU, MyCams, Kuvera, Coin by Zerodha
  3. Complete one-time KYC (OTP-based Aadhaar KYC available)
  4. Set up SIP for disciplined monthly investing

💰 Tax Treatment (India)

Gains taxed at income slab rate (no indexation benefit post April 2023)
Debt MF taxation changed in Budget 2023 — LTCG benefit removed
Disclaimer: This page is for educational purposes only and does not constitute financial advice. Returns shown are indicative historical ranges and not guaranteed. Consult a SEBI-registered investment advisor before investing.
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