IDFC Credit Risk Fund_One pager
- 1. An open ended debt scheme predominantly investing in AA and below rated corporate bonds The above stated is current investment strategy and is subject to change. The investment strategy & asset allocation will be as per provisions of the Scheme Information Document. • An open ended debt scheme that invests predominantly in AA and below rated corporate bonds. • A fund that aims to provide an optimal risk-reward profile in the non-AAA space. • A fund that focuses on companies with well-run management and evolving business prospects or good businesses with improving financial profile. Here is a simple 3-Lens asset allocation framework for debt mutual funds. The framework revolves around allocating across 3 three buckets: Liquidity, Core, and Satellite, each bucket meeting a certain need. FUND FEATURES: Category: Credit Risk Inception Date: 3rd March 2017 Fund Manager: Mr. Arvind Subramanian (w.e.f. 03rd March 2017) Benchmark: 65% NIFTY AA Short Duration Bond Index + 35% NIFTY AA Short Duration Bond Index (with effect from November 11, 2019) SIP Frequency: Monthly (Investor may choose any day of the month except 29th, 30th and 31st as the date of instalment.) Minimum Investment Amount: ` 5000/- and any amount thereafter. Standard Deviation (Annualized): 3.37% Total Expense Ratio: Regular: 1.70% Direct: 0.66% Monthly Avg AUM: ` 832.92 Crores Exit Load: 1% if redeemed/ switched out within 365 days from the date of allotment IDFC CREDIT RISK FUND 3-LENS DEBT ALLOCATION FRAMEWORK Core Satellite Liquidity Bulk of your fixed income allocation should be to this bucket Controlled duration as well as credit risks Low to moderate maturity profile Credit Duration Suitable for investors looking to take higher risks (Credit, Duration or both) in order to generate higher returns Suitable for short term parking of surplus or to build emergency corpus Products pursuing ‘alpha’ oriented strategies through interest rate risk (for instance Dynamic Bond Funds or Gilt Funds) and /or through credit risk (credit risk funds or funds in other categories that do not have high quality portfolio) IDFC Credit Risk Fund fits in the Satellite bucket offering and is suitable for investors with minimum investment horizon of 3+ years IDFC CREDIT RISK FUND
- 2. MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY. Investors are advised to consult their own investment/financial advisor before making any investment decision in light of their risk appetite, investment goals and horizon. The distribution of this document in certain jurisdictions may be prohibited or restricted or subject to registration requirements and accordingly, persons who come into possession of this document are required to inform themselves about and to observe, any such restrictions. No person receiving a copy of this document in such jurisdiction may act or treat this document or any part/portion thereof as constituting an invitation to him to subscribe for Units, nor should he in any event use any this document, unless in the relevant jurisdiction such an invitation could lawfully be made to him and such document could lawfully be used without compliance with any registration or other legal requirements. No residents from Canada, United States persons (subject to restrictions) shall be eligible to invest in schemes of IDFC Mutual Fund. IDFC Mutual Fund | LinkedIn www.youtube.com /IDFCMUTUALFUND @IDFCMF Contact your Distributor Call toll free 1800-2-6666-88 Invest online at www.idfcmf.com www.facebook.com /idfcamc Distributed by: This product is suitable for investors who are seeking*: • To generate optimal returns over medium to long term. • To predominantly invest in a portfolio of corporate debt securities across the credit spectrum. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Riskometer Investors understand that their principal will be at Moderately High risk ASSET ALLOCATION 48.11% 21.53% 12.69% 8.89% 8.51% Net Current Assets PTC Zero Coupon Bond Government Bond Corporate Bond MATURITY BUCKET 0 10 20 30 Upto 1 year 1-3 years Above 3 years 40 50 60 70 46.46 26.40 27.14 % NAV 1 Modified duration is a formula that expresses the measurable change in the value of a security in response to a change in interest rates. Modified duration follows the concept that interest rates and bond prices move in opposite directions. 2 Average Maturity is the weighted average of all the residual maturities of the debt securities held in the fund. Average maturity helps to determine the average time to maturity of all the debt securities held in a portfolio and is calculated in days, months or years. 3 The Macaulay duration is the weighted average term to maturity of the cash flows from bonds. In other words, it is the weighted average number of years an investor must maintain a position in the bond until the present value of the bond's cash flows equals the amount paid for the bond. 4 Yield to maturity is the total return anticipated on a bond if the bond is held until it matures. Yield to maturity is considered a long-term bond yield but it is expressed as an annual rate. Modified Duration1 : 2.68 years | Average Maturity2 : 3.43 years | Macaulay Duration3 : 2.84 years | Yield to Maturity4 : 7.28% ASSET QUALITY A+ AA+ AA- AA AAA Equivalent 56.60% 29.90% 6.23% 4.24% 3.03% Data as on 28th February 2021