HSBC Credit Risk Fund
Credit Risk Fund - An open ended debt scheme predominantly investing in AA and below rated corporate bonds (excluding AA+ rated corporate bonds). A relatively high interest rate risk and relatively high credit risk.
(Formerly known as L&T Credit Risk Fund)
Investment Objective
To generate regular returns and capital appreciation by investing predominantly in AA and below rated corporate bonds, debt, government securities and money market instruments. There is no assurance that the objective of the Scheme will be realised and the Scheme does not assure or guarantee any returns.
Our philosophy
- We deploy a balanced approach to credit and risk management
- Transparency in investment methodology
- Active investment opportunity supported by proprietary credit research
Our process
Proprietary research drives security selection:
- Balanced approach for security selection to achieve optimal risk adjusted returns
- Balanced approach in managing risk – well managed issuer concentration
- Benefits from global investment network and research sharing platform
Why HSBC Credit Risk Fund?
- Aims to generate regular returns and capital appreciation by investing in debt (including securitized debt), government and money market securities
- Allocation guided by economic environment (including interest rates and inflation), the performance of the corporate sector and general liquidity, prevailing political conditions and other considerations in the economy and markets
- Also supported by, but not restrained by, the ratings announced by various rating agencies on the assets in the portfolio
- True to label fund – The fund will stay true to its objective in keeping with the mandate reposed by the investor whilst investing in the fund
- To create a corpus through generating inflation-adjusted returns
HSBC Credit Risk Fund Riskometer
Investors understand that their principal will be at Moderate Risk
Credit Risk Fund - An open ended debt scheme predominantly investing in AA and below rated corporate bonds (excluding A.A+ rated corporate bonds). A relatively high interest rate risk and relatively high credit risk.
This product is suitable for investors who are seeking*:
- Generation of regular returns and capital appreciation over medium to long term
- Investment in debt instruments (including securitized debt), government and money market securities
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Please note that the above risk-o-meter is as per the product labelling of the Scheme available as on the date of this communication/disclosure. As per SEBI circular dated October 5, 2020 on product labelling (as amended from time to time), risk-o-meter will be calculated on a monthly basis based on the risk value of the scheme portfolio based on the methodology specified by SEBI in the above stated circular. The AMC shall disclose the risk-o-meter along with portfolio disclosure for all their schemes on their respective website and on AMFI website within 10 days from the close of each month. Any change in risk-o-meter shall be communicated by way of Notice cum Addendum and by way of an e-mail or SMS to unitholders of that particular Scheme.
Benchmark: Nifty Credit Risk Bond Index
Potential Risk Class (‘PRC’) matrix indicates the maximum interest rate risk (measured by Macaulay Duration of the scheme) and maximum credit risk (measured by Credit Risk Value of the scheme) the fund manager can take in the scheme. PRC matrix classification is done in accordance with and subject to the methodology/guidelines prescribed by SEBI to help investors take informed decision based on the maximum interest rate risk and maximum credit risk the fund manager can take in the scheme, as depicted in the PRC matrix.
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