Credit Risk funds in India
24 plans (12 Regular, 12 Direct), rated on their track record against the median fund in their category and their peers. Data as of 8 Nov 2026.
Bonds of lower-rated companies for extra yield. Defaults have hit these funds before; we flag any fund whose NAV has had a sharp one-day fall well below its category, with the date. Most investors keep them small, if at all. SEBI requires credit risk funds to invest at least 65% in bonds rated below the highest grades, for extra yield.
The difference, on ₹10 lakh invested three years ago, between the strongest credit risk fund (12.9% a year) and the weakest (6.1% a year). Same category, same SEBI rules, same market. 11 of 12 funds beat the median fund in their category over the same period.
Regular plans, to the latest NAV. Past returns, not a forecast.
Regular plans (12)
| Fund | Rating | 3Y return | 3Y vs index | Expense ratio | AUM |
|---|---|---|---|---|---|
| ICICI Prudential Credit Risk FundICICI Prudential Mutual Fund · 15.9 yrs | A | 8.2% | +1.3% | 1.43% | ₹6,288 cr |
| UTI - Credit Risk Fund.UTI Mutual Fund · 13.9 yrs | A | 6.9% | +0.0% | 1.43% | ₹238 cr |
| Bank Of India Credit Risk FundBank of India Mutual Fund · 11.7 yrs | A | 9.6% | +2.7% | 1.36% | ₹78 cr |
| Invesco India Credit Risk FundInvesco Mutual Fund · 12.2 yrs | A | 7.6% | +0.7% | 1.46% | ₹168 cr |
| Aditya Birla Sun Life Credit Risk FundAditya Birla Sun Life Mutual Fund · 11.5 yrs | B | 12.0% | +5.1% | 1.60% | ₹1,721 cr |
| Axis Credit Risk FundAxis Mutual Fund · 12.3 yrs | B | 7.9% | +1.0% | 1.56% | ₹369 cr |
| HDFC Credit Risk FundHDFC Mutual Fund · 12.6 yrs | B | 7.5% | +0.7% | 1.51% | ₹7,573 cr |
| DSP Credit Risk FundDSP Mutual Fund · 20.6 yrs | B | 12.9% | +6.0% | 1.19% | ₹336 cr |
| SBI Credit Risk FundSBI Mutual Fund · 20.6 yrs | B | 7.8% | +0.9% | 1.54% | ₹2,178 cr |
| HSBC Credit Risk FundHSBC Mutual Fund · 3.9 yrs | C | 10.8% | +3.9% | 1.66% | ₹437 cr |
| Bandhan Credit Risk FundBandhan Mutual Fund · 9.7 yrs | C | 6.1% | -0.8% | 1.67% | ₹218 cr |
| Kotak Credit Risk FundKotak Mahindra Mutual Fund · 14.3 yrs | C | 7.4% | +0.5% | 1.74% | ₹763 cr |
Direct plans (12)
| Fund | Rating | 3Y return | 3Y vs index | Expense ratio | AUM |
|---|---|---|---|---|---|
| Invesco India Credit Risk FundInvesco Mutual Fund · 12.2 yrs | A | 8.8% | +1.1% | 0.28% | ₹168 cr |
| ICICI Prudential Credit Risk FundICICI Prudential Mutual Fund · 13.8 yrs | A | 8.9% | +1.2% | 0.80% | ₹6,288 cr |
| Aditya Birla Sun Life Credit Risk FundAditya Birla Sun Life Mutual Fund · 11.5 yrs | A | 13.0% | +5.3% | 0.81% | ₹1,721 cr |
| UTI - Credit Risk Fund.UTI Mutual Fund · 13.8 yrs | B | 7.6% | -0.1% | 0.76% | ₹238 cr |
| Axis Credit Risk FundAxis Mutual Fund · 12.3 yrs | B | 8.8% | +1.0% | 0.81% | ₹369 cr |
| Bank Of India Credit Risk FundBank of India Mutual Fund · 11.7 yrs | B | 10.0% | +2.3% | 0.61% | ₹78 cr |
| DSP Credit Risk FundDSP Mutual Fund · 13.8 yrs | B | 13.8% | +6.0% | 0.42% | ₹336 cr |
| HSBC Credit Risk FundHSBC Mutual Fund · 3.9 yrs | B | 11.6% | +3.9% | 0.84% | ₹437 cr |
| Bandhan Credit Risk FundBandhan Mutual Fund · 9.7 yrs | B | 7.2% | -0.5% | 0.66% | ₹218 cr |
| SBI Credit Risk FundSBI Mutual Fund · 13.8 yrs | C | 8.5% | +0.8% | 0.90% | ₹2,178 cr |
| HDFC Credit Risk FundHDFC Mutual Fund · 12.6 yrs | C | 8.2% | +0.4% | 1.01% | ₹7,573 cr |
| Kotak Credit Risk FundKotak Mahindra Mutual Fund · 13.8 yrs | C | 8.4% | +0.7% | 0.82% | ₹763 cr |
Common questions
What does a credit risk fund invest in?
SEBI requires credit risk funds to invest at least 65% in bonds rated below the highest grades, for extra yield.
How many credit risk funds beat their index over 3 years?
11 of 12 credit risk funds (Regular plans with 3 years of history) beat the median fund in their category over the 3 years to 8 Nov 2026.
How are these funds rated?
Each fund is compared only with funds in its category and plan type, on its long-run return over the index, risk-adjusted return, consistency, cost and portfolio. The ratings describe the track record so far; our own backtest found they do not predict future returns.
Ratings describe past track records and are not a recommendation to buy or sell. Read the scheme documents before investing.