This Less Than 2 Years Old Corporate Bond Fund Has Given 6.89% Returns

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HSBC Corporate Bond Fund - Direct Plan-Growth

HSBC Corporate Bond Fund – Direct Plan-Growth

This is a Corporate Bond Fund scheme from HSBC Mutual Funds. This fund has only been around for one and half year, having been started on September 14, 2020. Under the Direct Plan-Growth of this fund, the Assets Under Management are worth Rs 214.94 Crore, and the NAV dated 31st March 2022 is Rs 10.66. The expense ratio is 0.36%, higher than its category average. 

CRISIL has given this fund a two-star rating. Investors should be aware that this is a high-risk investment that might result in losses. Its performance is decent, yet it is below average when compared to its peers.
 
This is an open-ended plan that invests in corporate debt instruments to provide appropriate income and risk-adjusted returns. This fund is suitable for individuals who want to invest for the long term yet want to minimize risk.

Absolute And Annualised Returns

Absolute And Annualised Returns

Lump-Sum Investment

Since its inception, it has given 4.54% average annual returns.

Investment TenureAbsolute ReturnsAnnualised Returns
1 Year5.12%5.12%
Since Inception6.89%4.54%

SIP Returns

SIP TenureAbsolute ReturnsAnnualised Returns
1 Year2.27%4.24%

Portfolio

Portfolio

Debt accounts for 87.42 percent of the fund’s assets, with 9.32 percent in government securities and 78.1 percent in funds that invest in very low-risk securities.

The credit profile of the fund is excellent, suggesting that it has loaned to high-quality borrowers. Because the majority of funds in this category lend to better borrowers, the risk of default is greater than the category average.

LIC Housing Finance Ltd., Small Industries Development Bank of India Ltd., Rural Electrification Corporation Ltd., HDB Financial Services Ltd., and Indian Oil Corporation Ltd. are among the fund’s top holdings.



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