Credit Opportunities Funds

Credit Risk

Because with Little Credit Risk Comes Good Returns

  • Total Funds 14
  • Average annual returns 20.64%

money-icon Credit Opportunities Funds

Credit Risk

Because with Little Credit Risk Comes Good Returns. More

  • Total Funds : 14
  • Average annual returns 20.64%

What is Credit Risk Mutual Fund?

Credit-risk funds are debt funds which invest 65% in securities of lower-rated companies. However, these securities have the potential to generate double-digit returns to the investors. Such companies move towards higher ratings and create higher interest rate and capital gain benefits to the investors. Credit-risk funds generate profits to the investor either by earning interest income on securities or by rating up-gradation of the securities. These funds can produce 2-3% higher returns than risk-free papers. 

If you have any Question regarding Mutual Fund, Just chat with us

Chat on WhatsApp

Free KYC Check

To know your eligibility for Mutual Fund Investment

Enter Valid PAN Number

Enter Your Name

Next By Proceeding, you agree T&C

Enter a valid mobile number

Enter valid email address

By Proceeding, you agree T&C

List of Credit Risk funds

SIP of ₹5000 for the period of 5 Yrs edit

Credit Risk Calculator

Calculate SIP Returns and Check How Much Wealth Can Be Created in Long Term.

SIP Return Calculator for Credit Risk

Monthly SIP

Target Amount

I want to invest

Annual Returns (%)





I want

Annual Returns (%)





Invested Amt.


Net Profit


Total Wealth

Make Your Money Work as Hard as You Do: Start a SIP and Turn Your Calculated Dreams into Reality.

Start SIP

Explore Other Investment Calculators

Investors frequently use these related calculators as well. These easy-to-use calculators help in making better investments. Try now!


Get Personalised Funds by Experts

5X Faster Returns To Reach your Financial Goals Sooner!

Click here for personalised MF

Find The Best
Credit Risk

Just by Answering Quick Question's
  • checked

    Best Strategy Funds

  • checked

    Consistent Top Performance

  • checked

    Quality Portfolio

Purpose Risk type Duration

Tell Us Your Purpose of Investment!

  • Wealth Creation

  • Retirement Planning

  • Child Future Planning

Top Videos of

Credit Risk Funds

Credit Opportunities Fund is an alternative to debt funds

Credit Opportunities Fund, as the name suggests is a type of scheme in which the AMCs (Asset Management Companies) intend to give exhilarating returns to the investors by investing their funds in money market instruments. The difference in Credit Opportunities Fund and debt funds is that the Credit Opportunities Funds invest money in competitively less secure money market instruments. The Credit Opportunities Fund facilitate a high degree of liquidity to the investors. This means that investors can withdraw their money as and when required. There is no lock-in period of the funds invested and thus no entry and exit load. The scheme came into being due to the decreasing investment in the equity market owing to the volatility and lock-in period (minimum 3 years). The primary aim of the Credit Funds is to generate phenomenal returns for the investors by investing primarily in liquid assets. The Credit Fund refrains from investing in semi-liquid assets so that the prime motto of maintaining liquidity is not hampered. 

Credit Opportunities Fund Follows Two Prime Investing Strategies:

  • Event-driven strategy: Under this strategy, Credit Opportunities Fund aims at providing credit to the companies which are experiencing major strategical changes within the organization. The strategical changes implies the events that change the fate of an organization and at the same time requires a lot of liquidity to support the change, for example, merger of any two companies, liquidation, bankruptcy, etc. All the above-mentioned changes require liquidity and invite investments by the AMCs with the money pooled using Credit Opportunities Fund. This strategy mainly invests in bonds that provide higher returns rather than in bank securities.
  • Income-oriented: This strategy of Credit Opportunities Fund follows the simple concept of investing in the money market instruments that provide returns at a higher rate. With a view of profit-maximization, the income-oriented strategy of Credit Opportunities Fund hovers around locating the investing options which are highly liquid in nature and at the same time provides prolific returns. 

Credit Opportunities Fund is Appropriate for Whom?

The investors who believe that there is a growing need for credit in the near future and who want a little higher returns than the debt funds, should invest in Credit Opportunities Fund. The fund is also ideal for investors having a mid-term to long-term investing perspective and are ready to take moderate risks. Credit Funds targets the clients who need higher returns than any bank savings and at the same time don’t want to invest in the highly volatile equity schemes. Providing a dual benefit of security and volatility (lower than equity) Credit Opportunities Fund is the first preference of investors.

 Investing online through our site you can get the list of the best AMCs offering investment through Credit Opportunities Fund and you can also calculate your returns with the help of sip calculator. We cater as an online distribution house to the top ranking funds like SBI Mutual Fund, L&T Mutual Fund, Reliance Mutual Fund, etc.

Who Should Invest in Credit Risk Mutual Funds?

  • user-profilePurpose
  • Perfect for short-term financial goals or post-retirement investment, offering returns potentially higher than traditional fixed deposits.
  • user-profileStrategy
  • Focuses on investing in quality and high-rated debt instruments, such as government or corporate bonds, ensuring a stable and reliable income stream.
  • user-profileDuration
  • A recommended minimum investment period of 1-3 years is advised to capitalize on the stability and benefits of fixed-income securities across different market conditions.
  • user-profileRisk Tolerance
  • Expects very low volatility, with minimal risk of negative returns, making it a safer choice for conservative investors.
  • user-profileReturns Expectation
  • Aims for a 7-10% compounded annual growth rate (CAGR), often outperforming traditional fixed deposits and providing a more lucrative income option.
  • business-man 10+
  • conversation 500+
    Questions Asked
  • support 24*7

Do you have any specific question to ask from

Mutual Fund Experts

Ask Here
people-grps Persons are assisted by our experts till now

Frequently Asked Questions

Who should invest in Credit Risk Mutual Funds?

Credit Risk funds are suitable for the investors who can digest high risk in search for higher returns. Moreover, these funds are not suitable for the investors who are stepping in the finance market with a short term investment perspective as they might end up delivering negative returns.

What is the minimum investment required for investing in Credit Risk funds?

The minimum investment depends from one scheme to another. In general, for lumpsum investment the minimum investment can range from Rs. 500 to Rs. 5000. Whereas, in case of SIP, the range may vary between Rs. 500 to Rs. 1000. For authentic information, never forget to check the scheme related documents.

What is the investment philosophy followed by Credit Risk companies?

The fund manager of Credit Risk fund targets the best small sized companies having the potential to generate excellent gains in the future. Such companies do not have much resources as the large cap or mid cap companies but have high potential to outperform many big companies.

Why to invest in Credit Risk funds?

Credit Risk funds have more tendency of providing exceptional returns than the other categories of funds. Moreover, they can also be a suitable option for providing diversification to your portfolio.

How risky are Credit Risk funds?

Credit Risk funds are one of the riskiest mutual funds. But at the same time rewards are also high. Therefore, an investor who is willing to expose his corpus towards risk for fetching higher returns should invest in Credit Risk funds.

Are Credit Risk Funds for long term investment?

Yes, Credit Risk funds are a suitable choice for generating long term capital appreciation. Moreover, in short term these funds can cause double digit losses to the investors. Thus, always maintain a long term investment perspective while investing in Credit Risk mutual funds.

What is the benchmark of Credit Risk Fund?

Benchmark is a standard with which a mutual fund competes in terms of growth & performance. Different Credit Risk funds have different benchmark. Thus, read the mutual fund document carefully to know the benchmark.

What are the taxes applied on Credit Risk Mutual Funds?

Credit Risk funds are eligible for two types of taxes- STCG (Short Term Capital Gain) and LTCG (Long Term Capital Gain). STCG is the capital gain generated on the units which are hold for up to 1 year. The STCG tax imposed by the Government of India is 15%. LTCG is the profit generated on the units which are hold for more than one years. The LTCG levied is 10% for the profit above Rs. 1 Lakh.

Compare Funds

Request call back
Add to Cart Successfully