Saturday, 2 February 2019

How to Invest in SBI Credit Risk Fund and Reduce Risk in the Portfolio?

SBI Credit Risk Fund was launched on 14th July 2004 with an investment objective to invest predominantly in corporate bonds which are rated AA and below and maintain moderate liquidity with money market instruments for giving an option to utilise opportunities of bonds. The portfolio of the scheme is handled by Mr Lokesh Mallya and Ms Mansi Sajeja since Feb 2017. Since inception, this scheme has produced around 7.58% annualised returns and always generated positive returns. Apart from this, considering year on year returns, it has always outperformed the benchmark till now.

In last 3, 5, 7, and 10-years, it has produced around 7.88%, 8.75%, 9.08%, and 8.34% respectively. Considering performance, you can invest in this scheme for a short to long term duration.



Follow the Steps to Start Investment at MySIPonline

Register

It is an independent mutual fund platform to provide various mutual fund services to investors in order to fulfil their investment needs regardless of the financial status. The investors will get all types of schemes based on their investment objective, risk-appetite and time horizon here. All you need to do to start investing is register at us. You don't worry about the charges as it is free of cost and a one-time process. After registering, you are asked to complete your profile where you have to provide some personal detailing to maintain a profile with different AMCs. So, to start investing in SBI Credit Risk Fund G, first, you have to register at our portal.

Complete KYC Verification

KYC is also a compulsory process where you have to provide the details to verify your IDs. If you are planning to invest in schemes provided by different AMCs, no worries as it will be valid for both to start investing. So, after completing KYC compliance, you are free to choose SBI Credit Risk Fund growth along with different mutual funds for your portfolio, depending on your decision.

Add the Scheme 

Finally, you have to add the SBI Credit Risk Fund to your portfolio. After adding the scheme and successfully completing the investing process, you get access to your investment account where you can check performance, redeem and do additional purchase as well. Apart from this, based on the market conditions, you will also get updates regarding your investment.

How to Reduce Risk in the Portfolio?

By analysing the past performance of the SBI Credit Risk Fund, it is clear that this scheme has a stable portfolio with low to moderate risk only. With significant exposure to debt instruments, the overall risk is already reduced, but below AA rated bonds in the portfolio may insist you to apply risk mitigation tactics. So, the first thing to get adequate returns from this scheme is to stay invested for a short to long term and do not redeem in a very short term duration. Further, you can choose SIP mode of investment as well to feel confident with your investment.

By following the above-mentioned process of investment and suggestion to stay invested for a particular period, you can get stable and safe returns from this scheme. MySIPonline also provides some free tool to assist the investors in getting out of tough calculations such as SIP calculator and tax calculator.

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