DHFL Pramerica Credit Opportunities Fund is a mutual fund investment scheme whose objective is to generate income and capital appreciation by investing predominantly in corporate debt. Previously known as Pramerica Credit Opportunities Fund, this fund was launched on September 9, 2014. This mutual fund investment is an open-ended fixed income scheme and seeks to benchmark the performance of its portfolio against the CRISIL Short Term Bond Fund Index.The minimum investment amount for investing in this fund scheme is Rs. 5,000.If an investor opts to choose the SIP investment route, then the minimum required investment is Rs. 500.
Comprising of a portfolio consisting of majority in debt & remaining in cash/call options, this scheme has displayed a relatively weak performance in its category till date. As a matter of fact, for the quarter ended June 2017, this mutual fund investment is regarded as one of the top ranking debt funds and is ranked fifth in the ‘Credit Opportunities Funds’ category by CRISIL, down from rank four in the previous quarter. This fund is currently managed by Mr. Kumaresh Ramakrishnan who has been the Head of Fixed Income at Deutsche Asset Management (India) Private Limited since January 2011. Mr. Ramakrishnan boasts of over 19 years of experience in Fixed Income markets as Fund Manager and Analyst.
The investment strategy employed by the investment team focuses on building fixed income portfolios across the credit spectrum with the intention of generating income and capital appreciation by maintaining an optimum balance of credit quality, liquidity, and yield. This fund is apt for investors looking for a short to medium term investment alternative as the fund remains invested in relatively higher-yielding corporate bonds in the 1-3-year segment. The fund manager also provides the added flexibility for the fund to counter a dynamic environment by actively managing its portfolio in line with the changing interest rate scenario.
The Portfolio follows an accrual strategy and its holdings are well diversified with adequate exposure across ratings ranging from AAA to AA&A rated securities. The fund management team hopes that by employing such a diversified portfolio in corporate bonds of varying maturities, it will be able to acquire a relatively higher yield on the portfolio. The fund is well positioned to latch on to opportunities in the accrual and credit space.
If you are looking for higher returns in the fixed income category with the added advantage of indexation benefits and are willing to absorb the volatility of the fund, you can consider this fund for making an investment. With a medium-risk profile attached to this fund, this fund is suitable for investors looking to achieve near-term goals such as buying a new car, embarking on a foreign vacation etc. For more details regarding this fund and how indexation benefits help you reduce your tax liability, you can approach our financial advisors for customised investment plans.