DHFL Pramerica Credit Opportunity Fund – a Quality fund.

Soft interest rate environment related debt investing is in vogue. Any sound financial planning will always include an asset allocation strategy which includes debt investing i.e certain percent of assets are allocated to debt. Individual investors willing to make wealth in financial markets will always need a disciplined approach in the markets. Striking a balance in different asset classes is the key, followed by picking the right product for investing.

DHFL Pramerica Credit Opportunity Fund is one fund that can be considered by investors looking for exposure in debt securities and fixed income opportunities. The investment objective of the scheme is to generate income and capital appreciation by investing predominantly in corporate debt. Nitish Gupta & Kumaresh Ramakrishnan are the fund managers.

CRISIL Short Term Bond Fund Index is the benchmark for the fund. The fund has been outperforming its index and the average returns generated by the fund are in the range of 10 to 11 per cent per year. 

Since its inception the fund has delivered 10.93 per cent returns whereas over a 1 year period (June 2015- June 2016) the fund has generated 10.19 per cent returns. The fund can be invested with a dividend option on Monthly/Quarterly or Annual basis or the money can be reinvested under the growth option.

The fund remains invested in relatively higher yielding corporate bonds in the 1-3 year segment. The fund holdings are well diversified across ratings ranging from AAA to AA & A.