Bank of India Credit Risk Fund Analyst Review: NAV, Returns and Key Insights 2026
- May 28, 2026
- Posted by: Kunal Singla
- Category: News
Offering a 1-year return of 17.00% and a 3-month gain of 6.69%, the Bank of India Credit Risk Fund provides investors with measured exposure to its underlying investment universe. The fund manages Rs 101.21 crore in assets at a NAV of Rs 14.55. This review breaks down its returns history, expense structure, and who should consider adding it to their portfolio in 2026.
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What Is the Bank of India Credit Risk Fund?
The Bank of India Credit Risk Fund is a debt-oriented credit risk fund investing a significant portion of its assets in below-AA rated bonds and corporate papers, targeting higher yield income compared to conventional debt funds. Credit risk funds carry a higher probability of default-related losses and suit only investors with moderate-to-high risk tolerance and a medium-term horizon. The fund carries a Moderately High risk rating.
Bank of India Credit Risk Fund NAV and AUM
The current NAV of the Bank of India Credit Risk Fund Direct Growth plan is Rs 14.55. NAV is updated each trading day and reflects the closing market prices of the fund’s underlying securities. Always verify the most recent NAV on the AMC website or a registered mutual fund platform before placing any transaction.
With an AUM of Rs 101.21 crore, the fund is relatively nimble. This can be advantageous for portfolio agility and the ability to take positions without significant market impact. Investors should track AUM trends alongside performance metrics when evaluating this fund.
Bank of India Credit Risk Fund Returns: Performance Snapshot
| Period | Returns |
|---|---|
| 1 Month | 5.55% |
| 3 Months | 6.69% |
| 1 Year | 17.00% |
| 3 Years (Annualised) | 9.86% |
| 5 Years (Annualised) | 27.88% |
Performance for the Bank of India Credit Risk Fund has been measured, delivering 17.00% over one year and 6.69% over three months. This level of return is broadly in line with its investment category average. Patient investors with a long-term horizon may find that consistent moderate compounding creates significant wealth over time, provided the underlying investment thesis remains intact.
Expense Ratio and Cost Efficiency
At 0.98% per annum, the expense ratio of the Bank of India Credit Risk Fund Direct Growth plan is moderate for its peer group. The direct plan remains more cost-efficient than the regular variant. Investors should factor the total cost of ownership into their long-term return calculations and compare across category peers before making a final decision.
Who Should Invest in Bank of India Credit Risk Fund?
The Bank of India Credit Risk Fund is suitable for investors seeking higher income returns from the debt segment who understand the credit risk implications. The fund carries a Moderately High risk rating and requires a minimum 2 to 3-year horizon. The minimum SIP is Rs 1000 and minimum lumpsum is Rs 5000. Conservative investors seeking capital preservation should consider safer debt fund alternatives instead.
Key Risks to Consider
Liquidity Risk: Lower-rated debt instruments typically have limited secondary market liquidity, making it difficult to exit positions quickly during periods of financial stress.
Concentration Risk: Credit risk funds often have concentrated exposure to a small number of issuers. Adverse developments at a single issuer can disproportionately impact the overall fund NAV.
Recovery Uncertainty: Recovery proceedings on defaulted bonds can be lengthy and uncertain. The actual recovery amount may be significantly lower than the face value of the defaulted instrument.
Valuation Risk: Elevated valuations in the underlying investment universe can reduce future return potential even if the fundamental business performance of portfolio companies remains strong.
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Conclusion
Steady returns, a competitive expense ratio of 0.98%, and an AUM of Rs 101.21 crore position the Bank of India Credit Risk Fund as a reliable performer within its category. For patient investors with a 5 to 7-year horizon, its consistent management offers a dependable wealth-building vehicle. Ensure the fund fits your risk profile by consulting a SEBI-registered investment advisor.
Investments in securities are subject to market risk. This content is for educational purposes only and does not constitute investment advice.
Frequently Asked Questions
What is the current NAV of Bank of India Credit Risk Fund?
Ans. The current NAV of the Bank of India Credit Risk Fund Direct Growth plan is Rs 14.55. NAV is updated each trading day and reflects the closing market value of the fund’s underlying holdings. Always verify the most recent NAV on the AMC website or a SEBI-registered mutual fund platform before transacting.
What are the returns of Bank of India Credit Risk Fund?
Ans. The fund has delivered a 1-year return of 17.00% and a 3-month return of 6.69%. The 3-year annualised return is 9.86% and the 5-year annualised return is 27.88%. Past performance does not guarantee future results and should be evaluated alongside the fund’s risk profile and benchmark comparison.
What is the expense ratio of Bank of India Credit Risk Fund Direct Growth?
Ans. The expense ratio of the Bank of India Credit Risk Fund Direct Growth plan is 0.98% per annum. The direct plan eliminates distributor commissions and is more cost-efficient than the regular plan. Investors should always opt for the direct plan to maximise long-term net returns through the compounding advantage of lower costs.
Is this fund suitable for conservative investors?
Ans. No. This fund carries a Very High risk rating due to credit default risk from below-AA rated instruments. It is not suitable for conservative investors or those with short investment timelines. A minimum 5 to 7-year horizon and a high risk tolerance are required prerequisites. Consult a SEBI-registered investment advisor before investing.
What is the minimum SIP amount for this fund?
Ans. The minimum monthly SIP is Rs 1000 and the minimum lumpsum investment is Rs 5000. The low entry thresholds make the fund accessible across income levels. A regular SIP approach is recommended to average out entry costs over time, particularly given the high-volatility nature of this fund’s category.
What category and sub-category does this fund belong to?
Ans. This fund is a credit risk debt fund targeting higher yields through below-AA rated corporate bonds. It falls under the Credit Risk Fund sub-category and is available as a direct growth plan, which eliminates distributor commissions and typically offers superior net returns compared to the regular plan.
