HSBC Credit Risk Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 10, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
HSBC Credit Risk Fund Direct Growth Plan had a NAV of ₹37.8347 as of 09 Sep 2026 and an AUM of ₹456 Cr. Its 1-year, 3-year and 5-year returns are 6.83%, 11.82% and 9.47%, and the scheme carries a Medium Risk tag. Our view is that this is a credit-oriented debt fund with reasonable medium-term compounding, but the recent one-year return has been softer than the stronger 3-year result, so it suits investors who are comfortable with some credit and duration movement rather than those seeking very stable short-term outcomes.
The portfolio is led by corporate debt positions alongside government securities and cash-equivalent exposure, which helps explain why the fund can move differently from a plain vanilla debt portfolio. The return path suggests periods of steady recovery rather than a straight line, so the fund may fit a patient investor with a medium-to-long horizon.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹37.8347 as of 09 Sep 2026 |
| AUM | ₹456 Cr |
| Expense Ratio | 0.96% |
| Launch Date | 01 Jan 2013 |
| Min SIP | ₹1,000 |
| Risk Category | Medium Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | NIL upto 10% of units and 1% for remaining units on or before 1Y, Nil after 1Y |
| Fund Managers | Shriram Ramanathan |
The fund is managed by Shriram Ramanathan.
Source data date: as of 09 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.51% | -4.69% |
| 3M | 1.94% | 0.93% |
| 1Y | 6.83% | -7.16% |
| 3Y | 11.82% | 6.00% |
| 5Y | 9.47% | 5.87% |
The short-term numbers are constructive. Over 1 month and 3 months, the fund has stayed positive while the benchmark has been choppier, and that is a useful sign for a debt scheme with credit risk. It suggests the portfolio has been able to absorb some short-term market noise better than the benchmark over this stretch.
The more important picture is the 1-year result, where the fund’s 6.83% return is clearly above the benchmark’s negative 7.16%. That gap tells us the fund has handled the latest year materially better than the benchmark, even if the year was not perfectly smooth.
Looking across 3 years and 5 years, the fund has compounded at 11.82% and 9.47%, again ahead of the benchmark’s 6.00% and 5.87%. The pattern is not of explosive gains; it is of steadier compounding with some periods of weakness and recovery. For a credit risk fund, that kind of path matters more than a single strong month, because investors are usually evaluating how consistently the scheme can navigate changing rate and credit conditions.
Our view is that the recent 1-year and the longer 3-year and 5-year numbers tell a fairly aligned story: the fund has outpaced the benchmark over each measured horizon, but the gains have arrived in a measured way rather than through sharp spikes.
Source data date: as of 09 Sep 2026
Should you BUY or HOLD HSBC Credit Risk?
A fund’s past returns alone don’t tell you whether you should buy it today or continue holding it.
The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.
Already holding HSBC Credit Risk? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| HSBC Credit Risk Fund Direct Growth Plan | 6.83% | 11.82% | 9.47% |
| Bank of India Credit Risk Fund Direct Growth Plan | 17.99% | 10.12% | 27.79% |
| Aditya Birla SL Credit Risk Fund Direct Growth Plan | 13.04% | 13.21% | 10.92% |
| DSP Credit Risk Fund Direct Growth Plan | 11.4% | 16.84% | 13.37% |
| ICICI Pru Credit Risk Fund Direct Growth Plan | 8.82% | 9.17% | 8.03% |
| Axis Credit Risk Fund Direct Growth Plan | 8.76% | 8.86% | 7.7% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
On 1-year returns, the fund trails Bank of India Credit Risk Fund Direct Growth Plan, Aditya Birla SL Credit Risk Fund Direct Growth Plan and DSP Credit Risk Fund Direct Growth Plan, while it is closer to ICICI Pru Credit Risk Fund Direct Growth Plan and Axis Credit Risk Fund Direct Growth Plan. That means the recent year looks more moderate than the stronger peer outcomes in this set.
The longer-term picture is more balanced. At 3 years, the fund is ahead of Bank of India Credit Risk Fund Direct Growth Plan, ICICI Pru Credit Risk Fund Direct Growth Plan and Axis Credit Risk Fund Direct Growth Plan, though it remains below DSP Credit Risk Fund Direct Growth Plan. At 5 years, it is below Bank of India Credit Risk Fund Direct Growth Plan, DSP Credit Risk Fund Direct Growth Plan and Aditya Birla SL Credit Risk Fund Direct Growth Plan, but ahead of ICICI Pru Credit Risk Fund Direct Growth Plan and Axis Credit Risk Fund Direct Growth Plan. The short-term and longer-term comparisons therefore tell different stories: the latest year is softer, while the multi-year record is more middle-of-the-pack within this peer set.
Source data date: as of 09 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| Nuvoco Vistas Corporation Limited** | Corporate Debt | 8.12% |
| 6.01% GOI 21Jul2030 | Government Securities | 6.51% |
| Aditya Birla Renewables Limited** | Corporate Debt | 5.92% |
| JTPM Metal Traders** | Corporate Debt | 5.9% |
| Nirma Limited** | Corporate Debt | 5.73% |
| Power Finance Corporation Limited** | Corporate Debt | 5.61% |
| Power Grid Corporation of India Limited** | Corporate Debt | 5.49% |
| Godrej Seeds & Genetics Limited** | Corporate Debt | 5.45% |
| TREPS | Cash & Cash Equivalents and Net Assets | 5.44% |
| JSW Kalinga Steel Ltd** | Corporate Debt | 4.53% |
The largest holding, Nuvoco Vistas Corporation Limited**, is 8.12%, which is large enough to matter but not so large that it dominates the portfolio on its own. The top holding list then steps down fairly gradually, with the tenth holding still at 4.53%, so the fund does not appear to be built around one or two outsized positions.
The top 10 holdings together account for approximately 58.7% of the portfolio, which suggests a meaningful level of concentration in the named positions while still leaving a substantial tail of other holdings. Because the fund discloses 28 holdings in total, the visible book looks spread across several credit exposures rather than concentrated in a very small cluster. That structure may help balance return potential with some diversification, although credit funds can still move when specific issuers or segments reprice.
In practical terms, the mix of corporate debt, government securities and TREPS may help cushion day-to-day swings, but the corporate debt share in the largest positions means credit selection is likely to remain an important driver of outcomes. For investors, that is the main portfolio trade-off to keep in mind: the scheme is not a broad index-style debt fund, and its results can reflect more than just interest-rate movements.
To see all holdings, visit the HSBC Credit Risk Fund Direct Growth Plan page
Source data date: as of 09 Sep 2026
Who should invest
This fund suits investors who can take Medium Risk exposure and are comfortable with a credit-oriented debt portfolio that may not move in a straight line. The 1-year return is weaker than the 3-year and 5-year figures, but the longer record still shows positive compounding, and that matters for anyone looking beyond very short holding periods.
Our view is that a medium-to-long horizon is more appropriate than a short-term parking approach. The key trade-off is that the fund may offer better return potential than a plain vanilla debt option, but it can also face more variability when credit conditions or interest-rate expectations change. Investors who want steadier, benchmark-like debt outcomes may prefer lower-moving alternatives, while those willing to accept some fluctuation may find the return profile more relevant.
Tax and exit load
| Holding period | Tax rate | Description |
|---|---|---|
| Units held less than 1 year | 20% | Short-term capital gains tax |
| Units held more than 1 year | 12.5% | Long-term capital gains tax |
Exit load: NIL upto 10% of units and 1% for remaining units on or before 1Y. No exit load after the holding period.
Source data date: as of 09 Sep 2026
Frequently asked questions
What is the current NAV of HSBC Credit Risk Fund Direct Growth Plan?
The current NAV is ₹37.8347 as of 09 Sep 2026.
What are the 1-year, 3-year and 5-year returns?
The 1-year, 3-year and 5-year returns are 6.83%, 11.82% and 9.47%.
How does the fund compare with its benchmark?
The fund has outperformed the benchmark across 1 month, 3 months, 1 year, 3 years and 5 years. The latest 1-year gap is especially wide, with the fund positive while the benchmark is negative.
How does it compare with the peer funds shown here?
Its 1-year return is below the stronger peer numbers in this set, but its 3-year return is ahead of some peers and its 5-year result sits in the middle of the available group. The short-term and longer-term comparisons do not point in the same direction.
What is the minimum SIP amount?
The minimum SIP amount is ₹1,000.
Who manages the fund and what is the exit load?
The fund is managed by Shriram Ramanathan. The exit load is NIL upto 10% of units and 1% for remaining units on or before 1Y, with no exit load after the holding period.
Bottom line
HSBC Credit Risk Fund Direct Growth Plan has a steadier longer-term record than its recent 1-year number alone might suggest, and it has stayed ahead of the benchmark over every measured horizon. Compared with the peer set shown here, the latest year is softer, while the 3-year and 5-year results look more balanced. The portfolio is meaningfully exposed to corporate debt, so the fund may be more appropriate for investors who can tolerate credit-related variation and want a medium-to-long horizon rather than a short parking place.
Published on 10 September 2026 at 12:00 PM IST
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RIA disclosure
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.