HDFC Credit Risk Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

HDFC Credit Risk Fund Direct Growth Plan has a NAV of ₹28.3765 as of 10 Sep 2026, and its scheme AUM stands at ₹7,665 Cr. Its 1-year, 3-year and 5-year returns are 7.64%, 8.27% and 7.16%, respectively, and the fund is tagged High Risk. Our view is that this is a credit-focused debt option with a measured long-term profile, but the return pattern is uneven enough that investors need comfort with credit-risk swings.

The fund’s longer record is steadier than its recent patch, yet it has still lagged the benchmark over the same horizons. The portfolio is spread across corporate debt, infrastructure and a cash buffer, so the fund may suit investors who understand that income generation can come with credit-selection risk rather than a smooth debt-fund journey.

Quick facts

Particular	Details
NAV	₹28.3765 as of 10 Sep 2026
AUM	₹7,665 Cr
Expense Ratio	1.01%
Launch Date	25 Mar 2014
Min SIP	₹100
Risk Category	High Risk
Benchmark	Nifty 50
Fund Category	Debt
Exit Load	Nil for 15% of Units, For excess of limits 1% on or before 12M and 0.50% after 12M but on or before 18M, Nil after 18M
Fund Managers	Praveen Jain, Bhavyesh Divecha

The fund is managed by Praveen Jain and Bhavyesh Divecha.

Source data date: as of 10 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.32%	-4.06%
3M	2.4%	1.37%
1Y	7.64%	-7.31%
3Y	8.27%	6.07%
5Y	7.16%	5.91%

The recent one-month and three-month behaviour looks choppy rather than linear. Over one month, the fund held a mildly positive path while the benchmark stayed weak, which tells us the scheme has been more resilient in the very short term. Over three months, both improved, but the fund stayed ahead of the benchmark.

The one-year figure needs more caution. The fund finished positive, but the benchmark was negative over the same period, which makes the comparison look favourable on a relative basis even though the path was not especially smooth. That matters because this is still a credit-risk debt fund, where holding quality and spread movements can affect outcomes more than in plain-vanilla short-duration strategies.

At the longer end, the pattern is more stable. The 3-year and 5-year figures are close to each other, which suggests the fund has compounded at a fairly similar pace over multi-year windows. Even so, the benchmark remains lower on both horizons, so the fund has delivered stronger trailing returns than the benchmark without showing a dramatic acceleration in recent months.

Our reading is that the fund’s return profile looks constructive over multi-year periods, but it has not been especially smooth at every checkpoint. That makes the current return pattern more suitable for investors who care about credit-driven income and can tolerate periodic unevenness in exchange for the possibility of steady multi-year compounding.

Source data date: as of 10 Sep 2026

Should you BUY or HOLD HDFC 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.

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Peer comparison

Fund	1Y return	3Y return	5Y return
HDFC Credit Risk Fund Direct Growth Plan	7.64%	8.27%	7.16%
Bank of India Credit Risk Fund Direct Growth Plan	17.99%	10.1%	27.77%
Aditya Birla SL Credit Risk Fund Direct Growth Plan	12.96%	13.18%	10.91%
DSP Credit Risk Fund Direct Growth Plan	11.34%	16.81%	13.36%
Axis Credit Risk Fund Direct Growth Plan	8.75%	8.85%	7.7%
ICICI Pru Credit Risk Fund Direct Growth Plan	8.72%	9.15%	8.02%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.

The fund’s 1-year return is lower than all five peer returns shown here, and the gap is especially visible versus the stronger one-year figures in the peer set. That tells us the recent stretch has been less competitive even though the fund was still positive while the benchmark was negative over 1 year.

On the 3-year and 5-year horizons, the fund also trails the better peer outcomes. The longer-term numbers remain constructive, but they do not match the stronger multi-year compounding visible in several peer funds, especially the larger 5-year results in the group. The short-term and longer-term comparison therefore tell two different stories: the fund has held up better than the benchmark, yet it has not matched the stronger peer return profiles available in the same universe.

Source data date: as of 10 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
5% GMR AIRPORTS LIMITED	Corporate Debt	4.83%
8.5% NIRMA LTD.^	Corporate Debt	3.92%
INDUS INFRA TRUST	Finance	3.3%
10.5% TRIUMPH COMPOSITES PRIVATE LIMITED^	Corporate Debt	3.12%
NET CURRENT ASSETS	Cash & Cash Equivalents and Net Assets	2.84%
JUBILANT BEVERAGES LIMITED^	Corporate Debt	2.79%
8.6% ADITYA BIRLA RENEWABLES LIMITED^	Corporate Debt	2.74%
10.81% BAMBOO HOTEL AND GLOBAL CENTRE (DELHI) PRIVATE LIMITED^	Corporate Debt	2.62%
8.35% KALPATARU PROJECTS INTERNATIONAL LTD^	Corporate Debt	2.61%
JUBILANT BEVCO LIMITED^	Corporate Debt	2.59%

The largest holding is 5% GMR AIRPORTS LIMITED at 4.83%, which is not a dominant single-line position by itself. The drop from the first holding to the tenth is modest, ending at 2.59%, so the visible part of the book looks fairly balanced rather than sharply top-heavy.

At the same time, the top 10 holdings together account for approximately 31.36% of the portfolio, and the fund discloses 56 holdings in total. That combination suggests a broader tail beyond the top names, so the portfolio may be carrying both concentration in selected credit positions and diversification across a longer list of smaller exposures.

Because most of the top holdings are corporate debt positions, the fund is likely to have greater influence from issuer-specific credit decisions than from broad market beta. The cash and current-asset slice is present but not large enough to overpower the debt book, so the visible mix still points to a credit-selection-led portfolio.

To see all holdings, visit the HDFC Credit Risk Fund Direct Growth Plan page

Source data date: as of 10 Sep 2026

Who should invest

This fund fits investors who can tolerate High Risk in a debt category and who are comfortable with credit-driven fluctuations rather than a very steady income path. The 1-year, 3-year and 5-year numbers show that the fund has compounded positively over multiple horizons, but the journey has not been perfectly smooth and the benchmark comparison is mixed at different checkpoints.

Our view is that the fund is better suited to a medium- to long-term horizon, where a multi-year holding period can matter more than a single weak stretch. The main trade-off is that the portfolio may offer better return potential than a plain conservative debt fund, but that comes with issuer and credit-quality sensitivity that investors must be willing to accept.

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 applies only within the holding window described here: nil for 15% of units, and for the excess amount 1% on or before 12 months, 0.50% after 12 months but on or before 18 months, and nil after 18 months.

Source data date: as of 10 Sep 2026

Frequently asked questions

What is the current NAV of HDFC Credit Risk Fund Direct Growth Plan?
The NAV is ₹28.3765 as of 10 Sep 2026.

How has the fund performed over 1 year, 3 years and 5 years?
Its returns are 7.64% over 1 year, 8.27% over 3 years and 7.16% over 5 years.

How does it compare with the benchmark?
It has outperformed the benchmark over 1 year, 3 years and 5 years. The benchmark returns are -7.31%, 6.07% and 5.91% for those same periods.

How does it compare with peer funds on recent returns?
Its 1-year return is below the peer names shown here, while its longer-term returns are also behind the stronger multi-year peer figures available in the comparison set.

What is the fund’s risk category?
It is tagged High Risk. That means the fund is designed for investors who can handle credit-linked volatility in a debt allocation.

Who manages the fund, and what is the exit load?
The fund is managed by Praveen Jain and Bhavyesh Divecha. Exit load is nil for 15% of units, then 1% on or before 12 months and 0.50% after 12 months but on or before 18 months for the excess amount, with nil exit load after 18 months.

Bottom line

HDFC Credit Risk Fund Direct Growth Plan has a steadier multi-year return profile than its recent short-term patch, but it has not kept pace with the stronger peer return patterns shown in the comparison set. The benchmark comparison is more reassuring, especially over 1 year, even though the fund’s risk tag remains High Risk. The portfolio is built around selected corporate debt positions with a meaningful tail of smaller holdings, so it looks like a credit-selection fund rather than a broad conservative debt alternative.

Published on 11 September 2026 at 10:39 AM 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.