# Credit Risk mutual funds compared

Source page: https://www.rudowealth.com/mutual-funds/category/credit-risk-funds

Credit risk funds put at least 65% of their assets in corporate bonds rated below the highest grade, earning more interest for more risk of default. (SEBI categorisation of mutual fund schemes, 6 October 2017, as amended.)

All 14 credit risk funds, Direct plan, Growth option, NAV as of 2026-10-07. Every figure is worked out from each fund's own NAV.

Category averages: 3-year return +9.9% a year, 5-year return +8.4% a year (both annualised), volatility over 3 years 2.6%, expense ratio 0.71%.

| Rank | Fund | 1Y | 3Y (annualised) | 5Y (annualised) | Volatility 3Y | Worst fall 5Y | Expense ratio | Fund size |
|---|---|---|---|---|---|---|---|---|
| 1 | [DSP Credit Risk Fund - Direct Plan - Growth](https://www.rudowealth.com/mutual-funds/dsp-credit-risk-fund-direct-plan-growth) | +10.8% | +16.8% | +13.4% | 7.4% | -1.8% | 0.44% | ₹310 Cr |
| 2 | [Aditya Birla Sun Life Credit Risk Fund - Direct Plan - Growth](https://www.rudowealth.com/mutual-funds/aditya-birla-sun-life-credit-risk-fund-direct-plan-growth) | +11.9% | +13.1% | +10.9% | 3.0% | -0.8% | 0.80% | ₹1,600 Cr |
| 3 | [HSBC Credit Risk Fund - Direct Growth](https://www.rudowealth.com/mutual-funds/hsbc-credit-risk-fund-direct-growth) | +6.3% | +11.8% | +9.2% | 6.8% | -1.0% | 0.84% | ₹457 Cr |
| 4 | [Invesco India Credit Risk Fund - Direct Plan - Growth](https://www.rudowealth.com/mutual-funds/invesco-india-credit-risk-fund-direct-plan-growth) | +7.4% | +9.5% | +8.4% | 2.0% | -1.0% | 0.28% | ₹167 Cr |
| 5 | [ICICI Prudential Credit Risk Fund - Direct Plan - Growth](https://www.rudowealth.com/mutual-funds/icici-prudential-credit-risk-fund-direct-plan-growth) | +7.5% | +9.1% | +8.0% | 1.2% | -0.8% | 0.80% | ₹6,333 Cr |
| 6 | [Nippon India Credit Risk Fund - Direct Plan - Growth Plan](https://www.rudowealth.com/mutual-funds/nippon-india-credit-risk-fund-direct-plan-growth-plan) | +7.5% | +8.9% | +7.9% | 1.1% | -1.2% | 0.61% | ₹1,574 Cr |
| 7 | [SBI Credit Risk Fund - Direct Plan -Growth](https://www.rudowealth.com/mutual-funds/sbi-credit-risk-fund-direct-plan-growth) | +7.7% | +8.6% | +7.7% | 1.2% | -0.7% | 0.91% | ₹2,186 Cr |
| 8 | [Axis Credit Risk Fund - Direct Plan - Growth](https://www.rudowealth.com/mutual-funds/axis-credit-risk-fund-direct-plan-growth) | +7.8% | +8.8% | +7.7% | 1.2% | -0.9% | 0.82% | ₹395 Cr |
| 9 | [HDFC Credit Risk Fund - Growth Option - Direct Plan](https://www.rudowealth.com/mutual-funds/hdfc-credit-risk-debt-fund-growth-option-direct-plan) | +6.8% | +8.2% | +7.1% | 1.3% | -1.5% | 1.01% | ₹7,666 Cr |
| 10 | [UTI Credit Risk Fund - Direct Plan - Growth Option](https://www.rudowealth.com/mutual-funds/uti-credit-risk-fund-direct-plan-growth-option) | +6.1% | +7.7% | +7.0% | 1.1% | -0.8% | 1.04% | ₹249 Cr |
| 11 | [Kotak Credit Risk Fund - Growth - Direct](https://www.rudowealth.com/mutual-funds/kotak-credit-risk-fund-growth-direct) | +6.6% | +8.6% | +6.7% | 1.6% | -3.1% | 0.81% | ₹773 Cr |
| 12 | [Bandhan Credit Risk Fund-Direct Plan-Growth](https://www.rudowealth.com/mutual-funds/bandhan-credit-risk-fund-direct-plan-growth) | +5.4% | +7.3% | +6.3% | 1.3% | -1.1% | 0.67% | ₹224 Cr |
| 13 | [Bank of India Credit Risk  Fund - Direct Plan](https://www.rudowealth.com/mutual-funds/bank-of-india-credit-risk-fund-direct-plan) | +17.2% | +10.1% | N/A | 4.1% | N/A | 0.62% | ₹69 Cr |
| 14 | [DSP Financial Services Sectoral Debt Fund - Direct - Growth](https://www.rudowealth.com/mutual-funds/dsp-financial-services-sectoral-debt-fund-direct-growth) | N/A | N/A | N/A | N/A | N/A | 0.23% | ₹564 Cr |

Ordered by 5-year annualised return, highest first; funds younger than 5 years follow by 3-year, then 1-year return. Volatility is the annualised standard deviation of monthly returns. Worst fall is the largest drop from a peak in the last 5 years. We do not label any fund as the best.

Investing from the UAE: NRIs can generally invest once KYC is complete, paying from an NRE or NRO bank account. Some fund houses do not accept residents of the United States or Canada. The UAE does not levy personal income tax, and the India UAE tax treaty may affect how gains are treated, so confirm your own position with a tax adviser.

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RuDo Wealth is a fee-only cross-border advisory operating through two separate companies. India: RuDo Wealth Investment Advisory, SEBI Registered Investment Adviser, registration INA000019503. UAE: RuDo Digital Wealth, FSRA Financial Services Permission 220155, Category 3C (Retail), ADGM. The entity permitted to serve you depends on your country of residence.

General information, not a recommendation to buy or sell any fund. Past performance does not indicate future returns.