Top Credit Risk Mutual Funds (2026)
Ranked by 3 year return, Direct plans, as on the latest NAV · AUM as on 30-09-2026
There are 13 Credit Risk mutual funds. Their average 3 year return is 9.4% a year, and +7.8% over the last year. The highest 3 year returns: DSP Credit Risk Fund 13.7%, Aditya Birla Sun Life Credit Risk Fund 12.9%, HSBC Credit Risk Fund 11.5%.
- Total AUM
- ₹22,116 Cr
- As on 30-09-2026
- Funds
- 13
- From 13 fund houses
- Expense ratio
- 0.28% to 1.01%
- Direct plans, lowest to highest
- Average 3Y return
- 9.4%
- A year, Direct plans
All Credit Risk Funds
Ranked by 3 year return, highest first
Ranked by 3 year return, highest first
| Exit load | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| DSP Credit Risk Fund | 1 | 326 | +10.33% | +13.69% | +13.34% | +8.62% | Moderately High | 0.42% | 3% within 12 months | 6.13% |
| Aditya Birla Sun Life Credit Risk Fund | 2 | 1,657 | +11.12% | +12.89% | +10.77% | +9.17% | Moderately High | 0.80% | 1% within 1 year | 3.38% |
| HSBC Credit Risk Fund | 3 | 441 | +5.68% | +11.54% | -- | -- | Moderately High | 0.84% | 1% within 1 year | 6.43% |
| Bank of India Credit Risk Fund | 4 | 74 | +16.97% | +10.00% | +27.83% | +2.38% | Moderately High | 0.61% | 1% within 1 year | 4.28% |
| ICICI Prudential Credit Risk Fund | 5 | 6,320 | +6.83% | +8.82% | +7.88% | +8.30% | -- | 0.80% | 1% within 1 year | 1.18% |
| Invesco India Credit Risk Fund | 6 | 167 | +6.99% | +8.76% | +8.34% | +6.44% | Moderate | 0.28% | 1% within 1 year | 1.51% |
| Nippon India Credit Risk Fund | 7 | 1,708 | +6.93% | +8.71% | +7.83% | +6.47% | Moderately High | 0.61% | 1% within 12 months | 0.81% |
| Axis Credit Risk Fund | 8 | 378 | +7.24% | +8.61% | +7.61% | +7.60% | High | 0.82% | 1% within 1 month | 0.91% |
| Kotak Credit Risk Fund | 9 | 769 | +5.95% | +8.31% | +6.63% | +7.24% | High | 0.81% | 1% within 365 days | 1.54% |
| SBI Credit Risk Fund | 10 | 2,182 | +7.14% | +8.30% | +7.62% | +7.69% | High | 0.90% | Varies | 1.04% |
| HDFC Credit Risk Fund | 11 | 7,631 | +6.18% | +8.02% | +7.04% | +7.76% | High | 1.01% | Varies | 0.99% |
| UTI - Credit Risk Fund. | 12 | 241 | +5.61% | +7.57% | +6.83% | +3.33% | Moderately High | 0.76% | 1% within 365 days | 0.85% |
| Bandhan Credit Risk Fund | 13 | 221 | +5.00% | +7.09% | +6.26% | -- | Moderate | 0.66% | 1% within 365 days | 0.92% |
Returns of each fund's Direct plan (its only plan where it has one), as on the latest NAV. 3, 5 and 10 year figures are a rate a year. Std dev: how much the daily returns swung over 3 years, as a yearly figure; lower is steadier. Riskometer and exit load from the fund's scheme summary document; "Varies" means the load changes with how long you hold, and the fund page has the full wording. Expense ratio: Direct plan, from AMFI. AUM at the end of the fund's last reported month. A fund younger than 3 years has no rank and is listed after the ranked ones.
Compare Credit Risk Funds
The largest funds of the category, side by side
How Credit Risk Funds Are Taxed
As debt funds: 65% or more of each fund is in bonds and money market papers
| When you sell | Tax on the gain |
|---|---|
| Units bought on or after 01-04-2023 | Your slab rate, however long you hold them |
| Units bought before 01-04-2023, within 2 years | Your slab rate |
| Units bought before 01-04-2023, after 2 years | 12.5% of the gain |
- IDCW (dividend) payouts are added to your income and taxed at your slab rate.
- A stamp duty of 0.005% is deducted when you invest.
Rules in force from 23-07-2024 (Finance Act 2024). Tax depends on your own income; this is general information, not tax advice.
What Is a Credit Risk Fund?
At least 65% in corporate bonds rated below AA+, which pay more for the higher risk of default. This is the rule SEBI sets for every fund in the category, so their portfolios can be compared.
Other debt categories: Overnight · Liquid · Ultra Short · Low Duration · Money Market · Short Duration · Medium Duration · Medium to Long Duration · Long Duration · Dynamic Bond · Corporate Bond · Banking & PSU · Gilt · Floater
Credit Risk Funds: Frequently Asked Questions
Which are the top Credit Risk mutual funds?
By 3 year return, the top Credit Risk funds are 1. DSP Credit Risk Fund (13.7% a year), 2. Aditya Birla Sun Life Credit Risk Fund (12.9% a year), 3. HSBC Credit Risk Fund (11.5% a year), 4. Bank of India Credit Risk Fund (10.0% a year), 5. ICICI Prudential Credit Risk Fund (8.8% a year). Past returns do not promise future returns, so also look at costs, risk and how long each fund has done well.
How many Credit Risk funds are there?
13 Credit Risk funds are open for investment, from 13 fund houses.
What is a Credit Risk fund?
At least 65% in corporate bonds rated below AA+, which pay more for the higher risk of default.
What is the average return of Credit Risk funds?
1 year: 7.8%, 3 years: 9.4% a year, 5 years: 9.8% a year. The simple average of every Credit Risk fund's Direct plan.
Which Credit Risk fund has the lowest expense ratio?
Invesco India Credit Risk Fund, at 0.28% a year (Direct plan), as reported to AMFI.
Which is the largest Credit Risk fund?
HDFC Credit Risk Fund, with ₹7,631 Cr of investors' money on 30-09-2026.
How are Credit Risk funds taxed?
As debt funds: for units bought on or after 01-04-2023, the gain is added to your income and taxed at your slab rate, however long you hold them.
This page is information, not investment advice. Mutual fund investments are subject to market risks; read all scheme related documents carefully. Past returns do not promise future returns. Figures come from AMFI, NSE, BSE and each fund house's own documents.