Who Should Invest in Credit Risk Mutual Fund?
1. Investors Seeking Better Returns from Fixed-Income Investments: A credit risk mutual fund can be a good choice for those investors if they aim to earn comparatively better returns than most fixed-income investment schemes.
2. Investors Having a Higher Risk Appetite: Credit risk mutual funds are relatively riskier and are volatile, the investor should invest in them only if they have the appetite to tolerate such high risk. In case an investor wants to invest in a low-risk and stable debt scheme, investing in a credit-risk fund is not prudent to invest.
3. Investors Having a Medium-Term Investment Horizon: If the investment horizon of an investor is up to 2 to 3 years, credit risk mutual funds can be a suitable option. However, this comes with the caveat that the investor has a higher risk tolerance.
4. Investors who look for Diversified Investment Option: Credit Risk Mutual Fund helps the investor to diversify their portfolio and add the feature of constant returns to their portfolio, as Credit Risk Mutual Fund help investor get return from both debt-based securities and other class of asset while staying invested in only one fund.