Bank Of India Credit Risk Fund

Previously Known As : Boi Axa Corporate Credit Spectrum Fund
Click on + to See NAV
Fund Name NAV Date NAV Rupee Change Percent Change
BANK OF INDIA Credit Risk Fund - Regular Plan 27/Sep/2023 10.9841
0.0015
0.0137%
BANK OF INDIA Credit Risk Fund - Direct Plan 27/Sep/2023 11.1848
0.0016
0.0143%

Disclaimer: NO INVESTMENT ADVICE. The Content is for informational purposes only.

Fund Performance Analysis

Bank Of India Credit Risk Fund Analysis

Bmsmoney Credit Risk Fund Category Rank: 4

Bank Of India Credit Risk Fund Performance Snapshot (Regular Plan)

Rotate the phone! Best viewed in landscape mode on mobile
KPIs* Fund Cat. Avg Better Than Cat. Avg In 1st Quartile In 4th Quartile Rank (In Cat.) Min / Max
1M Return %
0.55
0.55
No
No
No
8/13 0.34 / 0.66
1M Rolling Return %
0.44
0.50
No
No
Yes
12/14 0.42 / 0.58
3M Return %
1.45
1.54
No
No
Yes
11/13 1.11 / 1.86
3M Rolling Return %
1.26
1.46
No
No
Yes
13/14 1.24 / 1.72
6M Return %
3.08
4.01
No
No
Yes
12/13 2.87 / 6.68
6M Rolling Return %
2.57
3.23
No
No
Yes
14/14 2.57 / 3.74
1Y Return %
5.67
7.19
No
No
Yes
13/13 5.67 / 9.86
1Y Rolling Return %
130.02
15.47
Yes
Yes
No
1/14 2.59 / 130.02
3Y Return %
41.15
9.53
Yes
Yes
No
1/13 4.16 / 41.15
3Y Rolling Return %
-6.20
4.23
No
No
Yes
15/15 -6.20 / 7.89
5Y Return %
-4.05
4.67
No
No
Yes
13/13 -4.05 / 7.64
Standard Deviation
70.66
7.91
No
No
Yes
15/15 1.12 / 70.66
Semi Deviation
12.24
2.33
No
No
Yes
15/15 0.83 / 12.24
Max Drawdown
-0.29
-1.38
Yes
Yes
No
3/15 -8.84 / -0.26
VaR 1 Y
0.00
-0.60
Yes
No
No
6/15 -3.21 / 0.00
Average Drawdown
-0.29
-0.80
Yes
Yes
No
3/15 -4.62 / -0.17
Sharpe Ratio
0.47
-0.13
Yes
Yes
No
3/15 -1.61 / 0.84
Sterling Ratio
4.16
0.89
Yes
Yes
No
1/15 0.35 / 4.16
Sortino Ratio
13.27
0.98
Yes
Yes
No
1/15 -0.46 / 13.27
Jensen Alpha
40.96
8.25
Yes
Yes
No
1/8 -4.29 / 40.96
Treynor Ratio
1.23
0.16
Yes
Yes
No
1/8 -0.02 / 1.23
Modigliani Square measure
1.47
4.11
No
No
Yes
8/8 1.47 / 7.69
Active Return
58.24
8.18
Yes
Yes
No
1/8 -2.53 / 58.24
Returns, performance summary of fund and return related sentences are updated daily. Last Updated On : Sept. 27, 2023.
Other parameters, fund ranking, non return related analysis are updated after every month end. Last Updated On : June 30, 2023 KPIs: Key Performance Indicators

Bank Of India Credit Risk Fund Performance vs Category Average

All parametrs are in percentage

Top Performing Peers of Bank Of India Credit Risk Fund

Top Performing Funds in Credit Risk Fund Category
Rotate the phone! Best viewed in landscape mode on mobile.
Fund Name Category Rank Analysis 1Y Return 3Y Return Max Drawdown VaR 1Y 95% Sharpe Ratio Sortino Ratio Hurst Index

Aditya Birla Sun Life Credit Risk Fund

2 The Aditya Birla Sun Life Credit Risk Fund is a Credit Risk Fund. In the Credit Risk Fund category there are 13<sup>th</sup> funds. The fund has seventh KPIs that are in top quartile. The fund has 30% of the KPIs that are in top quartile. The fund has second KPIs that are in bottom quartile. The fund has 9% of the KPIs that are in bottom quartile. You can read more about the fund KPIs in the Aditya Birla Sun Life Credit Risk Fund performance snapshot section. 7.18% 7.32% -0.27% 0.00% 0.40 0.30 0.50

Nippon India Credit Risk Fund

3 The Nippon India Credit Risk Fund is a Credit Risk Fund. In the Credit Risk Fund category there are 13<sup>th</sup> funds. The fund has tenth KPIs that are in top quartile. The fund has 53% of the KPIs that are in top quartile. The fund has over 50% KPIs in top quartile which shows the fund has performed exceptionally well. The fund has second KPIs that are in bottom quartile. The fund has 11% of the KPIs that are in bottom quartile. You can read more about the fund KPIs in the Nippon India Credit Risk Fund performance snapshot section. 7.94% 8.84% -0.66% 0.00% 0.47 0.56 0.53

Baroda Bnp Paribas Credit Risk Fund

1 The Baroda Bnp Paribas Credit Risk Fund is a Credit Risk Fund. In the Credit Risk Fund category there are 13<sup>th</sup> funds. The fund has 12<sup>th</sup> KPIs that are in top quartile. The fund has 63% of the KPIs that are in top quartile. The fund has over 50% KPIs in top quartile which shows the fund has performed exceptionally well. The fund does not have any KPI that are bottom quartile. You can read more about the fund KPIs in the Baroda Bnp Paribas Credit Risk Fund performance snapshot section. 7.23% 10.64% -0.47% 0.00% 0.84 1.41 0.50

Bank Of India Credit Risk Fund Performance Snapshot (Direct Plan)

Rotate the phone! Best viewed in landscape mode on mobile.
KPIs Fund Cat. Avg Better Than Cat. Avg In 1st Quartile In 4th Quartile Rank (In Cat.) Min / Max
1M Return %
0.58
0.62
No
No
Yes
10/13 0.42 / 0.73
1M Rolling Return %
0.46
0.56
No
No
Yes
14/14 0.46 / 0.64
3M Return %
1.53
1.73
No
No
Yes
12/13 1.35 / 2.05
3M Rolling Return %
1.33
1.65
No
No
Yes
14/14 1.33 / 1.90
6M Return %
3.22
4.41
No
No
Yes
13/13 3.22 / 7.33
6M Rolling Return %
2.72
3.64
No
No
Yes
14/14 2.72 / 4.19
1Y Return %
5.95
8.03
No
No
Yes
13/13 5.95 / 11.21
1Y Rolling Return %
130.63
16.32
Yes
Yes
No
1/14 3.62 / 130.63
3Y Return %
41.54
10.37
Yes
Yes
No
1/13 5.20 / 41.54
3Y Rolling Return %
-5.94
4.91
No
No
Yes
15/15 -5.94 / 8.70
5Y Return %
-3.79
5.49
No
No
Yes
13/13 -3.79 / 8.36
Standard Deviation
70.66
7.91
No
No
Yes
15/15 1.12 / 70.66
Semi Deviation
12.24
2.33
No
No
Yes
15/15 0.83 / 12.24
Max Drawdown
-0.29
-1.38
Yes
Yes
No
3/15 -8.84 / -0.26
VaR 1 Y
0.00
-0.60
Yes
No
No
6/15 -3.21 / 0.00
Average Drawdown
-0.29
-0.80
Yes
Yes
No
3/15 -4.62 / -0.17
Sharpe Ratio
0.47
-0.13
Yes
Yes
No
3/15 -1.61 / 0.84
Sterling Ratio
4.16
0.89
Yes
Yes
No
1/15 0.35 / 4.16
Sortino Ratio
13.27
0.98
Yes
Yes
No
1/15 -0.46 / 13.27
Jensen Alpha
40.96
8.25
Yes
Yes
No
1/8 -4.29 / 40.96
Treynor Ratio
1.23
0.16
Yes
Yes
No
1/8 -0.02 / 1.23
Modigliani Square measure
1.47
4.11
No
No
Yes
8/8 1.47 / 7.69
Active Return
58.24
8.18
Yes
Yes
No
1/8 -2.53 / 58.24
Returns, performance summary of fund and return related sentences are updated daily. Last Updated On : Sept. 27, 2023.
Other parameters_direct, fund ranking, non return related analysis are updated after every month end. Last Updated On : June 30, 2023 KPIs: Key Performance Indicators

Bank Of India Credit Risk Fund Regular vs Direct Plan Performance

Parameters Regular Plan Direct Plan
1M Return % 0.55% 0.58%
1M Rolling Return % 0.44% 0.46%
3M Return % 1.45% 1.53%
3M Rolling Return % 1.26% 1.33%
6M Return % 3.08% 3.22%
6M Rolling Return % 2.57% 2.72%
1Y Return % 5.67% 5.95%
1Y Rolling Return % 130.02% 130.63%
3Y Return % 41.15% 41.54%
3Y Rolling Return % -6.20% -5.94%
5Y Return % -4.05% -3.79%
Standard Deviation 70.66% 70.66%
Semi Deviation 12.24% 12.24%
Max Drawdown -0.29% -0.29%
VaR 1 Y 0.00% 0.00%
Average Drawdown -0.29% -0.29%
Sharpe Ratio 0.47% 0.47%
Sterling Ratio 4.16% 4.16%
Sortino Ratio 13.27% 13.27%
Jensen Alpha 40.96% 40.96%
Treynor Ratio 1.23% 1.23%
Modigliani Square measure 1.47% 1.47%
Active Return 58.24% 58.24%

Expected return is based on historical relationship between fund and representative benchmark. Assuming same relationsgip will hold in future.

Annulized Returns

Bank Of India Credit Risk Fund Expected Return

Investment Period Mini. Possible Return
in Investment Period
Max. Possible Return
in Investment Period
Expected Return
in Investment Period
Loss Probability
in Investment Period
10 Year 11.64% 15.82% 14.57% 0.00%
One Year -9.29% 21.92% 13.52% 1.28%
Three Year 6.16% 18.68% 13.97% 0.00%
Five Year 9.14% 17.43% 14.02% 0.00%
Seven Year 10.78% 16.75% 14.66% 0.00%

Expected return is based on historical relationship between fund and representative benchmark. Assuming same relationsgip will hold in future.

Annulized Returns


For Any Question Join Our Group On Facebook

Credit Risk Fund Category Performance Analysis

Return Chart (Regular Plan)

Click on + to See Details
Fund Name 1D Return 1W Return 1M Return 3M Return 6M Return 1Y Return 3Y Return 5Y Return
% Rank % Rank % Rank % Rank % Rank % Rank % Rank % Rank

Invesco India Credit Risk Fund

0.03
1
0.11
7
0.55
9
1.34
12
6.68
1
9.86
1
4.93
11
3.74
11

Idfc Credit Risk Fund

0.03
2
-0.02
13
0.34
13
1.11
13
2.87
13
5.93
11
4.64
12
6.03
7

Baroda Bnp Paribas Credit Risk Fund

0.02
3
0.16
3
0.62
3
1.69
2
3.90
5
7.23
5
10.64
3
7.09
3

Bank Of India Credit Risk Fund

0.01
4
0.17
1
0.55
8
1.45
11
3.08
12
5.67
13
41.15
1
-4.05
13

Nippon India Credit Risk Fund

0.01
5
0.13
5
0.66
1
1.86
1
4.56
3
7.94
3
8.84
4
4.21
10

Hdfc Credit Risk Debt Fund

0.01
6
0.08
9
0.51
11
1.54
7
3.64
7
6.87
10
6.59
6
7.59
2

Sbi Credit Risk Fund

0.01
7
0.16
2
0.62
2
1.61
5
5.16
2
8.42
2
6.31
8
6.93
4

Uti Credit Risk Fund

0.01
8
0.11
6
0.59
6
1.56
6
3.58
10
7.00
9
10.66
2
-1.41
12

Axis Credit Risk Fund

-0.01
9
0.08
8
0.57
7
1.53
8
3.59
9
7.06
8
5.95
10
6.09
6

Dsp Credit Risk Fund

-0.01
10
0.13
4
0.54
10
1.64
4
4.38
4
7.36
4
6.28
9
4.66
9

Aditya Birla Sun Life Credit Risk Fund

-0.01
11
0.07
12
0.62
4
1.50
10
3.71
6
7.18
6
7.32
5
6.50
5

Icici Prudential Credit Risk Fund

-0.01
12
0.07
11
0.60
5
1.67
3
3.61
8
7.12
7
6.44
7
7.64
1

Kotak Credit Risk Fund

-0.01
13
0.07
10
0.44
12
1.51
9
3.34
11
5.78
12
4.16
13
5.69
8

Idbi Credit Risk Fund

Franklin India Credit Risk Fund

Fund Name 1D Return 1W Return 1M Return 3M Return 6M Return 1Y Return 3Y Return 5Y Return
% Rank % Rank % Rank % Rank % Rank % Rank % Rank % Rank

Invesco India Credit Risk Fund

0.04
1
0.13
6
0.66
6
1.65
11
7.33
1
11.21
1
6.20
11
4.93
10

Idfc Credit Risk Fund

0.03
2
-0.00
13
0.42
13
1.35
13
3.36
12
6.94
11
5.65
12
7.02
7

Baroda Bnp Paribas Credit Risk Fund

0.02
3
0.17
3
0.69
3
1.87
2
4.29
5
8.07
6
11.48
3
7.94
3

Bank Of India Credit Risk Fund

0.01
4
0.18
1
0.58
10
1.53
12
3.22
13
5.95
13
41.54
1
-3.79
13

Nippon India Credit Risk Fund

0.01
5
0.14
5
0.73
1
2.05
1
4.97
3
8.71
3
9.56
4
4.90
11

Hdfc Credit Risk Debt Fund

0.01
6
0.09
9
0.57
11
1.69
10
3.95
9
7.52
10
7.22
6
8.17
2

Sbi Credit Risk Fund

0.01
7
0.17
2
0.68
4
1.77
5
5.49
2
9.10
2
6.98
9
7.61
4

Uti Credit Risk Fund

0.01
8
0.13
7
0.65
7
1.76
6
3.99
8
7.85
8
11.51
2
-0.59
12

Axis Credit Risk Fund

-0.00
9
0.10
8
0.64
8
1.75
8
4.04
7
7.98
7
6.92
10
7.16
6

Dsp Credit Risk Fund

-0.01
10
0.15
4
0.60
9
1.81
4
4.78
4
8.26
4
7.16
7
5.53
9

Aditya Birla Sun Life Credit Risk Fund

-0.01
11
0.08
11
0.70
2
1.72
9
4.16
6
8.11
5
8.24
5
7.42
5

Kotak Credit Risk Fund

-0.01
12
0.09
10
0.53
12
1.75
7
3.84
11
6.81
12
5.20
13
6.73
8

Icici Prudential Credit Risk Fund

-0.01
13
0.08
12
0.66
5
1.83
3
3.95
10
7.83
9
7.16
8
8.36
1

Idbi Credit Risk Fund

Franklin India Credit Risk Fund

Fund Name 1 Month Median Return 3 Month Median Return 6 Month Median Return 1 Year Median Return 3 Year Median Return
% Rank % Rank % Rank % Rank % Rank

Aditya Birla Sun Life Credit Risk Fund

0.53
4
1.56
4
3.74
1
6.80
7
6.10
7

Axis Credit Risk Fund

0.54
3
1.53
6
3.34
7
5.19
10
6.17
6

Boi Axa Credit Risk Fund

0.44
12
1.26
13
2.57
14
130.02
1
-6.20
15

Dsp Credit Risk Fund

0.52
5
1.53
5
3.55
3
7.16
6
5.38
10

Hdfc Credit Risk Debt Fund

0.52
6
1.48
8
3.41
6
5.41
9
7.89
1

Icici Prudential Credit Risk Fund

0.51
9
1.58
3
3.42
5
6.08
8
7.88
2

Idbi Credit Risk Fund

0.42
14
1.32
10
3.07
10
12.75
2
2.47
13

Idfc Credit Risk Fund

0.43
13
1.28
12
2.93
12
3.83
12
5.77
8

Invesco India Credit Risk Fund

0.46
10
1.30
11
3.05
11
2.90
13
4.19
11

Kotak Credit Risk Fund

0.45
11
1.24
14
2.64
13
2.59
14
5.42
9

Nippon India Credit Risk Fund

0.58
1
1.72
1
3.52
4
7.40
5
3.10
12

Sbi Credit Risk Fund

0.51
8
1.46
9
3.19
9
5.03
11
6.60
4

Uti Credit Risk Fund

0.52
7
1.50
7
3.29
8
10.12
4
-5.52
14

Baroda Bnp Paribas Credit Risk Fund

0.57
2
1.64
2
3.56
2
11.32
3
7.87
3

Franklin India Credit Risk Fund

6.36
5
Fund Name 1 Month Median Return 3 Month Median Return 6 Month Median Return 1 Year Median Return 3 Year Median Return
% Rank % Rank % Rank % Rank % Rank

Aditya Birla Sun Life Credit Risk Fund

0.60
4
1.77
3
4.19
1
7.71
7
7.00
6

Axis Credit Risk Fund

0.61
3
1.74
4
3.78
5
6.11
9
7.32
4

Boi Axa Credit Risk Fund

0.46
14
1.33
14
2.72
14
130.63
1
-5.94
15

Dsp Credit Risk Fund

0.58
6
1.71
6
4.04
2
8.07
6
6.25
9

Hdfc Credit Risk Debt Fund

0.57
8
1.63
8
3.73
7
6.06
10
8.44
3

Icici Prudential Credit Risk Fund

0.57
7
1.74
5
3.77
6
6.80
8
8.56
2

Idbi Credit Risk Fund

0.48
13
1.50
12
3.45
11
13.58
2
3.19
13

Idfc Credit Risk Fund

0.51
12
1.51
11
3.42
12
4.82
12
6.76
7

Invesco India Credit Risk Fund

0.56
10
1.60
10
3.68
9
4.12
13
5.41
10

Kotak Credit Risk Fund

0.53
11
1.48
13
3.14
13
3.62
14
6.47
8

Nippon India Credit Risk Fund

0.64
1
1.90
1
3.86
4
8.15
5
3.75
12

Sbi Credit Risk Fund

0.57
9
1.61
9
3.51
10
5.70
11
7.26
5

Uti Credit Risk Fund

0.58
5
1.69
7
3.69
8
10.93
4
-4.71
14

Baroda Bnp Paribas Credit Risk Fund

0.63
2
1.84
2
4.00
3
12.22
3
8.70
1

Franklin India Credit Risk Fund

5.15
11
Fund Name VaR 1 Y 95% Max Drawdown Average Drawdown Standard Deviation Semi Deviation
% Rank % Rank % Rank % Rank % Rank

Aditya Birla Sun Life Credit Risk Fund

0.00
6
-0.27
2
-0.27
2
2.05
7
0.97
4

Baroda Bnp Paribas Credit Risk Fund

0.00
6
-0.47
5
-0.47
7
4.93
11
1.62
10

Bank Of India Credit Risk Fund

0.00
6
-0.29
3
-0.29
3
70.66
15
12.24
15

Dsp Credit Risk Fund

-0.44
10
-0.77
8
-0.29
4
3.93
10
1.20
8

Franklin India Credit Risk Fund

-3.21
15
-1.65
13
-1.10
14
5.09
12
2.80
13

Hdfc Credit Risk Debt Fund

-0.34
8
-0.90
11
-0.48
8
1.70
5
1.12
6

Icici Prudential Credit Risk Fund

0.00
6
-0.26
1
-0.17
1
1.29
2
0.87
2

Idbi Credit Risk Fund

-0.75
11
-1.12
12
-0.70
12
5.87
13
1.74
12

Idfc Credit Risk Fund

-1.17
12
-0.78
9
-0.40
6
1.38
3
1.04
5

Invesco India Credit Risk Fund

-1.31
14
-0.83
10
-0.59
10
2.70
8
1.13
7

Kotak Credit Risk Fund

-1.26
13
-2.85
14
-1.05
13
2.04
6
1.71
11

Nippon India Credit Risk Fund

0.00
6
-0.66
7
-0.66
11
3.74
9
1.23
9

Sbi Credit Risk Fund

-0.05
7
-0.36
4
-0.30
5
1.59
4
0.91
3

Uti Credit Risk Fund

-0.41
9
-8.84
15
-4.62
15
10.47
14
5.56
14

Axis Credit Risk Fund

0.00
6
-0.57
6
-0.57
9
1.12
1
0.83
1
Fund Name Sharpe Ratio Sortino Ratio Sterling ratio Hurst Index Jensen’s Alpha Beta R2 Treynor Ratio Modigliani2 Measure Active Return
% Rank % Rank % Rank % Rank Value Rank Value Rank % Rank % Rank % Rank

Aditya Birla Sun Life Credit Risk Fund

0.40
5
0.30
6
0.78
6
0.50
0.45
6 1.02 2
0.62
3
0.01
3
4.46
4
-0.02
5

Baroda Bnp Paribas Credit Risk Fund

0.84
1
1.41
2
1.10
2
0.50

Bank Of India Credit Risk Fund

0.47
3
13.27
1
4.16
1
0.50
40.96
1 0.27 7
0.00
8
1.23
1
1.47
8
58.24
1

Dsp Credit Risk Fund

-0.10
8
-0.07
9
0.62
10
0.52

Franklin India Credit Risk Fund

0.69
2
0.46
5
0.93
3
0.45
8.46
3 0.39 6
0.01
7
0.09
2
3.61
5
7.89
2

Hdfc Credit Risk Debt Fund

-0.12
9
-0.05
8
0.63
8
0.49
1.99
5 0.93 3
0.72
2
-0.00
5
6.15
2
1.34
4

Icici Prudential Credit Risk Fund

-0.27
10
-0.11
10
0.65
7
0.43
0.10
7 0.89 4
0.54
4
-0.00
6
5.73
3
-0.45
6

Idbi Credit Risk Fund

0.39
6
0.55
4
0.86
4
0.52

Idfc Credit Risk Fund

-1.61
15
-0.46
15
0.44
13
0.41

Invesco India Credit Risk Fund

-0.76
12
-0.38
14
0.45
12
0.52
-4.29
8 1.27 1
0.20
5
-0.02
8
2.31
6
-1.21
7

Kotak Credit Risk Fund

-1.18
14
-0.35
13
0.35
15
0.50

Nippon India Credit Risk Fund

0.47
4
0.56
3
0.84
5
0.53

Sbi Credit Risk Fund

-0.36
11
-0.16
11
0.63
9
0.49
2.20
4 0.46 5
0.73
1
-0.01
7
7.69
1
-2.53
8

Uti Credit Risk Fund

-0.01
7
0.02
7
0.37
14
0.58
16.08
2 -2.07 8
0.05
6
0.00
4
1.50
7
2.19
3

Axis Credit Risk Fund

-0.79
13
-0.26
12
0.58
11
0.46

Bank Of India Credit Risk Fund Additional Return Analysis

Bank Of India Credit Risk Fund Value of Investment

Plan Type 1 Day 1 Week 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year
Regular Plan Value of 1000 Rupee 1000.14 1001.73 1005.49 1014.51 1030.77 1056.74 2812.40 813.20
Direct Plan Value of 1000 Rupee 1000.14 1001.79 1005.76 1015.27 1032.23 1059.47 2835.54 824.18
Fund Information
Fund Launch Date: 06/Feb/2015
Fund Category: Credit Risk Fund
Investment Objective: The Scheme ™s investment objective is to generate capital appreciation over the long term byinvesting predominantly in corporate debt across the credit spectrum within the universe ofinvestment grade rating. To achieve this objective, the Scheme will seek to make investmentsin rated, unrated instruments and structured obligations of public and private companies.However, there is no assurance or guarantee that the investment objective of the scheme willbe achieved.
Fund Description: An open ended debt scheme predominantly investing in AA and below rated corporatebonds (excluding AA+ rated corporate bonds)
Fund Benchmark: CRISIL Short Term Bond Fund Index
Source: Fund FactSheet


Disclaimer: NO INVESTMENT ADVICE. The Content is for informational purposes only.


For Any Question Join Our Group On Facebook



More Mutual Fund Analysis Article

Small cap mutual funds, as defined by SEBI and AMFI, primarily invest in companies ranked 251st onwards in terms of market capitalization. They offer high growth potential as they invest in smaller, growing companies that could yield high returns. Moreover, they can uncover undervalued stocks that are often under-researched. Small-cap funds also bounce back quickly from economic downturns due to their adaptability. However, they have drawbacks like high volatility, and liquidity risk, and require a longer investment horizon. Although they carry significant risk, with informed decision-making, a clear understanding of the risk-reward paradigm, and guidance from skilled fund managers, they can contribute significantly to wealth creation.
 

Large-cap mutual funds invest in large, established companies, offering investors the potential for consistent returns and lower risk due to their stability and diversification across sectors. These funds, managed by professional fund managers, also offer high liquidity and the potential for regular dividend payouts. However, drawbacks include limited growth potential, as these mature companies operate at or near their peak in saturated markets. Also, they aren't immune to economic downturns and offer less control to investors over their investments. The suitability of these funds depends on an individual's financial goals, risk tolerance, and investment horizon.

  1. Money market mutual funds invest in short-term, high-quality debt instruments, aiming to maintain a stable value.
  2. Advantages include safety and stability due to high-credit-rating investments, high liquidity with typically penalty-free withdrawals, diversification across various debt instruments, and modest interest earnings.
  3. Disadvantages encompass lower returns compared to riskier investments, lack of government insurance, vulnerability to inflation risk, management fees that can eat into returns, and the potential for negative yields in periods of extremely low or negative interest rates.