Best Credit Risk Mutual Funds
Debt funds lend to governments and companies and earn interest. They're generally steadier than equity funds and are used for shorter horizons and stability.
Top credit risk mutual funds by 3Y returns
12Direct plan, Growth option — ranked by 3-year CAGR. Open a fund for NAV history, rolling returns, risk metrics and peer rank.
As of 20 Aug 2026, DSP Credit Risk Fund (Direct plan, Growth option) leads credit risk mutual funds on 3-year CAGR at +16.84%, followed by Aditya Birla Sun Life Credit Risk Fund at +13.23% and HSBC Credit Risk Fund at +11.81%. Across 12 credit risk mutual funds the category averaged +10.07% over three years, at an average expense ratio of 0.75%. All figures are computed from public AMFI NAV history and recomputed daily; past returns do not predict future ones.
| 1 | DSP Credit Risk Fund DSP | ★★★☆☆ | +11.3% | +16.8% | +13.3% | 0.44% | ₹250.18Cr |
| 2 | Aditya Birla Sun Life Credit Risk Fund Aditya Birla Sun Life | ★★★★☆ | +13.0% | +13.2% | +10.9% | 0.80% | ₹1,337Cr |
| 3 | HSBC Credit Risk Fund HSBC | ★★★★☆ | +6.7% | +11.8% | — | 0.84% | ₹473.50Cr |
| 4 | Bank of India Credit Risk Fund Bank of India | ★★★☆☆ | +17.7% | +10.1% | +27.8% | 0.62% | ₹94.09Cr |
| 5 | Invesco India Credit Risk Fund Invesco | ★★★☆☆ | +8.4% | +9.7% | +8.5% | 0.28% | ₹160.21Cr |
| 6 | ICICI Prudential Credit Risk Fund ICICI Prudential | ★★★★★ | +8.8% | +9.2% | +8.1% | 0.80% | ₹6,000Cr |
| 7 | Axis Credit Risk Fund Axis | ★★★☆☆ | +8.8% | +8.9% | +7.7% | 0.82% | ₹354.86Cr |
| 8 | SBI Credit Risk Fund SBI | ★★★☆☆ | +8.6% | +8.7% | +7.8% | 0.91% | ₹2,138Cr |
| 9 | Kotak Credit Risk Fund Kotak Mahindra | ★★☆☆☆ | +8.0% | +8.7% | +6.8% | 0.81% | ₹739.85Cr |
| 10 | HDFC Credit Risk Debt Fund HDFC | ★★☆☆☆ | +7.7% | +8.3% | +7.2% | 1.01% | ₹7,327Cr |
| 11 | UTI - Credit Risk Fund. UTI | ★☆☆☆☆ | +7.0% | +7.9% | +10.2% | 1.04% | ₹252.19Cr |
| 12 | Bandhan Credit Risk Fund Bandhan | ★☆☆☆☆ | +6.2% | +7.4% | +6.4% | 0.67% | ₹229.77Cr |
NAV data as of 20 Aug 2026. Returns are CAGR for periods ≥1 year, computed from AMFI NAV history. Ratings are WealthTicker’s own, ranked within sub-category peers — not a SEBI or agency rating. See our methodology for every formula. This is data, not investment advice.
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Frequently asked questions
What are credit risk mutual funds?
Debt funds lend to governments and companies and earn interest. They're generally steadier than equity funds and are used for shorter horizons and stability.
Which is the best credit risk fund right now?
DSP Credit Risk Fund by DSP currently ranks first among credit risk mutual funds by 3-year CAGR at +16.84%. Rankings move with NAVs — past returns don't guarantee future performance.
What returns have credit risk mutual funds given?
The category has averaged +9.34% over 1 year, +10.07% annualized over 3 years, +10.44% annualized over 5 years — peer averages over the live funds in the category, computed from AMFI NAV history.
How are credit risk mutual funds taxed?
Debt taxation: all gains are added to your income and taxed at your slab rate, regardless of holding period (for units bought on or after 1 April 2023).