WHY DOES CREDIT RISK MATTER?

One of the common risks associated with your debt investments includes Credit Risks.

So far Credit accrual strategies have given returns of nearly 8–8.5% (5Y CAGR) AS compared to the G-sec Yield of 7% over the same tenure and work well when complemented by high growth equity.

It is prudent to understand and identify credit risk in your portfolio to improve the overall quality over the long term in order to deliver high inflation-adjusted returns.

Here’s a quick brief on what credit risk is and how you can mitigate it in your portfolio to stay afloat amidst these volatile times.

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