Credit quality bucketisation in debt mutual funds

Tue, 12 May 2026 00:00:00 +0000

Credit quality bucketisation in a debt mutual fund refers to the percentage distribution of the portfolio across credit rating categories, from the highest quality (AAA-rated government securities and top-rated corporate bonds) down to below-investment-grade (BB and lower) instruments. It is a mandatory disclosure in Indian debt fund factsheets and is the primary tool for assessing default risk and potential for credit-driven NAV shocks.

Credit quality sits alongside Macaulay duration , modified duration , and yield to maturity (YTM) as the four key risk metrics for Indian debt funds.

AAA on WebNotes

Credit quality bucketisation in debt mutual funds