https://v2.webnotes.in/tags/high-yield-debt/Recent content in High Yield Debt on WebNotesHugoen-INTue, 12 May 2026 00:00:00 +0000https://v2.webnotes.in/credit-risk-mutual-fund/Tue, 12 May 2026 00:00:00 +0000https://v2.webnotes.in/credit-risk-mutual-fund/<p>A <strong>credit risk mutual fund</strong> in India is an open-ended debt scheme that must invest a minimum of 65% of its total assets in below-AA-rated corporate bonds (specifically AA-rated and below, including A, BBB, and sub-investment-grade instruments), under <a href="https://v2.webnotes.in/sebi-investment-management-department/">SEBI</a> &rsquo;s October 2017 scheme categorisation circular. These funds aim to generate higher yields than investment-grade debt funds by taking on credit risk &ndash; the risk that the issuing company may default on interest payments or principal repayment. Credit risk funds are the highest-risk category within the debt mutual fund universe and have faced significant investor confidence issues following a series of credit events in 2019 to 2020.</p>