My Authors
Read all threads
Alright! Here I am, making my debut on Twitter. To mark the occasion, I am handing out the "Lemon of the Year" Award to one of the worst performing Debt Mutual Funds.

A clear winner in this category, by a mile, is BoI AXA Credit Risk Fund. Thread (1/9)
The fund has achieved a rare feat of burning almost 90% of its AUM within a span of last 11 months i.e. the AUM contracted from ~1700 Cr in Aug 2018 to ~200 Cr in Jul 2019.

The one year return is a whopping minus 48%. 2/9
The Fund Managers successfully caught all the lemons that fate threw at them viz DHFL, IL&FS, Kwality, Sintex, Cox & Kings, Coffee Day etc. 3/9
It is a living example of a debt trap. The exit loads are 4%, 3% and 2% if an investors attempts to exit the fund in the first, second and third year respectively. 4/9
That is, if an investors decides to exit after earning a -48% return (i.e. after losing half of the invested amount) in the 1st yr of investment, he/ she is made to pay another 4% for pushing the SoS button too soon. 5/9
It is rumoured that a famous international PE fund (that also operates a high-yield debt NBFC in India) was the fund, philosopher and guide (probably an originator too) of this Fund. 6/9
The Fund was rated 5 star (now 2 star) by a leading MF research firm and a leading finance daily, in Oct 2018, called it as one of the best Credit Risk Funds to invest in. 7/9
The finance daily had also advised the investors that they should stay invested even if there are 1 or 2 defaults in the funds recommended. Huh. 8/9
The fund, in July 2019, stopped taking fresh subscriptions, probably on account of the setbacks it faced. A lot of investors still remain trapped in this ill managed fund hoping to recover their hard earned money. 9/9
Missing some Tweet in this thread? You can try to force a refresh.

Enjoying this thread?

Keep Current with Funter

Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!