Zenflow
Targeted Accrual. Structured Safety. Institutional Spreads.
Capture the credit premium in India’s growing economy. Zenflow Finance provides access to Credit Funds that identify high-potential issuers before they reach the mainstream, delivering moderate-plus returns backed by rigorous debt advisory and collateral-heavy structures.
What Are Credit Funds
Higher Yields Through Active Credit Selection
Credit funds are debt mutual fund schemes that invest predominantly in AA and below-rated corporate bonds. By accepting marginally higher credit risk, they target yields significantly above traditional debt funds. Professional fund managers conduct deep credit analysis to select issuers where the yield compensation adequately covers the incremental risk. Zenflow helps you identify well-managed credit funds with strong credit processes.
Features
Why Invest in Credit Funds
Higher Yield Potential
200-400 bps higher yields than AAA-focused debt funds through credit spread capture.
Professional Credit Management
Experienced fund managers with dedicated credit research teams.
Diversified Credit Exposure
Exposure to 30-60 issuers across sectors reducing single-issuer concentration.
Open-ended Liquidity
Redeem units on any business day at NAV-based pricing.
Low Minimum Investment
Start with as little as ₹5,000 via lump sum or ₹500 via SIP.
Tax-efficient
Capital gains after 3 years taxed at 12.5% with indexation benefit for listed schemes.
How It Works
Invest in Credit Funds in 4 Steps
Assess Risk Appetite
Determine how much credit risk you are comfortable with in your debt allocation.
Compare Funds
Review credit fund performance, portfolio quality, and fund manager track records.
Invest
Invest via lump sum or SIP through Zenflow's mutual fund platform.
Monitor Quality
Track portfolio credit quality, NAV performance, and any rating changes.
Why Zenflow
The Zenflow Advantage for Credit Funds
Fund Screening
Rigorous screening of credit fund managers based on process, track record, and risk management.
Quality Monitoring
Ongoing monitoring of portfolio credit quality with alerts on downgrades or defaults.
Blended Strategies
Combine credit funds with AAA funds for optimised risk-adjusted debt portfolio returns.
Smart Credit
Earn more from your debt allocation
Explore well-managed credit funds for higher yields with professional risk management.
Frequently Asked Questions
Common Questions Answered
Credit risk is the possibility of a borrower defaulting on interest or principal. We manage this through credit enhancement (guarantees), collateral monitoring, and diversification. Our research team conducts quarterly site visits and financial audits of all major issuers in the fund.
All gains from debt-oriented mutual funds are taxed at your applicable income tax slab rate, regardless of holding period. For AIFs, taxation follows a pass-through model where the nature of income (interest vs. capital gains) determines the rate.
Three key factors: Concentration Risk — ensure no single group exposure exceeds 10% of the fund. Net YTM — always look at yield-to-maturity after the fund house takes its management fee. Liquidity Window — we only recommend funds with clear, transparent exit pathways.
Yes. Many treasury solutions now allocate 15–20% of long-term surplus to credit funds to offset lower yields of liquid/overnight funds, effectively boosting the overall weighted average return of the corporate portfolio.
For Category II AIFs, the SEBI minimum is ₹1 Crore. However, credit risk mutual funds are accessible to retail investors starting from as low as ₹5,000, allowing broader participation in alternative investments.
Expert Advisory
Ready to get started?
Schedule a call with our advisory team to discuss the right strategy for your goals.
Credit Funds involve higher risk than G-Secs or AAA Bonds. Potential risks include credit default, liquidity constraints, and interest rate volatility. Past performance is not a guarantee of future returns. Please read the SID or PPM carefully. All services comply with SEBI (Mutual Funds) Regulations and SEBI (AIF) Regulations.
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