26) Credit Risk Funds Flashcards
1
Q
What is a Fund house ?
A
It is a company that invests the pooled money of investors to buy financial securities like stocks, mutual funds, equities etc
2
Q
What are debt funds ?
A
These aim to generate returns for investors by investing their money in avenues like bonds and other fixed income securities
3
Q
Now tell, what is a Credit risk funds ?
A
These are Debt funds which have atleast 65% of their investments in less than AA rated (i.e in lower-rated) papers
4
Q
What do you mean by AA rated ?
A
Nothing but Investment Grade – refers to the quality of a company’s credit . (Anything below BBB rating is considered as Non-investment grade)
