Question: What is the difference between debt fund and credit opportunity fund?
Answer: Unlike a normal debt fund credit opportunity funds invest in bonds or scripts not having necessarily the highest credit rating. Typically a bond having credit rating AA is considered to be of high risk compared to one with AAA rating. Credit opportunity funds managers may take a call on investing in the AA scrip giving preference over the highly rated AAA one.
Question:
What is the difference between debt fund and credit opportunity fund? Answer:
Unlike a normal debt fund credit opportunity funds invest in bonds or scripts not having necessarily the highest credit rating. Typically a bond having credit rating AA is considered to be of high risk compared to one with AAA rating. Credit opportunity funds managers may take a call on investing in the AA scrip giving preference over the highly rated AAA one. Source: CoolInterview.com
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