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Corporate Bond Mutual Funds

Corporate Bond Mutual Funds are a category of debt mutual funds that allocate at least 80% of their corpus to bonds issued by businesses. These bonds, rated AA+ or higher, are considered safe investments with minimal credit risk. View More

Companies issue corporate bonds to secure funds for various needs, such as working capital, capital expenditure, or refinancing existing debt. When you invest in a corporate bond mutual fund, you lend money to businesses and earn returns through periodic interest payments and capital appreciation.

Corporate Bond Mutual Funds are popular among investors due to their potential for stable returns and lower risk compared to equities. They are particularly suited for those seeking a balance of safety and steady income in their portfolio.

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List of Corporate Bond Mutual Funds

Filters
logo Nippon India Corporate Bond Fund - Direct Growth

10.47%

Fund Size (Cr.) - 8,771

Invest
logo AXIS Corporate Bond Fund - Direct Growth

10.50%

Fund Size (Cr.) - 8,119

Invest
logo HDFC Corporate Bond Fund - Direct Growth

9.89%

Fund Size (Cr.) - 34,775

Invest
logo ICICI Pru Corporate Bond Fund - Direct Growth

9.50%

Fund Size (Cr.) - 31,264

Invest
logo HSBC Corporate Bond Fund - Direct (Growth)

10.00%

Fund Size (Cr.) - 5,895

Invest
logo Aditya Birla SL Corporate Bond Fund-Dir Growth

9.81%

Fund Size (Cr.) - 28,436

Invest
logo Franklin India Corporate Debt Fund-Direct Growth

11.00%

Fund Size (Cr.) - 843

Invest
logo Baroda BNP Paribas Corporate Bond Fund-Dir Growth

10.41%

Fund Size (Cr.) - 299

Invest
logo Tata Corporate Bond Fund - Dir Growth

9.84%

Fund Size (Cr.) - 4,024

Invest
logo Kotak Corporate Bond Fund-DirGrowth

10.14%

Fund Size (Cr.) - 16,661

Invest
View More

Who Should Invest in Corporate Bond Mutual Funds?

Corporate Bond Mutual Funds are ideal for investors aiming for steady, tax-efficient returns with lower risk. These funds are suitable for individuals who want to diversify their debt portfolio while maintaining safety. Conservative investors who prefer predictable income over high-risk, high-return investments often find these funds appealing.

These funds are especially beneficial for those who:

  1. 1. Are looking for a safer alternative to equities.
    2. Want to preserve capital while earning reasonable returns.
    3. Seek a liquid investment option that aligns with their financial goals.
     

Before investing, it’s essential to assess your risk appetite, investment horizon, and financial objectives. Consulting a financial advisor can help determine if corporate bond funds match your portfolio needs.
 

Popular Corporate Bond Mutual Funds

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 8,771
  • 3Y Return
  • 8.54%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 8,119
  • 3Y Return
  • 8.46%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 34,775
  • 3Y Return
  • 8.39%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 31,264
  • 3Y Return
  • 8.33%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 5,895
  • 3Y Return
  • 8.31%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 28,436
  • 3Y Return
  • 8.28%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 843
  • 3Y Return
  • 8.22%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 299
  • 3Y Return
  • 8.19%

  • Min SIP Investment Amt
  • ₹ ₹ 150
  • AUM (Cr.)
  • ₹ 4,024
  • 3Y Return
  • 8.19%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 16,661
  • 3Y Return
  • 8.17%

FAQs

Corporate Bond Funds are taxed like other debt funds. Long-term capital gains (after three years) are taxed at 20% with indexation benefits, while short-term gains are taxed as per your income slab.

Corporate Bond Mutual Funds generally do not have a lock-in period. Investors can redeem their investments at any time, subject to exit load, if applicable.

These funds carry very low credit risk due to their mandate of investing in high-quality, AAA-rated bonds. However, they are sensitive to changes in interest rates.

These funds are suitable for conservative investors seeking steady, tax-efficient returns while minimizing risks. They are ideal for those looking to diversify their debt portfolio with a focus on safety and income.

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