Corporate Bond Funds are the mutual funds, which are one of the best investment fund option for the business organizations. Business organizations can get the funding from these corporate bond funds for their business requirements, compared to the other bank loans these are one of the best fund options for the business. These debt mutual funds help the individuals to meet their financial resources. As they offer best rates comparatively to the other bank loans. These businesses invest almost 80% of their corpus into these funds and use for their small or large business requirements. Based on the credit ratings these corporate bond funds are classified as two types of as top-rated companies with high CRISIL Credit Ratings under this top public sector companies falls and Mid and small companies with lower credit ratings. These debt mutual funds are of lower risks and are suitable for risk averse people and offers high returns with a lock period of minimum 1 to maximum 4 years with a perk of good liquidity. Tough these funds have many advantages they still have a risk of credit risks.
What are the features of Corporate Bond Funds?
These Corporate Mutual Funds offers higher returns approximately 8 to 10%, this percentage is more than that of the returns that are offered by the government held bonds.
These mutual funds offer good liquidity that is easy access to the money for the investor to meet their financial requirement anywhere or anytime.
These debt funds are associated with lower risks, hence offers good security.
The investment horizon of these funds are from the minimum holding period that is for 1 year to the maximum time that is for 4 years.
List of Top Corporate Bond Funds in India:
These below are the high rated funds of India with a average returns of percentage provided for 3 years respectively.
- L&T Triple Ace Bond Fund with a average returns of 10.44% for 3 years.
- HDFC Corporate Bond with a average returns of 9.51% for 3 years
- Aditya Birla Sun Life Corporate Bond Fund with a return of 9.42% for 3 years.
- Sundaram Corporate Bond Fund with a return of 9.18% returns for 3 years.
- ICICI Prudential Corporate Bond Fund with a return of 9.13% for 3 years averagely.