Corporate bond funds are debt funds that allocate at least 80% of their assets to companies with the highest credit ratings. These ratings are assigned to financially robust companies with a strong likelihood of timely repayment to lenders.
The table below shows the Corporate Bonds In India – Best Corporate Bonds In India based on NAV, minimum SIP, AUM from high to low.
| Name | AUM | NAV | Minimum SIP |
| HDFC Corp Bond Fund | 28,499.19 | 29.96 | 5,000.00 |
| ICICI Pru Corp Bond Fund | 26,050.61 | 28.24 | 100 |
| SBI Corp Bond Fund | 19,209.93 | 14.37 | 1,500.00 |
| Kotak Corporate Bond Fund | 11,583.86 | 3,543.16 | 100 |
| Edelweiss Nifty PSU Bond Plus SDL Apr 2026 50:50 Index Fund | 10,062.74 | 11.92 | 100 |
| SBI CPSE Bond Plus SDL Sep 2026 50:50 Index Fund | 10,054.03 | 11.21 | 500 |
| ICICI Pru Nifty PSU Bond Plus SDL Sep 2027 40:60 Index Fund | 8,703.77 | 11.26 | 500 |
| Kotak Nifty SDL Apr 2027 Top 12 Equal Weight Index Fund | 7,961.98 | 11.14 | 100 |
| HSBC Corporate Bond Fund | 6,100.72 | 70.03 | 1,500.00 |
| Axis Corp Debt Fund | 5,241.71 | 16.2 | 12,000.00 |
Content :
- Best Corporate Bonds
- Top Rated Corporate Bond Funds
- Best Corporate Bonds In India
- Top Corporate Bond Funds
- Corporate Bonds In India – FAQs
- Introduction to Corporate Bonds In India
Best Corporate Bonds
The table below shows the Best Corporate Bonds based on the lowest to highest expense ratio.
| Name | Expense Ratio |
| Nippon India Nifty AAA CPSE Bond Plus SDL – Apr 2027 Maturity 60:40 Index Fund | 0.15 |
| Kotak Nifty AAA Bond Jun 2025 HTM Index Fund | 0.15 |
| Axis CRISIL IBX 70:30 CPSE Plus SDL April 2025 Index Fund | 0.16 |
| Baroda BNP Paribas Corp Bond Fund | 0.2 |
| Edelweiss Nifty PSU Bond Plus SDL Apr 2026 50:50 Index Fund | 0.2 |
| Aditya Birla SL Nifty SDL Plus PSU Bond Sep 2026 60:40 Index Fund | 0.2 |
| ICICI Pru Nifty PSU Bond Plus SDL Sep 2027 40:60 Index Fund | 0.2 |
| Edelweiss Nifty PSU Bond Plus SDL Apr 2027 50:50 Index Fund | 0.2 |
| Kotak Nifty SDL Apr 2027 Top 12 Equal Weight Index Fund | 0.2 |
| Kotak Nifty SDL Apr 2032 Top 12 Equal Weight Index Fund | 0.2 |
Top Rated Corporate Bond Funds
The table below shows the Top-Rated Corporate Bond Funds In India based on the Highest 3Y CAGR.
| Name | CAGR 3Y |
| Nippon India Corp Bond Fund | 6.23 |
| ICICI Pru Corp Bond Fund | 6.19 |
| Axis Corp Debt Fund | 5.92 |
| Aditya Birla SL Corp Bond Fund | 5.84 |
| HDFC Corp Bond Fund | 5.82 |
| Kotak Corporate Bond Fund | 5.77 |
| PGIM India Corp Bond Fund | 5.7 |
| UTI Corporate Bond Fund | 5.48 |
| Franklin India Corp Debt Fund-A | 5.45 |
| SBI Corp Bond Fund | 5.41 |
Best Corporate Bonds In India
The table below shows the Best Corporate Bonds In India based on exit load i.e. the fee that the AMC charges investors when exiting or redeeming their fund units.
| Name | AUM | Exit Load | AMC |
| HDFC Corp Bond Fund | 28,499.19 | 0 | HDFC Asset Management Company Limited |
| ICICI Pru Corp Bond Fund | 26,050.61 | 0 | ICICI Prudential Asset Management Company Limited |
| Aditya Birla SL Corp Bond Fund | 21,535.48 | 0 | Aditya Birla Sun Life AMC Limited |
| SBI Corp Bond Fund | 19,209.93 | 0 | SBI Funds Management Limited |
| Bandhan Corp Bond Fund | 13,763.85 | 0 | Bandhan AMC Limited |
| Kotak Corporate Bond Fund | 11,583.86 | 0 | Kotak Mahindra Asset Management Company Limited |
| Aditya Birla SL Nifty SDL Plus PSU Bond Sep 2026 60:40 Index Fund | 10,308.57 | 0 | Aditya Birla Sun Life AMC Limited |
| ICICI Pru Nifty PSU Bond Plus SDL Sep 2027 40:60 Index Fund | 8,703.77 | 0 | ICICI Prudential Asset Management Company Limited |
| Axis Corp Debt Fund | 5,241.71 | 0 | Axis Asset Management Company Ltd. |
| UTI Corporate Bond Fund | 3,547.50 | 0 | UTI Asset Management Company Private Limited |
Top Corporate Bond Funds
The table below shows the Top Corporate Bond Funds based on Absolute 1 YearReturn.
| Name | Absolute Returns – 1Y |
| ICICI Pru Corp Bond Fund | 7.84 |
| Kotak Nifty SDL Apr 2032 Top 12 Equal Weight Index Fund | 7.81 |
| HDFC Corp Bond Fund | 7.71 |
| Nippon India Corp Bond Fund | 7.53 |
| Aditya Birla SL Corp Bond Fund | 7.52 |
| Axis Corp Debt Fund | 7.38 |
| Kotak Corporate Bond Fund | 7.37 |
| Tata Corp Bond Fund | 7.36 |
| Baroda BNP Paribas Corp Bond Fund | 7.26 |
| UTI Corporate Bond Fund | 7.14 |
Corporate Bonds In India – FAQs
1. What are the Best Corporate Mutual Bonds?
Best Corporate Mutual Bonds #1: HDFC Corp Bond Fund
Best Corporate Mutual Bonds #2: ICICI Pru Corp Bond Fund
Best Corporate Mutual Bonds #3: SBI Corp Bond Fund
Best Corporate Mutual Bonds #4: Aditya Birla SL Corp Bond Fund
Best Corporate Mutual Bonds #5: Bandhan Corp Bond Fund
These funds are listed based on Highest AUM.
2. What are corporate bonds in India?
Corporate bonds are debt securities issued by corporations, providing investors with interest income and principal repayment. Proceeds fund business activities like expansion and acquisitions, essential for financial markets.
3. Are corporate bonds safe in India?
Corporate bonds offer safer investments than equity but face default risk, especially for newer companies. Higher-rated bonds backed by collateral provide a more secure investment option.
4. Is corporate bonds better than FD?
Bonds often yield higher returns than fixed deposits, especially with longer maturities and potential for capital gains, making them attractive investment options for investors seeking higher returns.
5. Do banks sell corporate bonds?
Issuers sell bonds to raise capital, typically governments, banks, or corporations. Underwriters, such as investment banks, assist in the bond sales process. Bond purchasers include corporations, governments, and individuals buying the issued debt securities.
Introduction to Corporate Bonds In India
Corporate Bonds In India – Best Corporate Bonds In India – AUM, NAV
HDFC Corp Bond Fund
The HDFC Corporate Bond Fund Direct Plan-Growth, managed by HDFC Mutual Fund, is a corporate bond mutual fund scheme with a 10-year and 9-month track record. It currently manages assets worth ₹26,855 Crores.
ICICI Pru Corp Bond Fund
The ICICI Prudential Corporate Bond Fund Direct Plan-Growth, offered by ICICI Prudential Mutual Fund, is a corporate bond mutual fund scheme with a tenure of 10 years and 9 months. Currently, the fund manages assets worth ₹23,243 Crores.
SBI Corp Bond Fund
The SBI Corporate Bond Fund Direct – Growth, offered by SBI Mutual Fund, is a corporate bond mutual fund scheme with a history of 4 years and 9 months. Presently, the fund oversees assets worth ₹19,616 Crores.
Best Corporate Bonds – Expense Ratio
Axis CRISIL IBX 70:30 CPSE Plus SDL April 2025 Index Fund
The CRISIL IBX 70:30 CPSE Plus SDL – April 2025 is a portfolio comprising AAA rated bonds issued by CPSEs (Central Public Sector Enterprises) and State Development Loans (SDLs). These bonds are set to mature between November 01, 2024, and April 30, 2025. The management of this index is overseen by CRISIL Indices Limited.
Nippon India Nifty AAA CPSE Bond Plus SDL – Apr 2027 Maturity 60:40 Index Fund
The objective of the scheme is to deliver investment returns that closely align with the total returns of securities represented by the Nifty AAA CPSE Bond Plus SDL Apr 2027 60:40 Index before accounting for expenses, while taking into consideration potential tracking errors.
Kotak Nifty AAA Bond Jun 2025 HTM Index Fund
The investment objective of the fund is to generate returns matching the Nifty AAA Bond Jun 2025 HTM Index (before fees and expenses), which tracks the performance of AAA rated bonds from Public Sector Undertakings, Housing Finance Companies, Non-Banking Financial Companies, and Banks maturing near the index’s target date, while minimizing tracking errors.
Top Rated Corporate Bond Funds – CAGR 3Y
Nippon India Corp Bond Fund
The Nippon India Corporate Bond Fund Direct-Growth is a corporate bond mutual fund scheme offered by Nippon India Mutual Fund. With a history of 10 years and 9 months, the fund has demonstrated a 3-year Compounded Annual Growth Rate (CAGR) of 5.75%.
Axis Corp Debt Fund
The Axis Corporate Debt Fund Direct – Growth, managed by Axis Mutual Fund, is a corporate bond mutual fund scheme with a tenure of 6 years and 3 months. It has shown a Compound Annual Growth Rate (CAGR) of 5.34%.
Aditya Birla SL Corp Bond Fund
The Aditya Birla Sun Life Corporate Bond Fund Direct-Growth, offered by Aditya Birla Sun Life Mutual Fund, is a corporate bond mutual fund scheme with a history of 10 years and 9 months. It has demonstrated a Compound Annual Growth Rate (CAGR) of 5.20%.
Best Corporate Bonds In India – Exit Load
Kotak Corporate Bond Fund
The Kotak Corporate Bond Fund Direct-Growth, managed by Kotak Mahindra Mutual Fund, is a corporate bond mutual fund scheme with a tenure of 10 years and 9 months. This fund does not have any exit loads.
Bandhan Corp Bond Fund
The Bandhan Corporate Bond Fund Direct-Growth, offered by Bandhan Mutual Fund, is a corporate bond mutual fund scheme with a tenure of 7 years and 9 months. This fund does not impose any exit loads on investors.
Aditya Birla SL Nifty SDL Plus PSU Bond Sep 2026 60:40 Index Fund
The Aditya Birla Sun Life Nifty SDL Plus PSU Bond Sep 2026 60:40 Index Fund is an open-ended scheme designed to track the Nifty SDL Plus PSU Bond Sep 2026 60:40 Index. This fund carries a relatively high-interest rate risk, indicating sensitivity to changes in interest rates, but it also features relatively low credit risk, suggesting a lower probability of default on the underlying bonds.
Top Corporate Bond Funds – Absolute Returns – 1Y
Tata Corp Bond Fund
The Tata Corporate Bond Fund Direct-Growth, managed by Tata Mutual Fund, is a corporate bond mutual fund scheme with a tenure of 1 year and 11 months. It has delivered an absolute return of 7.48% over the past one year.
HDFC Corp Bond Fund
The HDFC Corporate Bond Fund Direct Plan-Growth, managed by HDFC Mutual Fund, is a corporate bond mutual fund scheme with a 10-year and 9-month track record. It currently manages assets worth ₹26,855 Crores.
Nippon India Corp Bond Fund
The Nippon India Corporate Bond Fund Direct-Growth is a corporate bond mutual fund scheme offered by Nippon India Mutual Fund. With a history of 10 years and 9 months, the fund has demonstrated a 3-year Compounded Annual Growth Rate (CAGR) of 5.75%.
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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change over time.
