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Top 3 Corporate Bond Fund SIPs With Over 21% Returns You Can Consider For Your Debt Portfolio
Due to dropping bank interest rates and an increase in financial knowledge among Indian savers, mutual funds are gaining appeal. Mutual funds are a great place for regular investors to put their money to work. Investing in the stock market for the first time might be scary and perplexing. SIPs have been used by savers to invest in mutual funds, allowing them to invest in a disciplined way without worry of market volatility or market timing. Investors can achieve desired asset allocation within mutual funds such as corporate bond funds.
What Are Corporate Bond Mutual Funds?
Corporate bond funds are open-ended debt funds that invest at least 80% of their assets in a company's highest-rated (AAA and AA+) bonds. Because there is no credit risk, many corporate bond funds also invest in government securities.
The duration of the portfolio of the plan is unconstrained. While many people manage short-term portfolios, others prefer to invest in medium-term bonds with maturities ranging from four to seven years in order to get greater returns. These funds are acceptable investment alternatives for risk-averse investors due to the minimal credit risk.
Features Of Corporate Bond Mutual Funds
Returns - Corporate bond funds' returns are determined by the portfolio of the fund.
Risk - Corporate bond funds are funds that invest in corporate debt securities. They have a longer maturity and hence are more vulnerable to interest rate risk.
Volatility - Corporate bond funds are affected by interest rate movements. The volatility will be high when their portfolio has long-duration securities and interest rates go up.
Portfolio of a corporate bond - Corporate debt papers such as bonds, debentures, commercial papers, and structured liabilities must account for at least 80% of a corporate bond portfolio's assets.
Bond prices - Interest rate changes have an impact on bond prices. If interest rates rise, bond prices will decline, and vice versa. Bond prices fluctuate according to the maturity period.
Top 3 Corporate Bond Funds With Over 21% Returns
Annualised Returns
| Corporate Bond Funds | 1-Year | 2-Years | 3-Years | 5-Years | Since Inception |
|---|---|---|---|---|---|
| L&T Triple Ace Bond Fund - Direct Plan - Growth | 6.55% | 6.35% | 9.43% | 8.17% | 8.05% |
| HDFC Corporate Bond Fund - Direct Plan - Growth | 5.51% | 6.98% | 8.33% | 7.90% | 8.50% |
| Aditya Birla Sun Life Corporate Bond Fund - Direct Plan - Growth | 5.22% | 7.17% | 8.19% | 7.87% | 8.57% |
SIP Returns
| Corporate Bond Funds | 1-Year | 2-Years | 3-Years | 5-Years |
|---|---|---|---|---|
| L&T Triple Ace Bond Fund - Direct Plan - Growth | 2.15% | 5.11% | 10.89% | 22.54% |
| HDFC Corporate Bond Fund - Direct Plan - Growth | 2.13% | 5.47% | 10.64% | 21.18% |
| Aditya Birla Sun Life Corporate Bond Fund - Direct Plan - Growth | 2.01% | 5.42% | 10.57% | 21.00% |
Disclaimer
Mutual fund investments are subject to market risk. Read all scheme-related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.
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