Best Corporate Bonds in India

Corporate Bonds In India – Best Corporate Bonds In India

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. 

NameAUMNAVMinimum SIP
HDFC Corp Bond Fund26855.0828.785000.00
ICICI Pru Corp Bond Fund23243.8927.17100.00
SBI Corp Bond Fund19616.8213.841500.00
Aditya Birla SL Corp Bond Fund17985.7399.25100.00
Bandhan Corp Bond Fund14318.7817.28100.00
SBI CPSE Bond Plus SDL Sep 2026 50:50 Index Fund11151.9010.78500.00
Aditya Birla SL Nifty SDL Plus PSU Bond Sep 2026 60:40 Index Fund10742.5010.86100.00
Kotak Corporate Bond Fund10695.853403.63100.00
Edelweiss Nifty PSU Bond Plus SDL Apr 2026 50:50 Index Fund10358.9811.471000.00
ICICI Pru Nifty PSU Bond Plus SDL Sep 2027 40:60 Index Fund9007.4410.80500.00

Content :

Best Corporate Bonds

The table below shows the Best Corporate Bonds based on the lowest to highest expense ratio. 

NameExpense Ratio
Axis CRISIL IBX 70:30 CPSE Plus SDL April 2025 Index Fund0.14
Nippon India Nifty AAA CPSE Bond Plus SDL – Apr 2027 Maturity 60:40 Index Fund0.15
Mirae Asset Nifty AAA PSU Bond Plus SDL Apr 2026 50:50 Index Fund0.16
Edelweiss Nifty PSU Bond Plus SDL Apr 2026 50:50 Index Fund0.20
ICICI Pru Nifty PSU Bond Plus SDL Sep 2027 40:60 Index Fund0.20
Kotak Nifty SDL Apr 2027 Top 12 Equal Weight Index Fund0.20
Edelweiss Nifty PSU Bond Plus SDL Apr 2027 50:50 Index Fund0.20
Kotak Nifty SDL Apr 2032 Top 12 Equal Weight Index Fund0.20
Aditya Birla SL CRISIL IBX 60:40 SDL + AAA PSU – Apr 2027 Index Fund0.20
Edelweiss CRISIL PSU Plus SDL 50:50 Oct 2025 Index Fund0.20

Top Rated Corporate Bond Funds

The table below shows the Top-Rated Corporate Bond Funds In India based on the Highest 3Y CAGR. 

NameCAGR 3Y
Nippon India Corp Bond Fund5.75
ICICI Pru Corp Bond Fund5.63
Axis Corp Debt Fund5.34
Aditya Birla SL Corp Bond Fund5.20
PGIM India Corp Bond Fund5.17
Franklin India Corp Debt Fund-A5.12
HDFC Corp Bond Fund5.11
Kotak Corporate Bond Fund5.02
UTI Corporate Bond Fund4.75
Bandhan Corp Bond Fund4.72

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.

NameAUMExit LoadAMC
HDFC Corp Bond Fund26855.080.00HDFC Asset Management Company Limited
ICICI Pru Corp Bond Fund23243.890.00ICICI Prudential Asset Management Company Limited
SBI Corp Bond Fund19616.820.00SBI Funds Management Limited
Aditya Birla SL Corp Bond Fund17985.730.00Aditya Birla Sun Life AMC Limited
Bandhan Corp Bond Fund14318.780.00Bandhan AMC Limited
Aditya Birla SL Nifty SDL Plus PSU Bond Sep 2026 60:40 Index Fund10742.500.00Aditya Birla Sun Life AMC Limited
Kotak Corporate Bond Fund10695.850.00Kotak Mahindra Asset Management Company Limited
ICICI Pru Nifty PSU Bond Plus SDL Sep 2027 40:60 Index Fund9007.440.00ICICI Prudential Asset Management Company Limited
Axis Corp Debt Fund4948.130.00Axis Asset Management Company Ltd.
UTI Corporate Bond Fund3078.420.00UTI Asset Management Company Private Limited

Top Corporate Bond Funds

The table below shows the Top Corporate Bond Funds based on Absolute 1 YearReturn.

NameAbsolute Returns – 1Y
Kotak Nifty SDL Apr 2032 Top 12 Equal Weight Index Fund7.98
ICICI Pru Corp Bond Fund7.69
HDFC Corp Bond Fund7.54
Nippon India Corp Bond Fund7.51
Tata Corp Bond Fund7.48
Axis Corp Debt Fund7.40
Axis CRISIL IBX 70:30 CPSE Plus SDL April 2025 Index Fund7.33
Bandhan Corp Bond Fund7.31
Edelweiss CRISIL PSU Plus SDL 50:50 Oct 2025 Index Fund7.31
HSBC Corporate Bond Fund7.30

Looking for the Best Stocks in different sectors? Check out the following articles:

High-beta Stocks
Best Gilt Funds
Best Mutual Funds For Sip
Best Floating Rate Funds
Best Fixed Maturity Plans India
Best Money Market Funds
Best Overnight Fund
Top Credit Risk Fund
Best Dynamic Bond Fund

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.

Mirae Asset Nifty AAA PSU Bond Plus SDL Apr 2026 50:50 Index Fund

The investment objective of the scheme is to replicate the performance of the Nifty AAA PSU Bond Plus SDL Apr 2026 50:50 Index by investing in AAA rated Public Sector Undertaking (PSU) Bonds and State Development Loans (SDL) maturing on or before April 30, 2026, with consideration for potential 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.

Edelweiss CRISIL PSU Plus SDL 50:50 Oct 2025 Index Fund

This fund operates with a fixed maturity period and invests in bonds that mature concurrently with the fund’s tenure. Once the specified duration concludes, the fund is liquidated, and investors receive their initial investment along with the accrued gains. Over the past year, the fund has generated absolute returns of 7.31%.

HSBC Corporate Bond Fund

The HSBC Corporate Bond-Growth is a corporate bond mutual fund scheme offered by HSBC Mutual Fund. With a history of 26 years and 8 months, the fund has delivered absolute returns of 7.30% over the past year.

We hope you’re clear on the topic, but there’s more to explore in stocks, commodities, mutual funds, and related areas. Here are important topics to learn about.

Best Penny Stocks to BuyBest Dividend Yield Fund
Large Cap Stocks List In NseBest Index Funds in India
Best Hotel Stocks in IndiaOil and gas stocks in india
Coffee Stocks IndiaETF vs Mutual Fund
Aviation Stocks in IndiaWhat is Valuation of Shares?
Best Mid Cap Mutual FundCNC Order
Best Multi Asset Allocation FundWhat is Intraday Trading
Most Volatile StocksSub Broker Terminal
best share under 30 rsWhat is Nifty?

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change over time.