Corporate Bond Mutual Funds in India
Updated June 2026 · 41 active funds · data from AMFI NAVs
Corporate Bond funds are required by SEBI to invest at least 80% of assets in the highest-rated corporate bonds (AA+ and above). The mandate targets quality credit: the bulk of the portfolio sits in top-rated company debt, limiting default risk while earning a spread over government securities. Duration is not fixed, so funds vary in interest-rate sensitivity, but the defining feature is high credit quality. The role is a core debt allocation for investors who want better yield than gilts or money-market funds without dipping into lower-rated paper - typically a two-to-four-year horizon. Returns are generally steady, with the main risk being interest-rate movement rather than credit defaults, though even AA+/AAA issuers can be downgraded. The default benchmark on FindMF is the NIFTY Corporate Bond Index; note that because this is a CRISIL/NIFTY composite debt index not in our ingested NSE equity feed, alpha and beta may be unavailable for these funds, while returns and risk metrics are fully computed. We derive trailing returns and risk metrics for all 41 Corporate Bond funds from AMFI-published daily NAVs using a disclosed methodology.
Who it suits: Investors with a two-to-four-year horizon wanting a quality-credit core debt holding with better yield than gilts and limited default risk.
95% of the 21 funds here with a computed alpha beat their benchmark over the measured window (positive alpha). Past performance is not indicative; this is analysis, not advice.
| # | Scheme | 1Y | 3Y | 5Y | Sharpe | Max DD | TER | AUM |
|---|---|---|---|---|---|---|---|---|
| 1 | Franklin India Corporate Debt Fund Franklin Templeton | +5.85% | +7.95% | +6.64% | -0.45 | -0.8% | 0.26% | ₹1.3K Cr |
| 2 | Axis Corporate Bond Fund Axis | +5.27% | +7.75% | +6.72% | -0.46 | -0.9% | 0.37% | ₹8.7K Cr |
| 3 | ICICI Prudential Corporate Bond Fund ICICI Prudential | +5.53% | +7.61% | +6.74% | -0.55 | -0.6% | 0.36% | ₹32.8K Cr |
| 4 | BARODA BNP PARIBAS Corporate Bond Fund Baroda BNP Paribas | +5.38% | +7.55% | - | -0.39 | -2.3% | 0.23% | ₹391 Cr |
| 5 | Nippon India Corporate Bond Fund Nippon India | +4.78% | +7.53% | +6.79% | -0.39 | -0.9% | 0.39% | ₹9.1K Cr |
| 6 | Kotak Corporate Bond Fund Kotak Mahindra | +4.85% | +7.47% | +6.46% | -0.68 | -1.0% | 0.37% | ₹17.2K Cr |
| 7 | BANDHAN Corporate Bond Fund Bandhan | +5.26% | +7.38% | +6.05% | -0.92 | -1.6% | 0.33% | ₹14.6K Cr |
| 8 | Tata Corporate Bond Fund Tata | +4.70% | +7.34% | - | -0.57 | -1.7% | 0.32% | ₹4.0K Cr |
| 9 | UTI Corporate Bond Fund UTI | +4.86% | +7.33% | +6.26% | -0.79 | -0.9% | 0.36% | ₹5.4K Cr |
| 10 | Invesco India Corporate Bond Fund Invesco | +4.57% | +7.30% | +6.11% | -0.82 | -1.3% | 0.42% | ₹6.2K Cr |
| 11 | SBI Corporate Bond Fund SBI | +4.60% | +7.27% | +6.21% | -0.79 | -0.9% | 0.37% | ₹22.7K Cr |
| 12 | HDFC Corporate Bond Fund HDFC | +4.24% | +7.25% | +6.27% | -0.66 | -1.5% | 0.38% | ₹33.1K Cr |
| 13 | Aditya Birla Sun Life Corporate Bond Fund Aditya Birla Sun Life | +4.33% | +7.25% | +6.34% | -0.64 | -1.2% | 0.33% | ₹28.0K Cr |
| 14 | PGIM India Corporate Bond Fund PGIM India | +4.68% | +7.25% | +6.31% | -0.74 | -0.7% | 0.28% | ₹84 Cr |
| 15 | HSBC Corporate Bond Fund HSBC | +5.04% | +7.20% | - | -0.07 | -0.7% | 0.30% | ₹6.2K Cr |
| 16 | DSP Corporate Bond Fund DSP | +5.52% | +7.17% | +5.85% | -0.89 | -3.2% | 0.30% | ₹3.3K Cr |
| 17 | Sundaram Corporate Bond Fund Sundaram | +4.49% | +7.07% | +6.00% | -1.04 | -0.7% | 0.32% | ₹706 Cr |
| 18 | Union Corporate Bond Fund Union | +4.11% | +7.05% | +5.78% | -0.98 | -1.5% | 0.40% | ₹584 Cr |
| 19 | Mirae Asset Corporate Bond Fund Mirae Asset | +4.51% | +7.03% | +5.97% | -0.94 | -1.2% | 0.25% | ₹48 Cr |
| 20 | TRUSTMF CORPORATE BOND FUND Trust | +4.47% | +6.91% | - | -0.29 | -0.6% | 0.24% | ₹79 Cr |
Ranked by trailing return (3Y where available, else 1Y) on funds with at least one year of history. Returns, Sharpe, drawdown and TER are computed independently from AMFI NAVs - see methodology. No paid placement.
Frequently asked questions
How are Corporate Bond funds taxed?
As debt funds: for units bought on or after 1 April 2023, the entire gain is taxed at your income-tax slab rate regardless of holding period, with no indexation. Confirm with a tax professional.
Are Corporate Bond funds safe from defaults?
They are relatively safe by design - at least 80% must be in AA+ and above. But even top-rated issuers can be downgraded, and interest-rate risk remains. This is a quality-credit category, not a no-risk one. FindMF shows realised volatility and drawdown from AMFI NAVs.
What expense ratio is reasonable, and how do I compare funds?
Direct-plan ratios commonly run around 0.20-0.60%. Since holdings are similar high-grade paper, cost and duration positioning matter. Compare expense ratio with net trailing returns and volatility on FindMF, all from AMFI NAVs.
Does FindMF show alpha and beta for Corporate Bond funds?
Often not. The NIFTY Corporate Bond benchmark is a composite debt index outside our ingested NSE equity feed, so benchmark-relative metrics may be suppressed and flagged unavailable. Returns, volatility and drawdown are still fully computed from AMFI NAVs.