Aditya Birla Sun Life Corporate Bond Fund

The Aditya Birla Sun Life Corporate Bond Fund is an open mutual fund that primarily invests in debt bonds and moderate-risk money market instruments. The fund prioritizes investing in debt and money market securities issued by the central or state government and the corporates.

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Fund in Brief

The Aditya Birla Sun Life Corporate Bond Fund has been in the market for more than 24 years. Currently, it is being managed by the Aditya Birla Sun Life Mutual Fund (ABSLMF). To maintain generating promising returns, the fund invests a majority of its assets in highest rated money market securities.

The fund is offered in two types of plans:

  • Aditya Birla Sun Life Corporate Bond Fund Regular plan
  • Aditya Birla Sun Life Corporate Bond Fund Direct plan

Both regular and direct plans are further offered in three categories:

  • Growth option
  • Monthly Income Distribution and Cash Withdrawal (IDCW) option
  • Income Distribution and Cash Withdrawal option

Aditya Birla Sun Life Corporate Bond Fund Facts

Fund House

Aditya Birla Sun Life Mutual Fund House

Asset Management Company (AMC)

Aditya Birla Sun Life AMC Limited

Fund Category

Corporate Bond

Fund Class

Debt

Launch date

March 4, 1997

Benchmark

Primary benchmark - NIFTY Corporate Bond Tri 

Open/Close

Open 

Risk level

Moderate

Investment amount

Minimum investment: INR 100
Maximum investment: no limit

Entry load

Zero

Exit load

Zero

Investment Objective

Aditya Birla Sun Life Corporate Bond Fund has the primary objective to generate the maximum possible returns over a short investment period. Accordingly, Aditya Birla Sun Life Mutual Fund House invests in the AA+ and above rated government or corporate bonds and money market securities. 

The mutual fund house constantly monitors the economic conditions and the market fluctuations to ensure the stable performance of the fund. Investments are made only when the securities show promising return trends. The constant monitoring also helps the fund house invest in the market when conditions are most favourable to yield positive results.

The fund house avoids moderate risks by strategically investing across different sectors. However, it must be noted that the investments are not always safe from market fluctuations. 

Fund Summary

  1. Aditya Birla Sun Life Corporate Bond Fund Regular Plan

    • Risk: Moderate
    • Expense Ratio (as of July 31, 2021): 0.46% 
    • Net Asset Value (NAV): INR 88.23 (as of August 25, 2021)
    • Returns: 6.55% (1 year)
    • Compound Annual Growth Rate (CAGR): 9.3% p.a. (since inception)
  2. Aditya Birla Sun Life Corporate Bond Fund Direct Plan

    • Risk: Moderate
    • Expense Ratio (as of July 31, 2021): 0.3% 
    • Net Asset Value (NAV): INR 89.14 (as of August 25, 2021)
    • Returns: 6.71 (1 year)
    • Compound Annual Growth Rate (CAGR): 8.93% p.a. (Since inception)

    In the IDCW payout or reinvestment option, the payment of dividends depends on the surplus availability and the appearance of your name in the unitholders' register. The dividends less than INR 250 are directly reinvested or sent to the unitholder’s account in case the value exceeds.

    Besides, the dividends are reinvested by default under the IDCW reinvestment or growth option.

Fund Return Summary

The following table shows the return summary for the Aditya Birla Sun Life Corporate Bond Fund (direct/regular) plan:

Tenure  

Percentage return

1 year

6.55%

3 years

9.25%

5 years

8.23%

Since inception

9.29%

*Returns are subject to change.

*The investment risk in the investment portfolio is borne by the policyholder.

Pros and Cons

Pros

Cons

Affordable expense ratio

Not suitable for long-term investment goals

Comparatively lower risk than equity-based funds

The chances are that you might still lose the capital invested.

Generates promising returns over the short term

Backed by risk mitigation strategies such as spreading out investments across various sectors

Benefits of the Aditya Birla Sun Life Corporate Bond Fund

If you are planning to invest in this fund, then the following are the benefits of the Aditya Birla Sun Life Corporate Bond Fund that you should know about:

  • Involves moderate risk: The investments of this fund are focused on debts and stable securities, unlike equity funds. As a result, the fund involves moderate risk, which is suitable for a majority of investors. 
  • Focuses on short-term goals: The fund aims to generate good returns in a short time, helping you achieve your short-term goals, ranging between 3 months to 2 years. Thus, you can safely invest your money for a short period and gain returns to fulfil personal needs.
  • Consistent performance: The fund has consistent performance in all its years of run in the market. Consequently, it has gained the trust of several investors.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Fund House Details

The Aditya Birla Sun Life Corporate Bond Fund is offered by the Aditya Birla Sun Life Mutual Fund House (ABSLMF). It is managed by the Aditya Birla Sun Life Asset Management Company (ABSLAMC). ABSLMF is one of the most trusted fund houses with a long successful run in the market. 

ABSLMF aims at popularizing mutual funds among people by designing products that simplify investments in mutual funds. They offer all types of mutual fund investment options ranging from low-risk debt funds to high-risk equity funds and cater to almost all types of investment goals of investors.

The ABSLAMC is a partnership venture between Sun Life AMC Investments Inc and Aditya Birla Capital Limited. They focus on smart investment strategies based on market analysis. 

The major shareholders of the Aditya Birla Sun Life Corporate Bond Fund are Reverse Repo, Larsen & Toubro Ltd, Reliance Industries Ltd, National Bank for Agriculture & Rural Development, and Power Finance Corp Ltd. 

Who Should Invest in the Aditya Birla Sun Life Corporate Bond Fund?

Under the following conditions, you may consider investing in Aditya Birla Sun Life Corporate Bond Fund:

  • If you have short-term investment goals or simply want to park your surplus for short and simultaneous returns
  • If you do not have high risk appetite 
  • If you prefer investing only in debt bonds

In Conclusion

The Aditya Birla Sun Life Corporate Bond Fund is a moderate-risk fund ideal for short-term investment. It aims at generating the maximum possible returns by investing in the highest-rated market securities. 

The investments are strategized through constant market analysis and making the most of current market situations. It is a reliable investment option as indicated through its positive track record.

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