Kotak Corporate Bond Fund invests predominantly in high-grade corporate bonds, i.e., debt instruments with a credit rating of AA+ and above. This is an open-ended debt mutual fund scheme. The Fund's target is to provide optimum returns to investors by investing in an actively managed portfolio of debt securities of high-quality corporations. The Fund portfolio includes 96.43% investment in high-grade corporate bonds and a balance of 3.57% in cash and cash equivalents.
Guaranteed Tax Savings
Under sec 80C & 10(10D)₹1 Crore
Invest ₹10k per month*Zero LTCG Tax
Top performing plans with High Returns**
Invest ₹10K/month & Get ₹1 Crore returns*
Kotak Corporate Bond Fund is available in 4 categories:
While Regular plans are those in which investors acquire mutual fund units through the agent network, Direct Plans comprise those in which investors buy mutual fund units straight from the Fund House.
Income Distribution cum Capital Withdrawal (Payout and Reinvestment Facility) (IDCW) is the Plan in which the Scheme offers payout each month with reinvestment. The payout transfer facility is subject to the sufficiency of distributable surplus as per extant SEBI guidelines.
Parameter |
Details |
Fund Name |
Kotak Corporate Bond Fund (Regular & Direct) |
Fund House |
Kotak Mutual Fund |
Launch Date |
September 2007 |
Benchmark |
CRISIL Corporate Bond Fund |
Type |
Open-Ended |
Minimum Investment |
Rs. 5000 Minimum Additional Investment: Rs.1000 Minimum SIP Investment: Rs.1000 Minimum SWP Investment: Rs.1000 |
Lock-in Period |
No Lock-in |
Entry Load |
N.A. |
Exit Load |
N.A. |
Return Performance |
Average |
Fund Consistency |
Average |
Risk Level |
Low |
Kotak Corporate Bond Fund aims to generate returns and capital appreciation by predominantly investing in corporate debt securities of varying maturities across the credit spectrum. The Scheme will seek opportunities across the credit curve and will endeavour to take benefit from superior yield available from time to time. The Fund allocates its corpus across high-grade corporate debt securities, money market instruments, and other instruments, including government securities and below AA+ rated corporate securities. The fund management team endeavours to maintain ample liquidity within the Fund.
In an open-ended scheme, investors get to invest in Kotak Corporate Bond Fund units at NAV-based prices on all business days. The Fund has provided average returns to investors in its category.
Time Period |
Returns Per Year (Annualized) |
6 Months |
1.64% |
1 year |
6.33% |
2 years |
8.01% |
3 years |
8.35% |
5 years |
8.09% |
10-years |
8.48% |
Since Inception |
8.16% |
Time Period |
Returns Per Year (Annualized) |
6 Months |
1.62% |
1 year |
6.32% |
2 years |
6.98% |
3 years |
6.80% |
5 years |
6.34% |
10-years |
6.79% |
Since Inception |
6.25% |
Time Period |
Returns Per Year (Annualized) |
6 Months |
1.82% |
1 year |
6.68% |
2 years |
8.34% |
3 years |
8.68% |
5 years |
8.39% |
Since Inception |
8.73% |
Time Period |
Returns Per Year (Annualized) |
6 Months |
1.81% |
1 year |
6.66% |
2 years |
7.27% |
3 years |
7.07% |
5 years |
6.61% |
Since Inception |
7.03% |
Pros |
Cons |
The Scheme provides returns that are generally higher than bank fixed deposits. |
The Fund has slightly underperformed its benchmark since inception. |
The risk of incurring a loss in a corporate bond fund is minimal. |
The Fund has no scheduled repayment of capital or contracted returns, unlike a bank deposit. |
A corporate bond fund stands to earn stable returns over the medium to long term, notwithstanding the interest rate movements. |
In the short term, corporate bond funds are vulnerable to price volatility due to interest rate movements. |
Investment in Kotak Corporate Bond Fund provides the following benefits to the investors.
While Kotak Corporate Bond Fund is ideal for an investment horizon of 2-3 years, such funds don't suit all investors. Funds such as Kotak Corporate Bond Fund are suitable for investors who wish to invest in the bond market but find it challenging to make any investment decisions due to interest rate movements. Conservative investors, who prefer not to witness volatile price movements, are advised not to venture into debt funds. Investors, who can bear through the risk of short-term price volatility, may look at a 2-3 year investment tenure.
Investors with a target investment period of 2-3 years in debt instruments may consider investing in Kotak Corporate Bond Fund. Prior to investing, it is essential to analyze the past performance of the Fund. Kotak Corporate Bond Fund’s annualized returns have been sub-par compared to the benchmark, CRISIL Composite Debt Index. One may expect to earn higher returns than a bank fixed deposit.
*All savings are provided by the insurer as per the IRDAI approved insurance
plan.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.