A Corporate Bond Fund is a category of debt mutual fund mandated by SEBI to invest at least 80% of its total assets, typically those with AAA or AA+ ratings. Top Corporate Bonds like ICICI Prudential Corporate Bond, Nippon India Corporate Bond, Kotak Corporate Bond, Axis Corporate Bond and many more, act as a "middle path" for investors. They offer higher yields than government securities while maintaining significantly lower credit risk than lower-rated debt instruments.
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These bonds come with interesting features, some of which are:
Since the associated costs are lower than bank loans, corporate bond funds are becoming more popular as a debt instrument for businesses to raise required funds.
Here are the top 10 Corporate Bond Funds:
| Fund Name | AUM | Return 3 Years | Return 5 Years | Return 10 Years | Minimum Investment | Return Since Launch |
|---|---|---|---|---|---|---|
| ICICI Prudential Corporate Bond Fund Direct Plan -Growth | ₹33,573.85 Crs | 7.74% | 6.71% | 7.63% | ₹100 | 8.09% |
| Nippon India Corporate Bond Fund Direct-Growth | ₹10,013.39 Crs | 7.79% | 6.85% | 7.49% | ₹1,000 | 7.88% |
| HSBC Fixed Term Series 46 Regular-Growth | NA | N/A | N/A | N/A | ₹10,000 | N/A |
| Aditya Birla Sun Life Corporate Bond Fund Regular-Growth | ₹28,596.86 Crs | 7.22% | 6.25% | 7.42% | ₹100 | 8.8% |
| Axis Corporate Bond Fund Regular-Growth | ₹9,402.54 Crs | 7.21% | 6.06% | N/A | ₹100 | 6.74% |
| HDFC Corporate Bond Fund Regular-Growth | ₹35,968.16 Crs | 7.21% | 6.08% | 7.35% | ₹100 | 7.96% |
| SBI Corporate Bond Fund Regular - Growth | ₹25,257.51 Crs | 7.01% | 5.79% | N/A | ₹5,000 | 6.78% |
| Bandhan Corporate Bond Fund Regular-Growth | ₹15,925.42 Crs | 7% | 5.78% | 6.94% | ₹1,000 | 6.96% |
| Franklin India Corporate Debt Fund Direct-Growth | ₹1,108.76 Crs | 8.07% | 6.66% | 7.92% | ₹10,000 | 8.36% |
| Axis Corporate Bond Fund Direct-Growth | ₹9,402.54 Crs | 7.87% | 6.73% | N/A | ₹100 | 7.49% |
Predominantly invests in AA+ and above-rated bonds to balance safety and liquidity. It is known for its high Asset Under Management (AUM) and consistent track record in providing stable, short-to-medium-term returns.
| Parameters | Details |
| Fund Name | ICICI Prudential Corporate Bond Fund Direct Plan -Growth |
| NAV | |
| AUM | ₹33,573.85 Crs |
| Expense Ratio | 0.36% |
| Return 5 Years | 6.71% |
| Minimum Investment | SIP ₹1000 & Lumpsum ₹100 |
| Risk Level | Principal at moderate risk |
| Launch Date | NA |
| Asset Allocation | Debt: 86.93%, Others: 13.07% |
| Top Sectors | NA |
| Top Holdings |
|
| Fund Managers |
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| Fund Type | Open-ended |
This fund focuses on a mix of AAA corporate papers and sovereign debt, aiming to maximise income while maintaining a portfolio duration of roughly 1.5 to 1.75 years.
| Parameters | Details |
| Fund Name | Nippon India Corporate Bond Fund Direct-Growth |
| NAV | |
| AUM | ₹10,013.39 Crs |
| Expense Ratio | 0.36% |
| Return 5 Years | 6.85% |
| Minimum Investment | SIP ₹1000 & Lumpsum ₹1,000 |
| Risk Level | Principal at moderate risk |
| Launch Date | NA |
| Asset Allocation | Debt: 95.89%, Others: 4.11% |
| Top Sectors | NA |
| Top Holdings |
|
| Fund Managers | NA |
| Fund Type | Open-ended |
A low-to-moderate risk fund that actively manages a portfolio of high-quality corporate debt. It has historically demonstrated a strong ability to control losses during market downturns.
| Parameters | Details |
| Fund Name | Kotak Corporate Bond Fund Direct-Growth |
| NAV | |
| AUM | ₹17,810.61 Crs |
| Expense Ratio | 0.37% |
| Return 5 Years | 6.51% |
| Minimum Investment | SIP ₹1000 & Lumpsum ₹100 |
| Risk Level | Principal at moderate risk |
| Launch Date | NA |
| Asset Allocation | Debt: 97%, Others: 3% |
| Top Sectors | NA |
| Top Holdings |
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| Fund Managers |
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| Fund Type | Open-ended |
Formerly the ABSL Short Term Fund, it seeks capital growth and regular income through an active management style across high-quality debt and money market instruments.
| Parameters | Details |
| Fund Name | Aditya Birla Sun Life Corporate Bond Fund Regular-Growth |
| NAV | |
| AUM | ₹28,596.86 Crs |
| Expense Ratio | 0.52% |
| Return 5 Years | 6.25% |
| Minimum Investment | SIP ₹1000 & Lumpsum ₹100 |
| Risk Level | Principal at moderate risk |
| Launch Date | 3rd March, 1997 |
| Asset Allocation | Debt: 96.77%, Others: 3.23% |
| Top Sectors | NA |
| Top Holdings |
|
| Fund Managers | NA |
| Fund Type | Open-ended |
Aimed at providing regular income over the short-to-medium term, this fund focuses on high diversification across sectors like banking, finance, and manufacturing to mitigate concentration risk.
| Parameters | Details |
| Fund Name | Axis Corporate Bond Fund Regular-Growth |
| NAV | |
| AUM | ₹9,402.54 Crs |
| Expense Ratio | 0.94% |
| Return 5 Years | 6.06% |
| Minimum Investment | SIP ₹1000 & Lumpsum ₹100 |
| Risk Level | Principal at moderate risk |
| Launch Date | 13th July, 2017 |
| Asset Allocation | Debt: 102.06%, Others: -2.06% |
| Top Sectors | NA |
| Top Holdings |
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| Fund Managers |
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| Fund Type | Open-ended |
One of the largest in the category, it maintains a massive portfolio of top-rated bonds. It is highly regarded for its low expense ratio and steady performance over longer 3-to-5-year horizons.
| Parameters | Details |
| Fund Name | HDFC Corporate Bond Fund Regular-Growth |
| NAV | |
| AUM | ₹35,968.16 Crs |
| Expense Ratio | 0.62% |
| Return 5 Years | 6.08% |
| Minimum Investment | SIP ₹1000 & Lumpsum ₹100 |
| Risk Level | Principal at moderate risk |
| Launch Date | 29th June, 2010 |
| Asset Allocation | Equity: 0.6%, Debt: 96.11%, Others: 3.29% |
| Top Sectors | NA |
| Top Holdings |
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| Fund Managers |
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| Fund Type | Open-ended |
Backed by the reliability of India’s largest bank, it targets additional yield spreads from high-quality corporate debt while keeping a healthy portion in liquid money market instruments.
| Parameters | Details |
| Fund Name | SBI Corporate Bond Fund Regular - Growth |
| NAV | |
| AUM | ₹25,257.51 Crs |
| Expense Ratio | 0.77% |
| Return 5 Years | 5.79% |
| Minimum Investment | SIP ₹1000 & Lumpsum ₹5,000 |
| Risk Level | Principal at moderate risk |
| Launch Date | 1st February, 2019 |
| Asset Allocation | Debt: 91.87%, Others: 8.13% |
| Top Sectors | NA |
| Top Holdings |
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| Fund Managers |
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| Fund Type | Open-ended |
Focuses on providing a "haven" for debt investors by sticking strictly to high-quality issuers. It features a transparent portfolio with significant allocations to AAA and Government of India securities.
| Parameters | Details |
| Fund Name | Bandhan Corporate Bond Fund Regular-Growth |
| NAV | |
| AUM | ₹15,925.42 Crs |
| Expense Ratio | 0.65% |
| Return 5 Years | 5.78% |
| Minimum Investment | SIP ₹1000 & Lumpsum ₹1,000 |
| Risk Level | Principal at low to moderate risk |
| Launch Date | 12th January, 2016 |
| Asset Allocation | Debt: 89.01%, Others: 10.99% |
| Top Sectors | NA |
| Top Holdings |
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| Fund Managers |
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| Fund Type | Open-ended |
This fund is unique for its flexible maturity approach to capture interest rate movements while maintaining a portfolio where roughly 90% is in AAA equivalent instruments.
| Parameters | Details |
| Fund Name | Franklin India Corporate Debt Fund Direct-Growth |
| NAV | |
| AUM | ₹1,108.76 Crs |
| Expense Ratio | 0.25% |
| Return 5 Years | 6.66% |
| Minimum Investment | SIP ₹1000 & Lumpsum ₹10,000 |
| Risk Level | Principal at moderate risk |
| Launch Date | 1st January, 2013 |
| Asset Allocation | Debt: 82.03%, Others: 17.97% |
| Top Sectors | NA |
| Top Holdings |
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| Fund Managers |
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| Fund Type | Open-ended |
Axis Corporate Bond Fund remains a top-tier choice in the debt category, recently earning a 5-star rating from major analysts like Morningstar and Value Research.
| Parameters | Details |
| Fund Name | Axis Corporate Bond Fund Direct-Growth |
| NAV | |
| AUM | ₹9,402.54 Crs |
| Expense Ratio | 0.35% |
| Return 5 Years | 6.73% |
| Minimum Investment | SIP ₹1000 & Lumpsum ₹100 |
| Risk Level | Principal at moderate risk |
| Launch Date | 13th July, 2017 |
| Asset Allocation | Debt: 102.06%, Others: -2.06% |
| Top Sectors | NA |
| Top Holdings |
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| Fund Managers |
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| Fund Type | Open-ended |
| Returns | ||||
|---|---|---|---|---|
| Fund Name | 5 Years | 7 Years | 10 Years | |
| Equity Fund SBI Life | 9.11% | 10.11% |
10.96%
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| Opportunities Fund HDFC Life | 13.4% | 14.07% |
14.02%
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| High Growth Fund Axis Max Life | 18.88% | 20.25% |
17.9%
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| Opportunities Fund ICICI Prudential Life | 12.04% | 12.13% |
12.16%
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| Multi Cap Fund Tata AIA Life | 21% | 19.36% |
22%
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| Accelerator Mid-Cap Fund II Bajaj Life | 13.09% | 12.31% |
13.59%
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| Multiplier Birla Sun Life | 15.38% | 14.25% |
15.15%
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| Virtue II PNB MetLife | 13.33% | 15.22% |
14.41%
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| Equity II Fund Canara HSBC Life | 9.31% | 9% |
10.09%
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| Blue-Chip Equity Fund Star Union Dai-ichi Life | 7.85% | 8.65% |
9.8%
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| Fund Name | AUM | Return 3 Years | Return 5 Years | Return 10 Years | Minimum Investment | Return Since Launch |
|---|---|---|---|---|---|---|
| Motilal Oswal BSE Enhanced Value Index Fund Regular - Growth | ₹822.00 Crs | 30.49% | N/A | N/A | ₹500 | 29.73% |
| Bandhan Small Cap Fund Regular-Growth | ₹14,062.19 Crs | 27.38% | 21.07% | N/A | ₹1,000 | 26.42% |
| Motilal Oswal Midcap Fund Regular-Growth | ₹33,608.53 Crs | 19.53% | 21.14% | 15.9% | ₹500 | 19.14% |
| ICICI Prudential Infrastructure Fund-Growth | ₹7,941.20 Crs | 21.36% | 24.4% | 17.52% | ₹5,000 | 15.04% |
| Canara Robeco Large Cap Fund Regular-Growth | ₹16,406.92 Crs | 12.85% | 10.52% | 13.31% | ₹100 | 11.82% |
| Mirae Asset Large Cap Fund Direct- Growth | ₹39,975.32 Crs | 11.99% | 10.67% | 13.83% | ₹5,000 | 14.75% |
| Kotak Midcap Fund Regular-Growth | ₹57,375.20 Crs | 19.18% | 17.19% | 17.46% | ₹100 | 14.19% |
| SBI Small Cap Fund-Growth | ₹35,562.96 Crs | 11.63% | 13.71% | 16.97% | ₹5,000 | 17.75% |
| SBI Gold ETF | ₹8,810.86 Crs | 31% | 24.4% | 15.7% | ₹5,000 | 13.18% |
Updated as of Feb 2026
Corporate Bonds can be found as
The corporate bond investor is worried about possible interest rates and the credit spread if the extra yield is risk-adequate. A Corporate Bond Fund is a category of debt mutual fund that invests at least 80% of its assets in the highest-rated corporate debt, specifically instruments rated AAA or AA+. The top-rated corporate bonds in India are ICICI Prudential Corporate Bond, Nippon India Corporate Bond, Kotak Corporate Bond, Aditya Birla Sun Life Corporate Bond, SBI Corporate Bond and many more.

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˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI 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.