Corporate bond funds in India
21 live funds in the Corporate Bond category, ordered by 5-year return, highest first; Franklin India Corporate Bond Fund leads. Funds younger than five years follow by name. Returns are for the plan each fund's page leads with, Direct where the fund has one, to each fund's latest NAV, the newest of them on 27 Oct 2026; 3 and 5 year returns are a year, compounded.
- Category median, 1 yearCategory median, 1 year. The middle return among the Corporate Bond category's funds, each over the same window to its own latest NAV, on their Direct plans.
- +3.85%Middle of 21 funds
- Category median, 3 yearsCategory median, 3 years. The middle return among the Corporate Bond category's funds, each over the same window to its own latest NAV, on their Direct plans; a year, compounded.
- +6.98%Middle of 21 funds
- Category median, 5 yearsCategory median, 5 years. The middle return among the Corporate Bond category's funds, each over the same window to its own latest NAV, on their Direct plans; a year, compounded.
- +6.14%Middle of 19 funds
Corporate Bond funds
Size is the average money the fund managed over its latest quarter. Cost is its yearly expense ratio.Filter them in the screener
Franklin India Corporate Bond FundFranklin Templeton Mutual FundNAV₹116.25551Y+5.27%3Y+7.78%5Y+6.68%Size₹1,373 CrCost0.26%
Axis Corporate Bond FundAxis Mutual FundNAV₹19.31141Y+4.23%3Y+7.41%5Y+6.64%Size₹7,770 CrCost0.36%
Nippon India Corporate Bond FundNippon India Mutual FundNAV₹66.97061Y+3.92%3Y+7.25%5Y+6.63%Size₹9,244 CrCost0.37%
ICICI Prudential Corporate Bond FundICICI Prudential Mutual FundNAV₹33.30011Y+4.06%3Y+6.95%5Y+6.52%Size₹29,754 CrCost0.37%
Kotak Corporate Bond FundKotak Mahindra Mutual FundNAV₹4,185.82971Y+3.75%3Y+7.07%5Y+6.28%Size₹15,006 CrCost0.36%
UTI Corporate Bond FundUTI Mutual FundNAV₹17.83341Y+4.02%3Y+7.03%5Y+6.21%Size₹4,753 CrCost0.32%
Baroda BNP Paribas Corporate Bond FundBaroda BNP Paribas Mutual FundNAV₹31.32561Y+4.70%3Y+7.57%5Y+6.18%Size₹275 CrCost0.21%
SBI Corporate Bond FundSBI Mutual FundNAV₹16.97161Y+3.82%3Y+6.98%5Y+6.18%Size₹22,136 CrCost0.37%
Aditya Birla Sun Life Corporate Bond FundAditya Birla Sun Life Mutual FundNAV₹120.83561Y+3.11%3Y+6.72%5Y+6.16%Size₹23,279 CrCost0.34%
PGIM India Corporate Bond FundPGIM India Mutual FundNAV₹50.89451Y+3.42%3Y+6.83%5Y+6.14%Size₹85 CrCost0.37%
DSP Corporate Bond FundDSP Mutual FundNAV₹17.57001Y+5.71%3Y+7.40%5Y+6.07%Size₹2,840 CrCost0.29%
Bandhan Corporate Bond FundBandhan Mutual FundNAV₹21.18571Y+4.79%3Y+6.98%5Y+6.06%Size₹13,653 CrCost0.36%
HSBC Corporate Bond FundHSBC Mutual FundNAV₹82.99781Y+3.97%3Y+7.16%5Y+5.99%Size₹6,018 CrCost0.33%
HDFC Corporate Bond FundHDFC Mutual FundNAV₹34.88911Y+2.68%3Y+6.57%5Y+5.98%Size₹30,387 CrCost0.38%
Invesco India Corporate Bond FundInvesco Mutual FundNAV₹3,594.90521Y+3.18%3Y+6.80%5Y+5.96%Size₹4,066 CrCost0.29%
Sundaram Corporate Bond FundSundaram Mutual FundNAV₹43.98751Y+3.55%3Y+6.80%5Y+5.95%Size₹624 CrCost0.33%
Mirae Asset Corporate Bond FundMirae Asset Mutual FundNAV₹13.79291Y+3.82%3Y+6.89%5Y+5.94%Size₹44 CrCost0.28%
Canara Robeco Corporate Bond FundCanara Robeco Mutual FundNAV₹24.58581Y+3.64%3Y+6.47%5Y+5.76%Size₹106 CrCost0.36%
Union Corporate Bond FundUnion Mutual FundNAV₹16.42531Y+2.77%3Y+6.60%5Y+5.65%Size₹300 CrCost0.41%
Tata Corporate Bond FundTata Mutual FundNAV₹13.39261Y+3.85%3Y+7.01%5Y–Size₹2,980 CrCost0.32%
TRUSTMF Corporate Bond FundTrust Mutual FundNAV₹1,274.85821Y+3.91%3Y+6.63%5Y–Size₹94 CrCost0.26%
Tax on corporate bond funds
Gains on units bought on or after 1 Apr 2023 are taxed at the income tax slab rate however long they are held; gains on units bought earlier are taxed at 12.5% when held over 24 months, or over 12 months for a listed fund such as an ETF, and at the slab rate otherwise.
Rules in force from 23 Jul 2024, checked 27 Oct 2026. Surcharge and cess are not included.
About corporate bond funds in India
Corporate bond funds in India are debt mutual funds that put at least 80% of their assets in the highest-rated corporate bonds, those rated AA+ and above. A corporate bond is a loan a company raises from investors, repaid with interest.
What SEBI requires
SEBI's category rule requires a corporate bond fund to invest at least 80% of its total assets in corporate bonds rated AA+ and above. The rule is about credit quality, not about how long the bonds last, so the category sets no duration band.
A rating is a credit agency's opinion of how likely the company is to repay; AAA is the top grade, and AA+ is one step below it.
The 80% is measured after setting aside the 10% of net assets every such fund must keep in liquid assets such as cash and government securities, so at least 72% of net assets sit in AA+ and above corporate bonds. The rest can go into other debt and money market instruments.
Maturity and interest rates
With no duration band, each fund chooses its own, so rate sensitivity differs within the category. Duration (the weighted average time to receive a portfolio's interest and principal) shows how far a fund's NAV, the price of one unit, moves when yields change. A fund with a duration of 3 years loses roughly 3% of value for a 1 percentage point rise in yields.
Neighbouring categories
Banking and PSU funds invest at least 80% in debt issued by banks, public sector undertakings and public financial institutions. Credit risk funds invest at least 65% in bonds rated AA and below. Gilt funds hold government securities, which carry no company credit risk. Short term funds (formerly short duration) are defined by a 1 to 3 year duration band, with no rating minimum.
Tax on gains
A corporate bond fund holds more than 65% in debt and money market instruments, so gains on units bought on or after 1 Apr 2023 are taxed at the holder's income tax slab rate, however long the units are held, and without indexation. Older units keep the earlier holding-period rules.
How the page lists funds
The page lists the live funds in the Corporate Bond category with latest NAV, returns over 1, 3 and 5 years, size and cost. Each fund is shown by its lead plan, the Direct plan where one exists. The 3-year and 5-year returns are annualised, meaning compounded per year.
Funds are sorted by 5-year return, highest first. Funds with less than five years of history follow, sorted by name, and a dash marks a period without enough history. Size is the average money the fund managed over its latest quarter, and cost is its yearly expense ratio. Category medians are the middle Direct-plan return among funds with that period.