Maximize Your Returns: Best Corporate Bond Mutual Funds for Investment in November 2024
Corporate bond mutual funds are an investment option for securing debt schemes if you want to invest for short-term goals or if you are looking for a relatively safe debt fund for more than three years. You should try to invest in corporate bond mutual funds.
What are Corporate Bond Mutual Funds?
This is a debt fund that invests 80% of its corpus in high-rated corporate bonds, which makes them the safest schemes as compared to the other debt schemes, such as credit risk funds. Corporate bond mutual funds are also safer than long-term debt and gilt funds, which are more vulnerable to interest rate volatility in the economy.
Two Important Factors
You need to consider these two factors while investing in the fund:
1. Safety: After a series of credit downgrades and defaults in the debt market three years ago, safety became an important factor for debt fund investors. The six schemes that are closing down by Franklin Templeton Mutual Fund have shaken conservative investors in debt schemes. While the environment is different now, it is still not a good idea to invest blindly.
2. Interest rates: The second-factor affecting is interest rate change that is quite important. Because of continuing inflationary pressures, the central banks are trading at their pace cautiously and have informed the investors that rate cuts can take time. Similarly, the RBI in India is sticking to the current interest rates and is not confirming whether any rate cuts can be done.
Here is the list of the best corporate bond funds you can invest in to protect your short-term investments. If you start investing in these schemes, you can remain relaxed while your investments continue to grow.
Best Corporate Bond Funds for Investment in November 2024
- HDFC Corporate Bond Fund
- Aditya Birla Sun Life Corporate Bond Fund
- ICICI Prudential Corporate Bond Fund
- Sundaram Corporate Bond Fund
If you are thinking that corporate bond funds are risk-free, remember that the highest rating of AAA gives you higher safety. In this case, you have to make sure that the fund manager is not taking any risk to generate extra returns.
