Ab dar kaisa? Stay protected from market volatility. Corporate Bond Mutual Funds have delivered ~9% CAGR returns in the last 3 years. Explore our top 3 picks in the calculator below and get started!
Source: ICICIdirect Research, Accord Fintech
Data as on August 12, 2021
“I prefer debt funds for my fixed income allocation especially Corporate Bond Funds because these funds offer me stable returns with quality.”
– Seasoned investor, Investing with ICICIdirect for 4 + years
“I invest in Corporate Bond Funds as these help me generate income through investing predominantly in AA+ and above rated bonds while maintaining the balance of yield, safety & liquidity.”
– 35 year old investor, recently started investing with ICICIdirect
“Corporate Bond Funds are a reliable source of income for my portfolio and also help me accumulate money for my short term needs.”
– 31 year old investor, Investing with ICICIdirect for 8+ years
Login to ICICI Direct and click on "Trending Recommendations" in Mutual Fund section
Click on Corporate Bond Funds, select a scheme from recommendations & click on 'Buy'
Provide investment details & confirm to place the order
A Corporate Bond Fund is a mutual fund which invests more than 80% of portfolio in high-rated corporate bonds. A Corporate Bond is a financial instrument that allows a private or public corporation to borrow money from investors. In exchange, the company promises to repay the money on a specified date on maturity and makes regular coupon payment to investors.
There are broadly two types of corporate bonds in which these funds invest in –
1. Top-rated companies which have high credit ratings (AA+ or above) - Generally top public sector unit (PSU) companies, banks and Navratnas
2. Companies having a lower credit rating of AA-
Corporate Bond Funds are a good choice for investors seeking for fixed income allocation to generate stable returns while ensuring safety of the invested capital. These funds are ideal for risk-averse people looking with investment horizon ranging from 1-3 years generally.
It is not necessary to have a large sum of money to invest in Corporate Bond Funds. Most schemes allow you to start a lump sum (one –time) investment with an amount of Rs 5,000. You can also start a SIP in these schemes with an amount as low Rs 500 per month.
Corporate Bond Funds are taxed like debt mutual funds. Capital Gains from investment in these funds held for less than three years will be taxable at the individual's income tax slab rates. At the same time, capital gains from investments with a tenure of more than three years are taxable at 20% with indexation benefits. The latter makes these funds more tax-efficient compared to an investment like fixed deposit.
After you place your order, you can view the details of your transaction from the Order Book in ICICIdirect.com. Also an email will be sent to your registered email address.
Yes, you can transact at any time of the day. However, in order to get the applicable NAV for the current day you would have to transact before the cut-off time of the scheme. If you place any order after the said cut-off time, you would be eligible for applicable NAV of the next day. As per SEBI guidelines the cut-off time for accepting orders in Non-liquid funds (including Corporate Bond Funds) is 1500 hrs. However, taking into account internal transaction processing time, ICICIdirect.com has kept the cut-off time, for accepting orders in Non-liquid funds (including Corporate Bond Funds) as 1420 hrs.
Yes, you can place your request even on a holiday. However, the request would be processed on the next business day and your order will be processed as per applicable NAV of the next business day
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