Corporate Bond Funds have been on a rock and roll. Check the increasing AUM of the funds. Investors are flocking on the back of double digit returns in this category. The events of the last few months seem to have had no impact on them. How long is the party to continue?
Let’s find out today.
What are corporate bond funds?
These are debt mutual funds, which invest minimum 80% in highest rated investments. This is one of the big reasons to even consider this category – little or no credit risk.
Know that this definition came from SEBI in Oct 2017 and several existing funds restructured themselves to fit into this category by April – May 2018.
Investors looking for income or fixed income allocation are considering these funds.
Here are some of the largest corporate bond funds.
What is the credit rating profile of these funds?
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