Best corporate bond mutual funds to invest in 2024

economictimes.indiatimes.com:

corporate bond funds.

These schemes invest at least 80% of their corpus in the papers of the highest-rated companies. This makes them relatively safer than other debt schemes such as credit risk funds. They are also safer than gilt funds and long term debt funds that are highly sensitive to interest rate changes in the economy.

You should pay attention to these two factors: safety and interest rates. Safety became a crucial factor for debt fund investors after a series of defaults and downgrades in the debt space almost three years ago. The shutting down of six schemes by Franklin Templeton Mutual Fund shook conservative investors in debt schemes. Though the environment is different now, you should still proceed cautiously.

Best MF to invest

Looking for the best mutual funds to invest? Here are our recommendations.

The second factor of interest rate changes assumes significance at the current juncture. The central banks are trading very cautiously as the inflationary scenario continues to be persistent and they have been warning investors that a rate cut may take time. In India too the RBI has been holding interest rates and it is undecided on the rate cuts.
Don't think that corporate bond funds do not have any risk. Sure, the highest rating of AAA offers you higher safety. But make sure your fund manager is not taking any extra risk to make extra returns.

Here are our recommended corporate bond funds you may consider investing to take care of your short-term investments. Follow our monthly updates regularly.

Best Corporate Bond Funds to invest in 2024:

• HDFC Corporate Bond Fund
  
  
• Aditya Birla Sun Life Corporate Bond Fund
  
  
• ICICI Prudential Corporate Bond Fund
  
  
• Sundaram Corporate Bond Fund

Methodol