Kotak Corporate Bond FundICICI Prudential Corporate Bond FundNippon India Prime Debt FundAditya Birla Sun Lie Corporate Bond FundHDFC Corporate Bond FundHere's the monthly update on our recommended corporate bond schemes. We will update you every month about the performance of these schemes.As per Sebi norms, corporate bond funds have the mandate to invest at least 80% of their corpus in the highest-rated corporate bonds. But the chances of them defaulting or suddenly becoming junk-rated are remote.Corporate bond funds are less volatile than credit-risk funds, long-term debt schemes and gilt schemes, say mutual fund advisors. Corporate bond funds category has offered 9.24% returns in the last one year.Mutual fund advisors believe that if you are looking for a debt mutual fund scheme to invest for a medium term of three to five years and don't want to take too much risk on your investment, you may think of investing in corporate bond funds. In other words, if you have a moderate risk profile and you want invest for a medium term without thinking about the market forces like interest rates, you may invest in corporate bond funds.

Source: Economic Times February 20, 2020 07:07 UTC