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Top 7 Corporate Bonds in India

Companies issue corporate bonds to raise funds, which are a type of debt instrument. These bonds provide a fixed rate of interest and are a favoured investment option for those seeking income. In India, several reputable corporate bonds are deemed secure and dependable investments.

 

1. ICICI Prudential Corporate Bond Fund

2. SBI Corporate Bond Fund

3. Aditya Birla Sun Life Corporate Bond Fund

4. Kotak Corporate Bond Fund

5. Nippon India Corporate Bond Fund

6. HDFC Corporate Bond Fund

7. Sundaram Corporate Bond Fund

 

These seven corporate bonds are all rated AA or above by credit rating agencies, which means that they are considered to be of high quality. They also offer a variety of maturities, so investors can choose the one that best suits their needs.

Why Invest in Corporate Bonds?

There are several reasons why investors may want to consider investing in corporate bonds. These reasons include:

Regular income: Investors can receive a consistent flow of income through the fixed rate of interest offered by corporate bonds.

Relative safety: Corporate bonds are considered to be a relatively safe investment, as the issuer is legally obligated to repay the principal and interest on the bonds.

Liquidity: Corporate bonds are traded on the stock exchange, so they can be easily bought and sold.

Tax benefits: Interest income from corporate bonds is taxed at a lower rate than other types of income, such as dividends and capital gains.

How to Invest in Corporate Bonds

There are a number of ways to invest in corporate bonds. One way is to buy individual bonds directly from the issuer. However, this can be a risky proposition, as you would be exposed to the issuer’s credit risk.

Another way to invest in corporate bonds is to buy shares in a corporate bond fund. This is a more diversified investment, as the fund will invest in a variety of bonds. Corporate bond funds are available from a number of mutual fund companies.

Conclusion

If you’re an investor seeking a safe and lucrative investment, corporate bonds might be worth considering. However, it’s important to do your due diligence and research thoroughly before investing in any corporate bond, as there may be risks to consider.