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Corporate Bond

About

A Corporate Bond Fund is a category of debt mutual fund that predominantly invests in high-rated corporate bonds.

As per classification by the Securities and Exchange Board of India (SEBI), Corporate Bond Funds must invest at least 80% of total assets in AA+ and above rated corporate bonds.

Fund Type

Key Features

debenture
Minimum 80% in High-Rated (AA+ & Above) Corporate Bonds
inflation
Lower Credit Risk Compared to Credit Risk Funds
finance
Stable Income-Oriented Strategy
government-to-government
Diversified Corporate Debt Portfolio

Taxation

STCG

Holding Period ≤ 36 months, As per Income Tax slap

LTCG

Holding Period > 36 months, As per Income Tax slap

Dividends Tax

Dividends are added to your income, Taxed as per your slab rate. TDS applicable as per rules

Exemption Limit

Basic exemption limit adjustment allowed if total income is below threshold

Indexation

No Indexation

Allocation

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AA+ and above rated corporate bonds
80%
Other
20%

Locked in Period

Nill

Exit Load

An exit load of 0 – 1% is generally applicable if units are redeemed within 3 – 12 months. However, the exact structure may vary based on the specific scheme

Risk Associated

Riskometer Moderate

Find the funds

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully before investing. Past performance is not indicative of future performance.