Corporate Bond Funds: quality company debt

Corporate bond funds must invest at least 80% in the highest-rated (AA+ and above) company bonds. They aim for better yields than government debt with controlled credit risk.

• Risk: mostly interest-rate movement; credit risk is low if it sticks to top ratings.
• Horizon: typically 2–4 years.

Useful for the debt portion of a portfolio when you want yield without chasing low-rated paper. Debt taxation (slab) applies.

→ Compare them in the screener.