Corporate bond funds belong to the debt mutual fund category and invest a minimum of 80% of their amount/corpus in corporate bonds. These funds primarily focus on top-rated instruments rated AA+ and above, which offer exposure to established companies while targeting relatively stable yields. Additionally, these funds are open-ended and provide liquidity, allowing investors to invest or withdraw capital at their convenience.
Corporate Bond Mutual Funds
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Curated Fund Collection
*₹10 lakh projection assumes ₹100/day for 11 years at an assumed 15% p.a.; actual returns will vary with the market.

What are Corporate Bond Funds?
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How do corporate bond funds work?
These funds operate in the share market just like any standard mutual fund.
Who should invest in Corporate Bond Funds?
Corporate bond funds are suitable for investors:
Before investing in any corporate bond fund, you should evaluate your risk tolerance and align the investment with your financial goals.
How to invest in a corporate bond fund via Paisabazaar?
You can use Paisabazaar to invest in a corporate bond fund. You just have to follow these steps:
Tax Implications on Corporate Bonds
The taxability of corporate bond mutual funds remains the same as debt funds.
| Holding Period of Fund | Long Term Capital Gains (LTCG) | Short Term Capital Gains (STCG) |
| If mutual fund units are bought before April 1, 2023 | Hold for more than 24 months and your gains qualify as LTCG at a flat 12.5%. | Hold for 24 months or less and it's STCG at your slab rate. |
| If mutual fund units bought on or after 1 April 2023 |
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- Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund, or designing a portfolio that suits your needs.
- Paisabazaar Marketing and Consulting Private Limited is an AMFI registered Mutual Fund Distributor - ARN-336712 | ARN Validity period: 08 Aug 2025 to 07 Aug 2028

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