Top Corporate Bond Mutual Funds (2026)
Ranked by 3 year return, Direct plans, as on the latest NAV · AUM as on 30-09-2026
There are 21 Corporate Bond mutual funds. Their average 3 year return is 7.0% a year, and +4.0% over the last year. The highest 3 year returns: Franklin India Corporate Bond Fund 7.8%, Baroda BNP Paribas Corporate Bond Fund 7.6%, AXIS Corporate Bond Fund 7.4%.
- Total AUM
- ₹1,69,291 Cr
- As on 30-09-2026
- Funds
- 21
- From 21 fund houses
- Expense ratio
- 0.21% to 0.41%
- Direct plans, lowest to highest
- Average 3Y return
- 7.0%
- A year, Direct plans
All Corporate Bond Funds
Ranked by 3 year return, highest first
Ranked by 3 year return, highest first
| Exit load | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Franklin India Corporate Bond Fund | 1 | 1,409 | +5.32% | +7.80% | +6.72% | +7.49% | -- | 0.26% | None | 1.20% |
| Baroda BNP Paribas Corporate Bond Fund | 2 | 269 | +4.83% | +7.62% | -- | -- | -- | 0.21% | -- | 1.11% |
| AXIS Corporate Bond Fund | 3 | 7,453 | +4.31% | +7.44% | +6.67% | -- | Moderate | 0.36% | None | 1.10% |
| DSP Corporate Bond Fund | 4 | 2,647 | +5.71% | +7.40% | +6.08% | -- | Low to Moderate | 0.29% | None | 0.62% |
| Nippon India Corporate Bond Fund | 5 | 8,907 | +4.02% | +7.28% | +6.65% | +7.16% | Moderate | 0.37% | None | 1.14% |
| HSBC Corporate Bond Fund | 6 | 5,979 | +4.02% | +7.18% | -- | -- | Low to Moderate | 0.33% | None | 1.11% |
| Kotak Corporate Bond Fund | 7 | 14,791 | +3.84% | +7.11% | +6.31% | +7.14% | Moderate | 0.36% | None | 1.10% |
| UTI - Corporate Bond Fund | 8 | 4,569 | +4.06% | +7.06% | +6.23% | -- | Moderate | 0.32% | None | 1.08% |
| Tata Corporate Bond Fund | 9 | 2,676 | +3.93% | +7.03% | -- | -- | Moderate | 0.32% | None | 1.15% |
| ICICI Prudential Corporate Bond Fund | 10 | 28,385 | +4.18% | +7.00% | +6.57% | +7.24% | -- | 0.37% | -- | 1.01% |
| Bandhan Corporate Bond Fund | 11 | 13,512 | +4.87% | +7.00% | +6.09% | +6.90% | Moderate | 0.36% | None | 1.02% |
| SBI Corporate Bond Fund | 12 | 21,803 | +3.84% | +6.99% | +6.20% | -- | -- | 0.37% | -- | 1.09% |
| Mirae Asset Corporate Bond Fund | 13 | 44 | +3.90% | +6.92% | +5.97% | -- | Moderate | 0.28% | None | 1.14% |
| PGIM India Corporate Bond Fund | 14 | 84 | +3.49% | +6.86% | +6.19% | +6.80% | Low to Moderate | 0.37% | None | 1.15% |
| Invesco India Corporate Bond Fund | 15 | 3,478 | +3.30% | +6.83% | +5.99% | +6.41% | Moderate | 0.29% | None | 1.20% |
| Sundaram Corporate Bond Fund | 16 | 619 | +3.64% | +6.82% | +5.99% | +6.84% | Moderate | 0.33% | None | 1.07% |
| Aditya Birla Sun Life Corporate Bond Fund | 17 | 22,722 | +3.27% | +6.75% | +6.20% | +7.14% | Moderate | 0.34% | None | 1.37% |
| TRUSTMF Corporate Bond Fund | 18 | 78 | +3.98% | +6.65% | -- | -- | -- | 0.26% | -- | 1.32% |
| Union Corporate Bond Fund | 19 | 284 | +2.86% | +6.63% | +5.69% | -- | Moderate | 0.41% | None | 1.22% |
| HDFC Corporate Bond Fund | 20 | 29,479 | +2.83% | +6.60% | +6.02% | +7.06% | Moderate | 0.38% | None | 1.28% |
| Canara Robeco Corporate Bond Fund | 21 | 104 | +3.71% | +6.50% | +5.79% | +6.56% | Moderate | 0.36% | None | 0.93% |
Returns of each fund's Direct plan (its only plan where it has one), as on the latest NAV. 3, 5 and 10 year figures are a rate a year. Std dev: how much the daily returns swung over 3 years, as a yearly figure; lower is steadier. Riskometer and exit load from the fund's scheme summary document; "Varies" means the load changes with how long you hold, and the fund page has the full wording. Expense ratio: Direct plan, from AMFI. AUM at the end of the fund's last reported month. A fund younger than 3 years has no rank and is listed after the ranked ones.
Compare Corporate Bond Funds
The largest funds of the category, side by side
- HDFC Corporate Bond vs ICICI Prudential Corporate Bond
- HDFC Corporate Bond vs Aditya Birla Sun Life Corporate Bond
- HDFC Corporate Bond vs SBI Corporate Bond
- ICICI Prudential Corporate Bond vs Aditya Birla Sun Life Corporate Bond
- ICICI Prudential Corporate Bond vs SBI Corporate Bond
- Aditya Birla Sun Life Corporate Bond vs SBI Corporate Bond
How Corporate Bond Funds Are Taxed
As debt funds: 65% or more of each fund is in bonds and money market papers
| When you sell | Tax on the gain |
|---|---|
| Units bought on or after 01-04-2023 | Your slab rate, however long you hold them |
| Units bought before 01-04-2023, within 2 years | Your slab rate |
| Units bought before 01-04-2023, after 2 years | 12.5% of the gain |
- IDCW (dividend) payouts are added to your income and taxed at your slab rate.
- A stamp duty of 0.005% is deducted when you invest.
Rules in force from 23-07-2024 (Finance Act 2024). Tax depends on your own income; this is general information, not tax advice.
What Is a Corporate Bond Fund?
At least 80% in corporate bonds rated AA+ or higher. This is the rule SEBI sets for every fund in the category, so their portfolios can be compared.
Other debt categories: Overnight · Liquid · Ultra Short · Low Duration · Money Market · Short Duration · Medium Duration · Medium to Long Duration · Long Duration · Dynamic Bond · Credit Risk · Banking & PSU · Gilt · Floater
Corporate Bond Funds: Frequently Asked Questions
Which are the top Corporate Bond mutual funds?
By 3 year return, the top Corporate Bond funds are 1. Franklin India Corporate Bond Fund (7.8% a year), 2. Baroda BNP Paribas Corporate Bond Fund (7.6% a year), 3. AXIS Corporate Bond Fund (7.4% a year), 4. DSP Corporate Bond Fund (7.4% a year), 5. Nippon India Corporate Bond Fund (7.3% a year). Past returns do not promise future returns, so also look at costs, risk and how long each fund has done well.
How many Corporate Bond funds are there?
21 Corporate Bond funds are open for investment, from 21 fund houses.
What is a Corporate Bond fund?
At least 80% in corporate bonds rated AA+ or higher.
What is the average return of Corporate Bond funds?
1 year: 4.0%, 3 years: 7.0% a year, 5 years: 6.2% a year. The simple average of every Corporate Bond fund's Direct plan.
Which Corporate Bond fund has the lowest expense ratio?
Baroda BNP Paribas Corporate Bond Fund, at 0.21% a year (Direct plan), as reported to AMFI.
Which is the largest Corporate Bond fund?
HDFC Corporate Bond Fund, with ₹29,479 Cr of investors' money on 30-09-2026.
How are Corporate Bond funds taxed?
As debt funds: for units bought on or after 01-04-2023, the gain is added to your income and taxed at your slab rate, however long you hold them.
This page is information, not investment advice. Mutual fund investments are subject to market risks; read all scheme related documents carefully. Past returns do not promise future returns. Figures come from AMFI, NSE, BSE and each fund house's own documents.