Corporate bond mutual fund

Tue, 12 May 2026 00:00:00 +0000

A corporate bond mutual fund in India is an open-ended debt scheme that must invest a minimum of 80% of its total assets in the highest-rated corporate bonds – specifically AA+ and above rated corporate debt instruments – under SEBI ’s October 2017 scheme categorisation circular. This mandatory quality screen restricts corporate bond funds to investment-grade, near-sovereign-quality corporate paper, limiting credit risk while exposing investors to the yield spread that high-rated corporations offer above government securities.

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Corporate bond mutual fund