Why these four
Of the 20 corporate bond funds with a published average AUM for the July–September 2026 quarter, these four are the largest: HDFC Corporate Bond, ICICI Prudential Corporate Bond, Aditya Birla Sun Life Corporate Bond, and SBI Corporate Bond. Together they hold ₹1,05,556 crore, 61% of the category. Corporate bond funds put at least 80% in the highest-rated company debt. With the credit risk set by rule, what is left to separate funds is the duration they run, the fees they take and how they behaved in the months when yields moved. Every figure is for the Direct plan, Growth option, from NAVs to 22 October 2026.
| Fund | Average AUM, July–September 2026 (₹ crore) | Share of category | Direct plan expense ratio |
|---|---|---|---|
| HDFC Corporate Bond | 30,387 | 17.5% | 0.38% |
| ICICI Prudential Corporate Bond | 29,754 | 17.2% | 0.37% |
| Aditya Birla Sun Life Corporate Bond | 23,279 | 13.4% | 0.34% |
| SBI Corporate Bond | 22,136 | 12.8% | 0.37% |
Returns
| Fund | 1 year | 3 years | 5 years | 10 years |
|---|---|---|---|---|
| HDFC Corporate Bond | 2.72% | 6.64% | 6.01% | 7.05% |
| ICICI Prudential Corporate Bond | 4.12% | 7.01% | 6.56% | 7.23% |
| Aditya Birla Sun Life Corporate Bond | 3.03% | 6.77% | 6.16% | 7.13% |
| SBI Corporate Bond | 3.78% | 7.01% | 6.17% | – |
| Category median | 3.78% | 7.01% | 6.14% | 7.05% |
Returns of a year or more are compounded annual rates. Over three years ICICI Prudential Corporate Bond led at 7.01% and HDFC Corporate Bond was lowest at 6.64%, a gap of 0.37 points a year against a category median of 7.01%. All four were positive over one year.
Calendar years
| Year | HDFC Corporate Bond | ICICI Prudential Corporate Bond | Aditya Birla Sun Life Corporate Bond | SBI Corporate Bond | Category median |
|---|---|---|---|---|---|
| 2022 | 3.56% | 4.78% | 4.25% | 3.76% | 3.73% |
| 2023 | 7.49% | 7.83% | 7.48% | 7.11% | 7.16% |
| 2024 | 8.82% | 8.28% | 8.73% | 8.41% | 8.41% |
| 2025 | 7.60% | 8.19% | 7.57% | 8.17% | 8.02% |
| 2026 to 22 Oct | 2.09% | 3.13% | 2.33% | 3.00% | 3.06% |
The four funds were never more than 1.22 points apart in any calendar year, so fees and duration matter more than which year you look at. A dash means the fund did not hold a full record for that year.
Risk
| Fund | Volatility (3 yr) | Worst fall (3 yr) | Sharpe ratio | Now vs peak |
|---|---|---|---|---|
| HDFC Corporate Bond | 1.3% | −1.4% | 0.11 | −1.4% |
| ICICI Prudential Corporate Bond | 1.0% | −0.9% | 0.50 | −0.9% |
| Aditya Birla Sun Life Corporate Bond | 1.4% | −1.2% | 0.19 | −1.2% |
| SBI Corporate Bond | 1.1% | −0.8% | 0.46 | −0.5% |
| Category median | 1.1% | −0.7% | 0.47 | −0.6% |
ICICI Prudential Corporate Bond was the steadiest of the four on three-year volatility (1.0%) and Aditya Birla Sun Life Corporate Bond the bumpiest (1.4%). Volatility is the annualised standard deviation of daily returns; the worst fall is the deepest peak-to-trough drop in the last three years. The Sharpe ratio uses a 6.5% risk-free rate.
What a monthly SIP earned
| Fund | 3-year SIP return (a year) | 5-year SIP return (a year) |
|---|---|---|
| HDFC Corporate Bond | 5.19% | 6.12% |
| ICICI Prudential Corporate Bond | 6.00% | 6.69% |
| Aditya Birla Sun Life Corporate Bond | 5.34% | 6.22% |
| SBI Corporate Bond | 5.94% | 6.49% |
| Category median | 5.94% | 6.49% |
SIP returns are annualised (XIRR) for ₹10,000 a month. They differ from lump-sum returns because each instalment buys at a different price.
Cost
Among the four, Aditya Birla Sun Life Corporate Bond charged the lowest Direct expense ratio at 0.34% and HDFC Corporate Bond the highest at 0.38%. On a ₹10 lakh holding that is a difference of ₹400 a year. Expense ratios are deducted from the NAV every day, so they are already inside the returns shown above.
Reading the comparison
- Size is not a verdict. These are the largest funds in the category, not the best; a fund's rank by AUM says nothing about its rank by return.
- Three years is a short window for an equity fund. A fund that led while yields fell may lag when they rise.
- Returns are historical, computed from NAVs, and not a forecast.
- This is not a recommendation to buy or sell any fund.
- Corporate bond fund returns in October 2026
- Short duration against corporate bond funds
- All corporate bond funds
Source: AMFI NAVs to 22 October 2026; AMFI average AUM for July–September 2026; fund houses' TER disclosures.
Frequently asked questions
Which is the biggest corporate bond fund in India?
By average AUM for July–September 2026, HDFC Corporate Bond at about ₹30,387 crore, ahead of ICICI Prudential Corporate Bond (₹29,754 crore), Aditya Birla Sun Life Corporate Bond (₹23,279 crore) and SBI Corporate Bond (₹22,136 crore).
Which of the four biggest corporate bond funds has the best 3-year return?
ICICI Prudential Corporate Bond, at 7.01% a year to 22 October 2026, against 6.64% for HDFC Corporate Bond and a category median of 7.01%. Direct plan, Growth option.
Which has the lowest expense ratio?
Aditya Birla Sun Life Corporate Bond, at 0.34% for the Direct plan; HDFC Corporate Bond charges 0.38%.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are WealthTicker’s own calculations from public data — AMFI’s fund NAVs and disclosures, NSE’s index and FII/DII files, and the fund houses’ monthly portfolios (how we calculate). They are as of the dates stated and can be revised by their source.
Keep reading
Corporate bond funds returned 4.47% in a year to October
The median corporate bond fund returned 4.47% in the year to 9 October 2026, short of the median liquid fund's 6.50%. The range ran from 3.53% to 5.94%.
Short duration vs corporate bond funds in 2026
In the year to 30 September 2026, the median short duration fund returned 5.26% and the median corporate bond fund 4.95%, with lower volatility too.
Dynamic bond funds returned 3.54% in a year to October
The median dynamic bond fund returned 3.54% in the year to 9 October 2026, down from 5.25% in August. Only five of 22 beat the median corporate bond fund.