Best Corporate Bond Mutual Funds
Corporate bond funds lend mainly to high-rated companies (AA+ and above). They aim for a little more yield than government debt while keeping credit risk low.
Top corporate bond mutual funds by 3Y returns
20Direct plan, Growth option — ranked by 3-year CAGR. Open a fund for NAV history, rolling returns, risk metrics and peer rank.
As of 06 Oct 2026, Franklin India Corporate Bond Fund (Direct plan, Growth option) leads corporate bond mutual funds on 3-year CAGR at +8.00%, followed by Baroda BNP Paribas Corporate Bond Fund at +7.83% and Axis Corporate Bond Fund at +7.68%. Across 21 corporate bond mutual funds the category averaged +7.28% over three years, at an average expense ratio of 0.33%. All figures are computed from public AMFI NAV history and recomputed daily; past returns do not predict future ones.
| 1 | Franklin India Corporate Bond Fund Franklin Templeton | ★★★★★ | +5.9% | +8.0% | +6.8% | 0.26% | — |
| 2 | Baroda BNP Paribas Corporate Bond Fund Baroda BNP Paribas | ★★★★★ | +5.5% | +7.8% | — | 0.21% | ₹274.70Cr |
| 3 | Axis Corporate Bond Fund Axis | ★★★★☆ | +5.0% | +7.7% | +6.8% | 0.36% | ₹7,770Cr |
| 4 | Nippon India Corporate Bond Fund Nippon India | ★★★★☆ | +4.8% | +7.5% | +6.8% | 0.37% | ₹9,244Cr |
| 5 | DSP Corporate Bond Fund DSP | ★★★★☆ | +5.9% | +7.5% | +6.1% | 0.29% | ₹2,840Cr |
| 6 | Kotak Corporate Bond Fund Kotak Mahindra | ★★★☆☆ | +4.6% | +7.4% | +6.4% | 0.36% | ₹15,006Cr |
| 7 | HSBC Corporate Bond Fund HSBC | ★★★☆☆ | +4.8% | +7.4% | — | 0.33% | ₹6,017Cr |
| 8 | ICICI Prudential Corporate Bond Fund ICICI Prudential | ★★★★★ | +5.2% | +7.3% | +6.7% | 0.37% | ₹29,754Cr |
| 9 | UTI - Corporate Bond Fund UTI | ★★★☆☆ | +4.8% | +7.3% | +6.3% | 0.32% | ₹4,752Cr |
| 10 | Tata Corporate Bond Fund Tata | ★★★☆☆ | +4.6% | +7.3% | — | 0.32% | ₹2,976Cr |
| 11 | SBI Corporate Bond Fund SBI | ★★☆☆☆ | +4.6% | +7.2% | +6.3% | 0.37% | ₹22,136Cr |
| 12 | Bandhan Corporate Bond Fund Bandhan | ★★★☆☆ | +5.4% | +7.2% | +6.2% | 0.36% | ₹13,651Cr |
| 13 | Mirae Asset Corporate Bond FundSmall fund Mirae Asset | ★★☆☆☆ | +4.7% | +7.2% | +6.1% | 0.28% | ₹44.35Cr |
| 14 | Invesco India Corporate Bond Fund Invesco | ★★☆☆☆ | +4.2% | +7.2% | +6.1% | 0.29% | ₹4,065Cr |
| 15 | PGIM India Corporate Bond FundSmall fund PGIM India | ★★☆☆☆ | +4.3% | +7.1% | +6.3% | 0.37% | ₹85.50Cr |
| 16 | Sundaram Corporate Bond Fund Sundaram | ★★★★☆ | +4.4% | +7.1% | +6.1% | 0.33% | ₹624.07Cr |
| 17 | Aditya Birla Sun Life Corporate Bond Fund Aditya Birla Sun Life | ★★★☆☆ | +4.1% | +7.1% | +6.3% | 0.34% | ₹23,279Cr |
| 18 | HDFC Corporate Bond Fund HDFC | ★★☆☆☆ | +3.9% | +7.0% | +6.2% | 0.38% | ₹30,387Cr |
| 19 | Union Corporate Bond Fund Union | ★☆☆☆☆ | +3.7% | +6.9% | +5.8% | 0.41% | ₹299.71Cr |
| 20 | TRUSTMF Corporate Bond FundSmall fund Trust | ★☆☆☆☆ | +4.4% | +6.9% | — | 0.26% | ₹94.09Cr |
NAV data as of 06 Oct 2026. Returns are CAGR for periods ≥1 year, computed from AMFI NAV history. Ratings are WealthTicker’s own, ranked within sub-category peers — not a SEBI or agency rating. See our methodology for every formula. This is data, not investment advice.
Popular comparisons
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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.
Credit risk funds returned 6.50%, but read the jumps
25 May 2026
The median credit risk fund returned 6.50% in the year to 22 May 2026, against 3.48% for corporate bond funds. Four of 12 got a lift from one-day NAV jumps.
Frequently asked questions
What are corporate bond mutual funds?
Corporate bond funds lend mainly to high-rated companies (AA+ and above). They aim for a little more yield than government debt while keeping credit risk low.
Which is the best corporate bond fund right now?
Franklin India Corporate Bond Fund by Franklin Templeton currently ranks first among corporate bond mutual funds by 3-year CAGR at +8.00%. Rankings move with NAVs — past returns don't guarantee future performance.
What returns have corporate bond mutual funds given?
The category has averaged +4.74% over 1 year, +7.28% annualized over 3 years, +6.29% annualized over 5 years — peer averages over the live funds in the category, computed from AMFI NAV history.
How are corporate bond mutual funds taxed?
Debt taxation: all gains are added to your income and taxed at your slab rate, regardless of holding period (for units bought on or after 1 April 2023).