{"id":5610,"date":"2025-05-09T10:42:40","date_gmt":"2025-05-09T05:12:40","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=5610"},"modified":"2025-05-09T10:42:43","modified_gmt":"2025-05-09T05:12:43","slug":"bond-fund","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/bond-fund\/","title":{"rendered":"Bond Funds: Meaning, List, Features, Benefits &#038; More"},"content":{"rendered":"\n<p>The investment world offers investors a plethora of options and opportunities to grow wealth. A popular investment vehicle is bond funds. These funds are a kind of <a href=\"https:\/\/www.tickertape.in\/blog\/mutual-funds\/?utm_source=blog&amp;utm_medium=article\">mutual fund<\/a> that largely invests in fixed income securities like government and corporate bonds. But what are bond funds? How are they different from bonds? Is there any risk involved? Let us find out.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/bond-fund\/#List-of-Bond-Funds\" title=\"List of Bond Funds\">List of Bond Funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/bond-fund\/#What-Is-A-Bond-Fund\" title=\"What Is A Bond Fund?\">What Is A Bond Fund?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/bond-fund\/#Types-of-Bond-Funds\" title=\"Types of Bond Funds\">Types of Bond Funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/bond-fund\/#Features-of-Bond-Funds\" title=\"Features of Bond Funds\">Features of Bond Funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/bond-fund\/#Who-Should-Invest-In-Bond-Funds\" title=\"Who Should Invest In Bond Funds?\">Who Should Invest In Bond Funds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/bond-fund\/#The-Measure-Of-Bond-Fund-Performance\" title=\"The Measure Of Bond Fund Performance\">The Measure Of Bond Fund Performance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/bond-fund\/#Bonds-Vs-Bond-Funds\" title=\"Bonds Vs. Bond Funds\">Bonds Vs. Bond Funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/bond-fund\/#Why-Do-Investors-Prefer-Bond-Funds\" title=\"Why Do Investors Prefer Bond Funds?\">Why Do Investors Prefer Bond Funds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/bond-fund\/#Risks-Associated-With-Bond-Funds\" title=\"Risks Associated With Bond Funds\">Risks Associated With Bond Funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/blog\/bond-fund\/#Taxation-Rules-Of-Corporate-Bond-Mutual-Funds\" title=\"Taxation Rules Of Corporate Bond Mutual Funds\">Taxation Rules Of Corporate Bond Mutual Funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tickertape.in\/blog\/bond-fund\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.tickertape.in\/blog\/bond-fund\/#Frequently-Asked-Questions-About-Bond-Funds\" title=\"Frequently Asked Questions About Bond Funds\">Frequently Asked Questions About Bond Funds<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.tickertape.in\/blog\/bond-fund\/#1-What-is-the-investment-tenure-of-a-corporate-bond\" title=\"1. What is the investment tenure of a corporate bond?\">1. What is the investment tenure of a corporate bond?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.tickertape.in\/blog\/bond-fund\/#2-Are-corporate-bonds-profitable\" title=\"2. Are corporate bonds profitable?\">2. Are corporate bonds profitable?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.tickertape.in\/blog\/bond-fund\/#3-Which-is-better-FD-or-bonds\" title=\"3. Which is better, FD or bonds?\">3. Which is better, FD or bonds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.tickertape.in\/blog\/bond-fund\/#4-What-are-the-best-bond-funds\" title=\"4. What are the best bond funds?\">4. What are the best bond funds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.tickertape.in\/blog\/bond-fund\/#5-Which-bonds-give-the-highest-return\" title=\"5. Which bonds give the highest return?\">5. Which bonds give the highest return?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"List-of-Bond-Funds\"><\/span>List of Bond Funds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Name<\/strong><\/td><td><strong>Sub Category<\/strong><\/td><td><strong>AUM<\/strong><\/td><td><strong>CAGR 3Y<\/strong><\/td><td><strong>Expense Ratio<\/strong><\/td><td><strong>CAGR 5Y<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/uti-dynamic-bond-fund-M_UTBM\">UTI Dynamic Bond Fund<\/a><\/td><td>Dynamic Bond Fund<\/td><td>465.14<\/td><td>8.21<\/td><td>0.71<\/td><td>9.66<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/aditya-birla-sl-dynamic-bond-fund-M_ADTMN\">Aditya Birla SL Dynamic Bond Fund<\/a><\/td><td>Dynamic Bond Fund<\/td><td>1,836.65<\/td><td>9.80<\/td><td>0.64<\/td><td>8.62<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/icici-pru-all-seasons-bond-fund-M_ICCBS\">ICICI Pru All Seasons Bond Fund<\/a><\/td><td>Dynamic Bond Fund<\/td><td>14,362.97<\/td><td>9.30<\/td><td>0.59<\/td><td>7.95<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/hdfc-dynamic-debt-fund-M_HDFBY\">HDFC Dynamic Debt Fund<\/a><\/td><td>Dynamic Bond Fund<\/td><td>798.68<\/td><td>8.72<\/td><td>0.75<\/td><td>7.94<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/axis-corp-bond-fund-M_AXCB\">Axis Corp Bond Fund<\/a><\/td><td>Corporate Bond Fund<\/td><td>6,773.20<\/td><td>8.26<\/td><td>0.32<\/td><td>7.66<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/kotak-dynamic-bond-fund-M_KODO\">Kotak Dynamic Bond Fund<\/a><\/td><td>Dynamic Bond Fund<\/td><td>2,825.57<\/td><td>9.01<\/td><td>0.58<\/td><td>7.63<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/360-one-dynamic-bond-fund-M_IILP\">360 ONE Dynamic Bond Fund<\/a><\/td><td>Dynamic Bond Fund<\/td><td>706.72<\/td><td>8.54<\/td><td>0.27<\/td><td>7.61<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/nippon-india-corp-bond-fund-M_NIRU\">Nippon India Corp Bond Fund<\/a><\/td><td>Corporate Bond Fund<\/td><td>6,998.47<\/td><td>8.38<\/td><td>0.36<\/td><td>7.52<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/aditya-birla-sl-corp-bond-fund-M_ADTCR\">Aditya Birla SL Corp Bond Fund<\/a><\/td><td>Corporate Bond Fund<\/td><td>25,884.32<\/td><td>8.23<\/td><td>0.33<\/td><td>7.33<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/icici-pru-corp-bond-fund-M_ICPCA\">ICICI Pru Corp Bond Fund<\/a><\/td><td>Corporate Bond Fund<\/td><td>31,133.02<\/td><td>8.18<\/td><td>0.35<\/td><td>7.31<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><em>Disclaimer: Please note that the above table is for educational purposes only, and is not recommendatory in nature. Please do your own research or consult your financial advisor before investing.<\/em><\/p>\n\n\n\n<p>Note: The data on this list of overnight mutual funds is from 8th May 2025 and derived using<a href=\"https:\/\/www.tickertape.in\/screener\/mutual-fund?utm_source=blog&amp;utm_medium=article\"> Tickertape Mutual Fund Screener<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What-Is-A-Bond-Fund\"><\/span>What Is A Bond Fund?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A bond fund is a debt fund that invests 80% of its portfolio in different kinds of bonds like government securities and corporate bonds. It is a pooled investment with the convenience of professional selection and <a href=\"https:\/\/www.tickertape.in\/blog\/portfolio-management\/?utm_source=blog&amp;utm_medium=article\">portfolio management<\/a>. Some portion of the portfolio can be invested in the money market, generally, to meet the liquidity requirements.&nbsp;<\/p>\n\n\n\n<p>The <a href=\"https:\/\/www.tickertape.in\/blog\/mitigating-portfolio-risk-through-diversification\/?utm_source=blog&amp;utm_medium=article\">portfolio<\/a> is sufficiently diversified to minimise credit risk. Its structure diversifies risk inexpensively. With bond funds, investors have the opportunity to collect interest income, dividends, and <a href=\"https:\/\/www.tickertape.in\/blog\/long-term-capital-gain-on-share\/?utm_source=blog&amp;utm_medium=article\">long-term capital gains<\/a> (LTCG), or reinvest them back into the fund to increase the principal amount that will earn interest.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types-of-Bond-Funds\"><\/span>Types of Bond Funds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Bond investment funds are broadly classified based on the credit quality of the instruments and their maturity profiles.&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>Corporate Bond Funds<\/strong>: These funds allocate at least 80% of their assets to high-rated corporate debt instruments. They focus on delivering relatively stable returns by investing in companies with strong credit ratings.<br><\/li>\n\n\n\n<li><strong>Government Bond Funds (Gilt Funds)<\/strong>: These invest in sovereign securities issued by the government. While they carry minimal credit risk, they can be sensitive to interest rate fluctuations.<br><\/li>\n\n\n\n<li><strong>Dynamic Bond Funds<\/strong>: These funds actively adjust their portfolio duration in response to changing interest rate scenarios. They invest across short-term and long-term debt instruments without restriction.<br><\/li>\n\n\n\n<li><strong>Credit Risk Funds<\/strong>: These carry higher credit risk as they invest a substantial portion in lower-rated corporate bonds, aiming for higher yields.<br><\/li>\n\n\n\n<li><strong>Short-Term and Ultra-Short-Term Bond Funds<\/strong>: These focus on debt bond funds with shorter maturities. They suit investors with a low-risk appetite and a short investment horizon.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Features-of-Bond-Funds\"><\/span>Features of Bond Funds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Bond fund investments are preferred by conservative investors seeking relatively predictable income and capital preservation. Here are some notable features:<\/p>\n\n\n\n<ul>\n<li><strong>Professional Management<\/strong>: Bond mutual funds for SIP are managed by fund managers and an investment team who buy and sell bonds according to market conditions and the objectives of the fund. There is no compulsion for them to hold the bonds till maturity.<br><\/li>\n\n\n\n<li><strong>Diversification<\/strong>: Many investors find a bond fund more efficient than individual bond securities as it provides instant diversification with minimum investment apart from liquidity.<br><\/li>\n\n\n\n<li><strong>Liquidity<\/strong>:You can sell bond investment funds whenever you want for their prevalent market <a href=\"https:\/\/www.tickertape.in\/blog\/mutual-fund-nav\/?utm_source=blog&amp;utm_medium=article\">net asset value<\/a> (NAV) that brings capital gain or loss. Note that a fund\u2019s NAV fluctuates in response to interest rates, credit quality, currency values, and overall cash flows of bond funds.<br><\/li>\n\n\n\n<li><strong>Interest Rate Sensitivity<\/strong>: Bond fund NAVs are influenced by interest rate movements. Typically, bond prices fall when interest rates rise, and vice versa.<br><\/li>\n\n\n\n<li><strong>Credit Risk<\/strong>: While corporate bond funds mostly invest in high-rated instruments (AA+ and above), other bond funds like credit risk funds carry a higher probability of default.<br><\/li>\n\n\n\n<li><strong>Regular Income Potential<\/strong>: These funds may provide high-return bond funds in the form of dividends or capital appreciation, although payouts are not guaranteed<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who-Should-Invest-In-Bond-Funds\"><\/span>Who Should Invest In Bond Funds?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Investors with a low-risk profile who want regular returns but without equity exposure generally prefer to invest in debt bond funds. You can purchase low-risk bond funds if you prefer stable returns over possible but uncertain capital appreciation in the equity market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The-Measure-Of-Bond-Fund-Performance\"><\/span>The Measure Of Bond Fund Performance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The performance of a bond fund, like all funds, depends on its underlying assets. There are certain other factors too that affect its performance. The past performance of a fund is not a guarantee of future results.<\/p>\n\n\n\n<ul>\n<li><strong>Share price: <\/strong>Every fund has a NAV which represents the value of one share of the fund that fluctuates daily.<\/li>\n\n\n\n<li><strong>Yield: <\/strong>The yield is the income generated by the underlying bonds in the fund. Based on the 30-day annualised yield, one can check the fund\u2019s average yield to know the yield potential of the fund.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Bonds-Vs-Bond-Funds\"><\/span>Bonds Vs. Bond Funds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Bond funds differ from individual bonds in several ways. Have a look at this table for a better understanding.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><\/td><td>Bonds&nbsp;<\/td><td>Bond Funds<\/td><\/tr><tr><td>Maturity Date<\/td><td>Defined<\/td><td>Undefined<\/td><\/tr><tr><td>Redemption<\/td><td>At par on maturity&nbsp;<\/td><td>At current NAV<\/td><\/tr><tr><td>Variables Affecting Investment<\/td><td>\u2013 Interest rate risk reduces as the bond maturity date is near<br>\u2013 Affected hugely from default<\/td><td>\u2013 Constant interest rate risk<br>\u2013 The lesser impact from the default<\/td><\/tr><tr><td>Liquidity<\/td><td>Only high quality and popular bonds are easy to liquidate<\/td><td>Generally highly liquid<\/td><\/tr><tr><td>Fees<\/td><td>Commission added to the cost of purchase<\/td><td>Annual management fees and sales commission<\/td><\/tr><tr><td>Types<\/td><td>Vary by issuer, maturity, credit quality, interest rate<\/td><td>Dynamic bond Funds, Income funds, term-based, strategy or investment objective-based, etc.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why-Do-Investors-Prefer-Bond-Funds\"><\/span>Why Do Investors Prefer Bond Funds?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li><strong>Easier to invest: <\/strong>Most investors find bond funds attractive investment options as these are easier to invest in than individual bonds. You get professional assistance from <a href=\"https:\/\/www.tickertape.in\/blog\/portfolio-manager\/?utm_source=blog&amp;utm_medium=article\">portfolio managers<\/a>.&nbsp;<\/li>\n\n\n\n<li><strong>Liquidity:<\/strong> Bond funds offer high liquidity. However, a fund\u2019s liquidity is affected by supply and demand, and the credit of the fund company.<\/li>\n\n\n\n<li><strong>Easy accessibility: <\/strong>You can explore bond funds for long-term investment directly from the fund company through brokers or banks. You can do this via unit investment trusts, open-end funds, closed-end funds, ETFs (<a href=\"https:\/\/www.tickertape.in\/blog\/exchange-traded-funds\/?utm_source=blog&amp;utm_medium=article\">exchange-traded funds<\/a>), and <a href=\"https:\/\/www.tickertape.in\/blog\/money-market-mutual-fund\/?utm_source=blog&amp;utm_medium=article\">money market funds<\/a>.<\/li>\n\n\n\n<li><strong>Quick diversification: <\/strong>Since debt bond funds are diversified investments with a pool of different bonds, they minimise the risk involved. Even if one or two bonds do not perform well, your monthly interest from the fund does not get impacted hugely.<\/li>\n\n\n\n<li><strong>Cost-efficiency: <\/strong>Bond investment funds result in cost efficiency as an investor only pays the annual expense ratio that includes marketing cost, administrative cost, and professional management fees.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Risks-Associated-With-Bond-Funds\"><\/span>Risks Associated With Bond Funds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li><strong>Interest rate risk: <\/strong>Bond price and interest rate carry an inverse relationship. If there is an increase in interest rate, bond prices in the open market reduce, and if interest rates decline, bond prices increase. To understand this relationship, you can see that the longer the maturity period, the higher the interest rate risk because its net asset value (NAV) reacts greatly to the change in prices of the underlying bonds.<\/li>\n\n\n\n<li><strong>Credit risk:<\/strong> A bond fund can be of medium-to-high credit quality or low-investment-grade quality, based on the underlying bonds in the fund. Rating agencies rate these bonds to help investors in identifying the issuer\u2019s creditworthiness. You can find many fund managers investing in high-yield bond funds that are lower-quality bonds. Therefore, bond funds are subject to credit risk.<\/li>\n\n\n\n<li><strong>Principal risk:<\/strong> You sell your share in a bond fund at the fund\u2019s current NAV. NAV is determined by dividing the total value of all holdings in the fund by the number of fund shares. If the fund\u2019s NAV was higher on the day you bought it than its current NAV, you would be at a loss of some of your initial investment.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Taxation-Rules-Of-Corporate-Bond-Mutual-Funds\"><\/span>Taxation Rules Of Corporate Bond Mutual Funds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The taxation on corporate bond mutual funds is as follows:&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>Short-Term Capital Gains (STCG)<\/strong>: Irrespective of the holding period, gains from corporate bond funds are now treated as short-term capital gains. They are added to the investor\u2019s income and taxed as per the applicable income tax slab.<br><\/li>\n\n\n\n<li><strong>Long-Term Capital Gains (LTCG) with Indexation Removed<\/strong>: Earlier, debt mutual funds (including corporate bond funds) held for over three years were eligible for LTCG taxation at 20% with indexation benefits. This benefit has now been removed. All gains are taxed according to the slab rate, even for long-term holdings.<br><\/li>\n\n\n\n<li><strong>Dividend Distribution Tax (DDT)<\/strong>: DDT has been abolished. Dividends received from corporate bond funds are now taxed in the hands of the investor as per their income slab.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Investing in long-term bond funds can offer better liquidity, diversification and cost-efficiency. A bond fund that largely invests in government securities, debentures, and corporate bonds can effectively hedge your portfolio against market risks besides offering stable returns. Talk to your financial advisor before investing in an investment vehicle.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frequently-Asked-Questions-About-Bond-Funds\"><\/span>Frequently Asked Questions About Bond Funds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1746715091704\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"1-What-is-the-investment-tenure-of-a-corporate-bond\"><\/span><strong>1. What is the investment tenure of a corporate bond?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Corporate bonds typically have tenures ranging from 1 to 10 years, though some can extend beyond that. The exact tenure depends on the issuing company and the bond&#8217;s structure.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1746715106383\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"2-Are-corporate-bonds-profitable\"><\/span><strong>2. Are corporate bonds profitable?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Corporate bonds can be profitable, offering higher returns than government bonds or FDs, especially if issued by high-rated companies. However, the risk of default or interest rate changes can impact profitability.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1746715117752\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"3-Which-is-better-FD-or-bonds\"><\/span><strong>3. Which is better, FD or bonds?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Fixed Deposits (FDs) offer capital safety with predictable returns, while bonds\u2014especially corporate bonds\u2014may provide higher returns but carry varying degrees of risk. The better choice depends on your risk appetite and investment goals.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1746715136378\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"4-What-are-the-best-bond-funds\"><\/span><strong>4. What are the best bond funds?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Some of the best performing bond funds according to 3Y CAGR are:\u00a0<\/p>\n<p>&#8211; Kotak Nifty SDL Apr 2032 Top 12 Equal Weight Index Fund<br \/>&#8211; Nippon India Corp Bond Fund<br \/>&#8211; Axis Corp Bond Fund<br \/>&#8211; Aditya Birla SL Corp Bond Fund<br \/>&#8211; HDFC Corp Bond Fund<\/p>\n<p>Note: This list is for educational purposes and is not recommendatory in nature.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1746715162606\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"5-Which-bonds-give-the-highest-return\"><\/span><strong>5. Which bonds give the highest return?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Here are some of the top bond funds according to 3Y Average Rolling Returns:<\/p>\n<p>&#8211; UTI Dynamic Bond Fund<br \/>&#8211; Kotak Nifty SDL Apr 2032 Top 12 Equal Weight Index Fund<br \/>&#8211; Aditya Birla SL Dynamic Bond Fund<br \/>&#8211; Tata Nifty SDL Plus AAA PSU Bond Dec 2027 60:40 Index Fund<br \/>&#8211; SBI Dynamic Bond Fund<\/p>\n<p>Note: This list is for educational purposes and is not recommendatory in nature.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Discover how bond funds in India work, including types, risks, and benefits. Learn about the definition of debt fund and list of top performing bond funds (2025).<\/p>\n","protected":false},"author":45,"featured_media":4947,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[9,1750],"tags":[946,947],"acf":[],"modified_by":"vanessa sequeira","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/10\/15.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/5610"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/45"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=5610"}],"version-history":[{"count":14,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/5610\/revisions"}],"predecessor-version":[{"id":17025,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/5610\/revisions\/17025"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/4947"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=5610"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=5610"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=5610"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}