Corporate Bond Funds Gain Attention in December 2025: Corporate bond funds remain popular among conservative investors in December 2025. With stable interest rates and quality portfolios, these funds offer predictable income and lower risk compared to equities.
ICICI Prudential Corporate Bond Fund Leads: ICICI Prudential Corporate Bond Fund tops the list with a strong AUM of Rs. 35,278 crores. It has delivered steady long-term returns, making it a preferred choice for stability-focused investors.
Strong Performance from HDFC and Nippon India: HDFC Corporate Bond Fund focuses on AAA-rated short-duration papers for liquidity and consistency. Nippon India Corporate Bond Fund offers balanced returns across time periods, suiting cautious investors.
Axis and SBI Corporate Bond Funds Stay Reliable: Axis Corporate Bond Fund stands out for low volatility and disciplined risk management. SBI Corporate Bond Fund attracts conservative investors with stable returns and a strong focus on high-quality bonds.
Why Corporate Bond Funds Look Attractive Now: These funds invest mainly in AAA-rated corporate bonds, reducing credit risk. Returns of around 6.6–7.3% annually beat fixed deposits, while low volatility supports steady portfolio growth.
Key Risks and Investment Considerations: Interest rate changes can impact bond prices, and rare credit downgrades may affect NAVs. Investors should check expense ratios, exit loads, and align investments with a 2–5 year horizon.
Verdict: Ideal for Stable and Predictable Returns: For December 2025, ICICI Prudential leads, while HDFC, SBI, Axis, and Nippon India remain solid options. Corporate bond funds suit risk-averse investors seeking steady income and capital safety.
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