What are corporate bonds?
Corporate bond funds primarily invest in debt securities. Debt papers issued by companies include company bonds, debentures, commercial papers, and structured obligations. Each of these components has a distinct risk profile, and the maturity date varies. Corporate bonds funds, according to the Securities and Exchange Board of India (SEBI), are those that invest at least 80 per cent of their total assets in corporate bonds with the highest credit rating.
Below are some of the best corporate bonds.