Amidst the events of the first quarter of 2024, as investors continue in their good wisdom, they are on a hunt for the best stocks. Among these is corporate bonds which is a very good investment opportunity One thing to consider about these bonds which provide a steady stream of income and some stability is that they are an ideal position to help improve and asset allocation as well as a portfolio growth system.
In this article, we’ll explore some of the top corporate bonds to consider for investment in 2024.
Corporate bonds
Before we delve into the top-rated corporate bonds for investment in 2024, let’s do some explanation on what it means to have corporate bonds.
Corporate bond is a debt security that an organization issues in order to raise funds. Most often, this capital is utilized by the organization to grow business, pay off bills or meet other business needs. The issuance of corporate bonds has become one of the most popular ways for organizations to obtain money required for their activities. This is because it costs much less than borrowing from a bank.
Generally, investors will invest in mutual funds when investing in corporate bonds as such. A company can be regarded as a corporate bond mutual fund if more than 80% of its investment budget goes into loans.
Top Corporate Bonds 2024
Now that you know what they mean and how they work, let us move on to some of the best 2024’s corporate issues. As an investor, you may choose investing your money into corporate bond funds and look forward to profiting from market trends.
SBI Corporate Bond Fund Direct-Growth
This fund invests in corporate bonds and is a growth-oriented fund offered directly by SBI.
Given above is the list of Best Corporate Bond Funds for investing money in which State Bank of India Corporate Bond Fund Direct Growth stands higher than others. Even though this is a moderate risk associated with the fund, it has displayed a run-up factor of 5. 48 per cent within the last three years.
This fund arrives in a comparatively big amount of Rs 20,164. 54 crores. It has been able to get funds above money 1.9 billion USD and it has been able to provide about 7% per annual to their investors. Besides, the fund is available without any exit load and its expense ratio is as low as 0. 34%.
ICICI Prudential Corporate Bond Fund Direct Plan-Growth
Another corporate bond fund that investors likely to invest in includes ICICI Prudential corporate bond fund direct plan growth. Indeed, you have rightly pointed out that in the last 3 years the fund has provided a run-up of about 6. 23%, so it becomes a very good chance where people can invest their money.
Corporation fund of ICICI Prudential today has fund size of Rs 27350. 22 crores along with an average return percentage of 7. 7%. Consequently, the fund emerges as a good choice for putting your money into corporate bonds with total expense ratio of 0. Lower MIPR charges at 34% and absence of an exit load.
Kotak Corporate Bond Fund Direct-Growth
A direct-growth mutual fund that invests in corporate bonds is called Kotak Corporate Bond Fund.
Having one-year looking strictly at their performance the past one-year run-up stands at 7. 35%, the corpus of the Kotak Corporate Bond Fund’s direct growth can be another good option to invest in corporate bonds. It is as near safe as any investment because it is affiliated to the Kotak group. Further, the said fund’s fund size is quite reasonable standing at Rs 12,144. 90 crore and a mean of 7 percent return ratio. 3%.
Also, no exit load is charged on the fund with an expense ratio of only 0. 34%.
Franklin India Corporate Debt Fund
Franklin India Corporate Debt Fund, commenced investment from January 1, 2023; the fund will also be an excellent pick for you as well. The fund also has awesome annualized returns of 7%. Can grow by 09% per annum and currently the size of the fund is 729. 87 crores.
Franklin India also has zero exit load and an expense ratio of 0.2%.
Conclusion
Thus, one can conclude that investing in corporate bonds can be rather advantageous for investors. Thus, for investors, a corporate bond is just like giving out a loan to a business entity. Thus, to invest in such funds will mean an acquisition of a fraction of an ownership in the company.
Investing in corporate bonds, an investor does not expect to make a profit in the same way as investment in share but he enjoys interest. Thus, although the capital that you invest will be at risk, it will be so only under conditions indicated by the worst-case scenario, such as when a business fails. It is in this respect that most corporate bonds pay interest, semi-annually, every six months, or in some cases, monthly, quarterly or annually and hence offer an opportunity of getting returns at systematic intervals.