Close Menu
Fund Focus News
    Facebook X (Twitter) Instagram
    Trending
    • NFO ongoing: Balancing growth and stability with Bajaj Finserv Equity Savings Fund
    • Active ETFs Are a Top Choice for Model Portfolio Providers
    • Three Ways to Find Deals in Your Investments This Year
    • Stevens Point school district set to receive federal education funds
    • AurealOne- Sponsored Content | ThePrint
    • Retirement mutual funds’ AUM jumps 226% in 5 years: Here are the top 10 performers
    • Specialised investment funds: What investors should know about SEBI’s ₹10 lakh rule
    • Japanese bonds log weekly foreign outflows on BOJ policy caution
    Facebook X (Twitter) Instagram
    Fund Focus News
    • Home
    • Bonds
    • ETFs
    • Funds
    • Investments
    • Mutual Funds
    • Property Investments
    • SIP
    Fund Focus News
    Home»Mutual Funds»Best corporate bond mutual funds to invest in August 2024
    Mutual Funds

    Best corporate bond mutual funds to invest in August 2024

    August 23, 2024


    Are you planning to invest in relatively-safe debt schemes to take care of your near-term goals? Or are you searching for ‘relatively safe’ debt funds to invest for three years or more? If your answer is yes, you can consider investing in corporate bond funds in August 2024.

    These schemes invest at least 80% of their corpus in the papers of the highest-rated companies. This makes them relatively safer than other debt schemes such as credit risk funds. They are also safer than gilt funds and long term debt funds that are highly sensitive to interest rate changes in the economy.

    You should pay attention to these two factors: safety and interest rates. Safety became a crucial factor for debt fund investors after a series of defaults and downgrades in the debt space almost three years ago. The shutting down of six schemes by Franklin Templeton Mutual Fund shook conservative investors in debt schemes. Though the environment is different now, you should still proceed cautiously.

    The second factor of interest rate changes assumes significance at the current juncture. The central banks are trading very cautiously as the inflationary scenario continues to be persistent and they have been warning investors that a rate cut may take time. In India too the RBI has been holding interest rates and it is undecided on the rate cuts.

    Don’t think that corporate bond funds do not have any risk. Sure, the highest rating of AAA offers you higher safety. But make sure your fund manager is not taking any extra risk to make extra returns.

    Here are our recommended corporate bond funds you may consider investing to take care of your short-term investments. There are no changes in the recommendation list this month. If you are investing in these schemes, you can relax and continue with your investments. Follow our monthly updates regularly.Best Corporate Bond Funds to invest in August 2024:
    Methodology:
    ETMutualFunds has employed the following parameters for shortlisting the debt mutual fund schemes.
    1. Mean rolling returns: Rolled daily for the last three years.

    2. Consistency in the last three years: Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H.

    i)When H = 0.5, the series of returns is said to be a geometric Brownian time series. This type of time series is difficult to forecast.

    ii)When H <0.5, the series is said to mean reverting.

    iii)When H>0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series

    3. Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure.
    X =Returns below zero

    Y = Sum of all squares of X

    Z = Y/number of days taken for computing the ratio

    Downside risk = Square root of Z

    4. Outperformance: Fund Return – Benchmark return. Rolling returns rolled daily is used for computing the return of the fund and the benchmark and subsequently the Active return of the fund.

    Asset size: For debt funds, the threshold asset size is Rs 50 crore

    (Disclaimer: past performance is no guarantee for future performance.)



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email

    Related Posts

    NFO ongoing: Balancing growth and stability with Bajaj Finserv Equity Savings Fund

    July 31, 2025

    Retirement mutual funds’ AUM jumps 226% in 5 years: Here are the top 10 performers

    July 30, 2025

    NRI Mutual Fund Taxation: All You Need To Know About TDS And Importance Of Transaction Date In FY25 | Business News

    July 30, 2025
    Leave A Reply Cancel Reply

    Top Posts

    NFO ongoing: Balancing growth and stability with Bajaj Finserv Equity Savings Fund

    July 31, 2025

    Qu’est-ce qu’un green bond ?

    December 7, 2017

    les cat’ bonds deviennent incontournables

    September 5, 2018

    ETF : définition et intérêt des trackers

    May 15, 2019
    Don't Miss
    Mutual Funds

    NFO ongoing: Balancing growth and stability with Bajaj Finserv Equity Savings Fund

    July 31, 2025

    Investing doesn’t have to be about choosing between growth potential and relative stability—some avenues can…

    Active ETFs Are a Top Choice for Model Portfolio Providers

    July 31, 2025

    Three Ways to Find Deals in Your Investments This Year

    July 31, 2025

    Stevens Point school district set to receive federal education funds

    July 31, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    EDITOR'S PICK

    un nouveau label européen promet plus d’exigence

    March 27, 2025

    James Bond : c’est officiel, Denis Villeneuve réalisera le prochain film de la franchise

    June 26, 2025

    succès d’une émission obligataire verte

    May 16, 2025
    Our Picks

    NFO ongoing: Balancing growth and stability with Bajaj Finserv Equity Savings Fund

    July 31, 2025

    Active ETFs Are a Top Choice for Model Portfolio Providers

    July 31, 2025

    Three Ways to Find Deals in Your Investments This Year

    July 31, 2025
    Most Popular

    ₹10,000 monthly SIP in this debt mutual fund has grown to over ₹70 lakh in 23 years

    June 13, 2025

    ₹1 lakh investment in these 2 ELSS mutual funds at launch would have grown to over ₹5 lakh. Check details

    April 25, 2025

    ZIG, BUZZ, NANC, and KRUZ

    October 11, 2024
    © 2025 Fund Focus News
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.