Inflows into corporate bond funds have risen to multi-year highs in recent months with the risk-reward dynamics of AAA-rated corporate bonds improving significantly as opposed to government securities (g-secs), especially in the near term.
The inflows jumped sharply in September this year to a multi-year high of ₹5,039 crore. Investors poured in another ₹4,644 crore in October, which coupled with around ₹2,200 crore estimated inflows in November, took the three-month tally to ₹11,883 crore.
According to experts, the higher yields offered by corporate bonds, and the rally in g-secs which has already run most of its course, make a case for corporate bond funds, especially for investors with a short-to-medium investment horizon.
This story is from the December 10, 2024 edition of Business Standard.
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This story is from the December 10, 2024 edition of Business Standard.
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