Table of Contents
Accrual Funds adopt buy & hold strategy and focuses on delivering better returns compared to Bank fixed deposits. These funds take a credit-risk and invest in slightly lower-rated securities, in order to generate higher yields. Accrual Funds can also make returns from the Capital gains, but this tends to be a small portion of their total returns.
Accrual Funds are an ideal investment options for investors who have a view point about the interest rate movements. Accrual Funds, ideally focuses to earn interest Income in terms of coupon offered by Bonds. These are a type of Debt fund which typically invest in short to medium maturity papers. These papers are of mid-to-high quality, while focusing on holding securities until the maturity.
Accrual funds are not entirely immune to the effects of rising interest rates, especially when the rise is steep and fast, but the impact is far lower than on duration funds.
These funds are suitable for investors who want to earn desire stable returns. But, an investor should have a view on interest rates and should also keenly monitor the fund performances. It is advised to invest in Accrual Funds for least a 1-3-year horizon.
To attain desirable stable returns in accrual funds, one needs to take some level of risk as these funds can minimal Volatility. Nevertheless, accrual fund's strategy is more predictable in returns. So, investors with a conservative appetite can invest this fund. Moreover, to attain good returns, it would be advisable to stay invested for a longer duration in accrual funds.
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The Fund seeks to provide steady income and capital appreciation by investing primarily in corporate debt securities across maturities and ratings. There is no assurance or guarantee that the objectives of the scheme will be realised. IDFC Corporate Bond Fund is a Debt - Corporate Bond fund was launched on 12 Jan 16. It is a fund with Moderate risk and has given a Below is the key information for IDFC Corporate Bond Fund Returns up to 1 year are on (Erstwhile ICICI Prudential Ultra Short Term Plan) ICICI Prudential Ultra Short Term Plan is an open-ended income fund that intends to generate regular income through investments in a basket of debt and money market instruments of very short maturities with a view to providing reasonable returns, while maintaining an optimum balance of safety, liquidity and yield. However, there can be no assurance that the investment objective of the scheme will be realized. ICICI Prudential Corporate Bond Fund is a Debt - Corporate Bond fund was launched on 11 Aug 09. It is a fund with Moderately Low risk and has given a Below is the key information for ICICI Prudential Corporate Bond Fund Returns up to 1 year are on The investment objective of the Scheme is to generate income and capital gains through investments in a portfolio of debt and money market instruments. However, there can be no assurance that the investment objectives of the Scheme will be realized. The Scheme launched hereunder does not guarantee/indicate any returns. BNP Paribas Corporate Bond Fund is a Debt - Corporate Bond fund was launched on 8 Nov 08. It is a fund with Moderate risk and has given a Below is the key information for BNP Paribas Corporate Bond Fund Returns up to 1 year are on (Erstwhile Franklin India Income Builder Account - Plan A) The investment objective of the Scheme is primarily to provide investors Regular income under the Dividend Plan and Capital appreciation under the Growth Plan. Franklin India Corporate Debt Fund is a Debt - Corporate Bond fund was launched on 23 Jun 97. It is a fund with Moderate risk and has given a Below is the key information for Franklin India Corporate Debt Fund Returns up to 1 year are on Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2024 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity IDFC Corporate Bond Fund Growth ₹19.3384
↑ 0.04 ₹15,005 3.9 5.5 10 7.6 7.7 7.14% 3Y 11D 3Y 11M 19D ICICI Prudential Corporate Bond Fund Growth ₹29.9361
↑ 0.06 ₹31,133 3.7 5.3 9.7 8.2 8 7.02% 2Y 11M 8D 4Y 10M 17D BNP Paribas Corporate Bond Fund Growth ₹27.7086
↑ 0.08 ₹223 4.7 6.2 11 8.1 8.3 6.87% 3Y 10M 2D 5Y 2M 23D Franklin India Corporate Debt Fund Growth ₹99.9771
↑ 0.24 ₹771 4.8 6.3 10.9 7.8 7.6 7.16% 3Y 9M 25D 7Y 6M 25D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 6 Jun 25 1. IDFC Corporate Bond Fund
CAGR/Annualized
return of 7.3% since its launch. Return for 2024 was 7.7% , 2023 was 6.8% and 2022 was 2.6% . IDFC Corporate Bond Fund
Growth Launch Date 12 Jan 16 NAV (06 Jun 25) ₹19.3384 ↑ 0.04 (0.23 %) Net Assets (Cr) ₹15,005 on 30 Apr 25 Category Debt - Corporate Bond AMC IDFC Asset Management Company Limited Rating Risk Moderate Expense Ratio 0.61 Sharpe Ratio 2.27 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.14% Effective Maturity 3 Years 11 Months 19 Days Modified Duration 3 Years 11 Days Growth of 10,000 investment over the years.
Date Value 31 May 20 ₹10,000 31 May 21 ₹10,776 31 May 22 ₹10,975 31 May 23 ₹11,631 31 May 24 ₹12,418 31 May 25 ₹13,623 Returns for IDFC Corporate Bond Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 6 Jun 25 Duration Returns 1 Month 1.3% 3 Month 3.9% 6 Month 5.5% 1 Year 10% 3 Year 7.6% 5 Year 6.4% 10 Year 15 Year Since launch 7.3% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.7% 2023 6.8% 2022 2.6% 2021 3.7% 2020 11.6% 2019 8.5% 2018 6.3% 2017 6.2% 2016 2015 Fund Manager information for IDFC Corporate Bond Fund
Name Since Tenure Suyash Choudhary 28 Jul 21 3.84 Yr. Gautam Kaul 1 Dec 21 3.5 Yr. Brijesh Shah 10 Jun 24 0.97 Yr. Data below for IDFC Corporate Bond Fund as on 30 Apr 25
Asset Allocation
Asset Class Value Cash 2.96% Debt 96.76% Other 0.28% Debt Sector Allocation
Sector Value Corporate 52.4% Government 44.36% Cash Equivalent 2.96% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.18% Govt Stock 2033
Sovereign Bonds | -16% ₹2,426 Cr 229,500,000
↓ -12,500,000 Bajaj Housing Finance Ltd. 7.78%
Debentures | -7% ₹1,084 Cr 107,500,000
↑ 10,000,000 7.1% Govt Stock 2034
Sovereign Bonds | -5% ₹748 Cr 71,000,000
↓ -15,000,000 Larsen And Toubro Limited
Debentures | -4% ₹569 Cr 55,500,000 Reliance Industries Limited
Debentures | -4% ₹551 Cr 52,000,000
↑ 5,000,000 National Housing Bank
Debentures | -3% ₹525 Cr 52,000,000
↓ -10,000,000 National Bank For Agriculture And Rural Development
Debentures | -3% ₹503 Cr 50,000,000 Nuclear Power Corporation Of India Limited
Debentures | -2% ₹359 Cr 35,000,000 Grasim Industries Limited
Debentures | -2% ₹357 Cr 35,000,000 Export-Import Bank of India 7.4%
Domestic Bonds | -2% ₹357 Cr 34,850,000
↑ 15,000,000 2. ICICI Prudential Corporate Bond Fund
CAGR/Annualized
return of 7.2% since its launch. Ranked 7 in Corporate Bond
category. Return for 2024 was 8% , 2023 was 7.6% and 2022 was 4.5% . ICICI Prudential Corporate Bond Fund
Growth Launch Date 11 Aug 09 NAV (06 Jun 25) ₹29.9361 ↑ 0.06 (0.20 %) Net Assets (Cr) ₹31,133 on 30 Apr 25 Category Debt - Corporate Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.57 Sharpe Ratio 2.4 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 100 Exit Load NIL Yield to Maturity 7.02% Effective Maturity 4 Years 10 Months 17 Days Modified Duration 2 Years 11 Months 8 Days Growth of 10,000 investment over the years.
Date Value 31 May 20 ₹10,000 31 May 21 ₹10,715 31 May 22 ₹11,063 31 May 23 ₹11,869 31 May 24 ₹12,757 31 May 25 ₹13,957 Returns for ICICI Prudential Corporate Bond Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 6 Jun 25 Duration Returns 1 Month 1.2% 3 Month 3.7% 6 Month 5.3% 1 Year 9.7% 3 Year 8.2% 5 Year 6.9% 10 Year 15 Year Since launch 7.2% Historical performance (Yearly) on absolute basis
Year Returns 2024 8% 2023 7.6% 2022 4.5% 2021 4.1% 2020 10.4% 2019 9.9% 2018 6.4% 2017 6.3% 2016 9.8% 2015 8.8% Fund Manager information for ICICI Prudential Corporate Bond Fund
Name Since Tenure Manish Banthia 22 Jan 24 1.36 Yr. Ritesh Lunawat 22 Jan 24 1.36 Yr. Data below for ICICI Prudential Corporate Bond Fund as on 30 Apr 25
Asset Allocation
Asset Class Value Cash 5.28% Debt 94.46% Other 0.26% Debt Sector Allocation
Sector Value Corporate 59.54% Government 35.46% Cash Equivalent 4.74% Credit Quality
Rating Value AAA 99.46% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.1% Govt Stock 2034
Sovereign Bonds | -7% ₹2,267 Cr 215,127,880
↓ -60,000,000 7.81% Govt Stock 2033
Sovereign Bonds | -7% ₹2,040 Cr 196,295,540 6.79% Govt Stock 2034
Sovereign Bonds | -4% ₹1,219 Cr 117,670,450
↑ 14,998,850 National Bank For Agriculture And Rural Development
Debentures | -3% ₹1,074 Cr 106,500 National Bank For Agriculture And Rural Development
Debentures | -3% ₹972 Cr 95,550 Pipeline Infrastructure Private Limited
Debentures | -3% ₹830 Cr 80,500 7.58% LIC Housing Finance Limited (23/03/2035)
Debentures | -2% ₹673 Cr 66,000 7.34% Govt Stock 2064
Sovereign Bonds | -2% ₹625 Cr 58,412,000 Bharat Petroleum Corporation Limited
Debentures | -2% ₹594 Cr 59,000 LIC Housing Finance Ltd
Debentures | -2% ₹527 Cr 5,000 3. BNP Paribas Corporate Bond Fund
CAGR/Annualized
return of 6.3% since its launch. Ranked 24 in Corporate Bond
category. Return for 2024 was 8.3% , 2023 was 7% and 2022 was 1.6% . BNP Paribas Corporate Bond Fund
Growth Launch Date 8 Nov 08 NAV (06 Jun 25) ₹27.7086 ↑ 0.08 (0.28 %) Net Assets (Cr) ₹223 on 30 Apr 25 Category Debt - Corporate Bond AMC BNP Paribas Asset Mgmt India Pvt. Ltd Rating ☆☆☆ Risk Moderate Expense Ratio 0.56 Sharpe Ratio 2.12 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 300 Exit Load 0-12 Months (1%),12-24 Months (0.5%),24-36 Months (0.25%),36 Months and above(NIL) Yield to Maturity 6.87% Effective Maturity 5 Years 2 Months 23 Days Modified Duration 3 Years 10 Months 2 Days Growth of 10,000 investment over the years.
Date Value 31 May 20 ₹10,000 31 May 21 ₹10,593 31 May 22 ₹10,642 31 May 23 ₹11,379 31 May 24 ₹12,103 31 May 25 ₹13,380 Returns for BNP Paribas Corporate Bond Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 6 Jun 25 Duration Returns 1 Month 1.5% 3 Month 4.7% 6 Month 6.2% 1 Year 11% 3 Year 8.1% 5 Year 6.1% 10 Year 15 Year Since launch 6.3% Historical performance (Yearly) on absolute basis
Year Returns 2024 8.3% 2023 7% 2022 1.6% 2021 2.2% 2020 9.9% 2019 0.9% 2018 5.2% 2017 6.7% 2016 10.8% 2015 7.2% Fund Manager information for BNP Paribas Corporate Bond Fund
Name Since Tenure Gurvinder Wasan 21 Oct 24 0.61 Yr. Vikram Pamnani 10 Jul 24 0.89 Yr. Data below for BNP Paribas Corporate Bond Fund as on 30 Apr 25
Asset Allocation
Asset Class Value Cash 3.39% Equity 2.48% Debt 93.87% Other 0.26% Debt Sector Allocation
Sector Value Corporate 59.1% Government 34.78% Cash Equivalent 3.39% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.18% Govt Stock 2033
Sovereign Bonds | -12% ₹26 Cr 2,450,000
↑ 1,550,000 Rec Limited
Debentures | -5% ₹12 Cr 1,200 National Housing Bank
Debentures | -5% ₹11 Cr 1,100 Export Import Bank Of India
Debentures | -5% ₹11 Cr 100 Power Finance Corporation Ltd.
Debentures | -5% ₹10 Cr 1,000 Hindustan Petroleum Corporation Limited
Debentures | -5% ₹10 Cr 100 GAil (India) Limited
Debentures | -5% ₹10 Cr 100 LIC Housing Finance Limited
Debentures | -5% ₹10 Cr 1,000 Bajaj Finance Limited
Debentures | -5% ₹10 Cr 1,000 Tata Capital Housing Finance Limited
Debentures | -4% ₹10 Cr 1,000 4. Franklin India Corporate Debt Fund
CAGR/Annualized
return of 8.6% since its launch. Ranked 22 in Corporate Bond
category. Return for 2024 was 7.6% , 2023 was 6.5% and 2022 was 3.2% . Franklin India Corporate Debt Fund
Growth Launch Date 23 Jun 97 NAV (06 Jun 25) ₹99.9771 ↑ 0.24 (0.24 %) Net Assets (Cr) ₹771 on 30 Apr 25 Category Debt - Corporate Bond AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆☆ Risk Moderate Expense Ratio 0.77 Sharpe Ratio 1.52 Information Ratio 0 Alpha Ratio 0 Min Investment 10,000 Min SIP Investment 500 Exit Load 0-1 Years (0.5%),1 Years and above(NIL) Yield to Maturity 7.16% Effective Maturity 7 Years 6 Months 25 Days Modified Duration 3 Years 9 Months 25 Days Growth of 10,000 investment over the years.
Date Value 31 May 20 ₹10,000 31 May 21 ₹10,824 31 May 22 ₹11,078 31 May 23 ₹11,757 31 May 24 ₹12,505 31 May 25 ₹13,832 Returns for Franklin India Corporate Debt Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 6 Jun 25 Duration Returns 1 Month 1.3% 3 Month 4.8% 6 Month 6.3% 1 Year 10.9% 3 Year 7.8% 5 Year 6.7% 10 Year 15 Year Since launch 8.6% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.6% 2023 6.5% 2022 3.2% 2021 3.8% 2020 9% 2019 9.2% 2018 7.5% 2017 7.7% 2016 9% 2015 8.4% Fund Manager information for Franklin India Corporate Debt Fund
Name Since Tenure Rahul Goswami 6 Oct 23 1.65 Yr. Anuj Tagra 7 Mar 24 1.23 Yr. Chandni Gupta 7 Mar 24 1.23 Yr. Data below for Franklin India Corporate Debt Fund as on 30 Apr 25
Asset Allocation
Asset Class Value Cash 9.15% Debt 90.57% Other 0.28% Debt Sector Allocation
Sector Value Corporate 64.48% Government 26.09% Cash Equivalent 9.15% Credit Quality
Rating Value AA 17.88% AAA 82.12% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.9% Govt Stock 2065
Sovereign Bonds | -7% ₹54 Cr 5,300,000 Pipeline Infrastructure Private Limited
Debentures | -7% ₹52 Cr 5,000 Summit Digitel Infrastructure Ltd
Debentures | -7% ₹52 Cr 5,000 Small Industries Development Bank Of India
Debentures | -7% ₹52 Cr 5,000 ICICI Home Finance Company Limited
Debentures | -7% ₹52 Cr 5,000 Sikka Ports & Terminals Limited
Debentures | -6% ₹50 Cr 500 Rural Electrification Corporation Limited
Debentures | -6% ₹50 Cr 9,000 Bajaj Finance Limited
Debentures | -3% ₹26 Cr 2,500 National Bank For Agriculture And Rural Development
Debentures | -3% ₹26 Cr 2,500
↑ 2,500 National Bank For Agriculture And Rural Development
Debentures | -3% ₹26 Cr 2,500
As these funds invest their money in companies for a long duration, investors can capitalize on interest income that they generate.
As accrual funds invest in small to mid termed bonds, they are not much affected by the interest rate risks.
These funds undertake credit risk by Investing in companies with a weaker credit rating, but more robust business prospects. These funds take credit risk in a believe that the company will do well and improve the Credit Score in the immediate future.
Taxation of accrual funds is same like debt funds. If the holding period of the fund is less than 36 months, then it is classified as a short-term investment and these are taxed as per individual's tax slab. And, if wish to hold the fund for more than 36 months, then it is classified as a long-term investment and is taxed at 20% with an indexation benefit.
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