Fincash » HDFC Corporate Bond Fund Vs Aditya Birla Sun Life Corporate Bond Fund
Table of Contents
HDFC Corporate Bond Fund Vs Aditya Birla Sun Life Corporate Bond Fund both belong to the corporate category of Mutual Funds. Corporate bond funds are essentially a certificate of debt issued by major companies. These are issued as a way of raising money for businesses. Corporate bond funds are a great option when it comes to good return and low-risk type investment. Investors can earn a regular Income which is usually higher than that you would get as interest on your Fixed Deposits (FDs). As both the funds belong to the same category, here's a comparative article that will help investors in choosing the ideal fund. So, let us understand the differences between HDFC Corporate Bond Fund and Aditya Birla Sun Life Corporate Bond Fund through this article.
HDFC Corporate Bond Fund, earlier known as HDFC Medium Term Opportunities Fund, was launched in the year 2010. The fund is an open-ended income scheme that mainly invests in debt/ money market instruments and government Bonds with an average maturity of 60 months. HDFC Corporate Bond Fund can be considered for short-term investment goals.
Some of the top holdings of the fund (as on 31st July 2018) are Power Finance Corporation Ltd, Net Current Assets, ONGC Petro Additions Limited, Food Corporation Of India, ONGC Petro Additions Limited, etc.
Aditya Birla Sun Life Corporate Bond Fund, earlier known as Aditya Birla Sun Life Short Term Fund, was launched in the year 1997. The fund is an open-ended income scheme that seeks to generate income and Capital appreciation by Investing 100 percent of the corpus in a diversified Portfolio of debt and money Market securities.
Some of the top holdings of the fund as on July 31, 2018, are 6.84% Govt Stock 2022, ONGC Petro Additions Limited, 7.17% Govt Stock 2028, Reliance Jio Infocomm Limited, National Bank For Agriculture And Rural Development, etc.
Though both the funds belong to the same fund house and same category yet; there exists a difference between them with respect to AUM, current NAV, Fincash Ratings and much more. These differences are divided into four sections, namely, Basics Section, Performance Section, Yearly Performance Section, and Other Details Section. So, let us understand the differences between both the funds based on these sections.
The various comparable parameters in case of basics section are Scheme Category, AUM, expense ratio, Fincash Ratings, and Current NAV. To begin with the Scheme Category, it can be said that both the schemes belong to the same category that is, Corporate Bond Debt.
As per Fincash Ratings, we can say that both the fund is rated as 5-Star scheme.
The table given below summarizes the elements of this section.
Parameters Basics NAV Net Assets (Cr) Launch Date Rating Category Sub Cat. Category Rank Risk Expense Ratio Sharpe Ratio Information Ratio Alpha Ratio Benchmark Exit Load HDFC Corporate Bond Fund
Growth
Fund Details ₹27.1019 ↑ 0.01 (0.03 %) ₹23,487 on 28 Feb 23 29 Jun 10 ☆☆☆☆☆ Debt Corporate Bond 2 Moderately Low 0.6 -1.11 0 0 Not Available NIL Aditya Birla Sun Life Corporate Bond Fund
Growth
Fund Details ₹94.1193 ↑ 0.02 (0.02 %) ₹12,121 on 28 Feb 23 3 Mar 97 ☆☆☆☆☆ Debt Corporate Bond 1 Moderately Low 0.46 -0.76 0 0 Not Available NIL
This section compares the CAGR or Compounded Annual Growth Rate for both the schemes at various time periods. Some of the time periods for which the performance is compared are 1 Month Returns, 6 Month Returns, 1 Year Returns and Returns Since Inception. In most instances Aditya Birla Sun Life Corporate Bond Fund has performed better than that of HDFC Corporate Bond Fund. The table given below shows the CAGR performance of both the schemes.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch HDFC Corporate Bond Fund
Growth
Fund Details 0.5% 1.4% 3.1% 3.9% 6.7% 7.1% 8.1% Aditya Birla Sun Life Corporate Bond Fund
Growth
Fund Details 0.6% 1.5% 3.4% 4.6% 7.2% 7.3% 9%
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Yearly performance between both the schemes compares the absolute returns generated by each scheme for a particular year. In case of yearly performance, there is not much difference between the returns generated between both the schemes. The summary of yearly performance section is tabulated as follows.
Parameters Yearly Performance 2022 2021 2020 2019 2018 HDFC Corporate Bond Fund
Growth
Fund Details 3.3% 3.9% 11.8% 10.3% 6.5% Aditya Birla Sun Life Corporate Bond Fund
Growth
Fund Details 4.1% 4% 11.9% 9.6% 7%
This is the last section of comparing funds. The comparable parameters that form part of Other Details Section include Minimum SIP and Lumpsum Investment. Being a part of the same fund house, the Minimum SIP and Lumpsum Investment for both HDFC Balanced Fund and HDFC Prudence Fund are different. The minimum SIP investment for HDFC's fund is INR 500, while for Aditya Birla's fund it is INR 1,000. The minimum lump sum for Aditya Birla Sun Life Corporate Bond Fund is INR 1,000 and for HDFC Corporate Bond Fund is it INR 5,000.
The table given below summarizes the other details section.
HDFC Corporate Bond Fund is jointly managed by Anupam Joshi and Rakesh Vyas.
Aditya Birla Sun Life Corporate Bond Fund is jointly managed by two fund manager- Maneesh Dangi and Kaustubh Gupta.
Parameters Other Details Min SIP Investment Min Investment Fund Manager HDFC Corporate Bond Fund
Growth
Fund Details ₹300 ₹5,000 Anupam Joshi - 7.27 Yr. Aditya Birla Sun Life Corporate Bond Fund
Growth
Fund Details ₹100 ₹1,000 Kaustubh Gupta - 1.81 Yr.
IDFC Corporate Bond Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 28 Feb 18 ₹10,000 28 Feb 19 ₹10,721 29 Feb 20 ₹11,674 28 Feb 21 ₹12,674 28 Feb 22 ₹13,363 28 Feb 23 ₹13,731 Aditya Birla Sun Life Corporate Bond Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 28 Feb 18 ₹10,000 28 Feb 19 ₹10,766 29 Feb 20 ₹11,871 28 Feb 21 ₹12,963 28 Feb 22 ₹13,657 28 Feb 23 ₹14,252
IDFC Corporate Bond Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 19.93% Debt 80.07% Debt Sector Allocation
Sector Value Corporate 52.86% Government 33.65% Cash Equivalent 13.48% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Ultratech Cement Limited
Debentures | -5% ₹697 Cr 71,500,000 National Bank For Agriculture And Rural Development
Debentures | -5% ₹669 Cr 68,500,000
↑ 11,000,000 Power Finance Corporation Ltd.
Debentures | -4% ₹626 Cr 62,900,000
↓ -5,000,000 National Housing Bank
Debentures | -4% ₹548 Cr 56,000,000 Oil And Natural Gas Corporation Limited
Debentures | -3% ₹440 Cr 45,000,000 Export Import Bank Of India
Debentures | -3% ₹429 Cr 44,000,000 5.22 6/15/2025 12:00:00 Am
Sovereign Bonds | -3% ₹422 Cr 44,000,000
↓ -22,500,000 National Bank For Agriculture And Rural Development
Debentures | -3% ₹411 Cr 42,000,000
↑ 2,500,000 Indian Railway Finance Corporation Limited
Debentures | -3% ₹408 Cr 40,500,000
↑ 7,500,000 Rural Electrification Corporation Limited
Debentures | -3% ₹385 Cr 39,500,000
↓ -2,500,000 Aditya Birla Sun Life Corporate Bond Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 9.08% Debt 90.92% Debt Sector Allocation
Sector Value Corporate 57.3% Government 31.85% Cash Equivalent 8.99% Securitized 1.86% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.42 9/22/2033 12:00:00 Am
Sovereign Bonds | -5% ₹560 Cr 56,308,500
↑ 14,500,000 Sikka Ports & Terminals Limited
Debentures | -3% ₹364 Cr 3,650 Bajaj Housing Finance Limited
Debentures | -3% ₹346 Cr 3,525 Sikka Ports & Terminals Limited
Debentures | -3% ₹325 Cr 3,250 7.69 10/30/2034 12:00:00 Am
Sovereign Bonds | -3% ₹314 Cr 32,137,700 HDFC Bank Limited
Debentures | -2% ₹278 Cr 280
↓ -170 7.27 4/8/2026 12:00:00 Am
Sovereign Bonds | -2% ₹250 Cr 25,000,000 Small Industries Development Bank Of India
Debentures | -2% ₹249 Cr 2,500 Sikka Ports & Terminals Limited
Debentures | -2% ₹241 Cr 2,500 Power Finance Corporation Ltd.
Debentures | -2% ₹224 Cr 2,250
Thus, from the above pointers, it can be said that both the schemes are different in case of various parameters though they belong to the same category and fund house. Therefore, individuals should always do a detailed study about a scheme before investing in it. They should check whether the fund’s objective is in-line with their objective. If required, people can consult a financial advisor for advice. This will ensure that their investment is safe and it paves way for wealth creation.
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