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Fincash » HDFC Corporate Bond Fund Vs Aditya Birla Sun Life Corporate Bond Fund

HDFC Corporate Bond Fund Vs Aditya Birla Sun Life Corporate Bond Fund

Updated on November 13, 2019 , 192 views

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 (Erstwhile HDFC Medium Term Opportunities Fund)

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 (Erstwhile Aditya Birla Sun Life Short Term Fund)

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.

HDFC Corporate Bond Fund Vs Aditya Birla Sun Life Corporate Bond Fund

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.

Basics Section

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
BasicsNAV
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
₹22.1487 ↑ 0.02   (0.08 %)
₹13,112 on 30 Sep 19
29 Jun 10
Debt
Corporate Bond
2
Moderately Low
0.44
3.79
0.27
2.16
Not Available
NIL
Aditya Birla Sun Life Corporate Bond Fund
Growth
Fund Details
₹76.0563 ↑ 0.04   (0.06 %)
₹16,605 on 30 Sep 19
3 Mar 97
Debt
Corporate Bond
1
Moderately Low
0.39
5.02
0
0
Not Available
NIL

Performance Section

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
Performance1 Month
3 Month
6 Month
1 Year
3 Year
5 Year
Since launch
HDFC Corporate Bond Fund
Growth
Fund Details
0.8%
2.1%
5.9%
11.3%
7.7%
8.6%
8.8%
Aditya Birla Sun Life Corporate Bond Fund
Growth
Fund Details
0.8%
2.3%
5.4%
10.5%
7.6%
8.6%
9.3%

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Yearly Performance

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 Performance2018
2017
2016
2015
2014
HDFC Corporate Bond Fund
Growth
Fund Details
6.5%
6.5%
10.6%
8.6%
10.9%
Aditya Birla Sun Life Corporate Bond Fund
Growth
Fund Details
7%
6.5%
10.2%
8.9%
10.9%

Other Details Section

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 DetailsMin SIP Investment
Min Investment
Fund Manager
HDFC Corporate Bond Fund
Growth
Fund Details
₹500
₹5,000
Anupam Joshi - 3.93 Yr.
Aditya Birla Sun Life Corporate Bond Fund
Growth
Fund Details
₹100
₹1,000
Maneesh Dangi - 2.5 Yr.

Growth of 10k Investments over the years

Growth of 10,000 investment over the years.
IDFC Corporate Bond Fund
Growth
Fund Details
DateValue
31 Oct 16₹10,818
31 Oct 17₹11,635
31 Oct 18₹12,143
31 Oct 19₹13,310
Growth of 10,000 investment over the years.
Aditya Birla Sun Life Corporate Bond Fund
Growth
Fund Details
DateValue
31 Oct 14₹10,000
31 Oct 15₹10,957
31 Oct 16₹12,042
31 Oct 17₹12,968
31 Oct 18₹13,632
31 Oct 19₹15,103

Detailed Assets & Holdings Comparison

Asset Allocation
IDFC Corporate Bond Fund
Growth
Fund Details
Asset ClassValue
Cash18.71%
Debt81.29%
Debt Sector Allocation
SectorValue
Corporate49.67%
Government36.85%
Cash Equivalent13.47%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Indian Railway Finance Corporation Limited
Debentures | -
6%₹954 Cr95,000,000
↑ 1,000,000
National Bank For Agriculture And Rural Development
Debentures | -
5%₹756 Cr75,160,000
↑ 300,000
Power Finance Corporation Ltd.
Debentures | -
4%₹605 Cr60,270,000
Net Current Assets
Net Current Assets | -
3%₹525 Cr
Small Industries Development Bank Of India
Debentures | -
3%₹509 Cr50,750,000
National Bank For Agriculture And Rural Development
Debentures | -
3%₹500 Cr49,500,000
Housing Development Finance Corporation Limited
Debentures | -
2%₹371 Cr37,000,000
↑ 6,000,000
Export-Import Bank Of India
Debentures | -
2%₹306 Cr30,500,000
Rural Electrification Corporation Limited
Debentures | -
2%₹306 Cr30,500,000
Housing Development Finance Corporation Limited
Debentures | -
2%₹277 Cr27,500,000
Asset Allocation
Aditya Birla Sun Life Corporate Bond Fund
Growth
Fund Details
Asset ClassValue
Cash11.87%
Debt88.13%
Debt Sector Allocation
SectorValue
Corporate55.31%
Government31.32%
Cash Equivalent12.01%
Securitized1.35%
Credit Quality
RatingValue
AA4.39%
AAA95.61%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ONGC Petro Additions Limited
Debentures | -
4%₹741 Cr741
Clearing Corporation Of India Limited
CBLO | -
4%₹594 Cr
MAHINDRA & MAHINDRA FINANCIAL SERVICES LIMITED
Debentures | -
3%₹450 Cr4,450
POWER FINANCE CORPORATION LIMITED
Debentures | -
3%₹427 Cr4,200
Reliance Industries Limited
Debentures | -
3%₹426 Cr4,250
↑ 1,500
ORIENTAL BANK OF COMMERCE
Certificate of Deposit | -
2%₹359 Cr36,000
Power Finance Corporation Ltd.
Debentures | -
2%₹358 Cr3,550
↑ 3,550
Power Finance Corporation Ltd.
Debentures | -
2%₹353 Cr3,500
8.24% Govt Stock 2027
Sovereign Bonds | -
2%₹341 Cr31,500,000
↑ 10,000,000
Net Receivables / (Payables)
Net Current Assets | -
2%₹326 Cr

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.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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