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 ₹28.0379 ↓ 0.00 (-0.01 %) ₹26,407 on 31 Jul 23 29 Jun 10 ☆☆☆☆☆ Debt Corporate Bond 2 Moderately Low 0.59 0.63 0 0 Not Available NIL Aditya Birla Sun Life Corporate Bond Fund
Growth
Fund Details ₹97.1847 ↑ 0.01 (0.01 %) ₹17,961 on 31 Jul 23 3 Mar 97 ☆☆☆☆☆ Debt Corporate Bond 1 Moderately Low 0.47 0.69 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 0.4% 1.4% 4.1% 6.8% 5.2% 7.4% 8.2% Aditya Birla Sun Life Corporate Bond Fund
Growth
Fund Details 0.4% 1.5% 3.9% 6.8% 5.4% 7.5% 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 - 7.85 Yr. Aditya Birla Sun Life Corporate Bond Fund
Growth
Fund Details ₹100 ₹1,000 Kaustubh Gupta - 2.39 Yr.
IDFC Corporate Bond Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Aug 18 ₹10,000 31 Aug 19 ₹10,899 31 Aug 20 ₹12,040 31 Aug 21 ₹12,790 31 Aug 22 ₹13,023 31 Aug 23 ₹13,822 Aditya Birla Sun Life Corporate Bond Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Aug 18 ₹10,000 31 Aug 19 ₹11,052 31 Aug 20 ₹12,260 31 Aug 21 ₹13,050 31 Aug 22 ₹13,470 31 Aug 23 ₹14,398
IDFC Corporate Bond Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 20.15% Debt 79.85% Debt Sector Allocation
Sector Value Corporate 49.12% Government 35.95% Cash Equivalent 14.93% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Limited
Debentures | -7% ₹1,022 Cr 102,500,000 National Bank For Agriculture And Rural Development
Debentures | -6% ₹867 Cr 87,500,000 364 DTB 14032024
Sovereign Bonds | -6% ₹843 Cr 87,500,000 Ultratech Cement Limited
Debentures | -5% ₹709 Cr 71,500,000 National Housing Bank
Debentures | -5% ₹654 Cr 66,000,000
↑ 2,500,000 National Housing Bank
Debentures | -4% ₹596 Cr 59,500,000
↑ 2,500,000 Axis Bank Limited
Debentures | -4% ₹515 Cr 51,500,000 Rural Electrification Corporation Limited
Debentures | -3% ₹429 Cr 43,500,000
↑ 5,000,000 Export Import Bank Of India
Debentures | -3% ₹410 Cr 41,500,000 Indian Railway Finance Corporation Limited
Debentures | -3% ₹407 Cr 40,500,000 Aditya Birla Sun Life Corporate Bond Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 4.97% Debt 95.03% Debt Sector Allocation
Sector Value Corporate 55.28% Government 38.44% Cash Equivalent 4.97% Securitized 1.31% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.26% Govt Stock 2033
Sovereign Bonds | -6% ₹1,032 Cr 102,589,300
↑ 12,500,000 8.51% Govt Stock 2033
Sovereign Bonds | -5% ₹830 Cr 81,808,500
↑ 9,000,000 7.06% Govt Stock 2028
Sovereign Bonds | -4% ₹717 Cr 72,000,000
↑ 32,000,000 7.38% Govt Stock 2027
Sovereign Bonds | -3% ₹629 Cr 62,500,000
↑ 1,000,000 Mahindra & Mahindra Financial Services Ltd
Debentures | -3% ₹602 Cr 60,000 7.93% Govt Stock 2034
Sovereign Bonds | -3% ₹579 Cr 58,137,700
↓ -2,500,000 National Bank For Agriculture And Rural Development
Debentures | -3% ₹528 Cr 5,300 Rural Electrification Corporation Limited
Debentures | -2% ₹423 Cr 42,500 07.18 Goi 2037
Sovereign Bonds | -2% ₹380 Cr 38,192,600
↑ 4,000,000 Small Industries Development Bank Of India
Debentures | -2% ₹360 Cr 36,050
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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