Investment
Corporate Bond Funds
Also known as: Corporate Debt Funds, Company Bond Funds
Debt mutual funds investing primarily in bonds issued by corporations and companies.
Detailed Explanation
Corporate Bond Funds invest in debt securities issued by companies, typically offering higher yields than government securities due to credit risk. They invest in AAA, AA, and A-rated corporate bonds with varying maturities. These funds carry credit risk (default possibility) and interest rate risk. They're suitable for investors seeking higher returns than gilt funds while accepting moderate credit risk.