Birla Sun Life Corporate Bond Fund is an open ended income scheme investing predominantly in a portfolio comprising of corporate debt securities with short to medium term maturities, across the credit spectrum to benefit from the mispriced credit opportunities available across various yield curves.
The reasons for investing in a Corporate Bond Fund now can be summarised as below:-
v With interest rates trending down, it's time to rebalance one's debt portfolio to a more accrual centric strategy from a duration centric strategy
v Going forward, a duration centric strategy would have to take significantly higher risk to generate the same return as an accrual fund over a span of 3 years
v The yields at the shorter end are at elevated levels relative to the longer end. With a favourable interest rate outlook, this yields curve inversion may not sustain over the medium term
v With easing liquidity conditions, better demand supply dynamics, structural improvement in corporate balance sheets, the yield curves are expected to steepen
v Relatively higher absolute yields in the short term corporate bonds provide for higher carry (running yield) and roll down effect over the medium term horizon
On the macro level, improving market dynamics, favourable interest rate scenario, conducive business environment is already playing a role in the flurry of private placement of corporate issuances in this calendar year and in the FII participation levels in private bond issuances. It is being observed that with the addition of one more class of buyers for corporate bonds, there is an improvement in liquidity in the secondary market for corporate bonds which has also led to greater trading volumes.
According to SEBI website, total private issuances of corporate bonds were at Rs.3.15 lakh crore between April 2014 & January 2015, a whopping 42% year-on-year increase. Normally corporate bond issuances grow at 14%-15% annually.
Hence, in order to benefit from the current high interest rate scenario in the next few years, we present BSL Corporate Bond Fund.
The NFO period of the fund is 30th March 2015 – 13th April 2015.
1.ICICI Prudential Tax Plan
2.Reliance Tax Saver (ELSS) Fund
3.HDFC TaxSaver
4.DSP BlackRock Tax Saver Fund
5.Religare Tax Plan
6.Franklin India TaxShield
7.Canara Robeco Equity Tax Saver
8.IDFC Tax Advantage (ELSS) Fund
9.Axis Tax Saver Fund
10.BNP Paribas Long Term Equity Fund
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