Companies issue corporate bonds to raise funds for various purposes. Investors looking for higher returns than government bonds, but with a lower risk, can consider investing in corporate bonds.
These are the 10 best corporate bonds you can invest in India by 2023. Tata Steel Ltd. Tata Steel Ltd is an Indian steel producer and holds a strong AAA credit rating. The bonds of the company offer a competitive yield with low risk. Reliance Industries Ltd.: Reliance Industries Ltd is a conglomerate that has interests in refining, petrochemicals, and retail. Bonds issued by the company are highly rated and provide a high yield.
Housing Development Finance Corporation (HDFC: HDFC is India’s largest housing finance company and holds a AAA credit rating. The bonds of the company offer a high yield and are considered relatively safe.
Larsen & Toubro Ltd. Larsen & Toubro Ltd is a top engineering and construction company with strong credit ratings of AA+. The bonds of the company offer a high yield and low risk.
Mahindra & Mahindra Financial Services Ltd. Mahindra & Mahindra Financial Services Ltd is a non-banking financial firm that provides various financial services to Indian customers. The bonds are highly rated and have a high yield.
Power Finance Corporation Ltd.: Power Finance Corporation Ltd is a government-owned firm that provides financial services for the Indian power sector. The bonds of the company are highly rated and provide a high yield.
Shriram Transport Finance Company Ltd. Shriram Transport Finance Company Ltd is a non-banking financial institution that provides financing for commercial vehicles. The bonds of the company offer a high yield and low risk.
State Bank of India: The largest bank in India, State Bank of India has an AAA credit rating. The bank’s bonds are relatively safe and offer a high yield.
ICICI Bank Ltd. ICICI Bank Ltd is a prominent private sector bank in India with a strong credit rating at AAA. The bank’s bonds have a high yield and low risk.
Aditya Birla Capital Ltd. Aditya Birla Capital Ltd is a non-banking financial firm that provides various financial services to Indian customers. The bonds are well-rated and have a high yield.
For investors looking for higher returns than government bonds, corporate bonds may be a good option. However, they can also offer a lower level of risk. These are the top options available to Indian investors in 2023. It is important to do thorough research before investing in any corporate bonds. This includes evaluating the creditworthiness and duration of the issuer and understanding the risks.