INRBonds High-Yield Corporate Bond Index (HCB Index)

NAV Update- 30th September 2025

Fixed-income securities are highly suitable for retail investors, who prefers steady income by way of regular coupons. It protects against risk of volatility, fluctuation, and unpredictability. Bonds typically react differently to market conditions as compared to the equity stocks, thereby helping investors to balance the overall risk.

Fixed-income securities are debt instruments that pay a fixed interest or coupon rate over a specified period, and they include various options such as government bonds, corporate bonds, municipal bonds, and certificates of deposit (CDs). Retail Investor biggest concern is to earn more than the current inflation rate. Therefore, herein we focus on Corporate Bonds below AAA category offering higher yields targeted to beat the inflation.

INRBonds HCB Index is a diversified set of 8 bonds securities with a 3-year constant maturing index considering that there is enough liquidity and making it desirable investable basket. The Index was reconstituted on 30th August 2024, Five Star Business Finance and IIFL were substituted for MAS Financial Services and Indostar Capital Finance. These papers were traded more frequently and hence were more liquid. On 30th April 2025, AP State Beverages was replaced by Telangana State Industrial Infrastructure Corp. and on 30th August, Hinduja Leyland Finance, Creditaccess Grameen and Arka Fincap was replaced with Incred Financial Services, Krazybee Services and Muthoot Fincorp due to better secondary and primary market liquidity.

1. The INRBonds HCB fortnight Index Yield stood at 9.95% while 3 Yrs Gsec yield traded at 5.90%. The spreads marginally increased from 399 basis points to 405The Index NAV on 30th September was Rs. ₹118.16.

The INRbonds HCB Index VS 3 Yrs Gsec graph as on 30th September 2025 is as below –


2. 3-year HCB Index Composition