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Dynamic Bond Funds – A Class of Debt Mutual Funds

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Dynamic Bond Funds

Dynamic Bond Funds – An Introduction 

As the name says, dynamic bond funds are dynamic in terms of maturity profile and composition. The objective is to provide optimal returns in both criterion – rising & falling market scenarios. It majorly depends on the management of the portfolio and fund manager’s decisions. Usually, these funds have huge AUM with a worth of several thousand crores. There are times where there is a possibility of a long pause in-between interest rate changes. However, this might take a hit on the income of bond investor(s). Thus, dynamic bond funds are the best alternative for those wishing to take a ride of fluctuating interest rates.  

Who can Invest? 

Dynamic bond funds are absolute for investors who are not expertise in making the right calls based on the rate of interest movement. Investors with an investment horizon of 3-5 years and with moderate risk-appetite should invest in dynamic bond funds. NOTE: The returns depends on the movement of the interest rate.  

Things to Consider Before Investing 

As Following: 

  • Don’t forget to check if the funds have the ability to perform across several market scenarios. Also, access the overall performance of the fund for at-least 5 years. 
  • Don’t go for dynamic bond funds if your investment horizon falls short of 3 years.  
  • Advisable to stay away NFO (New Fund Offers) in dynamic bond funds & choose the one with a track record of at-least 5 year.  
  • See the past outcomes of the dynamic funds over the last few years.  

Top 5 Dynamic Bond Funds as per Gulaq 

  • PGIM India Dynamic Bond FundIt is a debt mutual fund that was launched by DHFL Pramerica mutual fund. Later on, it was introduced on 1st Jan 2013 to its investors. Currently, the fund is managed by Puneet Pal. Talking about AUM, it is of INR 43 Cr, and the latest NAV is of INR 2100.98 (dated as of 18th Feb 2020). The fund growth is rated as moderate risk. Also, the minimum SIP investment is INR 500, and, lumpsum investment is INR 5000. 
  • Kotak Dynamic Bond FundIt is a debt mutual fund scheme that was launched by Kotak Mahindra mutual fund. Later on, it was introduced on 1st Jan 2013 to its investors. Currently, the fund is managed by Deepak Agrawal. Talking about AUM, it is of INR 1132 Cr, and the latest NAV is of INR 28.01 (dated as of 18th Feb 2020). The fund growth is rated as moderately low-risk. The minimum SIP investment is INR 1000, and, the lumpsum investment is INR 5000.  
  • ICICI Prudential All Seasons BondIt is a debt mutual fund scheme that was launched by ICICI Prudential mutual fund. Later on, it was introduced on 2nd Jan 2013 to its investors. Currently, the fund is managed by Anuj Tagra, and Manish Banthia. Talking about AUM it is of INR 3139 Cr, and the latest NAV is of INR 26.53 (dated as of 18th Feb 2020).  
  • SBI Dynamic Bond FundIt is a debt mutual fund that was launched by SBI mutual fundLater on, it was introduced on 9th Feb 2004 to its investors. Currently, the fund is managed by Dinesh Ahuja. Talking about AUM, it is of INR 1250 Cr, and the latest NAV is of INR 25.78 (dated as of 18th Feb 2020). The fund growth is rated as moderate risk. The minimum SIP investment is INR 500, and, the lumpsum investment is INR 5000.  
  • Axis Dynamic Bond FundIt is a debt mutual fund scheme that was launched by Axis mutual fund. Later on, it was introduced on 1st Jan 2013 to its investors. Currently, the fund is managed by Devang Shan, and R Sivakumar. Talking about AUM, it is of INR 321 Cr, and the latest NAV is of INR 22.79 (dated as of 18th Feb 2020). The fund growth is rated as moderate risk. The minimum SIP investment is INR 1000, and, lumpsum investment is INR 5000.  

Looking to invest? Hop on to gulaq.com and start investing in direct mutual funds. Furthermore, you can also get in touch: [email protected]  or Whatsapp +91-9818894632

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*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.

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