These funds switch aggressively between short term and long term debt funds with a real opportunistic performance. These invest in a nutshell to long term bonds, etc. with an objective to generate regular income by changing allocation across different segments. Returns are taxed as per your income tax slab if sold before three years. After three years, long term capital gains tax apply (negligible).
Dynamic mutual funds are schemes which can take dynamic asset allocation calls across debt, equity and arbitrage opportunities. They take 20-40% equity exposure to generate better return than plain debt investments
Purpose: Invest in these funds with an objective to generate regular dividend/income.
| Fund Name | Category | Risk | 1Y Returns | Rating | Fund Size(in Cr) | |
|---|---|---|---|---|---|---|
| Franklin India Dynamic Accrual Fund | Debt | Moderate | 6.8% | 5star | ₹3,008 | |
| DHFL Pramerica Dynamic Bond Fund | Debt | Moderate | 3.8% | 4star | ₹167 | |
| Kotak Dynamic Bond Fund | Debt | Moderately Low | 4.8% | 4star | ₹586 | |
| UTI Dynamic Bond Fund | Debt | Moderate | 3.0% | 4star | ₹1,154 | |
| ICICI Prudential All Seasons Bond Fund | Debt | Moderate | 4.7% | 4star | ₹2,023 | |
| ICICI Prudential Dynamic Bond Fund | Debt | Moderate | 4.8% | 4star | ₹1,384 | |
| JM Dynamic Debt Fund | Debt | Moderately Low | 7.8% | 4star | ₹363 | |
| Tata Dynamic Bond Fund | Debt | Moderate | 3.5% | 3star | ₹426 | |
| IDFC Dynamic Bond Fund | Debt | Moderate | 3.4% | 3star | ₹2,238 | |
| SBI Dynamic Bond Fund | Debt | Moderate | 4.5% | 3star | ₹1,061 | |
| BNP Paribas Flexi Debt Fund | Debt | Moderate | 3.1% | 3star | ₹190 | |
| Baroda Pioneer Dynamic Bond Fund | Debt | Moderate | 4.9% | 3star | ₹18 | |
| Canara Robeco Dynamic Bond Fund | Debt | Moderate | 2.5% | 3star | ₹126 | |
| Axis Dynamic Bond Fund | Debt | Moderate | 4.2% | 3star | ₹186 | |
| IIFL Dynamic Bond Fund | Debt | Moderate | 4.8% | 2star | ₹430 | |
| View All Top 10 Dynamic Mutual Funds |
Now let us jump and check about these top 10 mutual fund schemes.
Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 9.3% annualized returns in the last 3 years. In the last 1 year, it gave 6.81% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.81% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Sachin Padwal-Desai, Santosh Kamath, Umesh Sharma
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹10,000 |
| Groww Rating | 5star |
| AUM | ₹3,008Cr |
| 1Y Returns | 6.8% |
Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 8.27% annualized returns in the last 3 years. In the last 1 year, it gave 3.77% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 3.77% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Puneet Pal
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹5,000 |
| Groww Rating | 4star |
| AUM | ₹167Cr |
| 1Y Returns | 3.8% |
Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 8.57% annualized returns in the last 3 years. In the last 1 year, it gave 4.78% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 4.78% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Deepak Agrawal
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹5,000 |
| Groww Rating | 4star |
| AUM | ₹586Cr |
| 1Y Returns | 4.8% |
Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 8.04% annualized returns in the last 3 years. In the last 1 year, it gave 3.02% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 3.02% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Amandeep Chopra
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹10,000 |
| Groww Rating | 4star |
| AUM | ₹1,154Cr |
| 1Y Returns | 3.0% |
Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 9.08% annualized returns in the last 3 years. In the last 1 year, it gave 4.69% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 4.69% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Manish Banthia, Anuj Tagra
| Launch Date | 1 Jan 2013 |
|---|---|
| Min Investment Amt | ₹5,000 |
| Groww Rating | 4star |
| AUM | ₹2,023Cr |
| 1Y Returns | 4.7% |
Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 8.63% annualized returns in the last 3 years. In the last 1 year, it gave 4.75% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 4.75% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Rahul Goswami
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹5,000 |
| Groww Rating | 4star |
| AUM | ₹1,384Cr |
| 1Y Returns | 4.8% |
Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 8.43% annualized returns in the last 3 years. In the last 1 year, it gave 7.79% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.79% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Shalini Tibrewala
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹5,000 |
| Groww Rating | 4star |
| AUM | ₹363Cr |
| 1Y Returns | 7.8% |
Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 7.31% annualized returns in the last 3 years. In the last 1 year, it gave 3.55% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 3.55% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Akhil Mittal
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹5,000 |
| Groww Rating | 3star |
| AUM | ₹426Cr |
| 1Y Returns | 3.5% |
Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 7.5% annualized returns in the last 3 years. In the last 1 year, it gave 3.42% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 3.42% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Suyash Choudhary
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹5,000 |
| Groww Rating | 3star |
| AUM | ₹2,238Cr |
| 1Y Returns | 3.4% |
Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 7.93% annualized returns in the last 3 years. In the last 1 year, it gave 4.45% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 4.45% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Dinesh Ahuja
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹5,000 |
| Groww Rating | 3star |
| AUM | ₹1,061Cr |
| 1Y Returns | 4.5% |
Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 7.4% annualized returns in the last 3 years. In the last 1 year, it gave 3.08% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 3.08% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Mayank Prakash, Vikram Pamnani
| Launch Date | 1 Jan 2013 |
|---|---|
| Min Investment Amt | ₹5,000 |
| Groww Rating | 3star |
| AUM | ₹190Cr |
| 1Y Returns | 3.1% |
Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 8.1% annualized returns in the last 3 years. In the last 1 year, it gave 4.94% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 4.94% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Alok Kumar Sahoo, Hetal Shah
| Launch Date | 1 Jan 2013 |
|---|---|
| Min Investment Amt | ₹2,00,000 |
| Groww Rating | 3star |
| AUM | ₹18Cr |
| 1Y Returns | 4.9% |
Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 7.32% annualized returns in the last 3 years. In the last 1 year, it gave 2.49% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 2.49% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Girish Hisaria
| Launch Date | 1 Jan 2013 |
|---|---|
| Min Investment Amt | ₹5,000 |
| Groww Rating | 3star |
| AUM | ₹126Cr |
| 1Y Returns | 2.5% |
Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 7.65% annualized returns in the last 3 years. In the last 1 year, it gave 4.2% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 4.2% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.
Fund Manager: R Sivakumar, Devang Shah
| Launch Date | 31 Dec 2012 |
|---|---|
| Min Investment Amt | ₹5,000 |
| Groww Rating | 3star |
| AUM | ₹186Cr |
| 1Y Returns | 4.2% |
Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 7.06% annualized returns in the last 3 years. In the last 1 year, it gave 4.77% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 4.77% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Debt mutual fund in India.
Fund Manager: Ankur Parekh
| Launch Date | 23 Jun 2013 |
|---|---|
| Min Investment Amt | ₹10,000 |
| Groww Rating | 2star |
| AUM | ₹430Cr |
| 1Y Returns | 4.8% |
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One of the best ways to hedge against the small-cap volatility is to adopt a phased approach, also known as Systematic Investment Plan (SIP) approach. We are sure that you must be aware of SIP and its benefits. Buying in small quantity but buying regularly provides you with faster growth. On Groww.in, all transactions to and from AMC is done via BSE. When you decide to invest in a large cap mutual fund of your choice, you choose that mutual fund on the website and click ‘invest’. Following that, you are redirected to the BSE page where you make the payment. BSE then directs your money to the AMC managing your mutual fund. To be assured at your end, you can visit the individual AMC website after the payment. You would be able to see all your purchased units against your folio number.
It is not possible for any investor to start investing in mutual funds without having completed the KYC process. Under the Prevention of Money Laundering Act (PMLA), Know Your Customer (KYC) norms have been mandated to track the legality of funds used in an investment. KYC is a one-time process which every first-time mutual fund investor needs to follow, to be able to invest in a mutual fund. KYC process on Groww can be completed in 2-3 days. KYC can be completed online with the help of E-KYC or electronic KYC. E-KYC Aadhar (based on OTP) : Investor can use online KYC facility using just the aadhar card number and PAN number, by visiting the website and following the easy process. After entering relevant details like aadhar and PAN number, investor will receive an OTP and KYC will be completed instantly. However, one can invest only up to ₹50,000 per fund house per year under this method.
The answer to this question depends on the following criteria: 1) the rating and performance of mutual fund you are investing into 2) the amount of risk you are willing to take Depending on the above factors let's go ahead: 1) the performance of mutual fund you are investing into makes a lot of difference since a lot of research needs to be done before investing. i) how that particular fund is diversifying its assets since many of funds are sector funds and some others put a lot of money into one sector like banking/finance. ii) But if that particular sector doesn't perform well in the long term you would end up losing your money iii) Some sectors like FMCG (HUL, Dabur) or automobile like Maruti Suzuki(because of innovations it brings in) almost make profits throughout the year and hence it's very advantageous to invest in them for long-term in these sectors. Investment time: more than 3 years. 2) The amount of risk you are willing to take i) It is important since if you want to invest in low-risk funds, debt funds will be the best option(moderate returns, low risk) investment time period: less than 1 or 1.5 years ii) But if you want high returns, more diversification equity mutual funds will be the best since higher the risk, more will be the returns.Investment time: depending on the performance of fund (on an average 4 or greater than 4 years) iii) For a balanced portfolio, you may invest into balanced mutual funds where there is a combination of both equity and debt mutual funds which will again help you to invest for a good duration like less than 2-3 years.
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