Best Dynamic Bonds Debt Mutual Funds

Dynamic mutual funds as the name suggests are dynamic in the asset allocation strategy of their portfolio. The best dynamic mutual funds rapidly change the asset classes in the portfolio based on the changing market conditions. Dynamic mutual funds allow the fund house to adjust the positions by reducing the worst-performing asset class and increasing the ones performing better.

Best dynamic mutual funds in India strive to achieve 65% asset allocation of the total capital in equity and equity-oriented securities while the rest is invested in debt and money market instruments.

Dynamic mutual funds also comprise of dynamic bond funds that invest in bonds across composition and maturity profile. The fund managers trade the instruments based on different maturity profiles and the anticipated changes in rates. The best performing dynamic bond funds allow investors to earn returns based on changing interest-rate movements.

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Top 10 Dynamic Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
Edelweiss Dynamic Bond FundDebtModerate13.7%5star43
JM Dynamic Debt FundDebtModerately Low6.5%5star174
Kotak Dynamic Bond FundDebtModerately Low11.9%5star1,030
DHFL Pramerica Dynamic Bond FundDebtModerate12.0%5star42
ICICI Prudential All Seasons Bond FundDebtModerate11.1%4star3,071
Axis Dynamic Bond FundDebtModerate12.1%4star280
SBI Dynamic Bond FundDebtModerate14.1%4star1,196
L&T Flexi Bond FundDebtModerate11.0%4star59
IDFC Dynamic Bond FundDebtModerate12.3%4star2,025
Mirae Asset Dynamic Bond FundDebtModerate12.4%4star47
Canara Robeco Dynamic Bond FundDebtModerate10.0%3star111
Nippon India Dynamic Bond FundDebtModerate9.5%3star886
BNP Paribas Flexi Debt FundDebtModerate9.5%3star136
IIFL Dynamic Bond FundDebtModerate8.4%3star294
Tata Dynamic Bond FundDebtModerate8.2%3star329
View All Top 10 Dynamic Mutual Funds

Features of Dynamic Mutual Fund

The best dynamic funds are a perfect investment for anyone seeking to earn returns from changing market conditions. Since these funds alter between different asset classes, investors can expect comparatively stable returns. Best dynamic mutual funds in India are also suitable for investors who might not want to keep track of their investments over the long-term.

The best dynamic mutual fund in India are widely considered to be funds with absolute returns that are less volatile and allow for long-term wealth creation. Investors looking to capitalize on their finances without having to worry about the entry and exit can opt for these investments.

Taxability

The dynamic mutual funds invest across asset classes based on the changing market conditions. However, dynamic mutual funds in India ensure 65% capital exposure in equity & equity-related securities, whereas the rest could be invested in debt instruments.

So, dynamic mutual funds receive the same tax-treatment as equity mutual fund. If the funds are held for a period of less than one year, a short-term capital gain tax of 15% will be levied. If the funds are sold after a year from the date of purchase, a long-term capital gain tax of 10% on gains exceeding Rs. 1 lakh will be applicable.

Although it is wise to consult tax advisors before making any kind of investment decision, due to the specificity of individual tax implications, it must be noted that if the median exposure is less than 65 per cent, the treatment and calculation of tax is just like that of debt funds, and the dividends and bonuses are tax free. The tax-treatment for the dynamic bond fund will also be similar to that of the debt funds.

Major Advantages

Dynamic mutual funds deliver stellar performance by ensuring that the portfolio is exposed to the asset class that is performing well as per the market conditions. The auto-allocation of the fund ensures that investors do not panic during negative market conditions and exit based on impulsive decisions. These allow you to earn returns that are higher than the benchmark index.

Dyamic funds reduce the exposure in equity when the market valuations are high, and strategically alter the equity exposure. Dynamic mutual funds can also be used for diversification of the portfolio. However, it is worth noting that traditionally, hybrid mutual funds are considered as a better alternative for diversification.

On the downside, dynamic mutual funds will rely on the expertise of the fund manager to make crucial decisions based on the changing market conditions. However, over a long-term investment horizon, dynamic mutual funds can generate more consistent returns without regular volatility.

Keeping the historical performance in mind ( past 5 years). Here are the top dynamic mutual funds in India , 2019, that you can consider investing in. Please note, the fund chosen are totally based on the past performance and we do not recommend any particular fund to invest in. Don’t forget to assess your risk profile and investment objectives before investing.

Let's have a closer look

Now let us jump and check about these top 10 mutual fund schemes.

Edelweiss Dynamic Bond Fund Direct Growth

Fund Performance: This fund has given 7.57% annualized returns in the last three years. In the last year, its returns were 13.7%. It has continually hit its benchmark in the Debt segment.

Why to invest: It is one of the most remarkable Debt mutual funds in India. This fund has constantly outperformed other similar funds, providing 13.7% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹5,000
AUM43Cr
1Y Returns13.7%

JM Dynamic Debt Fund Direct Growth

Fund Performance: This fund has given 7.52% annualized returns in the last three years. In the last year, its returns were 6.54%. It has continually hit its benchmark in the Debt segment.

Why to invest: It is one of the most remarkable Debt mutual funds in India. This fund has constantly outperformed other similar funds, providing 6.54% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹5,000
AUM174Cr
1Y Returns6.5%

Kotak Dynamic Bond Fund Direct Growth

Fund Performance: This fund has given 8.41% annualized returns in the last three years. In the last year, its returns were 11.93%. It has continually hit its benchmark in the Debt segment.

Why to invest: It is one of the most remarkable Debt mutual funds in India. This fund has constantly outperformed other similar funds, providing 11.93% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹5,000
AUM1,030Cr
1Y Returns11.9%

PGIM India Dynamic Bond Direct Plan Growth

Fund Performance: This fund has given 8.11% annualized returns in the last three years. In the last year, its returns were 12.01%. It has continually hit its benchmark in the Debt segment.

Why to invest: It is one of the most remarkable Debt mutual funds in India. This fund has constantly outperformed other similar funds, providing 12.01% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹5,000
AUM42Cr
1Y Returns12.0%

ICICI Prudential All Seasons Bond Fund Direct Plan Growth

Fund Performance: This fund has given 7.67% annualized returns in the last three years. In the last year, its returns were 11.08%. It has continually hit its benchmark in the Debt segment.

Why to invest: It is one of the most remarkable Debt mutual funds in India. This fund has constantly outperformed other similar funds, providing 11.08% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹100.

Min Investment Amt₹5,000
AUM3,071Cr
1Y Returns11.1%

Axis Dynamic Bond Direct Fund Growth

Fund Performance: This fund has given 7.53% annualized returns in the last three years. In the last year, its returns were 12.07%. It has continually hit its benchmark in the Debt segment.

Why to invest: It is one of the most remarkable Debt mutual funds in India. This fund has constantly outperformed other similar funds, providing 12.07% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹5,000
AUM280Cr
1Y Returns12.1%

SBI Dynamic Bond Direct Plan Growth

Fund Performance: This fund has given 7.94% annualized returns in the last three years. In the last year, its returns were 14.07%. It has continually hit its benchmark in the Debt segment.

Why to invest: It is one of the most remarkable Debt mutual funds in India. This fund has constantly outperformed other similar funds, providing 14.07% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹5,000
AUM1,196Cr
1Y Returns14.1%

L&T Flexi Bond Fund Direct Growth

Fund Performance: This fund has given 6.92% annualized returns in the last three years. In the last year, its returns were 10.96%. It has continually hit its benchmark in the Debt segment.

Why to invest: It is one of the most remarkable Debt mutual funds in India. This fund has constantly outperformed other similar funds, providing 10.96% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹10,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹10,000
AUM59Cr
1Y Returns11.0%

IDFC Dynamic Bond Fund Direct Growth

Fund Performance: This fund has given 7.59% annualized returns in the last three years. In the last year, its returns were 12.27%. It has continually hit its benchmark in the Debt segment.

Why to invest: It is one of the most remarkable Debt mutual funds in India. This fund has constantly outperformed other similar funds, providing 12.27% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹5,000
AUM2,025Cr
1Y Returns12.3%

Mirae Asset Dynamic Bond Fund Direct Growth

Fund Performance: This fund has given NA annualized returns in the last three years. In the last year, its returns were 12.41%. It has continually hit its benchmark in the Debt segment.

Why to invest: It is one of the most remarkable Debt mutual funds in India. This fund has constantly outperformed other similar funds, providing 12.41% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹5,000
AUM47Cr
1Y Returns12.4%

Canara Robeco Dynamic Bond Fund Direct Growth

Fund Performance: This fund has given 5.99% annualized returns in the last three years. In the last year, its returns were 10.02%. It has continually hit its benchmark in the Debt segment.

Why to invest: It is one of the most remarkable Debt mutual funds in India. This fund has constantly outperformed other similar funds, providing 10.02% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹5,000
AUM111Cr
1Y Returns10.0%

Nippon India Dynamic Bond Fund Direct Growth

Fund Performance: This fund has given 5.74% annualized returns in the last three years. In the last year, its returns were 9.51%. It has continually hit its benchmark in the Debt segment.

Why to invest: It is one of the most remarkable Debt mutual funds in India. This fund has constantly outperformed other similar funds, providing 9.51% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹100.

Min Investment Amt₹5,000
AUM886Cr
1Y Returns9.5%

BNP Paribas Flexi Debt Plan Direct Growth

Fund Performance: This fund has given 6.21% annualized returns in the last three years. In the last year, its returns were 9.48%. It has continually hit its benchmark in the Debt segment.

Why to invest: It is one of the most remarkable Debt mutual funds in India. This fund has constantly outperformed other similar funds, providing 9.48% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹5,000
AUM136Cr
1Y Returns9.5%

IIFL Dynamic Bond Fund Direct Growth

Fund Performance: This fund has given 7.37% annualized returns in the last three years. In the last year, its returns were 8.41%. It has continually hit its benchmark in the Debt segment.

Why to invest: It is one of the most remarkable Debt mutual funds in India. This fund has constantly outperformed other similar funds, providing 8.41% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹10,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹10,000
AUM294Cr
1Y Returns8.4%

Tata Dynamic Bond Direct Growth

Fund Performance: This fund has given 6.07% annualized returns in the last three years. In the last year, its returns were 8.18%. It has continually hit its benchmark in the Debt segment.

Why to invest: It is one of the most remarkable Debt mutual funds in India. This fund has constantly outperformed other similar funds, providing 8.18% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹5,000
AUM329Cr
1Y Returns8.2%

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