Best Dynamic Bonds Debt Mutual Funds

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.

Top 10 Dynamic Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
Franklin India Dynamic Accrual FundDebtModerate6.8%5star3,008
DHFL Pramerica Dynamic Bond FundDebtModerate3.8%4star167
Kotak Dynamic Bond FundDebtModerately Low4.8%4star586
UTI Dynamic Bond FundDebtModerate3.0%4star1,154
ICICI Prudential All Seasons Bond FundDebtModerate4.7%4star2,023
ICICI Prudential Dynamic Bond FundDebtModerate4.8%4star1,384
JM Dynamic Debt FundDebtModerately Low7.8%4star363
Tata Dynamic Bond FundDebtModerate3.5%3star426
IDFC Dynamic Bond FundDebtModerate3.4%3star2,238
SBI Dynamic Bond FundDebtModerate4.5%3star1,061
BNP Paribas Flexi Debt FundDebtModerate3.1%3star190
Baroda Pioneer Dynamic Bond FundDebtModerate4.9%3star18
Canara Robeco Dynamic Bond FundDebtModerate2.5%3star126
Axis Dynamic Bond FundDebtModerate4.2%3star186
IIFL Dynamic Bond FundDebtModerate4.8%2star430
View All Top 10 Dynamic Mutual Funds

Let's have a closer look

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

Franklin India Dynamic Accrual Fund - Direct - Growth

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 Date31 Dec 2012
Min Investment Amt10,000
Groww Rating5star
AUM3,008Cr
1Y Returns6.8%

DHFL Pramerica Dynamic Bond Fund - Direct - Growth

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 Date31 Dec 2012
Min Investment Amt5,000
Groww Rating4star
AUM167Cr
1Y Returns3.8%

Kotak Dynamic Bond Fund - Direct - Growth

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 Date31 Dec 2012
Min Investment Amt5,000
Groww Rating4star
AUM586Cr
1Y Returns4.8%

UTI Dynamic Bond Fund - Direct - Growth

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 Date31 Dec 2012
Min Investment Amt10,000
Groww Rating4star
AUM1,154Cr
1Y Returns3.0%

ICICI Prudential All Seasons Bond Fund - Direct - Growth

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 Date1 Jan 2013
Min Investment Amt5,000
Groww Rating4star
AUM2,023Cr
1Y Returns4.7%

ICICI Prudential Banking & PSU Debt Fund - Direct - Growth

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 Date31 Dec 2012
Min Investment Amt5,000
Groww Rating4star
AUM1,384Cr
1Y Returns4.8%

JM Dynamic Debt Fund - Direct - Growth

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 Date31 Dec 2012
Min Investment Amt5,000
Groww Rating4star
AUM363Cr
1Y Returns7.8%

Tata Dynamic Bond Fund - Direct - Growth

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 Date31 Dec 2012
Min Investment Amt5,000
Groww Rating3star
AUM426Cr
1Y Returns3.5%

IDFC Dynamic Bond Fund - Direct - Growth

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 Date31 Dec 2012
Min Investment Amt5,000
Groww Rating3star
AUM2,238Cr
1Y Returns3.4%

SBI Dynamic Bond Fund - Direct - Growth

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 Date31 Dec 2012
Min Investment Amt5,000
Groww Rating3star
AUM1,061Cr
1Y Returns4.5%

BNP Paribas Flexi Debt Fund - Direct - Growth

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 Date1 Jan 2013
Min Investment Amt5,000
Groww Rating3star
AUM190Cr
1Y Returns3.1%

Baroda Pioneer Dynamic Bond Fund - Direct - Growth

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 Date1 Jan 2013
Min Investment Amt2,00,000
Groww Rating3star
AUM18Cr
1Y Returns4.9%

Canara Robeco Dynamic Bond Fund - Direct - Growth

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 Date1 Jan 2013
Min Investment Amt5,000
Groww Rating3star
AUM126Cr
1Y Returns2.5%

Axis Dynamic Bond Fund - Direct - Growth

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 Date31 Dec 2012
Min Investment Amt5,000
Groww Rating3star
AUM186Cr
1Y Returns4.2%

IIFL Dynamic Bond Fund - Direct - Growth

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 Date23 Jun 2013
Min Investment Amt10,000
Groww Rating2star
AUM430Cr
1Y Returns4.8%

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How to invest in Dynamic Bonds Debt Mutual Funds on Groww?

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.

How long does it take to start investing in Dynamic Mutual Funds funds if I do not have a KYC?

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.

When is the right time to start investing in Dynamic Mutual Funds?

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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Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.
Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, investment goal, time frame, risk and reward balance and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs.
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