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.

Why invest with Groww?

— Registered with SEBI, AMFI & BSE

— Paperless sign up on web & app

— Expert recommendations

— ZERO fees !

Sign Up

Top 10 Dynamic Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
DHFL Pramerica Dynamic Bond FundDebtModerate14.3%5star41
DHFL Pramerica Dynamic Bond FundDebtModerate14.3%5star41
DHFL Pramerica Dynamic Bond FundDebtModerate14.3%5star41
Franklin India Dynamic Accrual FundDebtModerate10.0%5star3,981
Franklin India Dynamic Accrual FundDebtModerate10.0%5star3,981
Kotak Dynamic Bond FundDebtModerately Low14.0%5star791
Kotak Dynamic Bond FundDebtModerately Low14.0%5star1,238
Kotak Dynamic Bond FundDebtModerately Low14.0%5star1,238
Kotak Dynamic Bond FundDebtModerately Low14.0%5star791
Kotak Dynamic Bond FundDebtModerately Low13.9%5star791
ICICI Prudential Dynamic Bond FundDebtModerate4.8%5star1,313
DHFL Pramerica Dynamic Bond FundDebtModerate13.6%5star41
DHFL Pramerica Dynamic Bond FundDebtModerate13.6%5star41
DHFL Pramerica Dynamic Bond FundDebtModerate13.6%5star41
DHFL Pramerica Dynamic Bond FundDebtModerate13.7%5star41
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.

PGIM India Dynamic Bond Direct Plan Dividend Monthly

Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 9.52% annualized returns in the last 3 years. In the last 1 year, it gave 14.33% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 14.33% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM41Cr
1Y Returns14.3%

PGIM India Dynamic Bond Direct Plan Dividend Quarterly

Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 9.52% annualized returns in the last 3 years. In the last 1 year, it gave 14.33% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 14.33% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM41Cr
1Y Returns14.3%

PGIM India Dynamic Bond Direct Plan Growth

Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 9.51% annualized returns in the last 3 years. In the last 1 year, it gave 14.34% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 14.34% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM41Cr
1Y Returns14.3%

Franklin India Dynamic Accrual Direct Plan Dividend Quarterly

Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 9.27% annualized returns in the last 3 years. In the last 1 year, it gave 10.04% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 10.04% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM3,981Cr
1Y Returns10.0%

Franklin India Dynamic Accrual Direct Plan Growth

Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 9.25% annualized returns in the last 3 years. In the last 1 year, it gave 10.03% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 10.03% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM3,981Cr
1Y Returns10.0%

Kotak Dynamic Bond Fund Direct Dividend Quarterly

Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 8.92% annualized returns in the last 3 years. In the last 1 year, it gave 13.98% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 13.98% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM791Cr
1Y Returns14.0%

Kotak Flexi Debt Fund Plan A Direct Dividend Daily

Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 8.92% annualized returns in the last 3 years. In the last 1 year, it gave 13.98% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 13.98% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM1,238Cr
1Y Returns14.0%

Kotak Flexi Debt Fund Plan A Direct Dividend Weekly

Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 8.92% annualized returns in the last 3 years. In the last 1 year, it gave 13.98% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 13.98% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM1,238Cr
1Y Returns14.0%

Kotak Dynamic Bond Fund Direct Dividend Monthly

Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 8.92% annualized returns in the last 3 years. In the last 1 year, it gave 13.98% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 13.98% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM791Cr
1Y Returns14.0%

Kotak Dynamic Bond Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 8.89% annualized returns in the last 3 years. In the last 1 year, it gave 13.91% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 13.91% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM791Cr
1Y Returns13.9%

ICICI Prudential Dynamic Bond Direct Plan 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. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM1,313Cr
1Y Returns4.8%

PGIM India Dynamic Bond Fund Dividend Quarterly

Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 8.46% annualized returns in the last 3 years. In the last 1 year, it gave 13.64% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 13.64% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM41Cr
1Y Returns13.6%

PGIM India Dynamic Bond Fund Dividend Monthly

Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 8.46% annualized returns in the last 3 years. In the last 1 year, it gave 13.64% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 13.64% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM41Cr
1Y Returns13.6%

PGIM India Dynamic Bond Fund Bonus

Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 8.46% annualized returns in the last 3 years. In the last 1 year, it gave 13.64% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 13.64% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM41Cr
1Y Returns13.6%

PGIM India Dynamic Bond Fund Growth

Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 8.44% annualized returns in the last 3 years. In the last 1 year, it gave 13.65% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 13.65% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM41Cr
1Y Returns13.7%

Explore all Mutual Funds on Groww

Explore Mutual Funds