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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)
Kotak Dynamic Bond FundDebtModerate11.0%5star3,035
ICICI Prudential All Seasons Bond FundDebtModerate11.3%5star5,536
Axis Dynamic Bond FundDebtModerate12.3%4star1,912
IDFC Dynamic Bond FundDebtModerate9.6%4star3,952
SBI Dynamic Bond FundDebtModerate9.2%4star3,141
DSP Strategic Bond FundDebtModerate9.5%4star821
Mirae Asset Dynamic Bond FundDebtLow to Moderate7.9%4star148
PGIM India Dynamic Bond FundDebtModerate9.1%3star107
L&T Flexi Bond FundDebtModerate8.4%3star66
Nippon India Dynamic Bond FundDebtModerate9.8%3star3,075
HSBC Flexi Debt FundDebtModerate7.4%3star62
Quantum Dynamic Bond FundDebtModerate7.2%3star77
Aditya Birla Sun Life Active Debt Multi Manager FoF SchemeDEBTModerate9.0%3star8
Canara Robeco Dynamic Bond FundDebtLow to Moderate8.3%3star114
Tata Dynamic Bond FundDebtModerate8.6%3star231
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.

Kotak Dynamic Bond Fund Direct Growth

Fund Performance: This fund has given 9.94% annualized returns in the last three years. In the last year, its returns were 11%. 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% 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
AUM3,035Cr
1Y Returns11.0%

ICICI Prudential All Seasons Bond Fund Direct Plan Growth

Fund Performance: This fund has given 9.66% annualized returns in the last three years. In the last year, its returns were 11.34%. 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 11.34% 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
AUM5,536Cr
1Y Returns11.3%

Axis Dynamic Bond Direct Fund Growth

Fund Performance: This fund has given 10.22% annualized returns in the last three years. In the last year, its returns were 12.29%. 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 12.29% 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
AUM1,912Cr
1Y Returns12.3%

IDFC Dynamic Bond Fund Direct Growth

Fund Performance: This fund has given 10.14% annualized returns in the last three years. In the last year, its returns were 9.55%. 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 9.55% 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
AUM3,952Cr
1Y Returns9.6%

SBI Dynamic Bond Direct Plan Growth

Fund Performance: This fund has given 9.86% annualized returns in the last three years. In the last year, its returns were 9.15%. 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 9.15% 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
AUM3,141Cr
1Y Returns9.2%

DSP Strategic Bond Direct Plan Growth

Fund Performance: This fund has given 9.78% 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 ₹500. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹500
AUM821Cr
1Y Returns9.5%

Mirae Asset Dynamic Bond Fund Direct Growth

Fund Performance: This fund has given 9.59% annualized returns in the last three years. In the last year, its returns were 7.92%. 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 7.92% 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
AUM148Cr
1Y Returns7.9%

PGIM India Dynamic Bond Direct Plan Growth

Fund Performance: This fund has given 9.2% annualized returns in the last three years. In the last year, its returns were 9.05%. 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 9.05% 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
AUM107Cr
1Y Returns9.1%

L&T Flexi Bond Fund Direct Growth

Fund Performance: This fund has given 8.57% annualized returns in the last three years. In the last year, its returns were 8.43%. 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 8.43% 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
AUM66Cr
1Y Returns8.4%

Nippon India Dynamic Bond Fund Direct Growth

Fund Performance: This fund has given 8.42% annualized returns in the last three years. In the last year, its returns were 9.75%. 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 9.75% 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
AUM3,075Cr
1Y Returns9.8%

HSBC Flexi Debt Fund Direct Growth

Fund Performance: This fund has given 8.31% annualized returns in the last three years. In the last year, its returns were 7.38%. 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 7.38% 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
AUM62Cr
1Y Returns7.4%

Quantum Dynamic Bond Fund Direct Growth

Fund Performance: This fund has given 8.3% annualized returns in the last three years. In the last year, its returns were 7.24%. 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 7.24% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹500. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹500
AUM77Cr
1Y Returns7.2%

Aditya Birla Sun Life Active Debt Multi Manager FoF Scheme Direct Growth

Fund Performance: This fund has given 8.14% annualized returns in the last three years. In the last year, its returns were 9.01%. 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 9.01% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹1,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹1,000
AUM8Cr
1Y Returns9.0%

Canara Robeco Dynamic Bond Fund Direct Growth

Fund Performance: This fund has given 8.05% annualized returns in the last three years. In the last year, its returns were 8.31%. 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 8.31% 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
AUM114Cr
1Y Returns8.3%

Tata Dynamic Bond Direct Growth

Fund Performance: This fund has given 8.03% annualized returns in the last three years. In the last year, its returns were 8.58%. 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 8.58% 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
AUM231Cr
1Y Returns8.6%

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