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 FundDebtLow16.4%5star55
JM Dynamic Debt FundDebtVery Low7.7%5star217
DHFL Pramerica Dynamic Bond FundDebtModerately Low13.9%5star41
Kotak Dynamic Bond FundDebtLow13.6%5star824
Franklin India Dynamic Accrual FundDebtLow9.5%5star4,012
Axis Dynamic Bond FundDebtModerately Low13.2%4star141
ICICI Prudential All Seasons Bond FundDebtModerately Low10.8%4star2,816
L&T Flexi Bond FundDebtModerately Low12.8%4star58
SBI Dynamic Bond FundDebtModerately Low14.9%4star1,122
IDFC Dynamic Bond FundDebtModerately Low15.1%4star2,062
Mirae Asset Dynamic Bond FundDebtLow14.8%4star40
Canara Robeco Dynamic Bond FundDebtModerately Low11.8%3star109
Reliance Dynamic Bond FundDebtModerately Low12.5%3star954
BNP Paribas Flexi Debt FundDebtModerately Low10.6%3star150
IIFL Dynamic Bond FundDebtLow8.1%3star319
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 8.33% annualized returns in the last three years. In the last year, its returns were 16.43%. 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 16.43% 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
AUM55Cr
1Y Returns16.4%

JM Dynamic Debt Fund Direct Growth

Fund Performance: This fund has given 7.98% annualized returns in the last three years. In the last year, its returns were 7.68%. 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 7.68% 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
AUM217Cr
1Y Returns7.7%

PGIM India Dynamic Bond Direct Plan Growth

Fund Performance: This fund has given 9.69% annualized returns in the last three years. In the last year, its returns were 13.94%. 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 13.94% 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
AUM41Cr
1Y Returns13.9%

Kotak Dynamic Bond Fund Direct Growth

Fund Performance: This fund has given 9.26% annualized returns in the last three years. In the last year, its returns were 13.58%. 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 13.58% 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 ₹1,000.

Min Investment Amt₹5,000
AUM824Cr
1Y Returns13.6%

Franklin India Dynamic Accrual Direct Plan Growth

Fund Performance: This fund has given 9.41% annualized returns in the last three years. In the last year, its returns were 9.49%. 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 9.49% 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 ₹500.

Min Investment Amt₹10,000
AUM4,012Cr
1Y Returns9.5%

Axis Dynamic Bond Direct Fund Growth

Fund Performance: This fund has given 8.52% annualized returns in the last three years. In the last year, its returns were 13.15%. 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 13.15% 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 ₹1,000.

Min Investment Amt₹5,000
AUM141Cr
1Y Returns13.2%

ICICI Prudential All Seasons Bond Fund Direct Plan Growth

Fund Performance: This fund has given 8.75% annualized returns in the last three years. In the last year, its returns were 10.81%. 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 10.81% 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
AUM2,816Cr
1Y Returns10.8%

L&T Flexi Bond Fund Direct Growth

Fund Performance: This fund has given 8.26% annualized returns in the last three years. In the last year, its returns were 12.85%. 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 12.85% 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
AUM58Cr
1Y Returns12.8%

SBI Dynamic Bond Direct Plan Growth

Fund Performance: This fund has given 9.17% annualized returns in the last three years. In the last year, its returns were 14.9%. 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 14.9% 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
AUM1,122Cr
1Y Returns14.9%

IDFC Dynamic Bond Fund Direct Growth

Fund Performance: This fund has given 9.05% annualized returns in the last three years. In the last year, its returns were 15.09%. 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 15.09% 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
AUM2,062Cr
1Y Returns15.1%

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 14.85%. 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 14.85% 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
AUM40Cr
1Y Returns14.8%

Canara Robeco Dynamic Bond Fund Direct Growth

Fund Performance: This fund has given 7.69% annualized returns in the last three years. In the last year, its returns were 11.81%. 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 11.81% 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
AUM109Cr
1Y Returns11.8%

Nippon India Dynamic Bond Fund Direct Growth

Fund Performance: This fund has given 7.39% annualized returns in the last three years. In the last year, its returns were 12.5%. 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 12.5% 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
AUM954Cr
1Y Returns12.5%

BNP Paribas Flexi Debt Plan Direct Growth

Fund Performance: This fund has given 7.49% annualized returns in the last three years. In the last year, its returns were 10.62%. 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 10.62% 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
AUM150Cr
1Y Returns10.6%

IIFL Dynamic Bond Fund Direct Growth

Fund Performance: This fund has given 7.36% annualized returns in the last three years. In the last year, its returns were 8.06%. 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 8.06% 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
AUM319Cr
1Y Returns8.1%

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