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DYNAMIC BOND

An open ended dynamic debt scheme investing across durations.

What is Dynamic Bond Fund?

Dynamic Bonds can alter their allocations across short and long term bonds according to changing interest rates. The performance of a dynamic fund is highly dependent on fund manager’s expertise and decisions. Usually these funds have impressive AUM (Asset under management) as each AMC would be handling thousands of crores under this category.

Benefits of investing in dynamic funds

  • Allows you to be hands-off

    If you are puzzled about the interest scenario, you can rely on the expertise of a dynamic fund manager to deliver optimal returns after accounting for volatility in interest rates. Thus you won’t need to panic when market conditions keep changing.

  • Freedom from the usual mandate

    Debt funds are expected to adhere to their investment mandates. For instance a short term debt fund can only invest in short term securities. However, a dynamic fund doesn’t need to follow such a mandate. It can even invest in a long term security for just a month.

  • Flexibility for fund manager

    Unlike traditional debt funds which invest only in fixed income instruments, fund manager of a dynamic debt fund can manage the duration of the portfolio depending on her view of prevailing interest rates. If rates are expected to fall, the fund manager can invest in long dated instruments. If rates are expected to rise, then fund manager can invest in short term papers.

Dynamic fund investment made easy

One can invest in dynamic funds through SIP or via lumpsum.
Research about various dynamic mutual fund investment has become easy. One can compare, read several reviews or depend on rankings given by credible institutions to evaluate dynamic debt funds.
It is also easy to invest in a dynamic debt fund with the click of a few buttons. The investing process has become simplified thanks to the efforts of the regulator and advances in technology.
Thanks to a seamless reporting facility which is provided for investors, it is easy to track to the performance of the dynamic fund in which one has invested.