The below table shows a list Of the Top Performing Dynamic Bond Funds in 5 Years based on AUM, NAV, and minimum SIP.
| Name | AUM (Cr) | NAV (Rs) | Minimum SIP (Rs) |
| ICICI Pru All Seasons Bond Fund | 12666.98 | 36.96 | 500 |
| SBI Dynamic Bond Fund | 3146.36 | 36.53 | 3000 |
| Kotak Dynamic Bond Fund | 2560.49 | 38.20 | 100 |
| Bandhan Dynamic Bond Fund | 2448.60 | 35.82 | 100 |
| Axis Dynamic Bond Fund | 1685.23 | 30.27 | 1000 |
| DSP Strategic Bond Fund | 1169.42 | 3372.93 | 100 |
| 360 ONE Dynamic Bond Fund | 781.60 | 22.04 | 1500 |
| HDFC Dynamic Debt Fund | 721.17 | 92.67 | 100 |
| UTI Dynamic Bond Fund | 465.51 | 31.29 | 1500 |
| PGIM India Dynamic Bond Fund | 108.48 | 2784.14 | 1000 |
Introduction to Top Performing Dynamic Bond Funds in 5 Years
ICICI Prudential All Seasons Bond Fund
ICICI Prudential All Seasons Bond Fund is a Dynamic Bond mutual fund scheme from ICICI Prudential Mutual Fund. This fund has existed for 11 years and 8 months, having been launched on January 1, 2013.
ICICI Pru All Seasons Bond Fund Category Dynamic Bond Fund with an AUM of ₹12,666.98 crores, a 5-year CAGR of 8.09%, an exit load of 0.25% and an expense ratio of 0.59%. SEBI rates the risk as Moderately High. The asset allocation includes 0.25% in Certificate of Deposit, 0.56% in Cash & Equivalents, 4.62% in Corporate Debt and 38.18% in Government Securities.
SBI Dynamic Bond Fund
SBI Dynamic Bond Fund is a Dynamic Bond mutual fund scheme from SBI Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on January 1, 2013.
SBI Dynamic Bond Fund Category Dynamic Bond Fund with an AUM of ₹3,146.36 crores, a 5-year CAGR of 7.29%, an exit load of 0.25% and an expense ratio of 0.62%. SEBI rates the risk as Moderate. The asset allocation includes 0.25% in Cash & Equivalents, 2.74% in Corporate Debt and 8.25% in Government Securities.
Kotak Dynamic Bond Fund
Kotak Dynamic Bond Fund is a Dynamic Bond mutual fund scheme from Kotak Mahindra Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on January 1, 2013.
Kotak Dynamic Bond Fund Category Dynamic Bond Fund with an AUM of ₹2,560.49 crores, a 5-year CAGR of 7.49%, an exit load of 0% and an expense ratio of 0.56%. SEBI rates the risk as Moderately High. The asset allocation includes 0.24% in Cash & Equivalents, 2.17% in REITs & InvIT, 6.51% in Corporate Debt and 73.19% in Government Securities.
Bandhan Dynamic Bond Fund
Bandhan Dynamic Bond Fund is a Dynamic Bond mutual fund scheme from Bandhan Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on January 1, 2013.
Bandhan Dynamic Bond Fund Category Dynamic Bond Fund with an AUM of ₹2,448.60 crores, a 5-year CAGR of 7.31%, an exit load of 0% and an expense ratio of 0.75%. SEBI rates the risk as Moderate. The asset allocation includes 0.23% in Cash & Equivalents and 98.45% in Government Securities.
Axis Dynamic Bond Fund
Axis Dynamic Bond Fund is a Dynamic Bond mutual fund scheme from Axis Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on January 1, 2013.
Axis Dynamic Bond Fund Category Dynamic Bond Fund with an AUM of ₹1,685.23 crores, a 5-year CAGR of 7.10%, an exit load of 0% and an expense ratio of 0.26%. SEBI rates the risk as Moderate. The asset allocation includes 0.27% in Cash & Equivalents, 3.40% in Corporate Debt and 77.00% in Government Securities.
DSP Strategic Bond Fund
DSP Strategic Bond Fund is a Dynamic Bond mutual fund scheme from DSP Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on January 1, 2013.
DSP Strategic Bond Fund Category Dynamic Bond Fund with an AUM of ₹1,169.42 crores, a 5-year CAGR of 7.94%, an exit load of 0% and an expense ratio of 0.53%. SEBI rates the risk as Moderate. The asset allocation includes 0.17% in Corporate Debt, 9.24% in Cash & Equivalents and 12.85% in Government Securities.
360 ONE Dynamic Bond Fund
360 ONE Dynamic Bond Fund is a Dynamic Bond mutual fund scheme from 360 ONE Mutual Fund. This fund has been in existence for 11 years and 3 months, having been launched on June 6, 2013.
360 ONE Dynamic Bond Fund Category Dynamic Bond Fund with an AUM of ₹781.60 crores, a 5-year CAGR of 7.05%, an exit load of 0% and an expense ratio of 0.27%. SEBI rates the risk as Moderately High. The asset allocation includes 0.25% in Certificate of Deposit, 3.15% in Cash & Equivalents, 3.60% in REITs & InvIT, 4.93% in Corporate Debt and 51.85% in Government Securities.
HDFC Dynamic Debt Fund
HDFC Dynamic Debt Fund is a Dynamic Bond mutual fund scheme from HDFC Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on January 1, 2013.
HDFC Dynamic Debt Fund Category Dynamic Bond Fund with an AUM of ₹721.17 crores, a 5-year CAGR of 7.64%, an exit load of 0% and an expense ratio of 0.74%. SEBI rates the risk as Moderately High. The asset allocation includes 0.24% in REITs & InvIT, 2.05% in Cash & Equivalents, 6.27% in Corporate Debt and 82.49% in Government Securities.
UTI Dynamic Bond Fund
UTI Dynamic Bond Fund is a Dynamic Bond mutual fund scheme from UTI Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on January 1, 2013.
UTI Dynamic Bond Fund Category Dynamic Bond Fund with an AUM of ₹465.51 crores, a 5-year CAGR of 8.57% an exit load of 0%, and an expense ratio of 0.7%. SEBI rates the risk as Moderate. The asset allocation includes 0.27% in Cash & Equivalents, 4.71% in Corporate Debt and 85.02% in Government Securities.
PGIM India Dynamic Bond Fund
PGIM India Dynamic Bond Fund is a Dynamic Bond mutual fund scheme from PGIM India Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on January 1, 2013.
PGIM India Dynamic Bond Fund Category Dynamic Bond Fund with an AUM of ₹108.48 crores, a 5-year CAGR of 6.90% an exit load of 0%, and an expense ratio of 0.35%. SEBI rates the risk as Moderate. The asset allocation includes 0.32% in Cash & Equivalents, 5.88% in Corporate Debt and 86.05% in Government Securities.
What Are Dynamic Bond Funds?
Dynamic Bond Funds are a category of debt mutual funds that have the flexibility to invest across different types of fixed-income securities with varying maturities. These funds aim to generate returns by actively managing their portfolio based on the fund manager’s view of interest rate movements and credit market conditions.
Dynamic Bond Funds can adjust their portfolio’s average maturity and credit quality based on market outlook. This allows them to potentially benefit from both interest rate changes and credit spreads movements.
These funds are suitable for investors who want to take advantage of changing interest rate scenarios but lack the expertise to time the market themselves. They offer a balance between the potential for higher returns and active risk management.
Features Of Top Performing Dynamic Bond Funds in 5 Years
The main features of top-performing Dynamic Bond Funds in 5 years include flexibility in portfolio management, active duration management, credit quality adjustments and professional fund management. These funds aim to optimize returns across different interest rates and credit market scenarios.
- Flexibility: Dynamic Bond Funds can invest across various fixed-income securities, including government bonds, corporate bonds and money market instruments, allowing adaptability to market conditions.
- Active duration management: Fund managers can adjust the portfolio’s average maturity based on their interest rate outlook, potentially benefiting from both rising and falling rate scenarios.
- Credit quality adjustments: These funds can alter their exposure to different credit qualities, balancing potential returns with credit risk based on market conditions.
- Professional management: Experienced fund managers leverage their expertise in interest rate and credit analysis to make informed portfolio allocation decisions.
Best Performing Dynamic Bond Funds in 5 Years
The table below shows the Best Performing Dynamic Bond Funds in 5 Years based on the lowest to highest expense ratio.
| Name | Expense Ratio (%) | Minimum SIP (Rs) |
| Axis Dynamic Bond Fund | 0.26 | 1000 |
| 360 ONE Dynamic Bond Fund | 0.27 | 1500 |
| PGIM India Dynamic Bond Fund | 0.35 | 1000 |
| DSP Strategic Bond Fund | 0.53 | 100 |
| Kotak Dynamic Bond Fund | 0.56 | 100 |
| ICICI Pru All Seasons Bond Fund | 0.59 | 500 |
| SBI Dynamic Bond Fund | 0.62 | 3000 |
| UTI Dynamic Bond Fund | 0.7 | 1500 |
| HDFC Dynamic Debt Fund | 0.74 | 100 |
| Bandhan Dynamic Bond Fund | 0.75 | 100 |
Top Performing Dynamic Bond Funds in 5 Years In India
The table below shows the top-performing dynamic Bond Funds in 5 Years In India Based on the Highest 3Y CAGR.
| Name | CAGR 3Y (Cr) | Minimum SIP (Rs) |
| UTI Dynamic Bond Fund | 11.61 | 1500 |
| SBI Dynamic Bond Fund | 7.15 | 3000 |
| ICICI Pru All Seasons Bond Fund | 7.14 | 500 |
| DSP Strategic Bond Fund | 6.86 | 100 |
| Kotak Dynamic Bond Fund | 6.83 | 100 |
| PGIM India Dynamic Bond Fund | 6.69 | 1000 |
| Bandhan Dynamic Bond Fund | 6.51 | 100 |
| 360 ONE Dynamic Bond Fund | 6.46 | 1500 |
| HDFC Dynamic Debt Fund | 6.19 | 100 |
| Axis Dynamic Bond Fund | 6.02 | 1000 |
Top Performing Dynamic Bond Funds in 5 Years List
The table below shows the Top Performing Dynamic Bond Funds in the 5 Years List based on exit load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.
| Name | AMC | Exit Load (%) |
| UTI Dynamic Bond Fund | UTI Asset Management Company Private Limited | 0 |
| DSP Strategic Bond Fund | DSP Investment Managers Private Limited | 0 |
| Kotak Dynamic Bond Fund | Kotak Mahindra Asset Management Company Limited | 0 |
| PGIM India Dynamic Bond Fund | PGIM India Asset Management Private Limited | 0 |
| Bandhan Dynamic Bond Fund | Bandhan AMC Limited | 0 |
| 360 ONE Dynamic Bond Fund | 360 ONE Asset Management Limited | 0 |
| HDFC Dynamic Debt Fund | HDFC Asset Management Company Limited | 0 |
| Axis Dynamic Bond Fund | Axis Asset Management Company Ltd. | 0 |
| SBI Dynamic Bond Fund | SBI Funds Management Limited | 0.25 |
| ICICI Pru All Seasons Bond Fund | ICICI Prudential Asset Management Company Limited | 0.25 |
Factors To Consider When Investing In Top Performing Dynamic Bond Funds in 5 Years
The main factors to consider when investing in top-performing Dynamic Bond Funds in 5 years include fund manager expertise, historical performance, portfolio composition, expense ratio and investment horizon. These factors can significantly impact the fund’s performance and suitability for your portfolio.
- Fund manager expertise: Evaluate the fund manager’s experience and track record in managing dynamic bond funds, as their decision-making is crucial for the fund’s performance.
- Historical performance: Analyze the fund’s past returns across different interest rate cycles, comparing them with benchmark indices and category averages.
- Portfolio composition: Examine the fund’s current allocation across different types of bonds, maturities, and credit qualities to understand its strategy.
- Expense ratio: Compare expense ratios across different dynamic bond funds, as lower expenses can contribute to better overall returns.
- Investment horizon: Consider your investment timeframe, as dynamic bond funds may experience short-term volatility due to their active management approach.
How To Invest In Top Performing Dynamic Bond Funds in 5 Years?
To invest in top-performing Dynamic Bond Funds in 5 years, start by researching and comparing different funds based on their performance, fund manager expertise and investment strategy. Once you’ve selected a fund that aligns with your financial goals and risk tolerance, you can invest through Alice Blue.
Alice Blue is a user-friendly online investment platform that provides tools and resources to help you make informed investment decisions. You can choose to invest a lump sum amount or opt for a Systematic Investment Plan (SIP), which allows you to invest a fixed amount regularly.
For most investors, a SIP is recommended as it helps in rupee cost averaging and reduces the impact of market volatility on your investment over time. Remember to review and rebalance your investment periodically to ensure it remains aligned with your financial goals.
Advantages Of Investing In Top Performing Dynamic Bond Funds in 5 Years
The main advantages of investing in top-performing Dynamic Bond Funds in 5 years include the potential for optimized returns, professional management, adaptability to market conditions and diversification benefits. These funds offer a flexible approach to fixed-income investing.
- Optimized returns: Dynamic Bond Funds aim to capitalize on both interest rate and credit spread movements, potentially leading to better risk-adjusted returns across different market cycles.
- Professional management: Experienced fund managers actively manage the portfolio, leveraging their expertise in interest rate and credit analysis to make informed investment decisions.
- Adaptability: These funds can adjust their portfolio based on changing market conditions, potentially benefiting from both rising and falling interest rate scenarios.
- Diversification: Dynamic Bond Funds typically invest across various fixed-income securities, providing diversification within the debt portion of an investor’s portfolio.
Risks Of Investing In Top Performing Dynamic Bond Funds in 5 Years
The main risks of investing in top-performing Dynamic Bond Funds in 5 years include interest rate risk, credit risk, liquidity risk, and manager risk. These factors can impact the fund’s performance and lead to potential volatility in returns.
- Interest rate risk: Changes in interest rates can affect bond prices, potentially leading to capital losses if the fund manager’s rate outlook is incorrect.
- Credit risk: Exposure to corporate bonds carries the risk of default or credit rating downgrades, which can impact the fund’s returns.
- Liquidity risk: Some bonds in the portfolio may face reduced liquidity in stressed market conditions, potentially affecting the fund’s ability to meet large redemption requests.
- Manager risk: The fund’s performance heavily relies on the fund manager’s decisions, and poor judgment can lead to underperformance.
Importance of Dynamic Bond Funds
The main importance of Dynamic Bond Funds lies in their ability to adapt to changing market conditions, the potential for optimized returns, professional management of interest rate risk and diversification benefits. These funds play a crucial role for investors seeking active management in fixed income.
- Adaptability: Dynamic Bond Funds can adjust their portfolio based on market outlook, potentially benefiting from both rising and falling interest rate scenarios.
- Optimized returns: By actively managing duration and credit exposure, these funds aim to optimize returns across different market cycles.
- Professional risk management: Fund managers leverage their expertise to navigate interest rate and credit risks, which can be challenging for individual investors.
- Diversification: These funds offer exposure to various fixed-income securities, providing diversification within the debt portion of an investor’s portfolio.
How Long to Stay Invested in Dynamic Bond Funds?
The ideal investment horizon for Dynamic Bond Funds is typically 3-5 years or longer. This time frame allows the fund manager’s strategy to play out across different interest rate cycles and credit market conditions, potentially smoothing out short-term volatility and optimizing returns.
However, the exact duration can vary based on individual financial goals and market conditions. Regular monitoring of the fund’s performance and strategy is important. Investors should be prepared for some short-term volatility due to the fund’s active management approach.
Tax Implications of Investing in Dynamic Bond Funds
Dynamic Bond Funds are taxed as debt mutual funds in India. For holding periods up to 3 years, gains are considered short-term capital gains and taxed at the investor’s income tax slab rate. For holding periods over 3 years, gains are treated as long-term capital gains.
Long-term capital gains from Dynamic Bond Funds are taxed at 20% with indexation benefits. Indexation adjusts the purchase price for inflation, potentially reducing the tax liability. This tax treatment can make Dynamic Bond Funds more tax-efficient for long-term investors compared to fixed deposits or other interest-bearing instruments.
Future of Dynamic Bond Funds
The future of Dynamic Bond Funds in India looks promising, driven by factors such as evolving fixed-income markets, increasing investor sophistication and the need for active management in changing interest rate scenarios. These funds are likely to remain relevant for investors seeking professional management of their debt investments.
However, their performance will continue to be influenced by factors such as interest rate movements, credit market conditions, and regulatory changes. Innovations in fund management strategies and the introduction of new fixed-income products could further enhance the appeal of Dynamic Bond Funds in the coming years.
Top Performing Dynamic Bond Funds in 5 Years – FAQs
Dynamic bond funds are debt mutual funds that adjust their portfolio duration based on interest rate movements. These funds invest in a mix of short-term and long-term bonds, giving fund managers flexibility to optimize returns in different market conditions. Suitable for investors with moderate risk tolerance.
Top Performing Dynamic Bond Funds in 5 Years #1: ICICI Pru All Seasons Bond Fund
Top Performing Dynamic Bond Funds in 5 Years #2: SBI Dynamic Bond Fund
Top Performing Dynamic Bond Funds in 5 Years #3: Kotak Dynamic Bond Fund
Top Performing Dynamic Bond Funds in 5 Years #4: Bandhan Dynamic Bond Fund
Top Performing Dynamic Bond Funds in 5 Years #5: Axis Dynamic Bond Fund
These funds are listed based on the Highest AUM.
The best performing Dynamic Bond Funds in 5 years based on expense ratio are Axis Dynamic Bond Fund, 360 ONE Dynamic Bond Fund, PGIM India Dynamic Bond Fund, DSP Strategic Bond Fund and Kotak Dynamic Bond Fund. These funds have delivered consistent returns while maintaining lower expense ratios, providing effective cost-efficient investment options in the dynamic bond category.
The top performing Dynamic Bond Funds in 5 years based on 3-year CAGR are UTI Dynamic Bond Fund, SBI Dynamic Bond Fund, ICICI Pru All Seasons Bond Fund, DSP Strategic Bond Fund and Kotak Dynamic Bond Fund. These funds have shown solid performance, offering consistent returns for investors over the medium term.
Investing in top-performing Dynamic Bond Funds can be good for investors seeking active management in fixed income. They offer the potential for optimized returns across different market cycles. However, consider your risk tolerance and investment horizon before investing.
Yes, you can buy top-performing Dynamic Bond Funds through various online platforms like Alice Blue or directly from fund houses. These funds are typically open-ended, allowing purchases on any business day. Consider your investment goals and risk tolerance before investing.
We hope you’re clear on the topic, but there’s more to explore in stocks, commodities, mutual funds, and related areas. Here are important topics to learn about.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
