Markets
BSE See NSE See 37,734.08
-300.06 (-0.79%)

Top performing dynamic bond funds

Henil Shah
Rate this article:
4.4
Top performing dynamic bond funds

The dynamic bond funds are dynamic in terms of its composition and maturity profile. The prime aim of dynamic bond funds is to provide optimal returns in both rising as well as in the falling market situations.

 

However, the income of the bond investors can take a hit due to a long pause between the interest rate changes. Therefore, those who wish to ride the interest cycle can consider investing in dynamic bond funds. Here, the fund managers dynamically trade the debt instruments with diverse maturity periods, depending upon the anticipated change in the interest rates. Say, for instance, if the interest rates are falling, the fund manager would increase the bets on the long-term instruments like gilts. And on the contrary, if the interest rates are rising, then he would bet on the short-term money market instruments. In this article, we have curated a list of the top dynamic bonds funds that are worth considering.

 

Funds

Trailing Returns (in per cent)

1-Year

3-Year

5-Year

10-Year

ICICI Pru All Seasons Bond Fund

11.75

7.97

9.80

10.09

Kotak Dynamic Bond Fund

10.41

8.93

9.86

9.36

IDFC Dynamic Bond Fund

11.52

8.52

9.39

9.51

DSP Strategic Bond Fund

13.98

8.23

8.85

8.96

SBI Dynamic Bond Fund

10.14

8.11

9.51

9.24

Source: Rupeevest

 

Funds

Risk Statistics

Sharpe

Sortino

Alpha

Standard Deviation

ICICI Pru All Seasons Bond Fund

2.42

4.35

8.97

3.71

Kotak Dynamic Bond Fund

1.80

3.10

7.64

4.25

IDFC Dynamic Bond Fund

1.68

2.91

9.10

5.37

DSP Strategic Bond Fund

1.88

3.64

11.34

5.97

SBI Dynamic Bond Fund

1.63

2.66

7.61

4.66

Source: Rupeevest

 

Funds

Rolling Returns (in per cent)

1-Year

3-Year

5-Year

ICICI Pru All Seasons Bond Fund

10.05

10.43

10.77

Kotak Dynamic Bond Fund

9.19

9.13

9.23

IDFC Dynamic Bond Fund

9.31

9.08

9.24

DSP Strategic Bond Fund

8.75

8.60

8.85

SBI Dynamic Bond Fund

9.21

8.81

8.90

Source: Rupeevest | Period: January 20, 2010, to August 03, 2020

 

Note: Past performance does not guarantee future performance.

 

The above funds have beaten the category in terms of risk-adjusted returns. And that too, not just on trailing returns basis but also on rolling returns basis. Even in all the risk metrics, these five funds have managed to beat its category.

 

However, one thing that the investors should bear in mind is that they should take investment decisions based on their financial goals. Any unplanned decision would take you nowhere but towards the disaster. The top funds do not define suitability as every person is unique and so is his financial situation and goals. Hence, having a financial plan in place before investing is advisable.

Please login or register to post comments.

DSIJ MINDSHARE

12345Last