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Bandhan Dynamic Bond Fund - Direct Plan

An open ended dynamic debt scheme investing across duration. A scheme with relatively high interest rate risk and relatively low credit risk.

DebtInception Date:25/06/2002
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What is a Dynamic Bond Fund?

Dynamic bond funds are a type of debt fund investment scheme which attempts to capitalise on market cycles. The fund undertakes an active investment strategy; its portfolio is changed dynamically to potentially benefit from rising and falling interest rates. Dynamic bond funds switch between short-term and long-term securities to reduce vulnerability to abrupt interest rate changes.

Dynamic debt funds are associated with a moderate level of risk. Although they attempt to ride out interest rate cycles, they are vulnerable to external macroeconomic factors such as fiscal deficit and government policies. Consequently, dynamic bond funds may be a suitable long-term investment option.

Dynamic bond funds allow investors to invest in debt and money market instruments with relatively low risk while providing the potential benefits of diversification.

Dynamic bond funds are taxed as any other type of debt fund. Units held for less than three years are subject to STCG tax. The profits from dynamic debt funds are added to the investors income and taxed according to their income tax slab. Units held for longer than three years are subject to LTCG tax at 20% with indexation benefits.

  • Min Investment 1,000
  • Min SIP Amount 100
  • Exit Load
    Nil (w.e.f. 17th October 2016)
Annualised Returns(as on 30th Jun, 2024)8.83%1yr5.29%3yr6.65%5yr
NAV 31.9398 as on 10/07/20241 Day Change: 0.04(0.13%)

Scheme is suitable as 'Satellite' debt allocation and is recommended for a minimum investment horizon of more than 3 years

Tier 1 Benchmark : NIFTY Composite Debt Index A-III (w.e.f. 1st April 2022)Alternate Benchmark : CRISIL 10 Year Gilt Index

Performance as on 28th June 2024

Scheme NamesCAGR Returns (%)Current value of Investment of 10,000
1 year3 year5 year10 year03/12/2008 Since inception1 year3 year5 year10 year03/12/2008 Since inception
Bandhan Dynamic Bond Fund - Regular Plan - Growth8.835.296.657.877.7310,88511,67513,80421,35231,893
^ Tier 1 Benchmark   |   ^^ Alternate Benchmark   |   ^^^ Tier 2 Benchmark

This fund is managed by Mr. Suyash Choudhary (w.e.f 15/10/2010)

View fund performance of other funds managed by Mr. Suyash Choudhary

Past performance may or may not be sustained in future.
Regular and Direct Plans have different expense structure. Direct Plan shall have a lower expense ratio excluding distribution expenses, commission expenses etc.


For taxation, please refer the link :  https://bit.ly/3spfzbo

Bandhan Dynamic Bond Fund

(Scheme Risk-o-meter)

Investors understand that their principal will be at Moderate Risk.

NIFTY Composite Debt Index A-III (w.e.f. 1st April 2022)

(Tier 1 Benchmark Risk-o-meter)

This product is suitable for investors who are seeking* :

  • To generate long term optimal returns by active management.
  • Investments in money market & debt instruments including G-Sec across duration

Who Should Invest in a Dynamic Bond Fund?

Dynamic bond funds are a moderately risky investment option, and may be suitable for investors with a relatively higher risk appetite. Although dynamic bond funds aim to avoid interest rate risk by dynamically adjusting their portfolio, they are subject to risks from macroeconomic factors such as government policies. Thus, investors with a low-risk appetite may not be suited to dynamic bond funds.

Dynamic bond funds invest in money market and debt instruments including, G-sec, to potentially generate long-term optimal returns. These funds may be suitable for investors with a long-term investment horizon.

Investors seeking active management in their investment scheme may potentially benefit by investing in dynamic bond funds. These funds are actively managed by switching between short-term or long-term securities to gain potential benefits from interest rate fluctuations.

Dynamic debt funds are a type of a debt fund, and are taxed like any other debt funds. Consequently, they may not be suitable for investors seeking tax-saving investment options.

FAQs on Dynamic Bond Funds

What is a dynamic bond fund?

A dynamic bond fund is a type of debt fund that invests in debt and money market securities. These funds attempt to capitalise on interest rate fluctuations by switching between short-term and long-term securities.

Is there a lock-in period for dynamic bond funds?

No, Bandhan Dynamic Bond Fund does not have a lock-in period

How does a dynamic bond fund work?

Dynamic bond funds invest in debt and money market securities and try to benefit from fluctuations in interest rates. When interest rates may show signs of falling, the asset allocation may be changed to encompass long-term bonds. When interest rates may show signs of rising, the fund’s portfolio may be changed to include short-term bonds, thus potentially gaining benefits from fluctuations in the market.

Is dynamic bond fund safe?

Dynamic bond funds may potentially mitigate interest rate risk by switching securities on the basis of interest rate fluctuations. However, all mutual funds are subject to risks. Similar to other debt funds, dynamic debt funds may be subject to inflation risk and risks arising from macroeconomic factors such as government policies.

Why do bond prices fall when interest rates rise?

The value of existing bonds paying lower interest may become less attractive when interest rate rises. Consequently, their price drops when the interest rates rise.

What is the meaning of bond yield?

The meaning of a bond's yield is the returns an investor expects to receive each year till the bond has reached maturity. For an investor, bond yield is the overall return that they will receive.

What is the difference between balanced funds and dynamic bond funds?

Balanced funds invest in equity and debt instruments, whereas dynamic bond funds invest primarily in debt and money market instruments. Balanced funds have a higher risk associated with them.

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.