Dynamic bond funds are considered a good way to hedge volatility because of the flexibility to switch between short and long-term securities. It is an open-ended debt scheme. Performs in terms of maturity of the securities in its portfolio.
It depends on where the maximum returns are expected to be earned. The fund manager decides whether to invest in bonds maturing in a few months or bonds maturing after several years. This ability makes them one of the most unique types of debt funds available. This fund has the potential to generate reasonable returns across all market types.
Better for investors seeking assured income
This fund is suitable for investors who do not mind switching between different portfolio strategies. As it helps to stay invested without having to switch to another portfolio. Also, it gives a fixed income no matter what the market is like. Often, investors assume that debt investments have no value as their returns do not match anywhere with equity. However, macroeconomic factors as well as interest rates play a significant role in deciding the returns you can get from your debt investments.
This scheme is based on interest rate
There are many schemes available in this category. For example, ICICI Prudential All Seasons Bond Fund is on top. It is also the largest scheme in terms of assets in this category. It has had a consistently good track record for more than 10 years. Any decision is based on an in-house model that takes into account various factors. The second aspect is based on the interest rate in that the investment is divided between corporate bonds and government securities. The scheme makes a long-term plan when interest rates are high. Over three, five, and ten years, the fund has given 7.1%, 7.2%, and 9.3% returns respectively which is better than other funds in its category. The fund has delivered Net Asset Value (NAV) growth over some time in various interest rate regimes and even in some headwinds.
invest for three years
An evergreen debt fund may be suitable to tap the potential of the debt instrument over the long term. Such a category of debt fund is known as a dynamic bond fund. If interest rates are expected to come down, fund managers have the freedom to invest in longer-duration bonds to get higher returns. As an investor, it is necessary to stay invested for at least three years or more in such a fund to benefit from investment calls. It is suitable for investors with moderate risk appetite.
Sarabjot Singh and Divya Thadigol won the Silver medal in the 10m Air pistol mixed team event: On
Heatwave conditions prevailed in many states of the country and temperatures have started rising
TCS rate has been increased from five percent to 20 percent on foreign tour packages and sending
Rinku Singh made a bang in international cricket and on the strength of his first innings, he bec
These days a light pink cold is being felt in the morning in New Delhi. At the same time, the sun
UP Board: New course was started for the employment of students, and not a single admission was done
UP Board Student Employment Course: Uttar Pradesh Board had started four new courses under skill
Tension has escalated between Pakistan and Afghanistan after seven Pakistanis were killed in firi
The new variant of coronavirus EG.5.1 is spreading rapidly in the UK, which has been named Eris.
Slogans of Khalistan Zindabad in Dharamshala: World Cup match is to be organized in Dharamshala.
YS Sharmila, sister of Andhra Pradesh Chief Minister and YSR Congress Party President Jagan Mohan
