Mutual Funds

Fund call: IDFC Dynamic Bond

Dhuraivel Gunasekaran | Updated on October 13, 2019 Published on October 09, 2019

IDFC Dynamic Bond is the only scheme among the 28 in the dynamic bond funds category that has been investing solely in the highest-rated debt instruments over the past five years. This mitigates the credit risk in the fund's portfolio, but may generate relatively lower returns.

Suyash Choudhary, Head – Fixed Income, IDFC AMC

 

However, an efficient duration strategy has helped the fund deliver category-beating returns across time-frames. The fund has the leeway to invest in debt securities across tenures, depending on the fund manager's view on the interest rate. In the past three years, the fund has generated a CAGR of 8 per cent.

It is suitable for investors with a medium risk profile for a time horizon of three years or more.

 

 

 

*Three other funds - Quantum Dynamic Bond, Mirae Asset Dynamic Bond and Indiabulls Dynamic Bond - too, have been exclusively investing in G-Secs and AAA/A1+ rated bonds since their launch, but have an NAV history of less than five years.

 

Sources: NAV India, ACE MF

 

 

Interactive by Annapurani V

 

Published on October 09, 2019
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.