Dynamic Bond Mutual Funds in India
Updated June 2026 · 41 active funds · data from AMFI NAVs
Dynamic Bond funds have no fixed duration mandate: SEBI defines them as investing across durations, free to shift the portfolio short or long based on the manager's interest-rate view. In an expected easing cycle a manager may extend duration to capture gains; in a tightening cycle they may shorten to protect capital. This flexibility makes them an active bet on the manager's rate-calling skill rather than on a defined band, so outcomes vary widely between funds. The role is a hands-off, all-weather debt allocation for investors who would rather delegate duration decisions than manage them - typically with a horizon of three years or more, since rate calls take time to play out. Returns and volatility depend heavily on the positions taken; a good call can outperform fixed-duration peers, a poor one can lag. The default benchmark on FindMF is the NIFTY Composite Debt Index. We compute trailing returns and risk metrics for all 41 Dynamic Bond funds from AMFI-published daily NAVs using a disclosed methodology, so you can see how each manager's flexibility has actually translated into realised return and volatility.
Who it suits: Investors with a three-year-plus horizon who want to delegate interest-rate and duration calls to the fund manager.
85% of the 27 funds here with a computed alpha beat their benchmark over the measured window (positive alpha). Past performance is not indicative; this is analysis, not advice.
| # | Scheme | 1Y | 3Y | 5Y | Sharpe | Max DD | TER | AUM |
|---|---|---|---|---|---|---|---|---|
| 1 | 360 ONE Dynamic Bond Fund 360 ONE | +4.98% | +7.90% | +6.86% | -0.16 | -1.8% | 0.34% | ₹620 Cr |
| 2 | ICICI Prudential All Seasons Bond Fund ICICI Prudential | +4.63% | +7.69% | +6.98% | -0.15 | -1.5% | 0.63% | ₹14.7K Cr |
| 3 | Aditya Birla Sun Life Dynamic Bond Fund Aditya Birla Sun Life | +4.51% | +7.59% | +7.19% | -0.02 | -1.2% | 0.64% | ₹1.9K Cr |
| 4 | Kotak Dynamic Bond Fund Kotak Mahindra | +3.98% | +7.50% | +6.45% | -0.28 | -2.4% | 0.59% | ₹2.6K Cr |
| 5 | UTI Dynamic Bond Fund UTI | +4.24% | +7.35% | +9.45% | 0.39 | -1.6% | 0.87% | ₹426 Cr |
| 6 | Mahindra Manulife Dynamic Bond Fund Mahindra Manulife | +4.28% | +7.31% | +5.88% | -0.62 | -2.3% | 0.36% | ₹75 Cr |
| 7 | Nippon India Dynamic Bond Fund Nippon India | +3.93% | +7.29% | +6.21% | -0.41 | -3.5% | 0.35% | ₹4.1K Cr |
| 8 | SBI Dynamic Bond Fund SBI | +4.44% | +7.27% | +6.69% | -0.29 | -1.6% | 0.62% | ₹4.2K Cr |
| 9 | Mirae Asset Dynamic Bond Fund Mirae Asset | +5.53% | +7.25% | +5.87% | -0.75 | -3.5% | 0.15% | ₹117 Cr |
| 10 | PGIM India Dynamic Bond Fund PGIM India | +3.04% | +7.16% | +6.21% | -0.50 | -1.9% | 0.53% | ₹93 Cr |
| 11 | BANDHAN Dynamic Bond Fund Bandhan | +4.55% | +7.14% | +5.94% | -0.36 | -4.1% | 0.79% | ₹748 Cr |
| 12 | Axis Dynamic Bond Fund Axis | +4.58% | +7.11% | +6.04% | -0.43 | -3.2% | 0.35% | ₹1.1K Cr |
| 13 | Quantum Dynamic Bond Fund Quantum | +2.71% | +7.09% | +6.30% | -0.43 | -1.6% | 0.49% | ₹103 Cr |
| 14 | Aditya Birla Sun Life Dynamic Bond Fund - Discipline Advantage Aditya Birla Sun Life | +3.90% | +6.96% | +6.56% | -0.27 | -1.2% | - | - |
| 15 | HSBC Dynamic Bond Fund HSBC | +2.67% | +6.72% | - | -0.22 | -2.0% | 0.30% | ₹139 Cr |
| 16 | JM Dynamic Bond Fund JM Financial | +3.20% | +6.69% | +5.99% | -0.67 | -1.2% | 0.42% | ₹47 Cr |
| 17 | HDFC Dynamic Debt Fund HDFC | +2.57% | +6.62% | +6.84% | -0.12 | -2.6% | 0.75% | ₹643 Cr |
| 18 | ITI Dynamic Bond Fund ITI | +2.08% | +6.58% | - | -0.56 | -1.8% | 0.24% | ₹56 Cr |
| 19 | DSP Strategic Bond Fund DSP | +1.29% | +6.33% | +5.76% | -0.46 | -3.1% | 0.53% | ₹951 Cr |
| 20 | BANDHAN Dynamic Bond Fund - Regular Plan B Bandhan | +3.65% | +6.22% | +5.03% | -0.61 | -4.3% | - | ₹1.5K Cr |
Ranked by trailing return (3Y where available, else 1Y) on funds with at least one year of history. Returns, Sharpe, drawdown and TER are computed independently from AMFI NAVs - see methodology. No paid placement.
Frequently asked questions
How are Dynamic Bond funds taxed?
As debt funds. For units purchased on or after 1 April 2023, the whole gain is taxed at your slab rate regardless of holding period, with no indexation. Verify with a tax adviser.
What makes Dynamic Bond funds different from fixed-duration funds?
They are not tied to a duration band - the manager can move short or long with their rate view. That means outcomes depend on the manager's skill and can differ sharply between funds. FindMF's realised returns and volatility from AMFI NAVs help you compare track records.
What expense ratio is reasonable, and how do I compare funds?
Direct-plan ratios commonly run around 0.40-1.00%. Since this is an active strategy, weigh expense ratio against demonstrated risk-adjusted performance - compare net trailing returns, volatility and drawdown on FindMF, all from AMFI NAVs.
How risky are these funds?
It depends on positioning. When a manager extends duration, the fund can swing like a long-duration fund; when defensive, it behaves more like a short-duration fund. Credit risk also varies. FindMF's volatility and drawdown figures reveal how much risk each fund has actually run.