Dynamic bond funds have the leeway to invest in short term or long term securities, depending on the interest rate outlook

Dynamic bond funds, also known as flexi debt funds, can hold papers of any maturity depending on the interest rate outlook. These funds suffered losses in June this year because of a sudden interest rate hike. RBI's move surprised every fixed income investor because everybody was expecting an interest rate cut, fund at that point dynamic bond funds were holding long maturity papers.

But if you have a timeframe of more than a year, continue to hold on because a good amount of that loss has been recovered and many of these funds have also changed their character in terms of the portfolio profile.

These funds are meant for investors looking for superior returns in a one or two year time frame. So yes, they have suffered in the last two-three months but if you have a slightly longer time frame in mind, you need not worry. You should consider pulling out your money only if you foresee a need anytime soon.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

1. ICICI Prudential Tax Plan Invest Online
2. HDFC TaxSaver Invest Online
3. DSP BlackRock Tax Saver Fund Invest Online
4. Reliance Tax Saver (ELSS) Fund Invest Online
5. Birla Sun Life Tax Relief '96 Invest Online
6. IDFC Tax Advantage (ELSS) Fund Invest Online
7. SBI Magnum Tax Gain Scheme 1993 Invest Online
8. Sundaram Tax Saver Invest Online
9. Edelweiss ELSS Invest Online