The BSL Dynamic Bond Fund played the interest rate cycle prudently generating 15.4% returns in the last one year. Over the last 5 years, the fund has outperformed peers like ICICI Prudential Dynamic Bond Fund, Franklin India Income Opportunities Fund, SBI Dynamic Bond Fund generating 9.5% returns on an average

·         The superior returns is partly attributable to active & smart duration management. Some quotable instances are

(a) reduction in the duration in July 2013 (~1.5 years) in response to the RBI interest rate tightening measure & to benefit from the spiked up short term rates

(b) stepping up of duration from 2.5 years to 6 years in 2014 to benefit from the benchmark rally & paring the duration when interest rates are trending down

·         Along with duration management, the fund also manages volatility consistently & effectively with lesser exposure to higher risk securities & healthy exposure to AAA rated securities.

·         The fund has outperformed its benchmark more than 87% times since its inception in September 2004