If you are confused about all the talk about interest rate pauses and likely cuts, you should consider investing in dynamic bond funds. Dynamic bond funds have the freedom to invest across securities and maturities depending on the outlook of the fund manager.
Kotak Dynamic Bond Fund, one of the recommended schemes, has been in the third quartile in the last month. ICICI Prudential All Seasons Bond Fund has been in the second quartile in the last month.
Changes have been effected at prominent schemes such as ICICI Prudential Balanced Advantage, ICICI Prudential Liquid, and ICICI Prudential Multi-Asset Fund, among others.
The asset under management of the dynamic bond fund category as on November 30, 2023 stands at Rs 30,698.15 crore. The asset under management of the dynamic bond fund category has surged by 34.45% in 2023, from Rs 22,832.70 crore in January to Rs 30,698.15 crore in November.