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This Dynamic Bond Fund Outperformed Category Average, Given 18.97% Returns In 1 Year


Investors in debt mutual funds who do not want to bet on interest rate movements in the near future should consider dynamic bond schemes. Changes in interest rates have a big impact on debt mutual funds, especially long-term debt and gilt funds. In other words, when interest rates rise, longer-term bonds suffer the most. They also gain the most when interest rates fall. This particular dynamic bond fund highlighted here is the best performing fund that also outperformed the category average returns and gives over 18.97% returns on 1 years investment. Check out the details to know more!


UTI-Dynamic Bond Fund - Direct Plan-Growth

UTI-Dynamic Bond Fund - Direct Plan-Growth

This Dynamic Bond Mutual Fund scheme is from UTI Mutual Fund. The scheme seeks to generate optimal returns with adequate liquidity through active management of the portfolio, by investing in debt and money market instruments. It is an open-ended fund medium-sized fund of its category. 

The fund has Rs 354.89 Crores worth of Assets Under Management (AUM), and the Net Asset Value (NAV) declared on 09th May 2022 is Rs 26.5363. Its expense ratio is 0.99%, which is high compared to its category average expense ratio. 

This Direct Plan-Growth option is a high risk for investment. The fund has been rated 1-star by CRISIL. To start investment in this fund, the minimum investment amount required is Rs 500 for the Lump-Sum payment, as well as for SIP. There is no lock-in period in this fund. However, it charges 3% for redemption within 89 days, 2% for redemption between 90 - 179 days, and 1% for redemption between 180 - 364 days. 

Absolute And Annualised Returns

Absolute And Annualised Returns

Lump-Sum Investment Returns

Since its launch, it has delivered 8.35% average annual returns. 

TenureAbsolute ReturnsAnnualised ReturnsCategory Avg
1 Year19.09%18.97%0.53%
2 Year24.80%11.70%3.04%
3 Year27.04%8.30%6.72%
5 Year34.30%6.07%6.48%
Since Inception111.68%8.35%5.83%

SIP Returns

TenureAbsolute ReturnsAnnualised Returns
1 Year12.09%23.19%
2 Year16.61%15.56%
3 Year20.61%12.56%
5 Year23.58%8.40%


The fund has 166.2% investment in Debt of which 91.7% in Government securities, and 49.42% in funds invested in very low-risk securities.

The fund's credit profile is moderate indicating it has lent to borrowers whose quality is good. Most funds in this category lend to better borrowers and hence the risk of default in this fund is higher than in the category.

The fund's top holdings are in the Reserve Bank of India (RBI), Jorabat Shillong Expressway Ltd., Government Of India, HDFC Bank Ltd., and Piramal Housing Finance Ltd.


Mutual fund investments are subject to market risk. Read all scheme-related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.

Read more about: uti mutual funds mutual fund sip
Story first published: Wednesday, May 11, 2022, 0:21 [IST]
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