Latest News
-
Closing Bell: Market Ends With Gains For The 4th Straight Day; Nifty Holds Above 22,400, Banks Lead Gains -
1:10 Split, 5 Bonus, 70% Dividend: Crorepati Defene PSU Hits New High, 108605% Returns; BUY For Long Term -
Rs 55/Share Dividend Announced: Multibagger Refineries PSU Declares 72% Jump In Q4 Profit -
PayU Gets RBI's In-principle Nod To Operate As Payment Aggregator -
Rekha Jhunjhunwala Portfolio Stock Jubilant Ingrevia Hits Record High; More Upside Ahead? -
Gold Prices: 10 Grams Of 22-24 Carats Rise By Rs 9,500 To Rs 10,600 From 2024 Lows; Strategy For Buying -
JNK India IPO: Retail Investors Lead With Subscriptions On Day 2; GMP Hints Premium Listing; Check Status -
Rs 60 Dividend: Multibagger Small Cap Power Stock To Consider Dividend Again On May 2 -
40000% Returns In 10 Years: This Microcap Dividend Paying Multibagger Stock Acquires Square Port Shipyard -
Gold Prices India: 10 Grams Of 22K Yellow Metal Jumps After Falling By Rs 2000
This Best Rated Dynamic Bond Mutual Fund Marked Upto 118% Returns: Morningstar Rated
The Dynamic Bond Mutual Funds are suitable for investors who are looking for low-risk funds and ready to hold the position for a longer-term. Here, the portfolio of a Dynamic Bond Fund has been discussed for investors.
Dynamic Bond investment rationale
The Dynamic Bond Funds are the debt mutual funds that will invest in debt and money market instruments such as Government Securities, corporate bonds etc. for different durations. A major feature of this kind of fund is that it will not have restrictions regarding the duration or maturity of the securities, the fund house will invest in. The mutual fund house will invest in bonds across maturity under the Dynamic Bond Funds. Maturity will be adjusted depending on the market conditions for a better profitability for the investors.
DSP Strategic Bond Fund - Regular Plan - Growth
DSP Strategic Bond Fund - Regular Plan is a mutual fund SIP investment that has a NAV of Rs. 2705.47, and the size (AUM) of this fund is Rs. 560.74 crore. But, the Expense Ratio (ER) of this fund is 1.10%, while the category average is 1.30%. The ER is marginally lower than the category average, which is profitable for the investors. The Expense Ratio is the percentage, which the fund house will use from the retail investors' investments, for fund management purposes.
This mutual fund SIP has been best rated with 5 Star by reputed rating agency Morningstar.
Absolute and annualized returns
As it is a Dynamic Bond Fund, its absolute returns from SIPs have been reported higher in the long term. In the last 1-year SIP return stood at 1.59%, in the last 2 years it has fetched 3.64% returns, in the last 3 years it has given 8.75% returns, in the last 5 years, it has fetched 18.70% returns, and in the past 10 years, it has given 47.22% returns. Annualized returns from DSP Strategic Bond Fund - Regular Plan's SIP were 6.79% in the past 5 years, and 7.51% in the past 10 years.
DSP Strategic Bond Fund - Regular Plan's absolute mutual fund returns are the highest in 10 years terms. In the last 1 year return stood at 4.04%, in the last 2 years it has fetched 11.00% returns, in the last 3 years it has given 23.91% returns, in the last 5 years it has given 38.02% returns, and in the past 10 years, it has given 118.47% returns. In the past 10 years, the DSP Strategic Bond Fund - Regular Plan's annualized returns stood at 8.12%, outperforming the category average of 7.80%.
(Data till March 31, 2022)
Portfolio
Among total 7 debt holdings, the DSP Strategic Bond Fund - Regular Plan's government debt holdings are 44.18%; and 55.82% of investments are allocated in other funds (52.52% in TREPS). This fund's yield to maturity is 4.60%.
In case you are holding the portfolio for more than 3 years, the long-term capital gain tax will be applied, and in case you are holding the portfolio for less than 3 years, the short-term capital gain tax will be applied.
Other funds under this category are Kotak Dynamic Bond Fund - Regular Plan-Growth, Axis Dynamic Bond Fund-Growth, Tata Dynamic Bond Fund - Regular Plan-Growth, etc.
(Also read: This Best Rated Bluechip Mutual Fund Given Upto 95% Return: Crisil Rated)
Disclaimer
Investing in equities/mutual funds/SIPs/debts poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, and the author are not liable for any losses caused as a result of decisions based on the article.
