+91-22-48913909Top 7 Best Performing Dynamic Bond Funds 2026
Dynamic Bond Funds refer to the debt fund schemes that invest their fund money in various fixed income instruments across varying maturities. These schemes invest in fixed income instruments based on their perception about interest rate scenario and interest rate movements.
This scheme is a part of debt funds. Based who feel confused about interest rate scenarios and interest rate movements can choose to invest in dynamic bond fund. Some of the fixed income instruments in which dynamic bond fund invests its securities include commercial papers, certificate of deposits, gilts, corporate Bonds, and much more. It can be considered as a good investment option for medium to long-term tenures. Some of the top and best dynamic bond funds are listed below as follows.
Why Choose Dynamic Bond Fund?
As mentioned earlier, dynamic bond fund is suitable for investors who are not much comfortable with the interest rate movements. To explain, the interest rates and bond prices share an inverse relationship. In other words, as the interest rate decrease, the bond price tends to rise. During the falling interest trend, the fund manager tries to increase the holdings in long-term fixed income funds.
In addition, they diversify their Portfolio by Investing in short and medium-term funds. Such a strategy is called as duration strategy. Therefore, as the interest rate falls, the price of the long-term fixed income funds tends to increase along with these funds earning regular income. However, when there is a u-turn in the interest rate scenario from low to high; the fund managers try to increase their holdings in the short and medium-term fixed income instruments and reduce the holdings in gilts. Thus, by managing the portfolio actively, the fund managers of dynamic bond fund ensure that their investors earn commensurate returns.
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Who Should Invest in Dynamic Bond Funds?
Dynamic bond funds are suitable for investors who are looking for a more active approach to fixed-income investing and who are willing to take on some level of interest rate and credit risk.
Fund Selection Methodology used to find 7 funds
Top 7 Best Dynamic Bond Funds to Invest for 2026
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2025 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity IIFL Dynamic Bond Fund Growth ₹24.1091
↓ -0.02 ₹583 2.6 3.3 5.4 7.9 8.5 7.81% 4Y 3M 25D 6Y 5D Axis Dynamic Bond Fund Growth ₹31.4603
↓ -0.03 ₹1,015 2.4 4.1 5.2 7.2 7.1 7.26% 5Y 10Y 9M 14D ICICI Prudential Long Term Plan Growth ₹39.0103
↓ -0.03 ₹13,518 2 3 4.6 7.1 7.2 8.22% 5Y 11M 16D 13Y 7M 28D Nippon India Dynamic Bond Fund Growth ₹39.315
↓ -0.05 ₹3,925 2.3 3.3 4.1 7.1 7.1 7.49% 3Y 5M 5D 4Y 1M 6D Aditya Birla Sun Life Dynamic Bond Fund Growth ₹48.8428
↓ -0.03 ₹1,495 2 3.3 4.5 7.1 7 8.08% 5Y 3M 18D 11Y 11M 8D Bandhan Dynamic Bond Fund Growth ₹35.7021
↓ -0.05 ₹2,007 2.8 4.9 4.4 6.8 3.4 7.71% 7Y 11M 23D 21Y 3M 14D SBI Dynamic Bond Fund Growth ₹37.5225
↑ 0.00 ₹3,752 2 3.8 4.5 6.7 5.5 7.82% 3Y 7M 13D 5Y 4M 24D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 22 Jul 26 Research Highlights & Commentary of 7 Funds showcased
Commentary IIFL Dynamic Bond Fund Axis Dynamic Bond Fund ICICI Prudential Long Term Plan Nippon India Dynamic Bond Fund Aditya Birla Sun Life Dynamic Bond Fund Bandhan Dynamic Bond Fund SBI Dynamic Bond Fund Point 1 Bottom quartile AUM (₹583 Cr). Bottom quartile AUM (₹1,015 Cr). Highest AUM (₹13,518 Cr). Upper mid AUM (₹3,925 Cr). Lower mid AUM (₹1,495 Cr). Lower mid AUM (₹2,007 Cr). Upper mid AUM (₹3,752 Cr). Point 2 Established history (13+ yrs). Established history (15+ yrs). Established history (16+ yrs). Established history (21+ yrs). Established history (21+ yrs). Established history (17+ yrs). Oldest track record among peers (22 yrs). Point 3 Not Rated. Rating: 3★ (upper mid). Top rated. Not Rated. Rating: 3★ (lower mid). Rating: 3★ (lower mid). Rating: 4★ (upper mid). Point 4 Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Point 5 1Y return: 5.39% (top quartile). 1Y return: 5.20% (upper mid). 1Y return: 4.57% (upper mid). 1Y return: 4.14% (bottom quartile). 1Y return: 4.48% (lower mid). 1Y return: 4.36% (bottom quartile). 1Y return: 4.47% (lower mid). Point 6 1M return: 1.00% (top quartile). 1M return: 0.90% (upper mid). 1M return: 0.74% (lower mid). 1M return: 0.70% (lower mid). 1M return: 0.55% (bottom quartile). 1M return: 0.63% (bottom quartile). 1M return: 0.96% (upper mid). Point 7 Sharpe: 0.13 (upper mid). Sharpe: 0.14 (upper mid). Sharpe: -0.02 (lower mid). Sharpe: -0.36 (bottom quartile). Sharpe: -0.06 (lower mid). Sharpe: 0.28 (top quartile). Sharpe: -0.48 (bottom quartile). Point 8 Information ratio: 0.00 (top quartile). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (bottom quartile). Information ratio: 0.00 (bottom quartile). Point 9 Yield to maturity (debt): 7.81% (lower mid). Yield to maturity (debt): 7.26% (bottom quartile). Yield to maturity (debt): 8.22% (top quartile). Yield to maturity (debt): 7.49% (bottom quartile). Yield to maturity (debt): 8.08% (upper mid). Yield to maturity (debt): 7.71% (lower mid). Yield to maturity (debt): 7.82% (upper mid). Point 10 Modified duration: 4.32 yrs (upper mid). Modified duration: 5.00 yrs (lower mid). Modified duration: 5.96 yrs (bottom quartile). Modified duration: 3.43 yrs (top quartile). Modified duration: 5.30 yrs (lower mid). Modified duration: 7.98 yrs (bottom quartile). Modified duration: 3.62 yrs (upper mid). IIFL Dynamic Bond Fund
Axis Dynamic Bond Fund
ICICI Prudential Long Term Plan
Nippon India Dynamic Bond Fund
Aditya Birla Sun Life Dynamic Bond Fund
Bandhan Dynamic Bond Fund
SBI Dynamic Bond Fund
*List of The investment objective of the scheme is to generate income and long term gains by investing in a range of debt and money market instruments of various maturities. The scheme will seek to flexibly manage its investment across the maturity spectrum with a view to optimize the risk return proposition for the investors. Below is the key information for IIFL Dynamic Bond Fund Returns up to 1 year are on To generate optimal returns while maintaining liquidity through active management of a portfolio of debt and money market instruments. Research Highlights for Axis Dynamic Bond Fund Below is the key information for Axis Dynamic Bond Fund Returns up to 1 year are on To generate income through investments in a range of debt and money market instruments of various maturities with a view to maximising income while maintaining the optimum balance of yield, safety and liquidity. Research Highlights for ICICI Prudential Long Term Plan Below is the key information for ICICI Prudential Long Term Plan Returns up to 1 year are on The primary investment objective of the scheme is to generate optimal returns consistent with moderate levels of risks. This income may be complimented by capital appreciation of the portfolio. Accordingly, investments shall predominantly be made in debt and money market instruments. Research Highlights for Nippon India Dynamic Bond Fund Below is the key information for Nippon India Dynamic Bond Fund Returns up to 1 year are on An Open-ended income scheme with the objective to generate optimal returns with high liquidity through active management of the portfolio by investing in high quality debt and money market instruments. Research Highlights for Aditya Birla Sun Life Dynamic Bond Fund Below is the key information for Aditya Birla Sun Life Dynamic Bond Fund Returns up to 1 year are on To generate optimal returns with high liquidity by active management of
the portfolio; by investing in high quality money market & debt instruments.
However there can be no assurance that the investment objectives of the Scheme will be realized. Research Highlights for Bandhan Dynamic Bond Fund Below is the key information for Bandhan Dynamic Bond Fund Returns up to 1 year are on To actively manage a portfolio of good quality debt as well as Money Market
Instruments so as to provide reasonable returns and liquidity to the Unit holders. Research Highlights for SBI Dynamic Bond Fund Below is the key information for SBI Dynamic Bond Fund Returns up to 1 year are on Dynamic Bond Funds having Assets >= 100 Crore & Sorted on 3 Year CAGR Returns.
1. IIFL Dynamic Bond Fund
IIFL Dynamic Bond Fund
Growth Launch Date 24 Jun 13 NAV (22 Jul 26) ₹24.1091 ↓ -0.02 (-0.07 %) Net Assets (Cr) ₹583 on 30 Jun 26 Category Debt - Dynamic Bond AMC IIFL Asset Management Limited Rating Risk Moderate Expense Ratio 0.52 Sharpe Ratio 0.13 Information Ratio 0 Alpha Ratio 0 Min Investment 10,000 Min SIP Investment 1,000 Exit Load 0-18 Months (1%),18 Months and above(NIL) Yield to Maturity 7.81% Effective Maturity 6 Years 5 Days Modified Duration 4 Years 3 Months 25 Days Growth of 10,000 investment over the years.
Date Value Returns for IIFL Dynamic Bond Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Jul 26 Duration Returns 1 Month 1% 3 Month 2.6% 6 Month 3.3% 1 Year 5.4% 3 Year 7.9% 5 Year 6.9% 10 Year 15 Year Since launch 7% Historical performance (Yearly) on absolute basis
Year Returns 2025 8.5% 2024 9.6% 2023 6.8% 2022 3.6% 2021 5.6% 2020 8.2% 2019 7.8% 2018 5.2% 2017 7.4% 2016 7.8% Fund Manager information for IIFL Dynamic Bond Fund
Name Since Tenure Data below for IIFL Dynamic Bond Fund as on 30 Jun 26
Asset Allocation
Asset Class Value Debt Sector Allocation
Sector Value Credit Quality
Rating Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 2. Axis Dynamic Bond Fund
Axis Dynamic Bond Fund
Growth Launch Date 27 Apr 11 NAV (22 Jul 26) ₹31.4603 ↓ -0.03 (-0.08 %) Net Assets (Cr) ₹1,015 on 30 Jun 26 Category Debt - Dynamic Bond AMC Axis Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 0.59 Sharpe Ratio 0.14 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.26% Effective Maturity 10 Years 9 Months 14 Days Modified Duration 5 Years Growth of 10,000 investment over the years.
Date Value Returns for Axis Dynamic Bond Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Jul 26 Duration Returns 1 Month 0.9% 3 Month 2.4% 6 Month 4.1% 1 Year 5.2% 3 Year 7.2% 5 Year 6.1% 10 Year 15 Year Since launch 7.8% Historical performance (Yearly) on absolute basis
Year Returns 2025 7.1% 2024 8.6% 2023 6.6% 2022 2.1% 2021 3.9% 2020 12.3% 2019 11% 2018 6.2% 2017 3.4% 2016 13.4% Fund Manager information for Axis Dynamic Bond Fund
Name Since Tenure Data below for Axis Dynamic Bond Fund as on 30 Jun 26
Asset Allocation
Asset Class Value Debt Sector Allocation
Sector Value Credit Quality
Rating Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 3. ICICI Prudential Long Term Plan
ICICI Prudential Long Term Plan
Growth Launch Date 20 Jan 10 NAV (22 Jul 26) ₹39.0103 ↓ -0.03 (-0.07 %) Net Assets (Cr) ₹13,518 on 30 Jun 26 Category Debt - Dynamic Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆☆ Risk Moderate Expense Ratio 1.3 Sharpe Ratio -0.02 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-1 Months (0.25%),1 Months and above(NIL) Yield to Maturity 8.22% Effective Maturity 13 Years 7 Months 28 Days Modified Duration 5 Years 11 Months 16 Days Growth of 10,000 investment over the years.
Date Value Returns for ICICI Prudential Long Term Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Jul 26 Duration Returns 1 Month 0.7% 3 Month 2% 6 Month 3% 1 Year 4.6% 3 Year 7.1% 5 Year 6.5% 10 Year 15 Year Since launch 8.6% Historical performance (Yearly) on absolute basis
Year Returns 2025 7.2% 2024 8.2% 2023 7.6% 2022 4.5% 2021 4.3% 2020 11.8% 2019 10.2% 2018 6.2% 2017 5.1% 2016 16.9% Fund Manager information for ICICI Prudential Long Term Plan
Name Since Tenure Data below for ICICI Prudential Long Term Plan as on 30 Jun 26
Asset Allocation
Asset Class Value Debt Sector Allocation
Sector Value Credit Quality
Rating Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 4. Nippon India Dynamic Bond Fund
Nippon India Dynamic Bond Fund
Growth Launch Date 15 Nov 04 NAV (22 Jul 26) ₹39.315 ↓ -0.05 (-0.14 %) Net Assets (Cr) ₹3,925 on 30 Jun 26 Category Debt - Dynamic Bond AMC Nippon Life Asset Management Ltd. Rating Risk Moderate Expense Ratio 0.71 Sharpe Ratio -0.36 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-12 Months (1%),12 Months and above(NIL) Yield to Maturity 7.49% Effective Maturity 4 Years 1 Month 6 Days Modified Duration 3 Years 5 Months 5 Days Growth of 10,000 investment over the years.
Date Value Returns for Nippon India Dynamic Bond Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Jul 26 Duration Returns 1 Month 0.7% 3 Month 2.3% 6 Month 3.3% 1 Year 4.1% 3 Year 7.1% 5 Year 6.2% 10 Year 15 Year Since launch 6.5% Historical performance (Yearly) on absolute basis
Year Returns 2025 7.1% 2024 9% 2023 6.7% 2022 2.4% 2021 2.7% 2020 11.3% 2019 8.4% 2018 4.7% 2017 3.1% 2016 13.9% Fund Manager information for Nippon India Dynamic Bond Fund
Name Since Tenure Data below for Nippon India Dynamic Bond Fund as on 30 Jun 26
Asset Allocation
Asset Class Value Debt Sector Allocation
Sector Value Credit Quality
Rating Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 5. Aditya Birla Sun Life Dynamic Bond Fund
Aditya Birla Sun Life Dynamic Bond Fund
Growth Launch Date 27 Sep 04 NAV (22 Jul 26) ₹48.8428 ↓ -0.03 (-0.07 %) Net Assets (Cr) ₹1,495 on 30 Jun 26 Category Debt - Dynamic Bond AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆ Risk Moderate Expense Ratio 1.22 Sharpe Ratio -0.06 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 1,000 Exit Load 0-90 Days (0.5%),90 Days and above(NIL) Yield to Maturity 8.08% Effective Maturity 11 Years 11 Months 8 Days Modified Duration 5 Years 3 Months 18 Days Growth of 10,000 investment over the years.
Date Value Returns for Aditya Birla Sun Life Dynamic Bond Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Jul 26 Duration Returns 1 Month 0.6% 3 Month 2% 6 Month 3.3% 1 Year 4.5% 3 Year 7.1% 5 Year 6.8% 10 Year 15 Year Since launch 7.5% Historical performance (Yearly) on absolute basis
Year Returns 2025 7% 2024 8.8% 2023 6.9% 2022 6% 2021 4.9% 2020 9.7% 2019 -0.9% 2018 5.7% 2017 2.2% 2016 14% Fund Manager information for Aditya Birla Sun Life Dynamic Bond Fund
Name Since Tenure Data below for Aditya Birla Sun Life Dynamic Bond Fund as on 30 Jun 26
Asset Allocation
Asset Class Value Debt Sector Allocation
Sector Value Credit Quality
Rating Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 6. Bandhan Dynamic Bond Fund
Bandhan Dynamic Bond Fund
Growth Launch Date 3 Dec 08 NAV (22 Jul 26) ₹35.7021 ↓ -0.05 (-0.15 %) Net Assets (Cr) ₹2,007 on 30 Jun 26 Category Debt - Dynamic Bond AMC IDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 1.59 Sharpe Ratio 0.28 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.71% Effective Maturity 21 Years 3 Months 14 Days Modified Duration 7 Years 11 Months 23 Days Growth of 10,000 investment over the years.
Date Value Returns for Bandhan Dynamic Bond Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Jul 26 Duration Returns 1 Month 0.6% 3 Month 2.8% 6 Month 4.9% 1 Year 4.4% 3 Year 6.8% 5 Year 5.4% 10 Year 15 Year Since launch 7.5% Historical performance (Yearly) on absolute basis
Year Returns 2025 3.4% 2024 10% 2023 6.4% 2022 1% 2021 1.8% 2020 12.9% 2019 11% 2018 6.8% 2017 3.5% 2016 13.1% Fund Manager information for Bandhan Dynamic Bond Fund
Name Since Tenure Data below for Bandhan Dynamic Bond Fund as on 30 Jun 26
Asset Allocation
Asset Class Value Debt Sector Allocation
Sector Value Credit Quality
Rating Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 7. SBI Dynamic Bond Fund
SBI Dynamic Bond Fund
Growth Launch Date 9 Feb 04 NAV (22 Jul 26) ₹37.5225 ↑ 0.00 (0.01 %) Net Assets (Cr) ₹3,752 on 30 Jun 26 Category Debt - Dynamic Bond AMC SBI Funds Management Private Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.44 Sharpe Ratio -0.48 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Months (0.25%),1 Months and above(NIL) Yield to Maturity 7.82% Effective Maturity 5 Years 4 Months 24 Days Modified Duration 3 Years 7 Months 13 Days Growth of 10,000 investment over the years.
Date Value Returns for SBI Dynamic Bond Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Jul 26 Duration Returns 1 Month 1% 3 Month 2% 6 Month 3.8% 1 Year 4.5% 3 Year 6.7% 5 Year 6.1% 10 Year 15 Year Since launch Historical performance (Yearly) on absolute basis
Year Returns 2025 5.5% 2024 8.6% 2023 7.1% 2022 4.2% 2021 2% 2020 10.4% 2019 12.7% 2018 5.1% 2017 3.9% 2016 15.3% Fund Manager information for SBI Dynamic Bond Fund
Name Since Tenure Data below for SBI Dynamic Bond Fund as on 30 Jun 26
Asset Allocation
Asset Class Value Debt Sector Allocation
Sector Value Credit Quality
Rating Value Top Securities Holdings / Portfolio
Name Holding Value Quantity
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Research Highlights for IIFL Dynamic Bond Fund