The Economic Times
English Edition
| 24 January, 2022, 01:10 PM IST | E-Paper
Search
+
    Read. Lead. Succeed. ET Prime - For Members Only
    • Sharp Insight-rich, Indepth stories across 20+ sectors
    • Access the exclusive Economic Times stories, Editorial and Expert opinion

    Dynamic bond mutual funds are not a good choice amid rising interest rates: Here's why

    Dynamic bonds funds don’t provide effective hedge against adverse rate movements.

    Synopsis

    Dynamic bond funds offer an alternate route to continue playing the interest rate cycle through its ups and downs. These retain the flexibility to invest in securities across duration buckets based on the fund manager’s views. But experts don’t feel dynamic bonds work as an all-weather solution.

    As interest rates and bond yields climb, bond fund investors are looking for options to navigate the storm. In December, investors turned to dynamic bond funds—the only category of debt funds to witness healthy, positive net flows, apart from overnight funds. With interest rates likely to trend north in the near term, investors expect these funds to be better equipped to navigate volatile market conditions. But are dynamic bond funds the right
    Share This Article
    • GIFT ARTICLE
    • FONT SIZE
    • SAVE
    • PRINT
    • COMMENT

    Sign in to read the full article

    You’ve got this Prime Story as a Free Gift

    Great New Year Sale

    GET FLAT 30% OFF

    On ET Prime & stay ahead of the rest in 2022

    Get Offer

    Why ?

    • Exclusive Economic Times Stories, Editorials & Expert opinion across 20+ sectors

    • Stock analysis. Market Research. Industry Trends on 4000+ Stocks

    • Clean experience with
      Minimal Ads
    • Comment & Engage with ET Prime community
    • Exclusive invites to Virtual Events with Industry Leaders
    • A trusted team of Journalists & Analysts who can best filter signal from noise
    The Economic Times