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Best Dynamic Bond funds in India

26 dynamic bond funds in India, of which 14 meet the eligibility criteria, ranked on Sharpe ratio. Income with less volatility than equity?

Ranked on risk-adjusted return, not raw return — the point of this group is smoother outcomes.

Dynamic Bond funds ranked by Sharpe ratio

#
1360 ONE Dynamic Term Fund - GROWTH Option - Direct PlanPlatinum1.02-8.0%+7.40%47%+3.25%₹570 Cr0.34%
2ICICI Prudential Dynamic Term Fund - Growth - Direct PlanPlatinum0.98-3.6%+8.94%82%+3.21%₹13,260 Cr0.63%
3Mirae Asset Dynamic Term Fund - Growth - Direct PlanBronze0.87-3.5%+7.25%45%+2.36%₹114 Cr0.17%
4Aditya Birla Sun Life Dynamic Term Fund - GROWTH - Direct PlanBronze0.70-7.5%+7.31%46%+4.09%₹1,370 Cr0.64%
5SBI DYNAMIC TERM FUND - Growth - Direct PlanGold0.64-8.9%+8.32%71%+4.56%₹3,502 Cr0.64%
6Kotak Dynamic Term Fund - Growth - Direct PlanPlatinum0.62-3.2%+8.96%73%+3.91%₹2,219 Cr0.61%
7UTI Dynamic Term Fund - Growth - Direct PlanSilver0.62-8.1%+8.75%69%+3.44%₹396 Cr0.56%
8Axis Dynamic Term Fund - Growth Option - Direct PlanGold0.60-7.1%+8.23%68%+4.54%₹969 Cr0.34%
9Nippon India Dynamic Term Fund - Growth Option - Direct PlanPlatinum0.56-8.5%+7.62%55%+3.15%₹3,702 Cr0.35%
10BANDHAN Dynamic Term Fund - Growth - Direct PlanGold0.43-7.0%+8.14%65%+6.56%₹1,910 Cr0.79%
11HSBC Dynamic Term Fund - Growth - Direct PlanBronze0.27-2.0%+7.01%13%+1.90%₹119 Cr0.30%
12HDFC Dynamic Term Fund - Growth Option - Direct Plan0.26-7.5%+7.14%38%+2.42%₹480 Cr0.75%
13DSP Dynamic Term Fund - Growth - Direct Plan0.23-4.5%+7.59%52%+0.66%₹668 Cr0.54%
14Baroda BNP Paribas Dynamic Term Fund - Growth Option - Direct Plan0.14-2.5%+7.42%49%+1.26%₹114 Cr0.74%

Badges are our own quality tiers — Platinum (top 10%), Gold (25%), Silver (50%), Bronze (75%) — scored within each sub-category, so they compare a fund with its peers and not with funds of a different type. “3Y typical” is the median annualised return across every 3-year holding period the fund has lived through, not a single 3-year figure; “3Y loss odds” is the share of those periods that ended down. “Beat peers” is the share in which it beat its category's median, and “worst fall” is its deepest peak-to-trough drop. Open a fund for the full distribution. Click any column heading to re-sort — including the fund name, which groups a house’s funds together. Funds with no value for a column sort last. Returns over 1 year are annualised (CAGR). Past performance does not indicate future returns. Eligibility: Direct, Growth only, minimum AUM ₹100 Cr, at least 1 year(s) old. Past performance. Returns for 3y/5y are annualised (CAGR) and are withheld where the NAV series does not support the period.

Dynamic Bond funds — FAQs
Why rank these on risk-adjusted return?

The purpose of this group is a smoother path, not the highest possible number. A fund that earned slightly less with much less volatility is doing the job better, which is what a risk-adjusted measure captures and a raw return does not.

What risks do debt funds carry?

Two main ones. Interest-rate risk: when yields rise, existing bonds fall in value, and longer-duration funds move more. Credit risk: a borrower may be downgraded or default, which affects the NAV directly. Categories differ substantially in how much of each they take.

Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Disclaimer