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Time of India
29-05-2025
- Business
- Time of India
Best dynamic bond funds to invest in May 2025
Best dynamic bond funds to invest in May 2025 Kotak Dynamic Bond Fund ICICI Prudential All Seasons Bond Fund Live Events If you are confused about all the talk about interest rate pauses and likely cuts, you should consider investing in dynamic bond funds. Dynamic bond funds have the freedom to invest across securities and maturities depending on the outlook of the fund manager. So, when the rates go up, the fund manager might bet on short term securities as a rate hike will marginally impact them. When rates start falling, he will invest in long-term instruments to make this does not mean that these schemes are sure-shot winners. There have been instances where fund managers have wrongly guessed RBI actions and suffered losses. In fact, dynamic funds lost their charm after these schemes were hit by a bad money market and the lack of firm cues on interest rates in 2019. However, at least in theory, it makes sense to get a professional to take a call on interest rates. Especially at a time central banks across the globe are waiting to see definite downward trend in inflation before reducing interest money market pundits say the RBI may start cutting rates in the second half of the year. If that happens, 2025 might be extremely rewarding for debt mutual funds . These schemes had muted years in 2022 and short, if you are planning to invest for three to five years, but don't want to take a call on interest rates, you can bet on dynamic bond funds. Kotak Dynamic Bond Fund , one of the recommended schemes, has been in the third quartile for the last 12 months. ICICI Prudential All Seasons Bond Fund has been in the second quartile for the last 12 months. Please follow our monthly updates to keep track of your has employed the following parameters for shortlisting the debt mutual fund daily for the last three Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H.i)When H = 0.5, the series of returns is said to be a geometric Brownian time series. This type of time series is difficult to H <0.5, the series is said to be mean H>0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the seriesWe have considered only the negative returns given by the mutual fund scheme for this measure.X =Returns below zeroY = Sum of all squares of XZ = Y/number of days taken for computing the ratioDownside risk = Square root of ZFund Return – Benchmark return. Rolling returns rolled daily is used for computing the return of the fund and the benchmark and subsequently the Active return of the Debt funds, the threshold asset size is Rs 50 crore
Business Mayor
30-04-2025
- Business
- Business Mayor
Best dynamic bond funds to invest in April 2025
If you are confused about all the talk about interest rate pauses and likely cuts, you should consider investing in dynamic bond funds. Dynamic bond funds have the freedom to invest across securities and maturities depending on the outlook of the fund manager. So, when the rates go up, the fund manager might bet on short term securities as a rate hike will marginally impact them. When rates start falling, he will invest in long-term instruments to make this does not mean that these schemes are sure-shot winners. There have been instances where fund managers have wrongly guessed RBI actions and suffered losses. In fact, dynamic funds lost their charm after these schemes were hit by a bad money market and the lack of firm cues on interest rates in 2019. However, at least in theory, it makes sense to get a professional to take a call on interest rates. Especially at a time central banks across the globe are waiting to see definite downward trend in inflation before reducing interest rates. Many money market pundits say the RBI may start cutting rates in the second half of the year. If that happens, 2025 might be extremely rewarding for debt mutual funds. These schemes had muted years in 2022 and 2023. In short, if you are planning to invest for three to five years, but don't want to take a call on interest rates, you can bet on dynamic bond funds. Kotak Dynamic Bond Fund, one of the recommended schemes, has been in the third quartile for the last 11 months. ICICI Prudential All Seasons Bond Fund has been in the second quartile for the last 11 months. Please follow our monthly updates to keep track of your investments. Read More Pound to Canadian Dollar Week Ahead Forecast: Cool It Kotak Dynamic Bond Fund ICICI Prudential All Seasons Bond Fund Methodology: ETMutualFunds has employed the following parameters for shortlisting the debt mutual fund schemes. 1. Mean rolling returns: Rolled daily for the last three years.2. Consistency in the last three years: Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H. i)When H = 0.5, the series of returns is said to be a geometric Brownian time series. This type of time series is difficult to forecast. ii)When H iii)When H>0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series 3. Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure. X =Returns below zero Y = Sum of all squares of X Z = Y/number of days taken for computing the ratio Downside risk = Square root of Z 4. Outperformance: Fund Return – Benchmark return. Rolling returns rolled daily is used for computing the return of the fund and the benchmark and subsequently the Active return of the fund. Asset size: For Debt funds, the threshold asset size is Rs 50 crore (Disclaimer: past performance is no guarantee for future performance.) READ SOURCE businessmayor April 30, 2025
Time of India
30-04-2025
- Business
- Time of India
Best dynamic bond funds to invest in April 2025
If you are planning to invest for three to five years, but don't want to take a call on interest rates, you can bet on dynamic bond funds Dynamic bond funds have the freedom to invest across securities and maturities depending on the outlook of the fund manager. So, when the rates go up, the fund manager might bet on short term securities as a rate hike will marginally impact them. When rates start falling, he will invest in long-term instruments to make money. Tired of too many ads? Remove Ads Best dynamic bond funds to invest in April 2025 Kotak Dynamic Bond Fund ICICI Prudential All Seasons Bond Fund Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads If you are confused about all the talk about interest rate pauses and likely cuts, you should consider investing in dynamic bond funds . Dynamic bond funds have the freedom to invest across securities and maturities depending on the outlook of the fund manager. So, when the rates go up, the fund manager might bet on short term securities as a rate hike will marginally impact them. When rates start falling, he will invest in long-term instruments to make this does not mean that these schemes are sure-shot winners. There have been instances where fund managers have wrongly guessed RBI actions and suffered losses. In fact, dynamic funds lost their charm after these schemes were hit by a bad money market and the lack of firm cues on interest rates in 2019. However, at least in theory, it makes sense to get a professional to take a call on interest rates. Especially at a time central banks across the globe are waiting to see definite downward trend in inflation before reducing interest money market pundits say the RBI may start cutting rates in the second half of the year. If that happens, 2025 might be extremely rewarding for debt mutual funds . These schemes had muted years in 2022 and short, if you are planning to invest for three to five years, but don't want to take a call on interest rates, you can bet on dynamic bond funds. Kotak Dynamic Bond Fund , one of the recommended schemes, has been in the third quartile for the last 11 months. ICICI Prudential All Seasons Bond Fund has been in the second quartile for the last 11 months. Please follow our monthly updates to keep track of your has employed the following parameters for shortlisting the debt mutual fund daily for the last three Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H.i)When H = 0.5, the series of returns is said to be a geometric Brownian time series. This type of time series is difficult to H <0.5, the series is said to be mean H>0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the seriesWe have considered only the negative returns given by the mutual fund scheme for this measure.X =Returns below zeroY = Sum of all squares of XZ = Y/number of days taken for computing the ratioDownside risk = Square root of ZFund Return – Benchmark return. Rolling returns rolled daily is used for computing the return of the fund and the benchmark and subsequently the Active return of the Debt funds, the threshold asset size is Rs 50 crore
