Dynamic bond funds in India
22 live funds in the Dynamic Bond category, ordered by 5-year return, highest first; UTI Dynamic Term Fund leads. Funds younger than five years follow by name. Returns are for the plan each fund's page leads with, Direct where the fund has one, to each fund's latest NAV, the newest of them on 27 Oct 2026; 3 and 5 year returns are a year, compounded.
- Category median, 1 yearCategory median, 1 year. The middle return among the Dynamic Bond category's funds, each over the same window to its own latest NAV, on their Direct plans.
- +2.60%Middle of 22 funds
- Category median, 3 yearsCategory median, 3 years. The middle return among the Dynamic Bond category's funds, each over the same window to its own latest NAV, on their Direct plans; a year, compounded.
- +6.68%Middle of 22 funds
- Category median, 5 yearsCategory median, 5 years. The middle return among the Dynamic Bond category's funds, each over the same window to its own latest NAV, on their Direct plans; a year, compounded.
- +5.90%Middle of 22 funds
Dynamic Bond funds
Size is the average money the fund managed over its latest quarter. Cost is its yearly expense ratio.Filter them in the screener
UTI Dynamic Term FundUTI Mutual FundNAV₹35.33751Y+3.56%3Y+7.08%5Y+7.40%Size₹407 CrCost0.56%
Aditya Birla Sun Life Dynamic Term FundAditya Birla Sun Life Mutual FundNAV₹52.79121Y+4.32%3Y+7.55%5Y+7.08%Size₹1,434 CrCost0.64%
SBI Dynamic Term FundSBI Mutual FundNAV₹41.44761Y+4.72%3Y+7.35%5Y+6.73%Size₹3,601 CrCost0.64%
ICICI Prudential Dynamic Term FundICICI Prudential Mutual FundNAV₹42.07171Y+3.27%3Y+7.06%5Y+6.69%Size₹13,226 CrCost0.63%
360 ONE Dynamic Term Fund360 One Mutual FundNAV₹25.23591Y+3.20%3Y+7.66%5Y+6.52%Size₹565 CrCost0.34%
Kotak Dynamic Term FundKotak Mahindra Mutual FundNAV₹43.24781Y+4.01%3Y+7.57%5Y+6.34%Size₹2,336 CrCost0.61%
Bandhan Dynamic Term FundBandhan Mutual FundNAV₹40.33371Y+6.67%3Y+7.98%5Y+6.17%Size₹1,943 CrCost0.79%
Axis Dynamic Term FundAxis Mutual FundNAV₹34.60571Y+4.59%3Y+7.26%5Y+6.08%Size₹993 CrCost0.34%
Nippon India Dynamic Term FundNippon India Mutual FundNAV₹42.00881Y+3.02%3Y+7.15%5Y+6.03%Size₹3,853 CrCost0.35%
Quantum Dynamic Term FundQuantum Mutual FundNAV₹22.48411Y+1.69%3Y+6.63%5Y+5.97%Size₹88 CrCost0.50%
PGIM India Dynamic Term FundPGIM India Mutual FundNAV₹3,090.81151Y+1.90%3Y+6.74%5Y+5.92%Size₹80 CrCost0.49%
JM Dynamic Term FundJM Financial Mutual FundNAV₹46.28061Y+2.49%3Y+6.47%5Y+5.88%Size₹53 CrCost0.44%
Baroda BNP Paribas Dynamic Term FundBaroda BNP Paribas Mutual FundNAV₹52.11581Y+1.56%3Y+6.04%5Y+5.81%Size₹116 CrCost0.74%
Mahindra Manulife Dynamic Term FundMahindra Manulife Mutual FundNAV₹16.22251Y+3.15%3Y+7.17%5Y+5.77%Size₹51 CrCost0.42%
HDFC Dynamic Term FundHDFC Mutual FundNAV₹102.35771Y+2.62%3Y+6.35%5Y+5.62%Size₹508 CrCost0.75%
HSBC Dynamic Term FundHSBC Mutual FundNAV₹33.11341Y+2.07%3Y+6.41%5Y+5.54%Size₹122 CrCost0.30%
ITI Dynamic Term FundITI Mutual FundNAV₹13.30341Y+1.14%3Y+5.63%5Y+5.53%Size₹26 CrCost0.29%
DSP Dynamic Term FundDSP Mutual FundNAV₹3,642.00881Y+0.79%3Y+5.98%5Y+5.44%Size₹648 CrCost0.54%
Mirae Asset Dynamic Term FundMirae Asset Mutual FundNAV₹18.48691Y+2.37%3Y+6.31%5Y+5.44%Size₹116 CrCost0.17%
Groww Dynamic Term FundGroww Mutual FundNAV₹1,578.49511Y+2.59%3Y+5.72%5Y+5.03%Size₹29 CrCost0.45%
Canara Robeco Dynamic Term FundCanara Robeco Mutual FundNAV₹32.69431Y+0.68%3Y+5.35%5Y+4.93%Size₹83 CrCost0.74%
Union Dynamic Term FundUnion Mutual FundNAV₹24.41421Y−0.97%3Y+4.63%5Y+3.87%Size₹64 CrCost1.31%
Tax on dynamic bond funds
Gains on units bought on or after 1 Apr 2023 are taxed at the income tax slab rate however long they are held; gains on units bought earlier are taxed at 12.5% when held over 24 months, or over 12 months for a listed fund such as an ETF, and at the slab rate otherwise.
Rules in force from 23 Jul 2024, checked 27 Oct 2026. Surcharge and cess are not included.
About dynamic bond funds in India
Dynamic bond funds in India are open-ended debt mutual funds that invest across bond maturities, with no fixed limit on portfolio duration. The manager moves between shorter and longer bonds as the interest rate outlook changes. SEBI's current name for the category is Dynamic Term Fund.
What SEBI requires
SEBI's categorisation circular of 26 Feb 2026 describes the category as an open-ended dynamic debt scheme investing across duration, and names it Dynamic Term Fund. Existing schemes had until 26 Aug 2026 to align their names and descriptions.
The category has no duration band and no minimum for any one bond type. Most other debt categories are tied to a band of Macaulay duration (the average time, weighted by cash flows, for a bond portfolio to return its money).
Duration and interest rates
Duration estimates how far a fund's NAV (net asset value, the price of one unit) moves when yields change. A portfolio with a duration of 5 years loses roughly 5% for a 1 percentage point rise in yields, and gains about the same for a fall.
Because no band applies, the same fund can hold a 1-year portfolio at one time and an 8-year portfolio at another, depending on the manager's view. A fixed-band fund cannot move that far.
Difference from neighbouring categories
Short term funds are held to a duration of 1 to 3 years, medium term funds to 3 to 4 years and medium to long term funds to 4 to 7 years (the last two may cut to 1 year in adverse conditions), and long term funds stay above 7 years. A gilt fund puts at least 80% in government securities across maturity, and a corporate bond fund puts at least 80% in AA+ and above rated corporate bonds.
Dynamic term funds are the only category among these with neither a duration band nor an issuer minimum.
Tax on gains
Gains on debt fund units bought on or after 1 Apr 2023 are taxed at the investor's income tax slab rate, whatever the holding period, with no indexation. Dynamic bond funds fall under this rule.
How this page lists the funds
The page lists the live funds in the category by 5-year return, highest first. Younger funds follow by name. Each fund is shown by its lead plan, the Direct plan where one exists, with the latest NAV and returns over 1, 3 and 5 years. The 3-year and 5-year returns are annualised, meaning compounded per year.
Size is the average money the fund managed over its latest quarter and cost is its yearly expense ratio. The category medians above the table are the middle return of the funds that have that period.