Aditya Birla Birla Sun Life Dynamic Bond Funds

The investment objective of the scheme is to achieve optimal returns by aggressive portfolio management with high liquidity through investment in debt and money market instruments.

Aditya Birla Sun Life Dynamic Bond Fund is a debt-dynamic bond fund that belongs to mutual funds for Aditya Birla Sun Life. It was released on 08-Apr-2009 and now AUM of ₹2,536.35 crore. The Aditya Birla Sun Life Dynamic Bond Fund is benchmarked against the CRISIL 10-year gilt index as the primary index, and the secondary index is the Nifty Composite Debt Index.

The NAV of Aditya Birla Birla Sun Life Dynamic Bond Fund ended 0.02 (0.09%) at ₹22.137 yesterday.

The fund has been exposed in the top 3 holdings with the clearing company of India Limited, and The Aditya Birla Sun Life Dynamic Bond Fund is managed by Maneesh Dangi and Pranay Sinha.

Aditya Birla Birla Sun Life Dynamic Bond Funds basic details:

  • The fund manager(s) – Maneesh Dangi, Pranay Sinha
  • Launch date – 27-Sep-2004
  • Expense ratio – 1.4% as declared on 31-Jan-2020 (category average is 1.39%)
  • Benchmark – CRISIL 10 Year Gilt Index
  • Return since Launch: 7.82%
  • Riskometer: Moderate
  • Type: Open-ended
  • Assets: ₹ 2,536 Cr (As on 31-Jan-2020)
  • Risk Grade: Above Average
  • Return Grade: Below Average
  • Min SIP amount – ₹1000
  • Min investment amount (additional purchase) – ₹1000
  • Type: Open-Ended Fund. You can invest any time in this fund.

Dynamic Bond Fund: The fund has 97.67 per cent investment in bonds, of which 3.99 per cent is in government securities, 79.55 per cent in very low-risk bond investments.

Aditya Birla Birla Sun Life Dynamic Bond tax rate

If sold after three years from the date of purchase, then long term capital gains tax will be applicable. The current tax rate is (a) 10% of profit or (b) 20% of adjusted profit after index profit. No cess/surcharge is included. If sold three years before the date of purchase, short-term capital gains tax will apply. Any benefit will be added to your income and taxed at your effective tax rate.

Suitability:

Investors who want to invest for the long term but prefer lower-risk assets than equity funds.

Dynamic bond funds have the right to invest in bonds at any time. The fund management team decides whether to invest in bonds maturing in a few months or maturing several years later, where it plans to achieve maximum returns. They are, therefore, the most flexible type of debt fund available.

As most other types of debt funds, we think retail investors can avoid this too. In our opinion, debt funds only make sense for retail investors if they invest for three years or less. Liquid debt funds and short-term debt funds are more suited to that type of investment horizon.

Note: Dividends paid by MFS are levied at a rate of 25% (actually 29.12%, including surcharge and cess). While this tax is not paid directly by the investor, it is deducted from the dividend income before it is paid to the investor.

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