What Goals Can Be Achieved Through SBI Dynamic Bond Fund?

Dynamic bond funds are expected to provide optimal returns in the rising as well as falling interest rate scenario, both, by actively managing the portfolio. So, if you a risk-averse investor and looking for investing your capital in a debt fund, then SBI Dynamic Bond Fund is suitable for you. The fund aims to earn optimal returns for the investors in the different economic and fiscal conditions prevailing in the market by churning the portfolio according to it. Keeping all this in mind, the financial analysts of MySIPonline have researched about the scheme, and also provide the details of who should invest in it.

Description	Details
Launch Date	Feb 09, 2004
Category	Debt: Dynamic Bond
NAV (As on Sept 25, 2018)	Rs 21.52
AUM (As on Aug 31, 2018)	Rs 1,239 Cr
Expense Ratio	1.69%
Min. Investment	Rs 5,000
Min. SIP Investment	Rs 1,000
Return Since Inception	5.38%

The fund mainly invests in the debt securities and money market instruments depending on the expected interest rate scenario. It aims to provide high returns to the investors by including high-quality debt securities of varying maturities in its portfolio.

Portfolio Allocation of SBI Dynamic Bond Fund (G)

As per the financial analysts of MySIPonline, the management team of SBI Dynamic Bond follows an active duration management strategy which has kept its portfolio turnover ratio high with 131%.

Portfolio Aggregates	Fund	1Y High	1Y Low	Category
Number of Securities	10	19	7	24
Modified Duration (yrs)	2.49	6.87	0.91	2.63
Average Maturity (yrs)	3.22	10.91	2.10	3.64
Yield to Maturity (%)	7.70	7.71	6.29	8.22

*As on Sept 25, 2018

With deep-rooted research philosophy, the fund management team constructs the portfolio with significant focus on the liquidity in the portfolio and avoids taking high credit risk. It mainly invests in the high credit quality medium interest rate sensitive papers. These majorly include GOI securities, Central Government loans, and certificate of deposits of AA, AAA, SOV and A1+ rating.

Past Performance Analysis of SBI Dynamic Bond Fund (G)

Fund/ Benchmark	Trailing Returns (in %)
	1-Y	3-Y	5-Y	7-Y	10-Y
SBI Dynamic Bond Fund (G)	0.55	7.03	8.06	8.24	7.36
NIFTY Composite Debt Index	2.79	6.1	7.49	7.45	7.01
Category	1.08	6.48	8.17	8.35	7.85

*As on Sept 25, 2018

Following the disciplined and risk-cautious investment procedure, SBI Dynamic Bond Fund growth has generated high returns in the long run. As shown in the table above, the fund has managed to beat the benchmark efficiently in the long run, and provided competitive returns as compared to the category’s average. With these returns, the fund has generated high alpha as compared to the other funds in the category.

These returns and risk measures prove that the fund is capable to offer high returns in the long investment period to the investors. It has also capped the losses in the year 2009, when the benchmark has given negative returns, but it has provided high positive returns.

Suitability: SBI Dynamic Bond Fund (G)

The investors who are looking for investing in this fund should know that it offers a moderate level of risk on the principal amount. So, investors who have to achieve the financial goals such as buying a car, creating a corpus for construction of house and similar within the investment horizon of 3 to 5 years, should invest in it. At the same time, the investors must keep in mind that the rates of RBI keeps fluctuating according to the economy, so if your investment period falls below 3 years, you should avoid investing in the scheme.

 You can invest in SBI Dynamic Bond Scheme via SIP and lumpsum mode to reach your expected goals, but if you are confused with how to initiate or how much to invest, you can consult with our experts at MySIPonlinewho will help you to reach your aim easily.

Invest in SBI Dynamic Bond Fund to Get Attractive Returns

Are you bored of investing in equity schemes of mutual fund? Looking for a change? Well, connect with MySIPonline and invest in SBI Dynamic Bond Fund by SBI Mutual Fund. Wondering what this scheme is all about? Below is the answer.

SBI Dynamic Bond Fund was launched on February 9th, 2004 with an investment objective to help its investors earn attractive returns by investing in actively managed portfolio of debt securities of good quality having different maturity periods. It is an open-ended scheme with moderate risk involvement.

Investment Strategy

The strategy is to allocate the fund in different debt securities such as Debt derivatives, Central and State Government Securities, and money market instruments with different maturity period on the basis of expected returns provided by them. Since the market involves fluctuations from time to time, so to shield the assets and returns from it, investment is made in top debt and money-market instruments. To earn estimated high return, the fund will follow a strategy of active duration management.

Fund Manager

It is very important that the fund is managed by an experienced and knowledgeable manager who knows how to help the investors reach their investment goal and protects their money against market fluctuations. If you are investing in this fund, then you can do so with a free mind as it is managed by a very experienced person.

SBI Dynamic Bond Fund G is managed by Mr. Dinesh Ahuja since January 2011. He has done B.Com honors and MMS in Finance. Before joining SBI Asset Management Company, he has worked with renowned companies such as L&T Investment Management Ltd., Reliance Asset Management Limited, and Reliance General Insurance Company Limited. Apart from this scheme, he has been simultaneously managing many other schemes such as SBI Debt Hybrid Fund, SBI Equity Hybrid Fund, SBI Magnum Gilt Fund, SBI Magnum Income Fund, etc.

Fund Details

1. The net asset value of SBI Dynamic Bond Fund Growth as on July 02, 2018 was Rs. 21.3378 and the AUM as on May 31st, 2018 was Rs. 1897 crores.
2. There is no entry load that an investor has to pay. If an investor redeems up to 10% of units, then there is no exit load which is to be incurred. However, if an investor withdraws more than 10% of the units that too within one month from the date of allotment, then he becomes liable to pay 0.25% as exit load. But if the redemption is made after completion of one month, then this amount too is nullified.
3. It has been rated four stars by Value Research and its benchmark is Crisil Composite Bond Fund Index.
4. An investor may start investing in this scheme with minimum investment amount of Rs. 5000 in lump sum.

To know more about SBI Dynamic Bond Fund, log on to MySIPonline, a user-friendly platform that helps you in selecting the right scheme by facilitating you to compare it with its competitors and providing an opportunity to avail financial consultation absolutely free of cost. Thus, helping you save your precious time, money and energy.