Top Dynamic Bond Mutual Funds (2026)
Ranked by 3 year return, Direct plans, as on the latest NAV · AUM as on 30-09-2026
There are 22 Dynamic Bond mutual funds. Their average 3 year return is 6.7% a year, and +3.1% over the last year. The highest 3 year returns: Bandhan Dynamic Term Fund 8.0%, 360 ONE Dynamic Term Fund 7.7%, Kotak Dynamic Term Fund 7.7%.
- Total AUM
- ₹29,367 Cr
- As on 30-09-2026
- Funds
- 22
- From 22 fund houses
- Expense ratio
- 0.17% to 1.31%
- Direct plans, lowest to highest
- Average 3Y return
- 6.7%
- A year, Direct plans
All Dynamic Bond Funds
Ranked by 3 year return, highest first
Ranked by 3 year return, highest first
| Exit load | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Bandhan Dynamic Term Fund | 1 | 1,910 | +6.90% | +8.03% | +6.22% | +7.27% | Low to Moderate | 0.79% | None | 3.27% |
| 360 ONE Dynamic Term Fund | 2 | 549 | +3.58% | +7.74% | +6.58% | +7.01% | Moderately High | 0.34% | None | 1.70% |
| Kotak Dynamic Term Fund | 3 | 2,219 | +4.69% | +7.68% | +6.44% | +7.53% | Moderately High | 0.61% | None | 2.40% |
| Aditya Birla Sun Life Dynamic Term Fund | 4 | 1,370 | +4.53% | +7.59% | +7.12% | +6.01% | Moderately High | 0.64% | 0.5% within 90 days | 2.00% |
| SBI Dynamic Term Fund | 5 | 3,502 | +5.03% | +7.43% | +6.79% | +7.44% | -- | 0.64% | -- | 1.94% |
| Axis Dynamic Term Fund | 6 | 969 | +4.84% | +7.30% | +6.14% | +7.25% | Moderate | 0.34% | None | 1.87% |
| Mahindra Manulife Dynamic Term Fund | 7 | 47 | +3.44% | +7.25% | +5.83% | -- | Moderately High | 0.42% | None | 1.97% |
| ICICI Prudential Dynamic Term Fund | 8 | 12,863 | +3.66% | +7.16% | +6.75% | +7.73% | -- | 0.63% | -- | 1.63% |
| UTI Dynamic Term Fund | 9 | 396 | +3.81% | +7.15% | +7.47% | +6.62% | Moderate | 0.56% | None | 1.76% |
| Nippon India Dynamic Term Fund | 10 | 3,702 | +3.07% | +7.13% | +6.04% | +6.44% | Moderate | 0.35% | None | 1.80% |
| PGIM India Dynamic Term Fund | 11 | 78 | +2.22% | +6.79% | +5.98% | +7.20% | Low to Moderate | 0.49% | None | 2.19% |
| Quantum Dynamic Term Fund | 12 | 84 | +2.02% | +6.69% | +6.03% | +6.65% | Moderate | 0.50% | None | 2.28% |
| JM Dynamic Term Fund | 13 | 52 | +2.59% | +6.51% | +5.92% | +6.50% | Moderate | 0.44% | None | 1.79% |
| HDFC Dynamic Term Fund | 14 | 480 | +3.27% | +6.47% | +5.72% | +5.92% | Moderately High | 0.75% | None | 2.33% |
| HSBC Dynamic Term Fund | 15 | 119 | +2.45% | +6.47% | -- | -- | Moderate | 0.30% | None | 2.24% |
| Mirae Asset Dynamic Term Fund | 16 | 114 | +2.56% | +6.37% | +5.50% | -- | -- | 0.17% | -- | 1.01% |
| Baroda BNP Paribas Dynamic Term Fund | 17 | 114 | +2.03% | +6.10% | -- | -- | -- | 0.74% | -- | 2.32% |
| DSP Dynamic Term Fund | 18 | 607 | +1.26% | +6.03% | +5.49% | +6.43% | Moderate | 0.54% | None | 2.92% |
| Groww Dynamic Term Fund | 19 | 25 | +2.92% | +5.72% | +5.04% | -- | Moderate | 0.45% | None | 2.01% |
| ITI Dynamic Term Fund | 20 | 24 | +1.42% | +5.65% | +5.58% | -- | Low to Moderate | 0.29% | None | 2.00% |
| Canara Robeco Dynamic Term Fund | 21 | 80 | +1.14% | +5.42% | +4.99% | +5.83% | Moderate | 0.74% | None | 2.51% |
| Union Dynamic Term Fund | 22 | 62 | −0.31% | +4.74% | +3.96% | +5.07% | Moderate | 1.31% | None | 3.25% |
Returns of each fund's Direct plan (its only plan where it has one), as on the latest NAV. 3, 5 and 10 year figures are a rate a year. Std dev: how much the daily returns swung over 3 years, as a yearly figure; lower is steadier. Riskometer and exit load from the fund's scheme summary document; "Varies" means the load changes with how long you hold, and the fund page has the full wording. Expense ratio: Direct plan, from AMFI. AUM at the end of the fund's last reported month. A fund younger than 3 years has no rank and is listed after the ranked ones.
Compare Dynamic Bond Funds
The largest funds of the category, side by side
How Dynamic Bond Funds Are Taxed
As debt funds: 65% or more of each fund is in bonds and money market papers
| When you sell | Tax on the gain |
|---|---|
| Units bought on or after 01-04-2023 | Your slab rate, however long you hold them |
| Units bought before 01-04-2023, within 2 years | Your slab rate |
| Units bought before 01-04-2023, after 2 years | 12.5% of the gain |
- IDCW (dividend) payouts are added to your income and taxed at your slab rate.
- A stamp duty of 0.005% is deducted when you invest.
Rules in force from 23-07-2024 (Finance Act 2024). Tax depends on your own income; this is general information, not tax advice.
What Is a Dynamic Bond Fund?
Debt of any maturity: the fund manager changes the duration as interest rates move. This is the rule SEBI sets for every fund in the category, so their portfolios can be compared.
Other debt categories: Overnight · Liquid · Ultra Short · Low Duration · Money Market · Short Duration · Medium Duration · Medium to Long Duration · Long Duration · Corporate Bond · Credit Risk · Banking & PSU · Gilt · Floater
Dynamic Bond Funds: Frequently Asked Questions
Which are the top Dynamic Bond mutual funds?
By 3 year return, the top Dynamic Bond funds are 1. Bandhan Dynamic Term Fund (8.0% a year), 2. 360 ONE Dynamic Term Fund (7.7% a year), 3. Kotak Dynamic Term Fund (7.7% a year), 4. Aditya Birla Sun Life Dynamic Term Fund (7.6% a year), 5. SBI Dynamic Term Fund (7.4% a year). Past returns do not promise future returns, so also look at costs, risk and how long each fund has done well.
How many Dynamic Bond funds are there?
22 Dynamic Bond funds are open for investment, from 22 fund houses.
What is a Dynamic Bond fund?
Debt of any maturity: the fund manager changes the duration as interest rates move.
What is the average return of Dynamic Bond funds?
1 year: 3.1%, 3 years: 6.7% a year, 5 years: 6.0% a year. The simple average of every Dynamic Bond fund's Direct plan.
Which Dynamic Bond fund has the lowest expense ratio?
Mirae Asset Dynamic Term Fund, at 0.17% a year (Direct plan), as reported to AMFI.
Which is the largest Dynamic Bond fund?
ICICI Prudential Dynamic Term Fund, with ₹12,863 Cr of investors' money on 30-09-2026.
How are Dynamic Bond funds taxed?
As debt funds: for units bought on or after 01-04-2023, the gain is added to your income and taxed at your slab rate, however long you hold them.
This page is information, not investment advice. Mutual fund investments are subject to market risks; read all scheme related documents carefully. Past returns do not promise future returns. Figures come from AMFI, NSE, BSE and each fund house's own documents.