Birla Sun Life Dynamic Bond Fund: Offering Regular Income
Birla Sun Life Dynamic Bond Fund is an open-ended income scheme which is suitable for those investors who are seeking regular income with growth of capital over a short-term period. It is a debt short term fund, which is designed by Birla Sun Life Mutual Fund in order to accomplish the financial needs of the investors in the short run.
We, at MySIPonline, have recommended this plan due to its performance and portfolio concentration which ensure yielding of desired returns in considerable time horizon. If you want to make an investment in this mutual fund investment programme, then you must take a glance at the following parameters.
Birla SunLife Dynamic Bond Fund: Investment Strategy
This scheme aims to generate optimal returns with higher liquidity for the investors. It has an active management of the portfolio where the investments are made in high-quality debt and money market instruments. It also fetches considerable income from the government securities to flourish the future of investors.
Birla Sun Life Dynamic Plan is flexible in nature and changes its investments to short-term bonds at the times when there is fluctuation in the interest rates. Accordingly, it makes the best use of new opportunities to grow to generate higher profits to help investors fetch the benefit of high-interest rates over time. In this manner, even if the interest rates are falling, one can still gain income and achieve financial stability.
The investment strategy of this scheme revolves around structuring a well-diversified portfolio in order to capture the favourable price fluctuations and reduce the impact of adverse ones. Active debt management strategies like this, require in-depth knowledge of various micro and macro factors to accurately track interest rate movements. The investment team of Birla Sun Life Mutual Fund, does proper research and formulates the process driven schemes to capitalise the available opportunities promptly. This scheme has also been designed in the same manner.
This mutual fund programme seeks to accomplish the needs of a large section of investors who are liable to get influenced by interest rate risks. It offers the SIP Investment plans as well to invest conveniently.
Birla Sun Life Dynamic Bond Fund: Performance
This strategy offers much better returns in three-year investment made through Systematic Investment Plans (SIPs). Currently, it is delivering 12.2% and 11.0% interest rates in the three- and five-year investments. It is consistently offering desirable returns since its inception. It is ranked first under the “Debt Short-Term Fund” category by CRISIL for the quarter ended in June 2016.
The fund is outperforming its benchmark and category for a long time, which is a proven fact of its efficiency. The absolute annual returns generated by this strategy has also been higher. In the year 2012, it generated 10.3% absolute returns, and in 2014, the returns were 14.8%. Furthermore, since April 2014, it is offering returns around 50% or more in the government securities(GILT). It has increased its exposure in past year and has provided handsome profits to the investors.
Birla Sun Life Dynamic Bond (G): Portfolio Review
This scheme generally takes short- to medium-term bets regarding maturity. It has an asset size amounting to Rs.13,419 crore as on September 30, 2016. It has made investments in the short-term instruments in order to attain regular income. The holdings of this scheme include the majority of the securities which are rated as SOV or AA by CRISIL. The instruments are either debenture, bonds, commercial paper, privately placed debts or certificate of deposits in which the investments have been made by this fund.
It has been believed that in order to reduce the short-term market volatility, one must stay invested in the Birla Sun Life Dynamic Bond Fund for not less than two years. It can also offer the long-term equity like benefits in a period of three years. So, if you are looking to add some debt to your equity-laden portfolio, then Birla Sun Life Dynamic Bond Retail Plan (Growth) is a better choice.
