Dynamic bond funds: Outsource duration investment bets to fund managers

Last Update Date: 06-10-2026

Published by Business Standard

Abhishek Kumar's role: Quoted

Abhishek Kumar cautioned that a fund manager's rate bets can go wrong and hurt these funds, and suggested that investors able to bear interest-rate risk for three to five years could put 10–15% of their debt portfolio in them.

As hopes of an early rate cut faded in late 2024, this article explains how dynamic bond funds let fund managers change portfolio duration depending on expected rate moves. It covers the case for these funds, doubts over managers' ability to read rate direction, credit risk concerns and alternatives such as a barbell mix.

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Dynamic bond funds: Outsource duration investment bets to fund managers

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