Kotak Dynamic Bond Fund
Kotak Mahindra Mutual Fund · Best Dynamic Bond Mutual Funds
This is the Direct plan of Kotak Dynamic Bond Fund — bought from the fund house, with no distributor commission in its expense ratio. Income is retained in the fund, so it shows up as NAV rather than as a payout.
NAV history
Scorecard
★★★★☆4/5 vs 22 of 21 Dynamic Bond peers- Performance 60%
- Risk 15%
- Cost 10%
- Downside 15%
How this is computed
Each verdict is computed from this fund's own metrics against its sub-category — the number behind it is shown, not a black-box rating. The stars weight the same ground 60/15/10/15 (performance/risk/cost/downside) across every fund in the peer group. Ranked within Dynamic Bond (same plan and option). 22 of the 21 Dynamic Bond funds in this cohort carry the full record the stars need, so they are the ones ranked against.
3Y CAGR +8.14% · ranks 2 of 21 Dynamic Bond funds
Volatility 2.4% vs 2.2% category avg
0.6% expense vs 0.6% category avg
100% of rolling 3Y windows were positive
Strengths & concerns
Generated from this fund's own numbers against its sub-category — each point names the figure behind it.
Strengths
- Ahead of the Dynamic Bond average on 3M/6M/1Y — 1Y by 2.35pp
- 3-year return (+8.14%) beats the Dynamic Bond average (+7.16%)
- Ranks #2 of 21 on 1-year return in its Dynamic Bond cohort
- Stronger risk-adjusted returns — Sharpe 0.67 vs 0.37 Dynamic Bond average
- Consistent — positive in 100% of rolling 3-year windows
Concerns
- More volatile than its Dynamic Bond peers (2.4% vs 2.2%)
- High expense ratio (0.61%) vs the Dynamic Bond average of 0.55%
Key Metrics
Scheme Info
DefinitionsPeriod returns (<1Y, absolute — not annualized)
DefinitionsAnnualized returns (≥1Y — CAGR)
DefinitionsAdvanced metrics — risk
Risk (trailing 3Y)
DefinitionsBenchmark ratios
Not shown for Dynamic Bond — a debt, arbitrage or cash-like fund isn't measured against an equity index, so alpha/beta vs one would be noise rather than signal.
Fund vs category average (Dynamic Bond)
| Period | Fund | Category avg. | Diff |
|---|---|---|---|
| 1M abs | +0.72% | +0.25% | +0.47% |
| 3M abs | +3.93% | +2.83% | +1.10% |
| 6M abs | +4.41% | +2.90% | +1.51% |
| 1Y CAGR | +7.58% | +5.23% | +2.35% |
| 3Y CAGR | +8.14% | +7.16% | +0.98% |
| 5Y CAGR | +6.90% | +6.43% | +0.47% |
Category average across peers in Dynamic Bond (up to 21 funds with data), same plan and option, excluding this fund. Under-1-year figures are absolute; 1Y and beyond are annualised (CAGR).
Not sure what a figure means? The glossary explains every metric, and the methodology shows the formulas.
Category rank
Vs 21 peers in Dynamic Bond
Rolling returns
Return for every possible 1Y holding period, not just today’s
152 overlapping 1Y windows, sampled monthly across the fund’s history.
Backtest this fund
What a SIP or one-time investment would have grown to over this fund’s real NAV history.
60 monthly installments of ₹10,000 into Kotak Dynamic Bond Fund, valued at the latest NAV. XIRR annualizes for each installment’s timing.
Calendar-year returns
What the fund actually returned in each year, not the smoothed average.
| Year | Fund | |
|---|---|---|
| 2026part | +4.74% | |
| 2025 | +6.72% | |
| 2024 | +10.14% | |
| 2023 | +7.47% | |
| 2022 | +3.47% | |
| 2021 | +3.95% | |
| 2020 | +12.46% | |
| 2019 | +11.81% | |
| 2018 | +7.92% | |
| 2017 | +6.19% |
January–December, from this fund's NAV history. Absolute return, not annualised. “part” marks a year the fund didn't run end to end — its first year, the current year so far, or one it stopped reporting in.
Taxation
Taxed as debtThis is a debt / non-equity fund. Since April 2023 there is no long-term or indexation benefit — every rupee of gain is added to your income and taxed at your income-tax slab rate, whatever the holding period.
Your income-tax slab — no LTCG or indexation benefit
Pick your slab to see the rate that applies to you.
Applies to capital gains on redemption. Excludes IDCW/dividend tax, STT, surcharge and cess, and pre-2018 equity grandfathering. For research only — consult a tax advisor before filing.
Fund size over time
Quarterly average AUM · AMFIDown +8% from its peak of ₹2,598Cr in January - March 2026. Size matters most where the mandate is narrow — a large small-cap or a very large flexi-cap book is harder to move without moving the price.
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Returns and risk are computed from NAV history and may differ slightly from other portals due to methodology (rolling vs point-to-point, dividend treatment). For research only — not investment advice.
About Debt funds
Debt funds lend money to governments and companies and earn interest. They're generally steadier than equity funds; their risk comes from interest-rate moves and, for some, the creditworthiness of borrowers.
Frequently asked questions
What is the NAV of Kotak Dynamic Bond Fund?
As of 21 Aug 2026, the NAV of Kotak Dynamic Bond Fund is ₹43.70 per unit. NAV (net asset value) is the fund's per-unit price, published once each business day.
What returns has Kotak Dynamic Bond Fund delivered?
Kotak Dynamic Bond Fund has returned +7.58% over 1 year, +8.14% per year over 3 years, +6.90% per year over 5 years and +8.60% per year since inception. Figures beyond one year are annualised (CAGR) and are computed from AMFI NAV history, so they may differ slightly from other portals.
What is the expense ratio of Kotak Dynamic Bond Fund?
Kotak Dynamic Bond Fund charges an expense ratio of 0.61% per year. This annual fee is already deducted from the NAV, so the returns you see are net of it.
What are the top holdings of Kotak Dynamic Bond Fund?
Its largest holdings are GOVERNMENT OF INDIA 35840 GOI 15AP65 6.9 FV RS 100 (20.5%), STATE DEVELOPMENT LOAN 37068 TN 11FB36 7.54 FV RS 100 (10.5%), MUTHOOT FINANCE LIMITED SR 35-A OP I 9.09 NCD 01JU29 FVRS1LAC (6.4%), VEDANTA LIMITED 8.95 NCD 16MR29 FVRS1LAC (6.4%) and STATE DEVELOPMENT LOAN 37474 TN 03JU33 7.69 FV RS 100 (6.3%). Holdings are disclosed monthly and change over time.
How risky is Kotak Dynamic Bond Fund?
It is rated moderate on SEBI's risk-o-meter, its trailing-3Y volatility (annualised) is 2.4% and its worst peak-to-trough fall in our sample was -3.2%. Higher volatility means the NAV swings more; the drawdown shows how far it has fallen from a peak historically.
What does the Sharpe ratio of 0.67 mean?
The Sharpe ratio is return earned per unit of total risk, above a 6.5% risk-free rate. Kotak Dynamic Bond Fund's 0.67 means it has rewarded its volatility with excess return. Higher is better.
What is the benchmark of Kotak Dynamic Bond Fund?
Kotak Dynamic Bond Fund is benchmarked against the Tier 1 Benchmark - Nifty Composite Debt Index A-III Benchmark rationale:. Its alpha and beta on this page are measured against that index.
Who manages Kotak Dynamic Bond Fund?
Kotak Dynamic Bond Fund is managed by Abhishek Bisen and Deepak Agrawal at Kotak Mahindra.
How is Kotak Dynamic Bond Fund taxed?
Kotak Dynamic Bond Fund is a debt / non-equity fund. Since April 2023 there is no long-term or indexation benefit — capital gains are added to your income and taxed at your income-tax slab rate regardless of how long you held the units.