Best Dynamic Bond Mutual 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.
Top dynamic bond mutual funds by 3Y returns
20Direct plan, Growth option — ranked by 3-year CAGR. Open a fund for NAV history, rolling returns, risk metrics and peer rank.
As of 20 Aug 2026, 360 ONE Dynamic Bond Fund (Direct plan, Growth option) leads dynamic bond mutual funds on 3-year CAGR at +8.39%, followed by Kotak Dynamic Bond Fund at +8.14% and ICICI Prudential All Seasons Bond Fund at +8.01%. Across 22 dynamic bond mutual funds the category averaged +7.23% over three years, at an average expense ratio of 0.56%. All figures are computed from public AMFI NAV history and recomputed daily; past returns do not predict future ones.
| 1 | 360 ONE Dynamic Bond Fund 360 One | ★★★★★ | +6.6% | +8.4% | +7.0% | 0.34% | ₹584.05Cr |
| 2 | Kotak Dynamic Bond Fund Kotak Mahindra | ★★★★☆ | +7.5% | +8.1% | +6.9% | 0.61% | ₹2,398Cr |
| 3 | ICICI Prudential All Seasons Bond Fund ICICI Prudential | ★★★★★ | +6.4% | +8.0% | +7.3% | 0.63% | ₹13,748Cr |
| 4 | Aditya Birla Sun Life Dynamic Bond Fund Aditya Birla Sun Life | ★★★☆☆ | +6.2% | +7.9% | +7.4% | 0.64% | ₹1,483Cr |
| 5 | Mahindra Manulife Dynamic Bond Fund Mahindra Manulife | ★★★☆☆ | +6.1% | +7.8% | +6.2% | 0.38% | ₹59.12Cr |
| 6 | BANDHAN Dynamic Bond Fund Bandhan | ★★★☆☆ | +8.0% | +7.8% | +6.3% | 0.79% | ₹712.58Cr |
| 7 | Nippon India Dynamic Bond Fund Nippon India | ★★★★☆ | +5.7% | +7.8% | +6.6% | 0.35% | ₹3,937Cr |
| 8 | Axis Dynamic Bond Fund Axis | ★★★★★ | +7.0% | +7.7% | +6.5% | 0.34% | ₹1,040Cr |
| 9 | UTI - Dynamic Bond Fund. UTI | ★★★★☆ | +5.8% | +7.6% | +9.6% | 0.88% | ₹414.70Cr |
| 10 | SBI Dynamic Bond Fund SBI | ★★★★☆ | +6.1% | +7.5% | +6.9% | 0.64% | ₹3,785Cr |
| 11 | PGIM India Dynamic Bond Fund PGIM India | ★★★☆☆ | +4.6% | +7.3% | +6.4% | 0.49% | ₹83.25Cr |
| 12 | Mirae Asset Dynamic Bond Fund Mirae Asset | ★★★☆☆ | +5.6% | +7.3% | +5.9% | 0.16% | ₹116.21Cr |
| 13 | HDFC Dynamic Debt Fund HDFC | ★★☆☆☆ | +6.2% | +7.2% | +6.2% | 0.75% | ₹560.82Cr |
| 14 | Quantum Dynamic Term Fund Quantum | ★★★☆☆ | +4.5% | +7.2% | +6.5% | 0.50% | ₹86.32Cr |
| 15 | HSBC Dynamic Bond Fund HSBC | ★★☆☆☆ | +4.7% | +7.0% | — | 0.30% | ₹124.96Cr |
| 16 | JM Dynamic Bond Fund JM Financial | ★★★☆☆ | +4.4% | +7.0% | +6.1% | 0.43% | ₹53.27Cr |
| 17 | DSP Strategic Bond Fund DSP | ★★☆☆☆ | +4.2% | +6.8% | +6.1% | 0.54% | ₹727.35Cr |
| 18 | ITI Dynamic Term Fund ITI | ★★★☆☆ | +3.4% | +6.5% | +6.1% | 0.29% | ₹29.53Cr |
| 19 | Baroda BNP Paribas Dynamic Bond Fund Baroda BNP Paribas | ★★☆☆☆ | +3.6% | +6.5% | — | 0.74% | ₹122.92Cr |
| 20 | Groww Dynamic Term Fund Groww | ★☆☆☆☆ | +4.0% | +6.0% | +5.2% | 0.45% | ₹37.56Cr |
NAV data as of 20 Aug 2026. Returns are CAGR for periods ≥1 year, computed from AMFI NAV history. Ratings are WealthTicker’s own, ranked within sub-category peers — not a SEBI or agency rating. See our methodology for every formula. This is data, not investment advice.
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Frequently asked questions
What are dynamic bond mutual 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.
Which is the best dynamic bond fund right now?
360 ONE Dynamic Bond Fund by 360 One currently ranks first among dynamic bond mutual funds by 3-year CAGR at +8.39%. Rankings move with NAVs — past returns don't guarantee future performance.
What returns have dynamic bond mutual funds given?
The category has averaged +5.33% over 1 year, +7.23% annualized over 3 years, +6.47% annualized over 5 years — peer averages over the live funds in the category, computed from AMFI NAV history.
How are dynamic bond mutual funds taxed?
Debt taxation: all gains are added to your income and taxed at your slab rate, regardless of holding period (for units bought on or after 1 April 2023).