Best Dynamic Bond Mutual Funds
Dynamic bond funds have no duration mandate at all: the manager moves between short and long bonds as their rate view changes. That hands one call — where rates go next — to the manager, so the outcome depends heavily on getting it right.
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 05 Oct 2026, 360 ONE Dynamic Term Fund (Direct plan, Growth option) leads dynamic bond mutual funds on 3-year CAGR at +7.89%, followed by Kotak Dynamic Term Fund at +7.77% and Bandhan Dynamic Term Fund at +7.71%. Across 22 dynamic bond mutual funds the category averaged +6.80% over three years, at an average expense ratio of 0.55%. All figures are computed from public AMFI NAV history and recomputed daily; past returns do not predict future ones.
| 1 | 360 ONE Dynamic Term Fund 360 One | ★★★★★ | +4.5% | +7.9% | +6.8% | 0.34% | — |
| 2 | Kotak Dynamic Term Fund Kotak Mahindra | ★★★★☆ | +5.0% | +7.8% | +6.5% | 0.61% | — |
| 3 | Bandhan Dynamic Term Fund Bandhan | ★★★☆☆ | +6.7% | +7.7% | +6.2% | 0.79% | — |
| 4 | Aditya Birla Sun Life Dynamic Term Fund Aditya Birla Sun Life | ★★★☆☆ | +5.2% | +7.6% | +7.2% | 0.64% | — |
| 5 | ICICI Prudential Dynamic Term Fund ICICI Prudential | ★★★★★ | +4.8% | +7.5% | +7.0% | 0.63% | — |
| 6 | Mahindra Manulife Dynamic Term Fund Mahindra Manulife | ★★★☆☆ | +4.4% | +7.4% | +6.0% | 0.42% | — |
| 7 | SBI Dynamic Term Fund SBI | ★★★★☆ | +5.2% | +7.4% | +6.8% | 0.64% | — |
| 8 | Axis Dynamic Term Fund Axis | ★★★★★ | +5.7% | +7.3% | +6.2% | 0.34% | — |
| 9 | UTI Dynamic Term Fund UTI | ★★★★☆ | +4.8% | +7.2% | +7.7% | 0.56% | — |
| 10 | Nippon India Dynamic Term Fund Nippon India | ★★★★☆ | +4.2% | +7.1% | +6.2% | 0.35% | — |
| 11 | PGIM India Dynamic Term Fund PGIM India | ★★★☆☆ | +2.7% | +6.9% | +6.0% | 0.49% | — |
| 12 | Quantum Dynamic Term FundSmall fund Quantum | ★★★☆☆ | +2.7% | +6.7% | +6.1% | 0.50% | ₹86.32Cr |
| 13 | JM Dynamic Term Fund JM Financial | ★★★☆☆ | +3.4% | +6.7% | +6.0% | 0.42% | — |
| 14 | Mirae Asset Dynamic Term Fund Mirae Asset | ★★★☆☆ | +4.0% | +6.7% | +5.7% | 0.17% | — |
| 15 | HDFC Dynamic Term Fund HDFC | ★★☆☆☆ | +3.7% | +6.6% | +5.8% | 0.75% | — |
| 16 | HSBC Dynamic Term Fund HSBC | ★★☆☆☆ | +2.9% | +6.5% | — | 0.30% | — |
| 17 | Baroda BNP Paribas Dynamic Term Fund Baroda BNP Paribas | ★★☆☆☆ | +2.2% | +6.1% | — | 0.74% | — |
| 18 | DSP Dynamic Term Fund DSP | ★★☆☆☆ | +1.7% | +6.1% | +5.6% | 0.54% | — |
| 19 | ITI Dynamic Term FundSmall fund ITI | ★★★☆☆ | +2.3% | +6.0% | +5.7% | 0.29% | ₹29.53Cr |
| 20 | Groww Dynamic Term FundSmall fund Groww | ★☆☆☆☆ | +2.8% | +5.8% | +5.1% | 0.45% | ₹37.56Cr |
NAV data as of 05 Oct 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.
Popular comparisons
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Frequently asked questions
What are dynamic bond mutual funds?
Dynamic bond funds have no duration mandate at all: the manager moves between short and long bonds as their rate view changes. That hands one call — where rates go next — to the manager, so the outcome depends heavily on getting it right.
Which is the best dynamic bond fund right now?
360 ONE Dynamic Term Fund by 360 One currently ranks first among dynamic bond mutual funds by 3-year CAGR at +7.89%. Rankings move with NAVs — past returns don't guarantee future performance.
What returns have dynamic bond mutual funds given?
The category has averaged +3.69% over 1 year, +6.80% annualized over 3 years, +6.09% 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).