The Aditya Birla Sun Life Dynamic Bond Fund is an open-ended income scheme aimed at achieving optimal high-liquidity returns by active portfolio management by investing in high-quality debt and money market instruments.
Aditya Birla Sun Life Dynamic Bond Fund was launched on 27 September 2004; it is a debt dynamic bond fund. It is a medium risk fund and has given a CAGR of 7.8 percent since its launch. It ranks 16th in the Dynamic Bond category.
Aditya Birla Sun Life Dynamic Bond Fund annual compounded returns up to 1 year are on a full basis and 1-year CAGR (compounded annual growth rate). On 29 January 2020.
Aditya Birla Sun Life Dynamic Bond Fund is an actively regulated portfolio of good credit quality bonds and money market instruments to provide investors with moderate returns and liquidity.
Aditya Birla Sun Life Dynamic bond funds give fund managers the flexibility to change bond time as well as portfolio compositions and give them more room in the changing interest rate scenario when needed.
What time can investors invest in Aditya Birla Sun Life Dynamic Bond Fund
Scenario 1- When interest rates are expected to fall in the near future, the fund will invest more in long-term bonds.
Scenario 2 – If interest rates are expected to rise in the near future, the fund will invest more in short-term bonds. Any subsequent increase in interest rates will give the fund the ability to reinvest at a higher interest rate.
The fund expert team decides whether to invest in bonds or not:
- A few months
- Or maturing many years
Where it hopes to derive maximum benefit from it. The most versatile types of debt funds are available.
As most other types of debt funds, we think retail investors can avoid this too. According to experts, if retail invests there for 3 years or less then this debt fund only matters to them. Liquid debt funds and short-term debt funds are more suited to that type of investment horizon.
Taxation of Income: Capital gains
- When units of a mutual fund are sold after three years from the date of investment, the profit is taxed at the rate of 20 percent after the benefit of the inflation index.
- If the investor sells the mutual fund unit within three years of starting the investment, the total amount will be passed on to the profit-making investors and tax will be applicable as per the slab rate.
- As long as the units are in your hands, there will be no tax.
Dividends of mutual funds are taxed at 25% (actually 29.12% with surcharge and cess). Dividend Distribution Tax (DDT) is known for this purpose. While this tax is not directly payable by the investor, it is withheld before the investor pays dividend income.
Conclusion: Invest in Aditya Birla Sun Life Dynamic Bond Fund and achieve desirable returns with the taxation of earnings.