SBI Dynamic Bond fund is an income fund managed by Dinesh Ahuja. SBI Dynamic Bond Fund majorly invests in Government of India Bonds constituting as must as 70% of the total portfolio. The fund manages investments in excess of Rs 2400 crores.
Akin to any income funds, SBI Dynamic Bond Fund is suitable for short-term needs. In case you are saving for needs that are expected to come between 1 year to 2 years, then SBI Dynamic Bond Fund will be a good choice for you.
Since debt instruments are not appropriate for long term needs, we suggest you to avoid SBI Dynamic Bond Fund for such goals. Debt in the long run falls behind the inflation rate and hence it does not become a viable option for long term goals.
If you had invested Rs 1 lakh three years back, your value of investments would be around Rs 1.29 lakhs. If you had invested Rs 1 lakh for one year, your value of investments would be around Rs 1.13 lakhs. The performance has been better or similar to other debt mutual funds. It has been giving around 13% returns to those who have stayed invested for one year and 9% returns to those who have stayed invested for a period of three years.
Assume you had invested Rs 10,000 every month in SBI Dynamic Bond Fund through SIP for the past 3 years today you would have around Rs 4.33 lakhs.
A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.
If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of SBI Dynamic Bond Fund is 1.74%. This is charged to recover the fund management company's expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.