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Best Dynamic Bond Debt Funds in 2025

What are Debt: Dynamic Bond funds?


Funds Included All Fund Returns
(3Y annualised)		 Top 5 fund Returns
(3Y annualised)
24 7.5% 8.2%

This fund category is an example of Debt Scheme funds.

Debt funds invest primarily in fixed-income securities such as government bonds, corporate bonds, debentures, treasury bills, and money market instruments. They aim to provide steady income and capital preservation with lower volatility compared to equity funds. Depending on portfolio maturity and credit quality, debt funds range from liquid and short-duration funds to gilt and dynamic bond funds. Suitable for investors with moderate to low risk appetite seeking regular income.

Trailing returns for Debt: Dynamic Bond funds

These are average returns over the indicated period.

Monthly trailing returns:
Nov-2025Oct-2025Sep-2025Aug-2025Jul-2025Jun-2025
0.16%0.60%1.13%-1.18%0.47%-0.92%

Quarterly trailing returns:
2025Q42025Q32025Q22025Q12024Q42024Q3
0.76%0.40%1.75%2.68%0.86%3.33%

Yearly trailing returns:
202520242023202220212020
5.69%9.15%7.02%3.56%4.32%9.78%

Rolling returns for Debt: Dynamic Bond funds

SIP
10% Step-up SIP
Lump sum
SWP
10% Step-up SWP
Metric Any 1Y SIPAny 2Y SIPAny 3Y SIPAny 5Y SIPAny 7Y SIPAny 10Y SIP
Minimum0.27%4.95%4.69%5.87%6.54%7.11%
Median7.25%7.18%7.64%7.25%6.95%7.23%
Maximum15.78%8.94%11.05%8.85%7.44%7.31%
Risk3.17%0.96%1.47%0.8%0.25%0.06%
Sharpe Ratio8.01%19.2%43.8%31.14%-18.83%411.11%
Data as of 14-Dec-2025
Metric Any 1Y SIPAny 2Y 目↑ SIPAny 3Y 目↑ SIPAny 5Y 目↑ SIPAny 7Y 目↑ SIPAny 10Y 目↑ SIP
Minimum0.27%6.45%7.04%6.93%6.89%7.07%
Median7.25%6.95%7.32%7.09%7.01%7.18%
Maximum15.78%7.38%7.53%7.2%7.1%7.25%
Risk3.17%0.27%0.15%0.08%0.06%0.05%
Sharpe Ratio8.01%-16.95%214.01%111.56%19.26%327.91%
Data as of 14-Dec-2025
Metric Any 1YAny 2YAny 3YAny 5YAny 7YAny 10Y
Minimum1.41%6.52%5.2%5.9%7.1%7.63%
Median7.42%8.09%7.83%7.07%7.45%7.69%
Maximum13.96%9.36%10.67%8.66%7.79%7.78%
Risk2.91%0.76%1.32%0.81%0.19%0.04%
Sharpe Ratio14.54%143.71%62.85%8.73%231.54%1822.95%
Data as of 14-Dec-2025
Metric Any 1Y SWPAny 2Y SWPAny 3Y SWPAny 5Y SWPAny 7Y SWPAny 10Y SWP
Minimum0.62%7.16%5.16%4.99%7.49%8.15%
Median7.88%9.05%8.21%7.22%8.04%8.31%
Maximum15.24%10.75%10.92%9.11%8.57%8.48%
Risk3.12%0.87%1.51%1.18%0.28%0.09%
Sharpe Ratio28.05%235.41%79.99%18.94%374.53%1452.78%
Data as of 14-Dec-2025
Metric Any 1Y SWPAny 2Y 目↑ SWPAny 3Y 目↑ SWPAny 5Y 目↑ SWPAny 7Y 目↑ SWPAny 10Y 目↑ SWP
Minimum0.62%9.4%7.74%5.48%7.57%7.88%
Median7.88%9.54%7.86%5.54%7.71%7.95%
Maximum15.24%9.75%7.96%5.6%7.81%8.0%
Risk3.12%0.1%0.06%0.03%0.07%0.04%
Sharpe Ratio28.05%2553.14%1393.92%-4318.31%960.9%2411.11%
Data as of 14-Dec-2025

Fundwise SIP, Lumpsum and SWP returns


Rolling SIP returns (less than 1 year)
Fund Any 1M SIPAny 3M SIPAny 6M SIP
Axis Dynamic Bond Fund4.18%7.26%4.52%
HDFC Dynamic Debt Fund-0.89%3.02%1.06%
Quantum Dynamic Bond Fund1.89%4.87%2.7%
Nippon India Dynamic Bond Fund4.83%7.48%4.59%
ICICI Prudential All Seasons Bond Fund3.71%5.76%4.78%
SBI Dynamic Bond Fund4.45%5.78%3.68%
Kotak Dynamic Bond Fund-2.31%4.63%3.01%
HSBC Dynamic Bond Fund1.38%4.14%2.14%
JM Dynamic Bond Fund4.89%7.01%4.39%
Mahindra Manulife Dynamic Bond Fund2.88%5.49%4.22%
360 One Dynamic Bond Fund8.2%9.98%7.12%
Canara Robeco Dynamic Bond Fund1.38%4.08%0.81%
Tata Dynamic Bond Fund5.44%11.19%9.69%
ITI Dynamic Bond Fund2.19%4.09%1.18%
Groww Dynamic Bond Fund-1.5%1.83%0.46%
Bandhan Dynamic Bond Fund4.57%7.25%2.83%
Aditya Birla Sun Life Dynamic Bond Fund3.5%5.9%4.02%
UTI Dynamic Bond Fund6.37%7.39%4.35%
Union Dynamic Bond Fund-4.37%0.35%-1.63%
Baroda BNP Paribas Dynamic Bond Fund-0.86%2.51%0.81%
Franklin India Dynamic Accrual Fund18.73%11.78%6.38%
Mirae Asset Dynamic Bond Fund6.29%6.54%6.04%
PGIM India Dynamic Bond Fund1.41%4.66%2.72%
DSP Strategic Bond Fund-0.41%2.89%0.57%
Data as of 14-Dec-2025

Note: Returns for less than one year are annualised. However, given the nature of the calculation, XIRR for such periods are not meaningful.

Rolling SIP returns (1 year or more):

Fund Any 1Y SIPAny 3Y SIPAny 5Y SIP
Axis Dynamic Bond Fund8.32%8.07%7.93%
HDFC Dynamic Debt Fund3.54%6.73%6.77%
Quantum Dynamic Bond Fund7.68%7.65%7.29%
Nippon India Dynamic Bond Fund6.98%8.27%7.44%
ICICI Prudential All Seasons Bond Fund9.44%9.0%9.24%
SBI Dynamic Bond Fund7.54%8.07%7.58%
Kotak Dynamic Bond Fund5.07%7.72%7.23%
HSBC Dynamic Bond Fund8.69%7.18%0%
JM Dynamic Bond Fund7.67%7.67%7.12%
Mahindra Manulife Dynamic Bond Fund5.37%8.01%7.11%
360 One Dynamic Bond Fund7.22%7.2%7.18%
Canara Robeco Dynamic Bond Fund6.97%7.27%6.53%
Tata Dynamic Bond Fund9.15%6.94%7.66%
ITI Dynamic Bond Fund5.95%6.76%0%
Groww Dynamic Bond Fund5.38%4.56%5.71%
Bandhan Dynamic Bond Fund9.17%8.39%7.38%
Aditya Birla Sun Life Dynamic Bond Fund6.6%8.11%7.95%
UTI Dynamic Bond Fund8.21%8.39%6.49%
Union Dynamic Bond Fund6.49%7.18%6.39%
Baroda BNP Paribas Dynamic Bond Fund8.6%8.05%0%
Franklin India Dynamic Accrual Fund10.04%9.12%7.86%
Mirae Asset Dynamic Bond Fund7.59%7.85%6.19%
PGIM India Dynamic Bond Fund8.3%8.2%8.32%
DSP Strategic Bond Fund4.13%7.05%6.84%
Data as of 14-Dec-2025
SIP Calculator


Rolling Lumpsum returns
Fund Any 1YAny 3YAny 5Y
Axis Dynamic Bond Fund8.61%8.08%8.15%
HDFC Dynamic Debt Fund5.14%7.46%6.74%
Quantum Dynamic Bond Fund7.26%7.8%6.37%
Nippon India Dynamic Bond Fund8.1%8.19%6.14%
ICICI Prudential All Seasons Bond Fund9.86%9.54%9.95%
SBI Dynamic Bond Fund7.54%8.13%7.87%
Kotak Dynamic Bond Fund6.23%7.94%6.29%
HSBC Dynamic Bond Fund8.44%7.44%0%
JM Dynamic Bond Fund8.02%7.67%6.21%
Mahindra Manulife Dynamic Bond Fund5.85%7.98%5.9%
360 One Dynamic Bond Fund7.38%7.29%7.22%
Canara Robeco Dynamic Bond Fund7.41%7.28%6.68%
Tata Dynamic Bond Fund7.92%7.95%8.43%
ITI Dynamic Bond Fund5.5%7.25%0%
Groww Dynamic Bond Fund5.71%5.0%5.2%
Bandhan Dynamic Bond Fund8.09%8.28%8.06%
Aditya Birla Sun Life Dynamic Bond Fund7.46%8.03%7.38%
UTI Dynamic Bond Fund8.01%8.73%6.09%
Union Dynamic Bond Fund6.45%6.95%7.0%
Baroda BNP Paribas Dynamic Bond Fund8.53%8.24%0%
Franklin India Dynamic Accrual Fund9.75%9.33%8.02%
Mirae Asset Dynamic Bond Fund7.55%6.72%6.22%
PGIM India Dynamic Bond Fund7.75%8.62%7.92%
DSP Strategic Bond Fund5.58%8.05%6.65%
Data as of 14-Dec-2025

Rolling SWP returns
Fund Any 1Y SWPAny 3Y SWPAny 5Y SWP
Axis Dynamic Bond Fund8.55%8.67%8.83%
HDFC Dynamic Debt Fund7.15%8.17%6.63%
Quantum Dynamic Bond Fund8.44%8.17%5.37%
Nippon India Dynamic Bond Fund9.62%8.24%4.72%
ICICI Prudential All Seasons Bond Fund9.69%10.45%10.18%
SBI Dynamic Bond Fund8.33%8.58%7.98%
Kotak Dynamic Bond Fund7.4%8.23%5.25%
HSBC Dynamic Bond Fund8.44%7.73%0%
JM Dynamic Bond Fund8.37%7.42%7.58%
Mahindra Manulife Dynamic Bond Fund5.97%8.07%4.57%
360 One Dynamic Bond Fund7.59%7.38%7.41%
Canara Robeco Dynamic Bond Fund7.58%7.56%7.66%
Tata Dynamic Bond Fund9.16%9.01%9.39%
ITI Dynamic Bond Fund5.22%7.84%0%
Groww Dynamic Bond Fund6.07%5.84%4.64%
Bandhan Dynamic Bond Fund7.39%8.45%9.02%
Aditya Birla Sun Life Dynamic Bond Fund9.23%8.23%6.76%
UTI Dynamic Bond Fund7.48%9.02%7.81%
Union Dynamic Bond Fund6.05%7.16%7.24%
Baroda BNP Paribas Dynamic Bond Fund8.61%8.51%0%
Franklin India Dynamic Accrual Fund9.97%9.3%9.46%
Mirae Asset Dynamic Bond Fund8.05%7.36%7.43%
PGIM India Dynamic Bond Fund7.86%8.43%8.91%
DSP Strategic Bond Fund6.8%9.25%4.86%
Data as of 14-Dec-2025

SIP and SWP returns with step-up


Rolling SIP returns with 10% step-up
Fund Any 1Y SIPAny 3Y 目↑ SIPAny 5Y 目↑ SIP
Axis Dynamic Bond Fund8.32%7.75%7.14%
HDFC Dynamic Debt Fund3.54%6.7%6.78%
Quantum Dynamic Bond Fund7.68%7.61%7.31%
Nippon India Dynamic Bond Fund6.98%8.26%7.49%
ICICI Prudential All Seasons Bond Fund9.44%8.26%7.92%
SBI Dynamic Bond Fund7.54%7.66%7.45%
Kotak Dynamic Bond Fund5.07%7.63%7.25%
HSBC Dynamic Bond Fund8.69%7.12%0%
JM Dynamic Bond Fund7.67%7.82%7.2%
Mahindra Manulife Dynamic Bond Fund5.37%7.98%7.18%
360 One Dynamic Bond Fund7.22%9.1%8.16%
Canara Robeco Dynamic Bond Fund6.97%6.06%6.05%
Tata Dynamic Bond Fund9.15%6.6%7.11%
ITI Dynamic Bond Fund5.95%6.69%0%
Groww Dynamic Bond Fund5.38%5.8%5.71%
Bandhan Dynamic Bond Fund9.17%6.68%6.46%
Aditya Birla Sun Life Dynamic Bond Fund6.6%8.08%7.94%
UTI Dynamic Bond Fund8.21%7.87%8.65%
Union Dynamic Bond Fund6.49%5.54%5.36%
Baroda BNP Paribas Dynamic Bond Fund8.6%6.78%0%
Franklin India Dynamic Accrual Fund10.04%7.38%6.73%
Mirae Asset Dynamic Bond Fund7.59%7.83%6.97%
PGIM India Dynamic Bond Fund8.3%7.73%7.3%
DSP Strategic Bond Fund4.13%6.86%6.77%
Data as of 14-Dec-2025

Rolling SWP returns with 10% step-up
Fund Any 1Y SWPAny 3Y 目↑ SWPAny 5Y 目↑ SWP
Axis Dynamic Bond Fund8.55%7.72%4.95%
HDFC Dynamic Debt Fund7.15%8.19%6.67%
Quantum Dynamic Bond Fund8.44%8.26%5.44%
Nippon India Dynamic Bond Fund9.62%8.25%4.86%
ICICI Prudential All Seasons Bond Fund9.69%8.52%6.34%
SBI Dynamic Bond Fund8.33%8.51%5.32%
Kotak Dynamic Bond Fund7.4%8.27%5.38%
HSBC Dynamic Bond Fund8.44%7.76%0%
JM Dynamic Bond Fund8.37%7.49%5.15%
Mahindra Manulife Dynamic Bond Fund5.97%8.1%4.7%
360 One Dynamic Bond Fund7.59%8.23%6.16%
Canara Robeco Dynamic Bond Fund7.58%7.55%4.5%
Tata Dynamic Bond Fund9.16%8.11%6.29%
ITI Dynamic Bond Fund5.22%7.86%0%
Groww Dynamic Bond Fund6.07%6.8%4.73%
Bandhan Dynamic Bond Fund7.39%8.43%4.58%
Aditya Birla Sun Life Dynamic Bond Fund9.23%8.26%6.83%
UTI Dynamic Bond Fund7.48%8.08%9.67%
Union Dynamic Bond Fund6.05%7.32%3.53%
Baroda BNP Paribas Dynamic Bond Fund8.61%8.31%0%
Franklin India Dynamic Accrual Fund9.97%3.6%6.48%
Mirae Asset Dynamic Bond Fund8.05%7.32%4.44%
PGIM India Dynamic Bond Fund7.86%8.45%5.32%
DSP Strategic Bond Fund6.8%9.24%5.0%
Data as of 14-Dec-2025

Note:N.A. in returns indicate that the fund does not have sufficient history.

Tables have been updated on 14-Dec-2025

How are Debt: Dynamic Bond funds taxed on selling?

Debt Funds
Tax for FY2025-26		 STCG Rate LTCG Eligibility LTCG Rate
Bought Before
1 Apr 2023		 Slab After 2Y 12.5%
Bought After
31 Mar 2023		 Slab Always STCG Slab

Note:

  • Dividends from mutual funds (called IDCW or Income Distribution cum Capital Withdrawal funds), are added to the income of the investor and taxed at their highest applicable (slab) rate.
  • Cess and surcharge (if applicable) is to be applied to taxes from mutual funds from selling and dividends.
  • Switches, SWP and selling any lump sum amount are taxable as per the table above.

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Disclaimer: Mutual fund investments are subject to market risks, read all scheme related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of distributable surplus. Investors are requested to review the prospectus carefully and obtain expert professional advice with regard to specific legal, tax and financial implications of the investment/participation in the scheme.

Note: NAVs and returns updated on 14-Dec-2025.

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