Tipping point: Is this a good time to enter the dynamic bond funds?

Dynamic bond funds have enjoyed a good run in the recent past. This category has given an average return of 9.69 per cent over the past year. Many fund managers in this category had increased the average duration of their funds. As interest rates fell, their funds benefited from this positioning. 

Investors can have some allocation to these funds in all market conditions. The key risk is that the fund manager may not always take the right calls. When selecting, go with a consistent fund.