Business Standard

Dynamic bond funds: Trust manager who has navigated rate cycles properly

Fund managers of dynamic bond funds, too, hold divergent views currently

Investments
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Sanjay Kumar Singh New Delhi
In mid-May, when the yield on the 10-year government security (G-Sec) had fallen below 7 per cent, Sneha Singh (name changed on request), 45, who works for an information technology company in Noida, had bet on longer-duration bond funds, believing rate cuts were imminent. But with yields climbing to around 7.38 per cent, she is despondent. A chartered accountant friend has suggested investing in a dynamic bond fund.   

Fund managers of dynamic bond funds, too, hold divergent views currently. While some have reduced the average maturity of their portfolios to 2.16 years (expecting a higher-for-longer rate regime), others have

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