The objective of the scheme is to produce maximum returns with high liquidity by aggressive portfolio management by investing in high-quality debt and money market instruments.
Aditya Birla sun life dynamic bond fund:
- 97.67% investment in Debt
- 3.99% in Government securities
- 79.55% in funds invested in very low-risk securities
Aditya Birla sun life dynamic bond fund Investment Details
Minimum Investment (₹): 1,000
Minimum Addl Investment (₹): 1,000
Minimum SIP Investment (₹): 1,000
Minimum No of Cheques: 6
Minimum Withdrawal (₹): 1
Minimum Balance (₹): 500
Exit load will charge: For units above 15% of the investment, 0.5% will be charged for redemption within 90 days
Why Aditya Birla sun life dynamic bond fund is the best scheme
This fund gives outstanding returns in the falling interest rate market. Holding this fund for more than three years provides tax benefits (through indexation).
The scheme is ideal for medium to long term goals for the long holidays, down-payment for home, wedding and car purchases.
It will take time to double (2x), quadruple (4x) and quintuple (5x) your money
Suitability in Aditya Birla Sun Life Dynamic Bond Fund
- Investors want to invest for the long term but prefer lower-risk assets than equity funds.
- Aditya Birla Sun Life Dynamic Bond Fund have the right to invest any time in bonds. The fund management team decides whether to invest in bonds that mature in a few months or those that mature several years later, where it plans to achieve maximum returns. They are, therefore, the most flexible type of debt funds available.
- Like most other kinds of debt funds, we think retail investors can avoid this too. In our opinion, debt funds only make sense for retail investors if they invest for three years or less. Liquid debt funds and short-term debt funds are more suited to that type of investment horizon.
Aditya Birla Sun Life Dynamic Bond Fund Tax Earnings
- If units of mutual funds are sold after three years from the date of investment, then profits are taxed at the rate of 20 percent after the gain of the inflation index.
- If units of mutual funds are sold within three years of the date of investment, then the entire amount of profit will be applied to the investors’ income and will be taxed as per the applicable slab rate.
- Returns are paid at a marginal tax rate if you redeem before 36 months. The gains of debt mutual funds held for 36 months or longer are classified as long-term capital gains and taxed after index gains at a rate of 20 percent. Indexation is a way of modifying tax payments using a price index that accounts for inflation.
- If the units remain in your possession, there is no tax.
Dividends paid by the mutual fund scheme are taxed at the rate of 25% (expertly 29.12%, including surcharge and cess). Despite this, the investor does not pay this tax directly, and it is deducted from the dividend income before passing it on to the investor.