What Are Dynamic Bond Funds? Is It A Good Choice To Invest In Dynamic Bond Funds?

A rise in interest rates is an unfavorable condition for bond investments because bonds start losing with an increase in interest rates. Bonds build an inverse relationship with interest rates. This is the reason that investors would prefer bonds with higher coupons to stay in profit even during a fall in case of rising interest rates. Among various mutual funds, one is dynamic mutual funds. These bonds in India do not possess any limitation towards durations.

Leave a Reply