Indiabulls Mutual Fund has announced a new fund offer (NFO) for the Indiabulls Dynamic Bond Fund, an open-ended dynamic bond scheme across securities of various durations. Dynamic bond funds’ assets are allocated in both, short-term and long-term bonds. The NFO launched on 16th November and will close on 30th November, 2018. The scheme will re-open within five business days of allotment of units.
The Indiabulls Dynamic Bond Fund is considered moderately risky and is suitable for investors looking to earn an interest income over the medium and long-term. The scheme will invest upto 100 percent of its total assets in the debt and money market instruments. The Dynamic Bond Fund scheme may also engage in short selling and securities lending or borrowing, while it may not engage in credit default swaps or invest in equity-linked debentures.
Schemes similar to Indiabulls Dynamic Bond Fund are SBI Dynamic Bond Fund, Kotak Dynamic Bond Fund, UTI Dynamic Bond Fund, ICICI Prudential All Seasons Bond Fund, among others. ICICI Prudential All Seasons Bond Fund’s five year returns are at 11.04 percent, while SBI Dynamic Bond Fund’s five year returns are 9.04 percent. (As on 15th November, 2018)
CRISIL Composite Bond Fund Index will be utilized as the benchmark for Indiabulls Dynamic Bond Fund.
| Index Name | 1-yr Total Returns (%) | 3-yr Total Returns (%) | 5-yr Total Returns (%) |
| CRISIL Composite Bond Fund Index | 1.74 | 6.79 | 8.59 |
*Returns data as of October, 2018
The fund is managed by Malay Shah, who is the head of Fixed Income at Indiabulls. Some other schemes managed by Shah are Indiabulls Value Discovery Fund, Indiabulls Ultra Short Term Fund, Indiabulls Liquid Fund. Among these the Indiabulls Ultra Short Term Fund and Indiabulls Liquid Fund have five-year returns at 8.74 percent and 8.05 percent, respectively.
Key information about the Indiabulls Dynamic Bond Fund:
| NFO period | November 16 – November 30, 2018 |
| Minimum application amount | Rs. 500 |
| Exit load | 3 percent exit load, if units redeemed or switched out within one year of allotment date
2 percent exit load, if units redeemed or switched out within two years of allotment date 1 percent exit load, if units redeemed or switched out within three years of allotment date No exit load after completion of three years |
| Benchmark | CRISIL Composite Bond Fund Index |
| Fund manager | Malay Shah |