1. Dynamic bond funds are debt funds in which there is no restriction on the tenure or maturity of the debt securities invested.

2. Returns in Debt Funds are Affected by Rate of interest movements and long term fund There is profit when rates fall as compared to other debt funds.

3. Fund managers dynamically change the allocation based on their views on interest rates on long-term bonds and short-term bonds to take advantage of interest rate fluctuations.

4. They can hold both Government and Corporate securities of varying duration.

5. These funds are medium to high risk products, good for investors who do not track interest rate movements and are investing for an investment horizon of more than 3 years.

(Content on this page is courtesy of Center for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Aarti Bhargava and Labh Mehta.)