Debt mutual fund managers are recommending dynamic bond funds these days. They believe that dynamic bond funds are back in form after two successive rate cuts by the Reserve Bank of India. After being out of favour for two years, the dynamic bond funds are offering 5.45 per cent returns in one year. The dynamic bond fund category was offering an average one-year return of 1.28 per cent in August 2018. Should investors place their bets on dynamic bond funds again?
