The fund is suitable for investors who are looking to benefit from interest rates movements and can bear volatility in the short term
IDFC Dynamic Bond Fund is in existence since 2008 and the Assets Under Management (AUM) size is Rs 2850 crore.
The fund is managed by Suyash Choudhary, who an overall work experience of over 16 years in portfolio management. He joined IDFC Mutual Fund in October 2010.
Investment approach
Choudhary is a seasoned manager in managing duration strategies. His strength lies in his in-depth understanding of the macroeconomic environment, ability to anticipate interest rate movements, and identify attractive investment opportunities across market segments. He is at his best investing in an unconstrained manner.
The interest rate direction is determined by conducting a detailed analysis of various influencing factors such as growth versus inflation, fiscal and current account deficit, private sector and government borrowings, fiscal and monetary policy view, money supply, currency market movement and global interest rate scenario among others. This is complemented by an overlay of technical factors where the team examines the demand supply dynamics to get clarity on valuations and direction of yield curve. Subsequently, interest rate direction call and anticipation of yield curve movement forms the basis of portfolio positioning in duration terms.
For corporate bonds, the team lays lot of emphasis on the promoter group, its track record and corporate governance standards.Choudhary constructs the portfolio with an emphasis on safety and liquidity. He moves aggressively on the yield curve with the fund's average maturity moving in the range of 2-18 years. Hence, taking credit bets is not a part of the strategy, which has enabled him to tide over credit risk more comfortably than most of his peers. The team studies bond spreads and liquidity of various segments to determine their optimal allocation in the portfolio.
The fund is suitable for investors who are looking to benefit from interest rates movements and can bear volatility in the short term.
Portfolio composition:
The fund consists entirely of 'AAA' rated securities, which indicates the highest level of safety. The fund holds government securities and corporate bonds of public sector companies like Power Finance Corporation and Small Industries Development Bank of India.
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For corporate bonds, the team lays lot of emphasis on the promoter group, its track record and corporate governance standards.Choudhary constructs the portfolio with an emphasis on safety and liquidity. He moves aggressively on the yield curve with the fund's average maturity moving in the range of 2-18 years. Hence, taking credit bets is not a part of the strategy, which has enabled him to tide over credit risk more comfortably than most of his peers. The team studies bond spreads and liquidity of various segments to determine their optimal allocation in the portfolio.
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