What is a dynamically managed Fund?

[sonikag22]

I want to understand what is a dynamically managed Fund and whether i should invest in it or not.

 

[ICICIPru MF]

Considering the market trends, any prudent fund manager could change the asset allocation i.e. he can invest higher or lower percentage of the fund in equity or debt instrument. It can be done on a short term basis on defensive considerations i.e. to protect the NAV. Hence the fund managers are allowed certain flexibility in altering the asset allocation considering the interest of the investors.
In a dynamically managed debt fund, the fund manager will have the flexibility to invest across maturities with different levels of volatilities wherever he sees an opportunity. In an equity fund, the fund manager can invest more in equities when the valuations are attractive or when markets are falling and in rising or stretched market conditions, the fund manager will be more in short term debt instruments which are very liquid and can be converted to cash. He will reduce his concentration to equities then. This way he dynamically manages the portfolio
Make an informed investment decision. Consult your Financial Advisor or visit www.icicipruamc.com for details.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully