Should I exit ABSL Dynamic Bond Fund?

I am a 60-year-old investor. I invested Rs 6.5 lakh in Aditya Birla Sun Life Dynamic Bond Fund two years ago, with a long term perspective. However, it doesn’t seem to be doing well. Should I stick around? Should I change to some better performing fund? If yes, which fund?

-- Anil Singh

Abhinav Attal, senior vice-president, wealth management product, Ladderup Wealth Management, responds:

The current fixed income scenario is not suitable for dynamic bond funds. If you have a long-term perspective and want to invest only in fixed income mutual fund schemes, you may look at debt accrual funds with a three- to five-year perspective. These funds will generate good returns and can beat fixed deposits. You can invest in Aditya Birla Sun Life Medium Term Plan, Reliance Regular Savings Fund – Debt Plan (now known as Reliance Credit Risk Fund), UTI Medium Term Fund, and HDFC Credit Risk Debt Fund. Also, you can invest some portion of the money in fixed maturity plans (FMPs).