Load more Who Should Invest in Floater Mutual Funds?
Floater funds are debt funds that invest in floating-rate corporate bonds and other fixed-income instruments, including money market instruments and government securities. Floater fund returns depend on interest rate fluctuations in the economy. View More
Features of Floater Mutual Funds
The best floater funds allow investors to profit from interest rate fluctuations in the economy. The following are the top features of floater funds: View More
Factors to consider while investing in Floater Funds
Here is a list of factors you can consider before investing in floater funds. View More
Taxability of Floater Funds
The best floater funds are extremely tax efficient. You have to pay the same type of taxes as you will with any other debt fund. Here is a lay down on the tax implications of floater fund investments: View More
Risks Involved With Floater Funds
Investors generally prefer floater funds with a low-risk appetite. These funds are typically more stable than aggressive debt funds and equity funds. Here are the most common risks of investing in floater funds: View More
Advantages of Floater Mutual Funds
Minimal Risk – Floater mutual funds are much less risky than equity funds. Since these funds invest primarily in bonds, government securities, and fixed income instruments, the risks of capital loss are minimal. View More
Popular Floater Mutual Funds
- Fund Name
- Min SIP Investment Amt
- AUM (Cr.)
- 3Y Return
UTI-Floater Fund – Direct Growth is an Floater scheme that was launched on 30-10-18 and is currently under the management of our experienced fund manager Sudhir Agrawal. With an impressive AUM of ₹1,412 Crores, this scheme's latest NAV is ₹1370.5749 as of 15-09-23.
UTI-Floater Fund – Direct Growth scheme has delivered a return performance of 6.9% in the last 1 year, 5.1% in the last 3 years, and an 6.7% since its launch. With a minimum SIP investment of just ₹500, this scheme offers a great investment opportunity for those looking to invest in Floater funds.
- Min SIP Investment Amt
- ₹500
- AUM (Cr.)
- ₹1,412
- 3Y Return
- 6.9%
HDFC Floating Rate Debt Fund – Direct Growth is an Floater scheme that was launched on 01-01-13 and is currently under the management of our experienced fund manager Shobhit Mehrotra. With an impressive AUM of ₹18,288 Crores, this scheme's latest NAV is ₹44.1149 as of 15-09-23.
HDFC Floating Rate Debt Fund – Direct Growth scheme has delivered a return performance of 7.7% in the last 1 year, 6% in the last 3 years, and an 7.9% since its launch. With a minimum SIP investment of just ₹100, this scheme offers a great investment opportunity for those looking to invest in Floater funds.
- Min SIP Investment Amt
- ₹100
- AUM (Cr.)
- ₹18,288
- 3Y Return
- 7.7%
Aditya Birla SL Floating Rate Fund-Direct Growth is an Floater scheme that was launched on 01-01-13 and is currently under the management of our experienced fund manager Kaustubh Gupta. With an impressive AUM of ₹13,031 Crores, this scheme's latest NAV is ₹310.852 as of 15-09-23.
Aditya Birla SL Floating Rate Fund-Direct Growth scheme has delivered a return performance of 7.5% in the last 1 year, 5.6% in the last 3 years, and an 8% since its launch. With a minimum SIP investment of just ₹1,000, this scheme offers a great investment opportunity for those looking to invest in Floater funds.
- Min SIP Investment Amt
- ₹1,000
- AUM (Cr.)
- ₹13,031
- 3Y Return
- 7.5%
Franklin India Floating Rate Fund – Direct Growth is an Floater scheme that was launched on 31-12-12 and is currently under the management of our experienced fund manager Pallab Roy. With an impressive AUM of ₹323 Crores, this scheme's latest NAV is ₹38.184 as of 15-09-23.
Franklin India Floating Rate Fund – Direct Growth scheme has delivered a return performance of 8.2% in the last 1 year, 5.7% in the last 3 years, and an 6.9% since its launch. With a minimum SIP investment of just ₹1,000, this scheme offers a great investment opportunity for those looking to invest in Floater funds.
- Min SIP Investment Amt
- ₹1,000
- AUM (Cr.)
- ₹323
- 3Y Return
- 8.2%
Nippon India Floating Rate Fund – Direct Growth is an Floater scheme that was launched on 02-01-13 and is currently under the management of our experienced fund manager Anju Chhajer. With an impressive AUM of ₹8,160 Crores, this scheme's latest NAV is ₹41.0721 as of 15-09-23.
Nippon India Floating Rate Fund – Direct Growth scheme has delivered a return performance of 7.3% in the last 1 year, 5.7% in the last 3 years, and an 7.9% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in Floater funds.
- Min SIP Investment Amt
- ₹5,000
- AUM (Cr.)
- ₹8,160
- 3Y Return
- 7.3%
ICICI Pru Floating Interest Fund-Direct Growth is an Floater scheme that was launched on 02-01-13 and is currently under the management of our experienced fund manager Rahul Goswami. With an impressive AUM of ₹13,742 Crores, this scheme's latest NAV is ₹401.1202 as of 15-09-23.
ICICI Pru Floating Interest Fund-Direct Growth scheme has delivered a return performance of 8.5% in the last 1 year, 6.4% in the last 3 years, and an 8.3% since its launch. With a minimum SIP investment of just ₹500, this scheme offers a great investment opportunity for those looking to invest in Floater funds.
- Min SIP Investment Amt
- ₹500
- AUM (Cr.)
- ₹13,742
- 3Y Return
- 8.5%
Kotak Floating Rate Fund – Direct Growth is an Floater scheme that was launched on 14-05-19 and is currently under the management of our experienced fund manager Deepak Agrawal. With an impressive AUM of ₹5,341 Crores, this scheme's latest NAV is ₹1333.5717 as of 15-09-23.
Kotak Floating Rate Fund – Direct Growth scheme has delivered a return performance of 7.2% in the last 1 year, 5.8% in the last 3 years, and an 6.9% since its launch. With a minimum SIP investment of just ₹100, this scheme offers a great investment opportunity for those looking to invest in Floater funds.
- Min SIP Investment Amt
- ₹100
- AUM (Cr.)
- ₹5,341
- 3Y Return
- 7.2%
AXIS Floater Fund – Direct Growth is an Floater scheme that was launched on 29-07-21 and is currently under the management of our experienced fund manager Aditya Pagaria. With an impressive AUM of ₹309 Crores, this scheme's latest NAV is ₹1123.0138 as of 15-09-23.
AXIS Floater Fund – Direct Growth scheme has delivered a return performance of 7.1% in the last 1 year, -% in the last 3 years, and an 5.7% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in Floater funds.
- Min SIP Investment Amt
- ₹5,000
- AUM (Cr.)
- ₹309
- 3Y Return
- 7.1%
DSP Floater Fund – Direct Growth is an Floater scheme that was launched on 19-03-21 and is currently under the management of our experienced fund manager Kedar Karnik. With an impressive AUM of ₹868 Crores, this scheme's latest NAV is ₹11.4502 as of 15-09-23.
DSP Floater Fund – Direct Growth scheme has delivered a return performance of 8.1% in the last 1 year, -% in the last 3 years, and an 5.6% since its launch. With a minimum SIP investment of just ₹100, this scheme offers a great investment opportunity for those looking to invest in Floater funds.
- Min SIP Investment Amt
- ₹100
- AUM (Cr.)
- ₹868
- 3Y Return
- 8.1%
Frequently Asked Questions
Who can invest in floater mutual funds?
Since floater or floating-rate funds invest 65% of their AUM (Asset Under Management) in floating-rate bonds, they are relatively more stable than pure equity funds. These funds deliver inflated returns when the RBI (Reserve Bank of India) increases the REPO (Repurchasing Option) rate. So, any conservative investor looking for steady capital growth can invest in floater funds.
How are floater mutual funds taxed?
Floater funds are taxed like any debt fund. For instance, you must pay an LTCG (Long Term Capital Gains) tax of 20% with indexation if you sell your units after three years from the investment date. However, if you sell your units before three years, it will be treated as STCG (Short Term Capital Gains), and the income will get added to your taxable income.
Is there any exit load on floater mutual funds?
Exit load refers to the amount an investor pays for withdrawing money before a specific period. Floater mutual funds do not have any entry or exit load, so that you can enter or exit as often and whenever you want.
What is the typical expense ratio of floater funds?
The expense ratio reduces the adequate profit of a mutual fund. Fortunately, floater funds’ expense ratios are some of the lowest among funds. Generally, direct growth floater funds’ expense ratio hovers between 0.22% and 0.60%.
What is the typical return of floater funds?
A quick look at the best floater mutual funds reveals that these funds generally deliver annualised returns between 6% and 8.50%. However, checking a floater fund’s historical returns is good before investing.
Which are the best floater mutual funds in India?
UTI Floater Fund, HDFC Floating Rate Debt Fund, Aditya Birla Sun Life Floating Rate Fund, Franklin India Floating Rate Fund, and ICICI Prudential Floating Interest Fund are some of the top floater mutual funds in India.