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Floater Debt Mutual Funds

  • Average Return 6.23%
  • No of Funds 12

What is Floater Mutual Fund

Floater funds are debt funds that invest at least 65% of their money in floating-rate bonds. The interest these bonds pay change as the interest rates in the economy change. A periodic resetting of rates to keep them in sync with market rates.

Advantages of Floater Funds

  • Suitable investment option when the interest rates are poised to go up
  • Risk of borrowers defaulting depends on the individual fund's lending strategy
  • Most funds in the category lend for short duration, and that keeps risk down
  • Go for liquid or ultra short duration funds for more predictable returns

Top schemes of Floater Mutual Funds sorted by last 5 year returns

12 funds
Show Returns for via
Stable Portfolio

Min SIP

₹ 5,000

5 Yrs Return

+ 10.29 % p.a. + 10.44 % p.a. + 5.47 % + 8.43 % p.a. + 5.21 % p.a. + 13.72 % + 1.71 % p.a. + 8.78 %

ICICI Prudential

Fund Size

₹11,680 Crs

Return (p.a)

N.A. + 6.79% N.A. + 8.51% N.A. + 5.79% + 13.9% + 4.88% + 5.09% + 22.23% + 7.69%

VRO rating

N.A.

ETM Rank

#5 of 7

Nippon India

Fund Size

₹9,944 Crs

Return (p.a)

N.A. + 6.62% N.A. + 4.57% N.A. + 5.3% + 6.19% + 4.03% + 3.62% + 5.95% + 7.44%

VRO rating

N.A.

ETM Rank

#5 of 7

HDFC

Fund Size

₹16,072 Crs

Return (p.a)

N.A. + 6.43% N.A. + 6.78% N.A. + 5.47% + 9.87% + 4.69% + 4.81% + 13.22% + 7.28%

VRO rating

N.A.

ETM Rank

#1 of 7

Aditya Birla SL

Fund Size

₹12,404 Crs

Return (p.a)

N.A. + 6.2% N.A. + 5.58% N.A. + 5.12% + 6.74% + 4.46% + 4.65% + 7.44% + 7.3%

VRO rating

N.A.

ETM Rank

#1 of 7

Franklin Templeton

Fund Size

₹293 Crs

Return (p.a)

N.A. + 5.51% N.A. + 5.61% N.A. + 4.63% + 7.79% + 4.19% + 4.28% + 8.92% + 6.26%

VRO rating

N.A.

ETM Rank

#4 of 7

Axis

Fund Size

₹722 Crs

Return (p.a)

N.A. N.A. N.A. + 6.83% N.A. N.A. + 8.69% N.A. + 5.26% + 7.92% + 5.11%

VRO rating

N.A.

ETM Rank

Unranked

DSP

Fund Size

₹1,385 Crs

Return (p.a)

N.A. N.A. N.A. + 3.38% N.A. N.A. + 5.07% N.A. + 2.38% + 6.25% + 2.88%

VRO rating

N.A.

ETM Rank

Unranked

IDFC

Fund Size

₹609 Crs

Return (p.a)

N.A. N.A. N.A. + 4.92% N.A. N.A. + 6.57% N.A. + 4.01% + 5.48% + 3.92%

VRO rating

N.A.

ETM Rank

Unranked

Kotak

Fund Size

₹5,786 Crs

Return (p.a)

N.A. N.A. N.A. + 5.78% N.A. + 5.59% + 9.13% + 4.41% + 3.9% + 10.35% + 5.82%

VRO rating

N.A.

ETM Rank

#7 of 7

SBI

Fund Size

₹2,488 Crs

Return (p.a)

N.A. N.A. N.A. + 5.34% N.A. N.A. + 6.32% N.A. + 4.21% + 5.11% + 4.15%

VRO rating

N.A.

ETM Rank

Unranked

Tata

Fund Size

₹365 Crs

Return (p.a)

N.A. N.A. N.A. + 6.23% N.A. N.A. + 7.44% N.A. + 4.98% + 7.81% + 4.82%

VRO rating

N.A.

ETM Rank

Unranked

UTI

Fund Size

₹2,018 Crs

Return (p.a)

N.A. N.A. N.A. + 5.08% N.A. + 4.66% + 6.26% + 3.93% + 3.87% + 7.16% + 5.36%

VRO rating

N.A.

ETM Rank

#1 of 7

Show all funds

Floater Funds Returns Calculator

See what your investment would have yielded in

Select fund
ICICI Prudential Floating Interest Fund
via in I want to invest of for a period of for

How to invest in Floater Funds?

It is quite easy to invest in Floater mutual funds on ET Money. Here are the steps that you have to follow.

  • Register online on ET Money app or website
  • Head to Mutual Funds sections and choose the Floater fund you want to invest in.
  • Click on invest and choose the amount and mode of investment (SIP or Lumpsum)
  • Provide your KYC details (Pan number, Bank details) and complete your investment.

Frequently asked Questions

Which are the best Floater Mutual Funds to invest in 2022?

These are top 5 Floater funds you can invest in 2022

Fund Name Fund Category ETM Rank Consistency 5 Year Return (Annualized)
ICICI Prudential Floating Interest Fund Debt # 5 of 7
7.17 % p.a.
Nippon India Floating Rate Fund Debt # 5 of 7
6.88 % p.a.
HDFC Floating Rate Debt Fund Debt # 1 of 7
6.89 % p.a.
Aditya Birla Sun Life Floating Rate Fund Debt # 1 of 7
6.78 % p.a.
Franklin India Floating Rate Fund Debt # 4 of 7
6.15 % p.a.

Floater Funds mostly lend for a short duration. For this reason, these funds are ideal for an investment horizon of at least 2 years.

Floating Rate Bonds by regulation have to invest at least 65% of their money in floating-rate bonds. The interest rate floating rate bonds give is not constant. It keeps changing as per changes in the interest rate in the economy. There is no regulation on for how long they need to lend, but most funds in the category keep the lending duration low.

Floater Funds have on an average delivered 3.54% p.a. returns in the last 1 year. Their 3 and 5 year annualized returns are 6.23% and 6.77%. p.a.

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