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Five Best Floating Rate Debt Funds to Invest in

Highlights

  • If you want to invest in floating rate debt funds, choose from the best ones
  • These include Aditya Birla Floating Rate Fund, HDFC Floating Rate Fund, etc.

Floating rate funds or floater funds are a type of debt fund that invests in floating rate debt securities. To know more about floating rate funds, their benefits and should you invest in them, you can read another post of ours-Floating Rate Debt Funds – Definition, Benefits and Should You Invest in them. Let us now look at the five best performing floating rate funds.

Best Performing Floating Rate Debt Funds

Aditya Birla Sun Life Floating Rate Fund

This fund is offered by Aditya Birla Sun Life Mutual Fund. These are the key points about this fund:

  • This fund was launched on 23rd March 2009 and has delivered 8.71% annualized returns since launch.
  • The fund manages an AUM of INR 6,408 crores.
  • The benchmark is CRISIL Liquid Debt Index.
  • The portfolio has 119 securities with an average maturity of 1.45 years and a yield to maturity of 5.15%
  • The credit quality of the portfolio is good with more than 95% in AAA and sovereign-rated papers.

HDFC Floating Rate Fund

This fund is offered by HDFC Mutual Fund. These are the key points about this fund:

  • This fund was launched on 23rd Oct 2007 and has delivered 8.28% annualized returns since launch.
  • The fund manages an AUM of INR 8,959 crores.
  • The benchmark is CRISIL Liquid Debt Index.
  • The portfolio has 82 securities with an average maturity of 1.14 years and a yield to maturity of 6.14%
  • The credit quality of the portfolio is good with more than 80% in AAA and sovereign-rated papers.
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ICICI Prudential Floating Interest Fund

This fund is offered by ICICI Prudential Mutual Fund. These are the key points about this fund:

  • This fund was launched on 17th Nov 2005 and has delivered 8.03% annualized returns since launch.
  • The fund manages an AUM of INR 5,707 crores.
  • The benchmark is CRISIL Low Duration Debt Index.
  • The portfolio has 85 securities with an average maturity of 1.50 years and a yield to maturity of 7.66%
  • The credit quality of the portfolio is good with more than 90% in AAA and sovereign-rated papers.

Nippon India Floating Rate Fund

This fund is offered by Nippon mutual fund; these are the key points about this fund:

  • This fund was launched on 27th August 2004 and has delivered 7.88% annualized returns since launch.
  • The fund manages an AUM of INR 9,732 crores.
  • The benchmark is the CRISIL Short Term Bond Index.
  • The portfolio has 85 securities with an average maturity of 2.88 years and a yield to maturity of 6.29%
  • The credit quality of the portfolio is good with more than 90% in AAA and sovereign-rated papers.

Kotak Floating Rate Fund

This fund is offered by Kotak Mutual Fund. These are the key points about this fund:

  • This fund was launched on 14th May 2019 and has delivered 9.15% annualized returns since launch.
  • The fund manages an AUM of INR 86 crores.
  • The benchmark is the Nifty Ultra Short Debt Index.
  • The portfolio has 15 securities with an average maturity of 1.18 years and a yield to maturity of 6.72%
  • The credit quality of the portfolio is good with more than 80% in AAA and sovereign-rated papers.
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Let us now look at the returns delivered by these funds.

Returns of Floating Rate Funds

The table below shows the returns of these floating rate funds in % terms for regular plans.

Fund NameLast 6 MonthsLast 1 YearLast 3 Years
Aditya Birla Floating5.139.518.19
HDFC Floating4.839.197.94
ICICI Floating4.659.137.52
Nippon Floating7.0211.448.13
Kotak Floating6.369.38N.A.*

*Kotak floating has not completed three years. These returns are dated 6th July 2020.

If you are looking for investment in debt funds with no risk then it is advisable to invest in overnight or liquid funds. To know the best overnight and liquid funds, you can read other posts of ours.

Best overnight funds- https://www.wishfin.com/mutual-fund/five-best-overnight-debt-funds-to-invest-in/

Best liquid funds- https://www.wishfin.com/mutual-fund/5-best-performing-liquid-funds-to-invest-in/

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