A floating rate fund is a fund that invests in fixed income instruments paying a variable or floating interest rate. It invests in bonds and debt instruments whose interest payments fluctuate with an underlying interest rate level, as opposed to paying fixed-rate income. This type of scheme is supposed to invest a minimum 65% of its assets in floating-rate securities. Such securities are free from interest rate risk.

Invest in Best Debt Floating Rate Funds

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A floating rate fund is a fund that invests in fixed income instruments paying a variable or floating interest rate. It invests in bonds and debt instruments whose interest payments fluctuate with an underlying interest rate level, as opposed to paying fixed-rate income. This type of scheme is supposed to invest a minimum 65% of its assets in floating-rate securities. Such securities are free from interest rate risk.

Reliance Floating Rate Fund


Debt-Floating-Rate

Returns 3Y

7.52%

Returns 5Y

8.32%

Min Order

₹5,000

Min SIP

₹100

Exit load : 0.50% if units redeemed or switched out on or before completion of 1 Month

Invest
SIP

HDFC Floating Rate Debt Fund.


Debt-Floating-Rate

Returns 3Y

7.79%

Returns 5Y

8.28%

Min Order

₹5,000

Min SIP

Exit load : Entry Load Nil Exit Load Nil

Invest

ICICI Prudential Floating Interest Fund


Debt-Floating-Rate

Returns 3Y

8.21%

Returns 5Y

8.69%

Min Order

₹500

Min SIP

₹100

Exit load : Nil

Invest
SIP

Franklin India Floating Rate Fund (erstwhile known as Franklin India Cash Management Account)


Debt-Floating-Rate

Returns 3Y

6.95%

Returns 5Y

7.15%

Min Order

₹1,000

Min SIP

₹1,000

Exit load : -

Invest
SIP

Aditya Birla Sun Life Floating Rate Fund


Debt-Floating-Rate

Returns 3Y

8.18%

Returns 5Y

8.64%

Min Order

₹1,000

Min SIP

₹1,000

Exit load : Nil

Invest
SIP

Who should invest in Floating Rate Debt Funds

Floater funds are best-suited as a means to diversify and earn good returns.If interest rates rise, returns from floating rate funds would rise immediately (as the coupon on floating rate bond readjusted frequently).


How long should you stay invested in Floating Rate Debt Funds ?

Floating rate loans come with a typical maturity period of about 7 years, wherein the underlying interest rate will be adjusted on the basis of any changes in the reference rate, every 30 to 90 days


How to invest in ?

You can click on the Floating Rate Debt Funds link in Jama.co.in and choose the desired fund. You can also take your free risk profile assessment which then advises you on the percentage asset allocation you should have inFloating Rate Debt Funds. Click on invest button from there and continue to make the investment.

Invest only in direct plans of small cap funds and take the advice of a SEBI Registered Investment advisor to invest in the right funds.




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