Floater Funds

Floater funds invest a significant portion of the assets (around 60% to 100%) in floating rate instruments and the remaining corpus in fixed income securities. When the interest rates rise in the market, the prices of bonds go down, and the rate of returns also reduce. The vice-versa is also true when interest rates go down. Floating rate fund provides the advantage of the lower degree of interest rate fluctuation sensitivity over a fund with fixed payment rate.

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  • Snapshot
  • Information
  • Performance
  • Tenure
  • 1Y
  • 3Y
  • 5Y
Fund Name Latest NAV (₹) Rating Return (%) Double Money In 1 Lac Grew To (₹)  
ICICI Prudential Floating Interest Fund (G)
High risk | Floater
271.6
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7.37 -72 1.24 L Invest
DHFL Pramerica Floating Rate Fund - Growth
risk | Floater
20.09
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-- 0 -- Invest
Reliance Floating Rate Fund (G)
Moderate risk | Floater
28.37
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6.86 -67.8 1.22 L Invest

Floating Rate Short Term Debt Funds Giving Good Returns Over a Short Span

Have you ever thought of a scheme that provides higher returns over a shorter period of time, with security of return? If not, Floating Rate Short-Term Debt Fund is the name you should definitely read about. Floating Rate Short-Term Debt Fund is a scheme best suited for investors having short-term perspective for investment and intend to earn relatively higher returns. For example, Ram is having Rs. 50,000 surplus. He intends to invest it for a period of less than 3 years. But, at the same time he does not want to invest in equity-oriented scheme owing to its volatility. Ram gives importance to debt funds but also wants higher returns from the debt funds. What is the solution of the problems Ram is having? Yes! Floating Rate Short-Term Debt Fund is the only solution. The scheme invests a greater proportion of the funds in short-term fluctuating money market instruments and rest of it in fixed short-term bonds, securities, etc.

The major benefit of Floating Rate Short Term Debt Fund is that, it provides safe investing option along with the higher rate of return over a short time-interval. Thus, Floating Rate Short-Term Debt Fund is a three in one scheme. You might be thinking how? Let us see. First, it facilitates the amalgamation of two functions in a single scheme, i.e., fixed and floating rate of return. Second, providing higher returns over a short duration. Third, security factor is not at all compromised. So, it is the best scheme for the investors who want secure and high-yielding investment over a short period of time. 

Highlighting features of Floating Rate Short-Term Debt Fund

Floating Rate Short-Term Debt Fund is a fund having three-dimensional perspective. Embedding growth, time and security in one single scheme, Floating Rate Short-Term Debt Fund is really a good option for the short-term investors. It also covers the following benefits:

  • Dual benefits: Floating Rate Short-Term Debt Fund provides dual benefit of fixed and floating income, that too in a short span. Investing in short-term money market instruments (that provide returns at floating rate), Floating Rate Short-Term Debt Fund ensures to give the investors a good return with the same security as any other debt fund. At the same time, Floating Rate Short-Term Debt Fund also invests in fixed income money market instruments, which provide an inflexible return. Thus, combining the benefits of both, Floating Rate Short-Term Debt Fund provides income and security at the same time.
  • Short tenure: This feature of Floating Rate Short-Term Debt Fund gives you the benefit of acquiring monetary gains over shorter duration. This means you can make the most out of your money through Floating Rate Short-Term Debt Fund within less time. You need not block your money in long-term equity funds. But, it also has one constraint. Floating Rate Short-Term Debt Fund is only for those clients who can settle for less returns as compared to equity-oriented schemes.
  • Security: Floating Rate Short-Term Debt Fund does not invest in capital market in order to give gains to its investors. Rather it invests in those money market instruments which provide floating rate of returns for the investment. Therefore, securing the investment and provide higher returns is the main motive of this scheme. 

The scope of Floating Rate Short-Term Debt Fund is much wider than Floating Rate Long-Term Debt Fund. But, still there is lack of awareness among investors regarding Floating Rate Short-Term Debt Fund. Many myths seem to be prevailing in the mind of clients, which they don’t disclose because of the insecurity regarding their money being misused. To wave your worries and have a better experience in investing consult our financial experts. You will get advice which will suit to your requirements. No undue advantage is taken. Your experience of investing with us will become a joyful one and not a burden.

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