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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|Fund Name||Latest NAV (₹)||Return (%)||Double Money In||1 Lac Grew To (₹)|
ICICI Prudential Floating Interest Fund (G)
High risk | Floater
|279.25||7.29||9Y 3M||1.23 L||Invest|
DHFL Pramerica Floating Rate Fund - Growth
risk | Floater
|20.59||7.07||10Y 2M||1.23 L||Invest|
Reliance Floating Rate Fund (G)
Moderate risk | Floater
|29.32||6.94||9Y 3M||1.22 L||Invest|
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.
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:
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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