Best Large Cap Mutual Funds

Best Floating Rate Mutual Funds

Corporate Bond Funds offer a strategic investment avenue for individuals seeking stable returns with relatively lower risk compared to equity investments. These mutual fund schemes focus on investing in high-quality corporate debt instruments, providing investors with an opportunity to generate consistent income while maintaining a balanced risk profile.

Key Benefits of Investing in Floating Rate Funds

  • Interest Rate Adaptability : Automatic adjustment to market rate changes
Show more

Invest in Best Floating Rate Mutual Funds in India for 2026

Explore the list of top-performing floating rate mutual funds schemes curated by our experts

HDFC Floating Rate Debt Fund Growth

  • Returns
    6.6%
  • Lock-In
    No Lock in
  • Min Investment
    ₹ 100
  • Choice Rating

Nippon India Floater Fund Growth

  • Returns
    6.4%
  • Lock-In
    No Lock in
  • Min Investment
    ₹ 5000
  • Choice Rating

Aditya Birla Sun Life Floating Rate Fund Growth

  • Returns
    6.5%
  • Lock-In
    No Lock in
  • Min Investment
    ₹ 1000
  • Choice Rating

Kotak Floating Rate Fund - Growth

  • Returns
    6.6%
  • Lock-In
    No Lock in
  • Min Investment
    ₹ 100
  • Choice Rating

ICICI Prudential Floating Interest Fund Growth

  • Returns
    6.3%
  • Lock-In
    No Lock in
  • Min Investment
    ₹ 500
  • Choice Rating

You would have got

close_grey_icon
Total Investment
₹ 1200
Expected Returns
₹ 40
Total Value
₹ 1240

Past performance doesn’t assure future results; actual outcome may vary due to market dynamics.

Your Investment Amount
  • 1
  • 2
  • 3
  • 4
  • 5
per annum

Understanding Floating Rate Funds

How Do Floating Rate Mutual Funds Work?

Floating Rate Mutual Funds pool investor money to invest in a diversified portfolio of debt instruments with variable interest rates. Fund managers carefully analyse market trends, interest rate projections, and economic factors to select securities that can adapt to changing financial landscapes.

These funds primarily invest in:

  • Corporate bonds with variable rates
  • Government securities
  • Money market instruments
  • Bank certificates of deposit

The adaptive nature of these funds provides a balanced approach to debt investments, offering potential protection against interest rate fluctuations while maintaining portfolio flexibility.

Floating Rate Funds FAQs

Floating Rate Funds are mutual funds that invest in debt instruments with variable interest rates, adapting to market changes.

Unlike fixed-rate funds, floating rate funds have securities that adjust interest rates periodically based on market benchmarks.

Floating Rate Funds offer moderate risk, providing better protection against interest rate fluctuations compared to fixed-rate investments.

A recommended investment horizon of 3-5 years helps optimize potential returns and ride out short-term market variations.

Returns depend on the performance of underlying variable-rate securities and interest rate movements.

Yes, most funds allow systematic investment plans (SIPs) starting from ₹ 500-@rs 1000 per month.

Typically, Floating Rate Funds are referenced against repo rates, LIBOR, or government security rates.

Rates can adjust quarterly or semi-annually, depending on the specific fund and market conditions.

Typically, 65-80% of the portfolio is invested in floating-rate securities.

Explore More Mutual Funds Options

Diversify your portfolio with our collection of high-performing mutual funds across various categories. Compare, choose, and invest in India's top-rated funds to meet your financial goals.