Floating Rate funds in India
24 plans (12 Regular, 12 Direct), rated on their track record against the median fund in their category and their peers. Data as of 8 Nov 2026.
Bonds whose interest resets with market rates, which softens the impact of rate rises. SEBI requires floating rate funds to invest mostly in bonds whose interest rate resets with market rates.
The difference, on ₹10 lakh invested three years ago, between the strongest floating rate fund (8.1% a year) and the weakest (6.5% a year). Same category, same SEBI rules, same market. 10 of 12 funds beat the median fund in their category over the same period.
Regular plans, to the latest NAV. Past returns, not a forecast.
Regular plans (12)
| Fund | Rating | 3Y return | 3Y vs index | Expense ratio | AUM |
|---|---|---|---|---|---|
| HDFC Floating Interest Rates FundHDFC Mutual Fund · 19.0 yrs | A+ | 7.2% | +0.2% | 0.50% | ₹15,495 cr |
| Aditya Birla Sun Life Floating Interest Rates FundAditya Birla Sun Life Mutual Fund · 13.4 yrs | A | 7.1% | +0.1% | 0.43% | ₹12,924 cr |
| SBI Floating Interest Rates FundSBI Mutual Fund · 6.0 yrs | A | 7.2% | +0.2% | 0.43% | ₹669 cr |
| Kotak Floating Interest Rates FundKotak Mahindra Mutual Fund · 7.5 yrs | A | 7.1% | +0.1% | 0.62% | ₹2,984 cr |
| Franklin India Floating Interest Rates FundFranklin Templeton Mutual Fund · 20.6 yrs | B | 7.2% | +0.2% | 0.95% | ₹261 cr |
| Axis Floating Interest Rates FundAxis Mutual Fund · 5.3 yrs | B | 8.1% | +1.1% | 0.52% | ₹145 cr |
| DSP Floating Interest Rates FundDSP Mutual Fund · 5.6 yrs | B | 7.3% | +0.2% | 0.56% | ₹311 cr |
| ICICI Prudential Floating Interest Rates FundICICI Prudential Mutual Fund · 20.6 yrs | B | 7.1% | +0.1% | 0.82% | ₹8,029 cr |
| Nippon India Floating Interest Rates FundNippon India Mutual Fund · 20.6 yrs | C | 7.0% | +0.0% | 0.65% | ₹7,437 cr |
| Tata Floating Interest Rates FundTata Mutual Fund · 5.3 yrs | C | 6.8% | -0.2% | 0.70% | ₹118 cr |
| UTI Floating Interest Rates FundUTI Mutual Fund · 8.0 yrs | C | 6.5% | -0.5% | 0.87% | ₹1,604 cr |
| Bandhan Floating Interest Rates FundBandhan Mutual Fund · 5.7 yrs | C | 7.1% | +0.1% | 0.76% | ₹210 cr |
Direct plans (12)
| Fund | Rating | 3Y return | 3Y vs index | Expense ratio | AUM |
|---|---|---|---|---|---|
| ICICI Prudential Floating Interest Rates FundICICI Prudential Mutual Fund · 13.8 yrs | A | 7.7% | +0.3% | 0.29% | ₹8,029 cr |
| Franklin India Floating Interest Rates FundFranklin Templeton Mutual Fund · 13.8 yrs | A | 7.9% | +0.5% | 0.38% | ₹261 cr |
| Kotak Floating Interest Rates FundKotak Mahindra Mutual Fund · 7.5 yrs | A | 7.5% | +0.1% | 0.24% | ₹2,984 cr |
| HDFC Floating Interest Rates FundHDFC Mutual Fund · 13.8 yrs | A | 7.5% | +0.1% | 0.27% | ₹15,495 cr |
| Aditya Birla Sun Life Floating Interest Rates FundAditya Birla Sun Life Mutual Fund · 13.4 yrs | B | 7.3% | -0.1% | 0.25% | ₹12,924 cr |
| Bandhan Floating Interest Rates FundBandhan Mutual Fund · 5.7 yrs | B | 7.7% | +0.3% | 0.14% | ₹210 cr |
| Axis Floating Interest Rates FundAxis Mutual Fund · 5.3 yrs | B | 8.4% | +1.0% | 0.22% | ₹145 cr |
| DSP Floating Interest Rates FundDSP Mutual Fund · 5.6 yrs | B | 7.6% | +0.1% | 0.27% | ₹311 cr |
| SBI Floating Interest Rates FundSBI Mutual Fund · 6.0 yrs | B | 7.4% | -0.0% | 0.28% | ₹669 cr |
| Tata Floating Interest Rates FundTata Mutual Fund · 5.3 yrs | C | 7.3% | -0.1% | 0.31% | ₹118 cr |
| UTI Floating Interest Rates FundUTI Mutual Fund · 8.0 yrs | C | 7.0% | -0.4% | 0.45% | ₹1,604 cr |
| Nippon India Floating Interest Rates FundNippon India Mutual Fund · 13.8 yrs | C | 7.3% | -0.1% | 0.35% | ₹7,437 cr |
Common questions
What does a floating rate fund invest in?
SEBI requires floating rate funds to invest mostly in bonds whose interest rate resets with market rates.
How many floating rate funds beat their index over 3 years?
10 of 12 floating rate funds (Regular plans with 3 years of history) beat the median fund in their category over the 3 years to 8 Nov 2026.
How are these funds rated?
Each fund is compared only with funds in its category and plan type, on its long-run return over the index, risk-adjusted return, consistency, cost and portfolio. The ratings describe the track record so far; our own backtest found they do not predict future returns.
Ratings describe past track records and are not a recommendation to buy or sell. Read the scheme documents before investing.