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Top 4 Best Floating Rate Funds to Invest in 2019
Floating Rate Funds are a type of Debt fund that mainly invests in floating rate instruments. Here the interest paid changes in order with the changing interest rate scenario in the debt market. As per Security and Exchange Board of India (SBEI) norms, Floater Fund should invest a minimum of 65 percent of its total assets in the floating rate instrument. One of the biggest advantages of this fund is its lowest degree of sensitivity to changes in interest rates. So, let’s look at some of the best performing floater funds to invest in 2019.
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What are Floating Rate Funds?
The floating rate instrument is considered to be an attractive instrument for investors with a conservative portion. This fund invests a major portion of its corpus in floating rate instruments and rest in fixed income securities. These funds are least risky in terms of interest rate. Unlike other debt funds, floating rate funds do not react to the changing interest rates. When the Government of India issues bond in the market, they have a fixed coupon rate, whereas, floating rate securities have variable interest rates. These floating rate interest increases or decreases based on the reference rate. To benefit the most, one should invest in these funds when interest rates are expected to rise.
But, being a debt fund, the credit risk in the fund still remains. Credit risk arises when a company that has issued the debt instruments does not make regular payments. In such cases, it has a major impact on the fund, depending on how much portion the fund has in the portfolio. Hence, it is suggested to be in debt instruments with a rating higher credit rating.
There are two kinds of floating rate funds— short-term and long-term. The portfolio of short-term floating funds is normally skewed towards short-term maturities and the portfolio of the long-term plan is skewed towards longer-term maturities.
Best Floating Rate Funds 2019
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2018 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Aditya Birla Sun Life Floating Rate Fund - Long Term Growth ₹242.54
↑ 0.02 ₹6,784 2.1 4.7 9.3 7.6 7.5 5.86% 10M 17D 1Y 18D Reliance Floating Rate Fund Growth ₹30.856
↑ 0.01 ₹5,842 2 4.8 9.7 6.8 5.8 7.26% 9M 25D 10M 28D ICICI Prudential Floating Interest Fund Growth ₹293.502
↑ 0.06 ₹7,444 2.4 4.6 8.8 7.2 6.6 7.73% 11M 26D 1Y 2M 19D DHFL Pramerica Floating Rate Fund Growth ₹10.8156
↑ 0.00 ₹13 -47.2 -46.2 -44.4 -14 15.04% 1M 6D 1M 13D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 19 Nov 19
The primary objective of the schemes is to generate regular income through investment in a portfolio comprising substantially of floating rate debt / money market instruments. The schemes may invest a portion of its net assets in fixed rate debt securities and money market instruments. Aditya Birla Sun Life Floating Rate Fund - Long Term is a Debt - Floating Rate fund was launched on 25 Mar 09. It is a fund with Moderately Low risk and has given a Below is the key information for Aditya Birla Sun Life Floating Rate Fund - Long Term Returns up to 1 year are on (Erstwhile Reliance Floating Rate Fund - Short Term Plan) The primary objective of the scheme is to generate regular income through investment in a portfolio comprising substantially of Floating Rate Debt Securities (including floating rate securitized debt, Money Market Instruments and Fixed Rate Debt Instruments swapped for floating rate returns). The scheme shall also invest in Fixed rate Debt Securities (including fixed rate Securitized Debt, Money Market Instruments and Floating Rate Debt Instruments swapped for fixed returns). Reliance Floating Rate Fund is a Debt - Floating Rate fund was launched on 27 Aug 04. It is a fund with Moderately Low risk and has given a Below is the key information for Reliance Floating Rate Fund Returns up to 1 year are on (Erstwhile ICICI Prudential Savings Fund) The scheme aims to generate income consistent with the prudent risk from a portfolio comprising floating rate debt instruments, fixed rate debt instruments swapped for floating rate return, and also fixed rate instruments & money market instruments. ICICI Prudential Floating Interest Fund is a Debt - Floating Rate fund was launched on 18 Nov 05. It is a fund with Moderate risk and has given a Below is the key information for ICICI Prudential Floating Interest Fund Returns up to 1 year are on (Erstwhile DHFL Pramerica Short Term Floating Rate Fund) The objective of the scheme is to generate regular income through investment in a portfolio comprising primarily in short maturity floating rate debt/money market instruments. However, there is no assurance that the investment objective of the Scheme will be realized and the Scheme does not assure or
guarantee any returns. DHFL Pramerica Floating Rate Fund is a Debt - Floating Rate fund was launched on 26 Mar 10. It is a fund with Moderately Low risk and has given a Below is the key information for DHFL Pramerica Floating Rate Fund Returns up to 1 year are on 1. Aditya Birla Sun Life Floating Rate Fund - Long Term
CAGR/Annualized return of 8.7% since its launch. Ranked 14 in Floating Rate category. Return for 2018 was 7.5% , 2017 was 6.9% and 2016 was 9.5% . Aditya Birla Sun Life Floating Rate Fund - Long Term
Growth Launch Date 25 Mar 09 NAV (19 Nov 19) ₹242.54 ↑ 0.02 (0.01 %) Net Assets (Cr) ₹6,784 on 31 Oct 19 Category Debt - Floating Rate AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.39 Sharpe Ratio 6.55 Information Ratio 0.85 Alpha Ratio -0.87 Min Investment 1,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 5.86% Effective Maturity 1 Year 18 Days Modified Duration 10 Months 17 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 14 ₹10,000 31 Oct 15 ₹10,908 31 Oct 16 ₹11,943 31 Oct 17 ₹12,848 31 Oct 18 ₹13,674 31 Oct 19 ₹14,967 Returns for Aditya Birla Sun Life Floating Rate Fund - Long Term
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Nov 19 Duration Returns 1 Month 0.8% 3 Month 2.1% 6 Month 4.7% 1 Year 9.3% 3 Year 7.6% 5 Year 8.4% 10 Year 15 Year Since launch 8.7% Historical performance (Yearly) on absolute basis
Year Returns 2018 7.5% 2017 6.9% 2016 9.5% 2015 8.9% 2014 9.6% 2013 9.6% 2012 10.1% 2011 9.4% 2010 6.5% 2009 Fund Manager information for Aditya Birla Sun Life Floating Rate Fund - Long Term
Name Since Tenure Kaustubh Gupta 15 Jul 11 8.22 Yr. Data below for Aditya Birla Sun Life Floating Rate Fund - Long Term as on 31 Oct 19
Asset Allocation
Asset Class Value Cash 48.39% Debt 51.61% Debt Sector Allocation
Sector Value Corporate 43.41% Cash Equivalent 32.54% Government 22.94% Securitized 1.11% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Clearing Corporation Of India Limited
CBLO | -12% ₹722 Cr Power Finance Corporation Ltd.
Debentures | -7% ₹425 Cr 4,230 Aditya BSL Overnight Dir Gr
Investment Fund | -5% ₹300 Cr 2,842,783
↑ 2,842,783 AXIS BANK LIMITED
Certificate of Deposit | -4% ₹250 Cr 25,000 REC LIMITED
Debentures | -3% ₹198 Cr 1,960 NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -3% ₹176 Cr 1,700
↑ 250 SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA
Certificate of Deposit | -3% ₹168 Cr 17,500 SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA
Certificate of Deposit | -3% ₹166 Cr 17,500 HOUSING AND URBAN DEVELOPMENT CORPORATION LIMITED (HUDCO)
Debentures | -2% ₹149 Cr 1,500
↑ 1,500 Export-Import Bank Of India
Certificate of Deposit | -2% ₹146 Cr 15,000 2. Reliance Floating Rate Fund
CAGR/Annualized return of 7.7% since its launch. Ranked 32 in Floating Rate category. Return for 2018 was 5.8% , 2017 was 5.9% and 2016 was 9% . Reliance Floating Rate Fund
Growth Launch Date 27 Aug 04 NAV (19 Nov 19) ₹30.856 ↑ 0.01 (0.02 %) Net Assets (Cr) ₹5,842 on 31 Oct 19 Category Debt - Floating Rate AMC Reliance Nippon Life Asset Management Ltd. Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.6 Sharpe Ratio 5.57 Information Ratio -1.39 Alpha Ratio 0.53 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-1 Months (0.5%),1 Months and above(NIL) Yield to Maturity 7.26% Effective Maturity 10 Months 28 Days Modified Duration 9 Months 25 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 14 ₹10,000 31 Oct 15 ₹10,959 31 Oct 16 ₹11,903 31 Oct 17 ₹12,779 31 Oct 18 ₹13,262 31 Oct 19 ₹14,584 Returns for Reliance Floating Rate Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Nov 19 Duration Returns 1 Month 0.8% 3 Month 2% 6 Month 4.8% 1 Year 9.7% 3 Year 6.8% 5 Year 7.7% 10 Year 15 Year Since launch 7.7% Historical performance (Yearly) on absolute basis
Year Returns 2018 5.8% 2017 5.9% 2016 9% 2015 8.6% 2014 9.8% 2013 7.9% 2012 9.7% 2011 9.2% 2010 5.4% 2009 5.9% Fund Manager information for Reliance Floating Rate Fund
Name Since Tenure Amit Tripathi 7 Oct 07 11.99 Yr. Vivek Sharma 1 Oct 13 6 Yr. Kinjal Desai 25 May 18 1.35 Yr. Data below for Reliance Floating Rate Fund as on 31 Oct 19
Asset Allocation
Asset Class Value Cash 7.77% Debt 92.23% Other 0% Debt Sector Allocation
Sector Value Corporate 69.49% Government 17.2% Cash Equivalent 9.46% Securitized 3.85% Credit Quality
Rating Value AA 5.33% AAA 94.67% Top Securities Holdings / Portfolio
Name Holding Value Quantity Tata Sons Limited
Debentures | -6% ₹377 Cr 3,750 Nabha Power Limited
Debentures | -6% ₹353 Cr 3,500 Mahindra & Mahindra Financial Services Ltd
Debentures | -5% ₹303 Cr 3,000 Reliance Jio Infocomm Limited
Debentures | -5% ₹293 Cr 2,846
↑ 700 Reliance Ports And Terminals Limited
Debentures | -5% ₹279 Cr 2,689 India Grid Trust
Unlisted bonds | -4% ₹253 Cr 2,500 LIC Housing Finance Limited
Debentures | -4% ₹234 Cr 2,290 HDB Financial Services Limited
Debentures | -4% ₹232 Cr 2,350 NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -4% ₹228 Cr 2,250 Net Current Assets
Net Current Assets | -4% ₹215 Cr 3. ICICI Prudential Floating Interest Fund
CAGR/Annualized return of 8% since its launch. Ranked 35 in Floating Rate category. Return for 2018 was 6.6% , 2017 was 6.8% and 2016 was 8.9% . ICICI Prudential Floating Interest Fund
Growth Launch Date 18 Nov 05 NAV (19 Nov 19) ₹293.502 ↑ 0.06 (0.02 %) Net Assets (Cr) ₹7,444 on 31 Oct 19 Category Debt - Floating Rate AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 1.31 Sharpe Ratio 5.95 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 100 Exit Load NIL Yield to Maturity 7.73% Effective Maturity 1 Year 2 Months 19 Days Modified Duration 11 Months 26 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 14 ₹10,000 31 Oct 15 ₹10,849 31 Oct 16 ₹11,786 31 Oct 17 ₹12,678 31 Oct 18 ₹13,386 31 Oct 19 ₹14,561 Returns for ICICI Prudential Floating Interest Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Nov 19 Duration Returns 1 Month 0.9% 3 Month 2.4% 6 Month 4.6% 1 Year 8.8% 3 Year 7.2% 5 Year 7.8% 10 Year 15 Year Since launch 8% Historical performance (Yearly) on absolute basis
Year Returns 2018 6.6% 2017 6.8% 2016 8.9% 2015 8.1% 2014 9.2% 2013 9.2% 2012 9.7% 2011 9.1% 2010 5.6% 2009 5.5% Fund Manager information for ICICI Prudential Floating Interest Fund
Name Since Tenure Rahul Goswami 27 Sep 12 6.51 Yr. Nikhil Kabra 3 Aug 16 2.66 Yr. Data below for ICICI Prudential Floating Interest Fund as on 31 Oct 19
Asset Allocation
Asset Class Value Cash 17.53% Debt 82.47% Debt Sector Allocation
Sector Value Corporate 78.94% Cash Equivalent 10.85% Government 10.21% Credit Quality
Rating Value A 4.04% AA 50.91% AAA 45.04% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reverse Repo
CBLO/Reverse Repo | -6% ₹438 Cr Bahadur Chand Investments Private Limited
Debentures | -5% ₹369 Cr 369 Bharti Airtel Limited
Debentures | -5% ₹351 Cr 3,500 EMBASSY OFFICE PARKS REIT
Debentures | -4% ₹317 Cr 3,000 State Bank Of India
Debentures | -3% ₹259 Cr 2,500 Vedanta Limited
Debentures | -3% ₹247 Cr 2,500 POWER FINANCE CORPORATION LIMITED
Debentures | -3% ₹229 Cr 2,250 United Spirits Limited
Debentures | -2% ₹179 Cr 1,800 Zydus Wellness Ltd.
Debentures | -2% ₹159 Cr 1,550 Geetanjali Trading And Investments Pvt Ltd
Debentures | -2% ₹153 Cr 125 4. DHFL Pramerica Floating Rate Fund
CAGR/Annualized return of 0.5% since its launch. Ranked 42 in Floating Rate category. . DHFL Pramerica Floating Rate Fund
Growth Launch Date 26 Mar 10 NAV (22 Jun 19) ₹10.8156 ↑ 0.00 (0.01 %) Net Assets (Cr) ₹13 on 30 Apr 19 Category Debt - Floating Rate AMC DHFL Pramerica Asset Managers Private Limited Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.51 Sharpe Ratio 3.6 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 15.04% Effective Maturity 1 Month 13 Days Modified Duration 1 Month 6 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 14 ₹10,000 31 Oct 15 ₹10,849 31 Oct 16 ₹11,738 31 Oct 17 ₹12,608 31 Oct 18 ₹13,340 DHFL Pramerica Floating Rate Fund SIP Returns
Returns for DHFL Pramerica Floating Rate Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Nov 19 Duration Returns 1 Month -48.1% 3 Month -47.2% 6 Month -46.2% 1 Year -44.4% 3 Year -14% 5 Year -5.6% 10 Year 15 Year Since launch 0.5% Historical performance (Yearly) on absolute basis
Year Returns 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Fund Manager information for DHFL Pramerica Floating Rate Fund
Name Since Tenure Data below for DHFL Pramerica Floating Rate Fund as on 30 Apr 19
Asset Allocation
Asset Class Value Debt Sector Allocation
Sector Value Credit Quality
Rating Value Top Securities Holdings / Portfolio
Name Holding Value Quantity
Advantages of Floating Rate Funds
Some of the benefits of Floating Rate Funds are:
- Price Stability- As floating rate funds are tied to current rates; the price of the underlying securities doesn’t fluctuate in response to changes in the interest rates.
- Better Yield- Floating funds tend to offer better yields than those of Certificate of Deposits (CDs). This can be a better idea for those who want to earn returns in a short duration.
- Moderate Risk- Debt funds are anytime less risky than Equity Funds. When it comes to floater funds these are less risky than other debt funds, as they don’t carry interest rate risk. However, diversification of the portfolio significantly reduces the risk of the portfolio.
How to Select Best Floating Rate Funds?
Some of the ideal ways to choose best floating rate funds are:
- Look at the past performances of the fund, typically of past 1-3 years. The fund with the most stable and consistent performance is the one to go with
- Ideally, one should go with the fund that has an Asset Under Management (AUM) > INR 100 Cr
- Invest in funds that invests in high credit-rating companies
How to Invest in Floating Rate Funds Online?
Open Free Investment Account for Lifetime at Fincash.com.
Complete your Registration and KYC Process
Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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