Top 3 Floater Funds SIPs With Best 5-Yr Returns That You Can Consider For Your Debt Portfolio

1. ICICI Prudential Floating Interest Fund-Direct Plan-Growth:

The fund invests predominantly in floater bonds and look to balance yield, liquidity and safety concerns of investors. Launched in the year 2013, the fund since inception has delivered a return of 8.85%. Benchmark for the fund is

CRISIL Low Duration Debt. AUM under the scheme as on August 31 total to Rs. 13,631 crore, while the expense ratio of the fund is 0.58%.

Top holdings of the fund include GOI floating rate bond with maturity in 2023, 6.51% GOI 2024, Embassy Office Parks REIT 2022 etc.

SIP in the fund can be initiated for Rs. 100 and in the last 5 years, Rs, 10000 monthly SIP, implying a total investment of Rs. 6 lakh is worth Rs. 7.36 lakh.

2. Nippon India Floating Rate Fund – Direct Plan – Growth

This is a CRISIL 3-star rated fund and commands a good 20% fund into the category of Rs.18784 crore. Expense ratio of the fund is 0.24 percent. NAV of the fund as on September 8 is 37.08. Benchmark for the fund is CRISIL Short term bond index.

Investors with a time horizon of 3 years and more and aiming to garner moderate returns can lap up such funds.

SIP in the fund can be started for Rs. 100, while for lump sum investment the amount needed is Rs. 5000.

3. HDFC Floating Rate Debt Fund – Direct Plan – Growth:

This is again a CRISIL 3-star rated fund that can be opted by investors who have a longer investment horizon but do not wish to deploy their funds into equity funds can rope in this fund. The fund in existence since 2013 has provided return to the tune of 8.34%. The benchmark of the fund is CRISIL Liquid fund index. The fund as on August 31, 2021 commands a sizeable Rs. 22077 crore corpus with expense ratio of 0.23%.

Top holdings of the fund are GOI funds, CD, T-Bills, NCD and bonds etc. SIP in the fund can be initiated for Rs. 500, while for lump sum you need to park a minimum of Rs. 5000.

Top Floater Funds SIP You Can Invest In For Your Debt Portfolio

Floater fund	Annualised return in the last 5 year	SIP Annualised return	Rs. 10000 monthly SIP in las5 5 years
ICICI Prudential Floating Interest Fund-Direct Plan-Growth	8.27%	8.32%	Rs. 7.36 lakh
Nippon India Floating Rate Fund – Direct Plan – Growth
	7.96%	8.27%	Rs. 7.36 lakh
HDFC Floating Rate Debt Fund – Direct Plan – Growth	7.7%	7.7%	Rs. 7.25 lakh

Taxation:

Floater rate fund	Time of redemption	Taxation rate
	Sold after 3 years	Gains taxed at 20% after indexation benefit
	Sold before 3 years	Gains added to person’s income and taxed as per his slab rate

For dividend income, the addition is made to the investors’ income and taxed as per his or her slab rate. In a case when the dividend income is over Rs. 5000 in a FY then fund house also deducts 10% TDS before dividend pay-out.

Disclaimer:

Mutual funds are subject to market risk. The above story is just for informational use, for apt decision with your investments please seek professional advice.

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