Top Floater Mutual Funds (2026)
Ranked by 3 year return, Direct plans, as on the latest NAV · AUM as on 30-09-2026
There are 12 Floater mutual funds. Their average 3 year return is 7.5% a year, and +5.4% over the last year. The highest 3 year returns: Axis Floating Interest Rates Fund 8.2%, Franklin India Floating Interest Rates Fund 7.9%, Bandhan Floating Interest Rates Fund 7.7%.
- Total AUM
- ₹51,232 Cr
- As on 30-09-2026
- Funds
- 12
- From 12 fund houses
- Expense ratio
- 0.14% to 0.44%
- Direct plans, lowest to highest
- Average 3Y return
- 7.5%
- A year, Direct plans
All Floater Funds
Ranked by 3 year return, highest first
Ranked by 3 year return, highest first
| Exit load | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Axis Floating Interest Rates Fund | 1 | 149 | +6.06% | +8.24% | +7.11% | -- | High | 0.22% | None | 2.06% |
| Franklin India Floating Interest Rates Fund | 2 | 256 | +5.89% | +7.92% | +7.15% | +6.90% | -- | 0.38% | None | 0.80% |
| Bandhan Floating Interest Rates Fund | 3 | 224 | +5.91% | +7.65% | +6.75% | -- | Moderate | 0.14% | None | 0.98% |
| ICICI Prudential Floating Interest Rates Fund | 4 | 8,658 | +5.56% | +7.53% | +6.97% | +7.52% | -- | 0.29% | None | 0.77% |
| Kotak Floating Interest Rates Fund | 5 | 3,240 | +5.05% | +7.49% | +6.65% | -- | Moderate | 0.24% | None | 0.77% |
| DSP Floating Interest Rates Fund | 6 | 316 | +4.41% | +7.45% | +6.42% | -- | Low to Moderate | 0.27% | None | 1.11% |
| HDFC Floating Interest Rates Fund | 7 | 15,659 | +5.17% | +7.35% | +6.78% | +7.16% | Moderate | 0.27% | None | 0.72% |
| SBI Floating Interest Rates Fund | 8 | 676 | +6.14% | +7.33% | +6.68% | -- | -- | 0.28% | -- | 0.90% |
| Aditya Birla Sun Life Floating Interest Rates Fund | 9 | 12,971 | +5.60% | +7.28% | +6.77% | +7.11% | Low to Moderate | 0.25% | None | 0.56% |
| Tata Floating Interest Rates Fund | 10 | 114 | +5.34% | +7.24% | +6.67% | -- | Low to Moderate | 0.31% | None | 0.80% |
| Nippon India Floating Interest Rates Fund | 11 | 7,461 | +4.41% | +7.20% | +6.51% | +7.13% | Low to Moderate | 0.35% | None | 0.88% |
| UTI Floating Interest Rates Fund | 12 | 1,506 | +5.58% | +6.95% | +6.31% | -- | Low to Moderate | 0.44% | None | 0.58% |
Returns of each fund's Direct plan (its only plan where it has one), as on the latest NAV. 3, 5 and 10 year figures are a rate a year. Std dev: how much the daily returns swung over 3 years, as a yearly figure; lower is steadier. Riskometer and exit load from the fund's scheme summary document; "Varies" means the load changes with how long you hold, and the fund page has the full wording. Expense ratio: Direct plan, from AMFI. AUM at the end of the fund's last reported month. A fund younger than 3 years has no rank and is listed after the ranked ones.
Compare Floater Funds
The largest funds of the category, side by side
- HDFC Floating Interest Rates vs Aditya Birla Sun Life Floating Interest Rates
- HDFC Floating Interest Rates vs ICICI Prudential Floating Interest Rates
- HDFC Floating Interest Rates vs Nippon India Floating Interest Rates
- Aditya Birla Sun Life Floating Interest Rates vs ICICI Prudential Floating Interest Rates
- Aditya Birla Sun Life Floating Interest Rates vs Nippon India Floating Interest Rates
- ICICI Prudential Floating Interest Rates vs Nippon India Floating Interest Rates
How Floater Funds Are Taxed
As debt funds: 65% or more of each fund is in bonds and money market papers
| When you sell | Tax on the gain |
|---|---|
| Units bought on or after 01-04-2023 | Your slab rate, however long you hold them |
| Units bought before 01-04-2023, within 2 years | Your slab rate |
| Units bought before 01-04-2023, after 2 years | 12.5% of the gain |
- IDCW (dividend) payouts are added to your income and taxed at your slab rate.
- A stamp duty of 0.005% is deducted when you invest.
Rules in force from 23-07-2024 (Finance Act 2024). Tax depends on your own income; this is general information, not tax advice.
What Is a Floater Fund?
At least 65% in floating rate debt, whose interest moves with market rates. This is the rule SEBI sets for every fund in the category, so their portfolios can be compared.
Other debt categories: Overnight · Liquid · Ultra Short · Low Duration · Money Market · Short Duration · Medium Duration · Medium to Long Duration · Long Duration · Dynamic Bond · Corporate Bond · Credit Risk · Banking & PSU · Gilt
Floater Funds: Frequently Asked Questions
Which are the top Floater mutual funds?
By 3 year return, the top Floater funds are 1. Axis Floating Interest Rates Fund (8.2% a year), 2. Franklin India Floating Interest Rates Fund (7.9% a year), 3. Bandhan Floating Interest Rates Fund (7.7% a year), 4. ICICI Prudential Floating Interest Rates Fund (7.5% a year), 5. Kotak Floating Interest Rates Fund (7.5% a year). Past returns do not promise future returns, so also look at costs, risk and how long each fund has done well.
How many Floater funds are there?
12 Floater funds are open for investment, from 12 fund houses.
What is a Floater fund?
At least 65% in floating rate debt, whose interest moves with market rates.
What is the average return of Floater funds?
1 year: 5.4%, 3 years: 7.5% a year, 5 years: 6.7% a year. The simple average of every Floater fund's Direct plan.
Which Floater fund has the lowest expense ratio?
Bandhan Floating Interest Rates Fund, at 0.14% a year (Direct plan), as reported to AMFI.
Which is the largest Floater fund?
HDFC Floating Interest Rates Fund, with ₹15,659 Cr of investors' money on 30-09-2026.
How are Floater funds taxed?
As debt funds: for units bought on or after 01-04-2023, the gain is added to your income and taxed at your slab rate, however long you hold them.
This page is information, not investment advice. Mutual fund investments are subject to market risks; read all scheme related documents carefully. Past returns do not promise future returns. Figures come from AMFI, NSE, BSE and each fund house's own documents.