When interest rates are high, interest payments in floating rate instruments also go higher. Several floating rate funds have done well recently with increasing rates. Floating rate instruments give a market related rates of return without much added price volatility.
The following are some good floating rate mutual funds and their historical performance (absolute return%).
| FUND | AUM (Rs Cr) | NAV | 1wk | 1mo | 3mo | 6mo | 1yr | 2yr | 3yr | 5yr |
| HDFC Float Rate Inc-LTP | 1,501.46 | 16.97 | 0.1 | 1.4 | 2.8 | 4.3 | 7 | 14.5 | 25.8 | 45.4 |
| Birla SL FRF - LTP - RP | 218.84 | 16.89 | 0.1 | 0.8 | 2 | 3.8 | 6.7 | 15.1 | 25.3 | 45.9 |
| Reliance Floating Rate | 2,739.10 | 15.53 | 0.1 | 1.2 | 2.5 | 3.9 | 6.9 | 12.1 | 22.2 | 42.4 |
| Can Robeco Float Rate-STP | 142.16 | 15.27 | 0.1 | 0.8 | 2.2 | 4.1 | 7.1 | 12.2 | 22.5 | 42.7 |
| Tata Floater Fund | 6,303.53 | 14.72 | 0.1 | 0.8 | 2.1 | 4 | 7 | 12.2 | 22.4 | 42.6 |
| Kotak Floater LTP | 3,482.74 | 15.64 | 0.1 | 0.8 | 2.1 | 4 | 6.8 | 12.2 | 22.2 | 43.1 |
