The policy-tightening cycle might be near its end. Floating rate instruments give a market related rates of return without much added price volatility. The interest rates are high, interest payments in floating rate instruments also go higher. Here is the performance of floating rate mutual funds.
| FUND | AUM (Rs Cr) | 1wk | 1mo | 3mo | 6mo | 1yr |
| Can Robeco Float Rate-STP | 180.52 | 0.1 | 0.8 | 2.3 | 4.7 | 9.2 |
| L&T Short Term FRF | 2.51 | 0.1 | 0.8 | 2.3 | 4.6 | 8.9 |
| SBI Magnum Income - FRP - LTP | 5.30 | 0.1 | 0.8 | 2.3 | 4.7 | 8.8 |
| HDFC Float Rate Inc-LTP | 992.41 | 0.1 | 0.7 | 2.2 | 5 | 9.3 |
| SBI Magnum Income - FRP - SPBP | 184.46 | 0.1 | 0.7 | 2.2 | 4.6 | 9 |
| Tata Floater Fund | 4,672.52 | 0.1 | 0.7 | 2.3 | 4.6 | 8.9 |
| Principal NTF - Conservative | 403.75 | 0.1 | 0.7 | 2.2 | 4.6 | 8.8 |
| Kotak Floater LTP | 4,031.15 | 0.1 | 0.7 | 2.3 | 4.6 | 8.8 |
| ICICI Pru Floating Rate -D | 2,237.21 | 0.1 | 0.7 | 2.2 | 4.5 | 8.8 |
| Kotak Floater STP | 2,825.70 | 0.1 | 0.7 | 2.2 | 4.5 | 8.7 |
| Birla SL FRF - LTP - RP | 130.17 | 0.1 | 0.7 | 2.3 | 4.6 | 8.7 |
| Reliance Floating Rate | 1,218.58 | 0.1 | 0.7 | 2.2 | 4.6 | 8.6 |
| Principal NT - Moderate Plan | 185.29 | 0.1 | 0.7 | 2.2 | 4.3 | 8.5 |
| Birla SL FRF - STP - RP | 116.65 | 0.1 | 0.7 | 2.2 | 4.5 | 8.5 |
| HDFC Float Rate Inc-STP RP | 640.13 | 0.1 | 0.7 | 2.1 | 4.3 | 8.3 |
| Tata Money Market Fund - RP | 18.86 | 0.1 | 0.7 | 2 | 4.2 | 8.3 |
| Templeton FRIF (RP) | 434.44 | 0.1 | 0.7 | 2.1 | 4.3 | 8.3 |
| IDFC MMF-Invest. - RP A | 273.18 | 0.1 | 0.7 | 2.1 | 4.6 | 8.2 |
| ICICI Pru Floating RP - C | 37.55 | 0.1 | 0.7 | 2.1 | 4.2 | 8 |
| HSBC FRF - LTP (RP) | 45.32 | 0.1 | 0.7 | 2.1 | 4.1 | 7.9 |
| ICICI Pru Floating RP - A | 380.00 | 0.1 | 0.7 | 2 | 4.1 | 7.9 |
| ICICI Pru Floating RP - B | 49.23 | 0.1 | 0.7 | 2 | 4.1 | 7.8 |
| Tata Floating Rate - LTP | 2.78 | 0.1 | 0.7 | 2.4 | 4.3 | 7.4 |
| LIC NOMURA Floating Rate | 139.95 | 0.1 | 0.7 | 2 | 3.8 | 7.1 |
Birla Sunlife and HDFC’s floating rate funds are good bets.
Returns are absolute returns as of November 6, 2011.
Source of Data: Moneycontrol.com
