Best Performing Floating Rate Funds returning over 9%

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

Top Performing Floating Rate Mutual Funds (Debt Funds)

It’s not clear when the policy-tightening cycle will end. This is the time to lock some money in fixed income instruments such as bonds and fixed deposits. 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 are floating rate mutual funds (debt funds) that have done well recently with increasing rates.

Do you want to ride the high short-term interest rates? Here are some selected new mutual fund instruments.

With rates near cycle highs, investing in best fixed maturity plan FMP, short-term mutual funds, ultra short-term mutual funds and related fixed income instruments may be a better option. Equity investments at this stage require at least a 2-3 year horizon.
The following are new  and selected short-term, ultra short-term, FMP mutual funds being offered by various AMCs as of June 18 2011.

Float with these Floating Rate Funds

 

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