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 Mutual Funds in Best Performing Equity Mutual Funds in India

Gold ETFs - convenience and the tax liability

Gold is still trading near its all-time high. Many feel that the gold bubble will burst soon, dollar is strengthening. But inflation is everywhere, banks in the western world are printing more money. Will the bull run continue? Historically dollar has won. This time around, it is a very different situation. Thinking QE2, and dollar debasing, gold could well become a standard?

 

What is interesting is that over 12% of total gold consumption is now through ETFs, which is a very convenient way to hold gold. While Gold ETF's trail gold price, mark-up charges by banks and making charges & wastage for jewellery is no free ride. The cost of maintenance for ETFs will go down, and gold ETF's ia a very attractive tool. With ETFs, you can buy gold in whatever small chunks you feel comfortable with.

 

So, what do you need to know from a tax perspective? Gold ETF's held for over a year qualify for long-term capital gains tax. But, wait! From a tax perspective, gold ETF's are treated as debt funds, not equity funds. So, you will have to shell out some income tax. Gold held in paper form does not attract any wealth tax (unlike physical gold). So, book some profits but keep some exposure in this uncertain environment.