Four funds, one year, 0.08 points
A floating rate fund keeps at least 65% of its money in instruments whose interest resets as rates move, with fixed-rate bonds swapped into floating exposure counting towards that. There are 12 such funds. Over the year to 9 October 2026 the top four finished almost exactly together:
Axis 6.28%, Bandhan 6.26%, ICICI Prudential 6.24%, Franklin India 6.20%.
The gap from first to fourth is 0.08 points, about ₹800 on ₹10 lakh. The median of all 12 floaters was 5.96%. Look past the one-year figure, though, and these are four quite different funds.
All figures are for the Direct plan, Growth option, from daily NAVs to Friday 9 October 2026. Returns over a year are compounded annual rates. Expense ratios are the latest in AMFI's TER disclosure; assets are AMFI's average for July to September 2026, all plans.
The numbers
| Fund | Expense ratio | Assets (₹ crore) | 1 year | 3 years | 5 years | Volatility | Worst 3-year fall |
|---|---|---|---|---|---|---|---|
| Axis | 0.22% | 142 | 6.28% | 8.46% | 7.14% | 2.08% | 1.26% |
| Bandhan | 0.14% | 224 | 6.26% | 7.81% | 6.79% | 0.99% | 0.47% |
| ICICI Prudential | 0.29% | 8,782 | 6.24% | 7.77% | 7.01% | 0.76% | 0.45% |
| Franklin India | 0.38% | 281 | 6.20% | 8.03% | 7.14% | 0.81% | 0.52% |
| Median of 12 floaters | 5.96% | 7.59% | 6.76% | 0.81% |
Axis's assets are listed in AMFI's file under its old name, Axis Floater Fund. Only ICICI Prudential and Franklin India have ten-year records: 7.58% and 6.93% a year.
The calendar years show the order shifting:
| Fund | 2022 | 2023 | 2024 | 2025 | 2026 to 9 Oct |
|---|---|---|---|---|---|
| Axis | 4.99% | 7.52% | 9.69% | 7.91% | 5.13% |
| Bandhan | 4.21% | 7.27% | 8.48% | 8.19% | 5.02% |
| ICICI Prudential | 5.00% | 8.46% | 8.68% | 8.41% | 4.51% |
| Franklin India | 4.91% | 8.14% | 8.92% | 8.69% | 4.73% |
What sits underneath
The fund documents and portfolios go a long way to explaining the difference. Each scheme names a benchmark and a potential risk class, SEBI's grid of the most credit risk (A low, B moderate) and interest-rate risk (I low, III high) the fund is allowed to take. The September 2026 portfolio disclosures give the rest.
| Fund | Benchmark it names | Risk class | Average maturity | Yield to maturity | Yield minus expense ratio |
|---|---|---|---|---|---|
| Axis | NIFTY Medium to Long Duration Debt Index A-III | B-III | 6.53 years | 7.86% | 7.64% |
| Bandhan | NIFTY Medium Duration Debt Index A-III | B-III | 2.74 years | 7.92% | 7.78% |
| ICICI Prudential | NIFTY Short Duration Debt Index A-II | B-III | 2.92 years | 7.80% | 7.51% |
| Franklin India | NIFTY Short Duration Debt Index A-II | A-I | 3.00 years | 7.77% | 7.39% |
Three funds hold paper averaging about three years. Axis holds more than twice that, and benchmarks itself to a longer index. Franklin India is the only one whose risk class caps both credit and rate risk at the lowest level.
What stands out
Axis's lead came with more movement. Over three years it returned 8.46% a year against ICICI Prudential's 7.77%: ₹10 lakh became about ₹12.76 lakh against ₹12.52 lakh. Its volatility was 2.7 times ICICI's and its worst fall, 1.26% between 11 March and 2 April 2026, was more than double anyone else's. The Axis vs ICICI Prudential page shows the extra swing on one chart. In the last three months, as bond prices fell, Axis made 0.68%, the least of the four; Franklin India made 1.16%.
Cost differences are bigger than the one-year spread. Bandhan charges 0.14% and Franklin India 0.38%, a 0.24-point gap that is three times the four funds' one-year spread. It did not settle the ranking: Franklin India, the dearest, is second over three years. Bandhan vs Franklin India shows the two side by side.
Size and steadiness go together here. ICICI Prudential's floater manages ₹8,782 crore, more than 30 times Franklin India's and 60 times Axis's, and it had the lowest volatility and the shallowest three-year fall of the four.
Yields are bunched. The four portfolios yield between 7.77% and 7.92%. After expenses Bandhan keeps the most, 7.78%, and Franklin India the least, 7.39%. That is a rough guide to the coming year only if rates hold still.
The managers
Axis's fund is run by Aditya Pagaria, there since it launched in 2021, and Hardik Shah. Bandhan's by Brijesh Shah and Debraj Lahiri, both since March 2024. ICICI Prudential's offer document names Darshil Dedhia and Ritesh Kumar Lunawat. Franklin Templeton's summary document lists Rohan Maru since October 2024 and Anuj Tagra from 1 October 2026, so most of its record predates both. None of the four charges an exit load. The minimum SIP is ₹100 for Bandhan and ICICI Prudential, ₹500 for Franklin India and ₹1,000 for Axis.
What this does not tell you
A floater is not rate-proof. Swaps and longer holdings let a floater move with bond prices, as Axis's March fall showed.
A tie over one year says little. The calendar table shows three different leaders in five years.
The yields are a snapshot. They describe the portfolio on 30 September, not what a new investor will earn.
None of this is a recommendation. The remaining head-to-heads are Franklin India vs Axis, Franklin India vs ICICI Prudential, ICICI Prudential vs Bandhan and Bandhan vs Axis. The floater fund page ranks all 12, and our October look at the category sets floaters beside liquid and short-duration funds. The duration ladder guide explains why floaters sit off the ladder, and debt fund yields by category shows where 7.8% sits.
Frequently asked questions
Which floating rate fund has the best returns?
Over the year to 9 October 2026 the four leaders were almost level: Axis 6.28%, Bandhan 6.26%, ICICI Prudential 6.24% and Franklin India 6.20% (Direct Growth). Over three years Axis led at 8.46% a year, then Franklin India at 8.03%, Bandhan at 7.81% and ICICI Prudential at 7.77%.
Why is the Axis floating rate fund more volatile?
Its September 2026 portfolio had an average maturity of 6.53 years, against 2.74 to 3.00 years for the Franklin India, ICICI Prudential and Bandhan floaters, and it names a medium-to-long duration index as its benchmark. Its three-year volatility was 2.08%, against 0.76% to 0.99% for the other three.
Which floater fund has the lowest expense ratio?
Of these four, Bandhan's Direct plan is cheapest at 0.14% a year, then Axis at 0.22%, ICICI Prudential at 0.29% and Franklin India at 0.38%, in AMFI's latest disclosure. The 0.24-point gap between the cheapest and dearest is larger than the four funds' one-year return spread.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are WealthTicker’s own calculations from public data — AMFI’s fund NAVs and disclosures, NSE’s index and FII/DII files, and the fund houses’ monthly portfolios (how we calculate). They are as of the dates stated and can be revised by their source.
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