Best Floater Mutual Funds
Debt funds lend to governments and companies and earn interest. They're generally steadier than equity funds and are used for shorter horizons and stability.
Top floater mutual funds by 3Y returns
11Direct plan, Growth option — ranked by 3-year CAGR. Open a fund for NAV history, rolling returns, risk metrics and peer rank.
As of 20 Aug 2026, Axis Floater Fund (Direct plan, Growth option) leads floater mutual funds on 3-year CAGR at +8.55%, followed by Franklin India Floating Rate Fund at +8.21% and ICICI Prudential Floating Interest Fund at +8.00%. Across 11 floater mutual funds the category averaged +7.88% over three years, at an average expense ratio of 0.27%. All figures are computed from public AMFI NAV history and recomputed daily; past returns do not predict future ones.
| 1 | Axis Floater Fund Axis | ★★★★★ | +7.9% | +8.5% | +7.3% | 0.23% | ₹145.64Cr |
| 2 | Franklin India Floating Rate Fund Franklin Templeton | ★★☆☆☆ | +6.7% | +8.2% | +7.2% | 0.38% | ₹294.79Cr |
| 3 | ICICI Prudential Floating Interest Fund ICICI Prudential | ★★★★★ | +6.8% | +8.0% | +7.1% | 0.29% | ₹7,582Cr |
| 4 | Bandhan Floater Fund Bandhan | ★★★☆☆ | +6.9% | +7.9% | +6.8% | 0.10% | ₹228.73Cr |
| 5 | DSP Floater Fund DSP | ★★★☆☆ | +5.9% | +7.9% | +6.8% | 0.29% | ₹331.10Cr |
| 6 | Kotak Floating Rate Fund Kotak Mahindra | ★★★☆☆ | +6.1% | +7.9% | +6.8% | 0.24% | ₹3,275Cr |
| 7 | SBI Floating Rate Debt Fund SBI | ★☆☆☆☆ | +6.6% | +7.8% | +6.8% | 0.28% | ₹683.31Cr |
| 8 | HDFC Floating Rate Debt Fund HDFC | ★★★★☆ | +6.2% | +7.7% | +6.9% | 0.27% | ₹16,445Cr |
| 9 | Nippon India Floater Fund Nippon India | ★★☆☆☆ | +5.9% | +7.6% | +6.6% | 0.36% | ₹7,556Cr |
| 10 | Tata Floating Rate Fund Tata | ★★☆☆☆ | +6.6% | +7.6% | +6.7% | 0.32% | ₹109.92Cr |
| 11 | Aditya Birla Sun Life Floating Rate Fund Aditya Birla Sun Life | ★★★★☆ | +6.2% | +7.5% | +6.7% | 0.25% | ₹13,519Cr |
NAV data as of 20 Aug 2026. Returns are CAGR for periods ≥1 year, computed from AMFI NAV history. Ratings are WealthTicker’s own, ranked within sub-category peers — not a SEBI or agency rating. See our methodology for every formula. This is data, not investment advice.
Popular comparisons
More Debt categories
Frequently asked questions
What are floater mutual funds?
Debt funds lend to governments and companies and earn interest. They're generally steadier than equity funds and are used for shorter horizons and stability.
Which is the best floater fund right now?
Axis Floater Fund by Axis currently ranks first among floater mutual funds by 3-year CAGR at +8.55%. Rankings move with NAVs — past returns don't guarantee future performance.
What returns have floater mutual funds given?
The category has averaged +6.52% over 1 year, +7.88% annualized over 3 years, +6.88% annualized over 5 years — peer averages over the live funds in the category, computed from AMFI NAV history.
How are floater mutual funds taxed?
Debt taxation: all gains are added to your income and taxed at your slab rate, regardless of holding period (for units bought on or after 1 April 2023).