Best Floater Funds in India

12 floater funds in India, ranked on Sharpe ratio. Income with less volatility than equity?

Ranked on risk-adjusted return, not raw return — the point of this group is smoother outcomes.

Floater Funds ranked by Sharpe ratio

#Fund
1ICICI Prudential Floating Interest Fund - Direct Plan - GrowthGold2.23-1.8%+8.30%71%+7.03%₹8,464 Cr0.30%
2SBI Floating Rate Debt Fund - Direct Plan - Growth2.14-0.6%+7.20%39%+6.63%₹675 Cr0.28%
3DSP Floater Fund - Direct Plan - Growth2.12-0.5%+7.91%54%+6.08%₹329 Cr0.28%
4Aditya Birla Sun Life Floating Rate Fund-Direct Plan-GrowthSilver2.09-1.8%+7.92%61%+6.26%₹13,215 Cr0.25%
5Franklin India Floating Rate Fund - Direct - Growth1.99-1.3%+7.03%12%+6.39%₹290 Cr0.38%
6HDFC Floating Rate Debt Fund - Direct Plan - Growth OptionPlatinum1.83-1.3%+7.85%62%+6.37%₹16,409 Cr0.27%
7KOTAK FLOATING RATE FUND-DIRECT PLAN-GROWTH OPTIONSilver1.78-2.0%+6.62%29%+6.34%₹3,438 Cr0.25%
8BANDHAN FLOATER FUND - DIRECT PLAN GROWTH1.76-0.7%+7.57%47%+6.96%₹221 Cr0.10%
9UTI - Floater Fund - Direct Plan - Growth OptionBronze1.59-1.5%+6.10%0%+6.22%₹1,519 Cr0.44%
10Tata Floating Rate Fund -Direct Plan-Growth1.37-0.6%+7.61%40%+6.39%₹121 Cr0.32%
11Nippon India Floater Fund - Direct Plan Growth Plan - Growth OptionBronze1.35-2.6%+7.78%52%+5.93%₹7,501 Cr0.36%
12Axis Floater Fund - Direct Plan - GrowthSilver0.90-1.3%+8.11%69%+7.40%₹124 Cr0.23%

Badges are our own quality tiers — Platinum (top 10%), Gold (25%), Silver (50%), Bronze (75%) — scored within each sub-category, so they compare a fund with its peers and not with funds of a different type. “3Y typical” is the median annualised return across every 3-year holding period the fund has lived through, not a single 3-year figure; “3Y loss odds” is the share of those periods that ended down. “Beat peers” is the share in which it beat its category's median, and “worst fall” is its deepest peak-to-trough drop. Open a fund for the full distribution. Click any numeric column to re-sort; funds with no value for that column sort last. Returns over 1 year are annualised (CAGR). Past performance does not indicate future returns. Eligibility: Direct, Growth only, minimum AUM ₹100 Cr, at least 1 year(s) old. Past performance. Returns for 3y/5y are annualised (CAGR) and are withheld where the NAV series does not support the period.

Floater Funds — FAQs
Why rank these on risk-adjusted return?

The purpose of this group is a smoother path, not the highest possible number. A fund that earned slightly less with much less volatility is doing the job better, which is what a risk-adjusted measure captures and a raw return does not.

What risks do debt funds carry?

Two main ones. Interest-rate risk: when yields rise, existing bonds fall in value, and longer-duration funds move more. Credit risk: a borrower may be downgraded or default, which affects the NAV directly. Categories differ substantially in how much of each they take.