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

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1	Aditya Birla Sun Life Floating Interest Rates Fund - GROWTH - Direct PlanPlatinum	2.01	-1.8%	+7.91%	59%	+5.52%	₹12,971 Cr	0.25%
2	ICICI Prudential Floating Interest Rates Fund - Growth - Direct PlanGold	1.91	-1.8%	+8.28%	71%	+5.56%	₹8,658 Cr	0.29%
3	Franklin India Floating Interest Rates Fund - Growth - Direct PlanGold	1.80	-1.3%	+7.06%	14%	+5.81%	₹256 Cr	0.38%
4	SBI Floating Interest Rates Fund - Growth - Direct PlanBronze	1.71	-0.6%	+7.41%	36%	+6.08%	₹676 Cr	0.28%
5	UTI Floating Interest Rates Fund - Growth - Direct PlanBronze	1.59	-1.5%	+6.21%	0%	+5.52%	₹1,506 Cr	0.44%
6	HDFC Floating Interest Rates Fund - Growth Option - Direct PlanGold	1.57	-1.3%	+7.84%	60%	+5.03%	₹15,659 Cr	0.27%
7	Kotak Floating Interest Rates Fund - GROWTH OPTION - Direct PlanGold	1.57	-2.0%	+6.65%	29%	+4.95%	₹3,240 Cr	0.24%
8	BANDHAN FLOATING INTEREST RATES FUND - Growth - Direct PlanSilver	1.46	-0.7%	+7.72%	49%	+5.77%	₹224 Cr	0.14%
9	Tata Floating Interest Rates Fund - Growth Option - Direct Plan	1.27	-0.6%	+7.58%	34%	+5.35%	₹114 Cr	0.31%
10	Nippon India Floating Interest Rates Fund - Growth Option - Direct Plan	1.18	-2.6%	+7.74%	50%	+4.37%	₹7,461 Cr	0.35%
11	DSP Floating Interest Rates Fund - Growth - Direct Plan	1.14	-0.8%	+7.85%	54%	+4.24%	₹316 Cr	0.27%
12	Axis Floating Interest Rates Fund - Growth Option - Direct PlanPlatinum	0.91	-1.3%	+8.20%	71%	+5.44%	₹149 Cr	0.22%

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 column heading to re-sort — including the fund name, which groups a house’s funds together. Funds with no value for a 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.