Which Floating Interest Rate funds have given the best returns over 3 years?

Over a 3-year period, the best performing Floating Interest Rate funds are Axis Floating Interest Rates Fund Direct-Growth with a 8.40% CAGR, Bandhan Floating Interest Rates Fund Direct-Growth with 8.17% CAGR, and ICICI Prudential Floating Interest Rates Fund Direct-Growth with 7.97% CAGR. The category average 3-year return stands at 7.72% CAGR.

What is the minimum amount to invest in Floating Interest Rate funds?

You can start investing in Floating Interest Rate funds with a minimum SIP of ₹100 per month or a minimum lumpsum of ₹100. The minimum investment varies across fund houses — some funds allow even lower entry points.

How are Floating Interest Rate fund returns taxed?

All gains from Floating Interest Rate funds — regardless of holding period — are added to your income and taxed at your applicable income tax slab rate.

Which Floating Interest Rate funds have the lowest expense ratio?

Among Floating Interest Rate funds, Bandhan Floating Interest Rates Fund Direct-Growth has the lowest expense ratio at 0.09% (Direct Plan), followed by Axis Floating Interest Rates Fund Direct-Growth at 0.22%. Lower expense ratios directly improve your net returns over the long term.

How many Floating Interest Rate mutual funds are available in India?

There are currently 12 Floating Interest Rate mutual funds available in India across different fund houses. You can compare all 12 funds on Sharpely based on returns, risk, AUM, and expense ratio to find the one that suits your investment goals.

mutual funds category

Floating Interest Rate

Best Floating Interest Rate Mutual Funds 2026

Q: What are the top performing Floating Interest Rate funds?

Based on 1-year returns, the top performing Floating Interest Rate funds are Axis Floating Interest Rates Fund Direct-Growth with 7.43% return, Bandhan Floating Interest Rates Fund Direct-Growth with 7.00% return, and ICICI Prudential Floating Interest Rates Fund Direct-Growth with 6.97% return. The category average 1-year return is 6.54%.

Total Schemes

No. of schemes

Total AUM

₹ 0.53Lakh Cr

As on latest

Category Return (5Y)

6.81 %

CAGR

Benchmark Data

This category currently has no benchmark assigned.

Category Returns (%)

Period	1M	6M	1Y	3Y CAGR	5Y CAGR	10Y CAGR	YTD
Floating Interest Rate	0.32 %	3.32 %	6.54 %	7.72 %	6.81 %	6.47 %	4.44 %
Benchmark Not Available No benchmark assigned	-	-	-	-	-	-	-

Top Floating Interest Rate Funds (by AUM)

Fund Name	AUM (₹ Cr)	1Y Return	3Y CAGR	5Y CAGR	Expense Ratio
HDFC Floating Interest Rates Fund Direct Plan-GrowthNAV: ₹54.95	16,133.30 Cr	6.42%	7.69%	6.89%	0.27%
Aditya Birla Sun Life Floating Interest Rate Direct Fund-GrowthNAV: ₹385.53	13,211.50 Cr	6.41%	7.51%	6.77%	0.25%
ICICI Prudential Floating Interest Rates Fund Direct-GrowthNAV: ₹502.69	9,118.82 Cr	6.97%	7.97%	7.12%	0.29%
Nippon India Floating Interest Rates Fund Direct-GrowthNAV: ₹51.03	7,507.90 Cr	5.95%	7.57%	6.59%	0.36%
Kotak Floating Interest Rates Fund Direct-GrowthNAV: ₹1,669.02	3,424.74 Cr	6.31%	7.83%	6.73%	0.25%
UTI Floating Interest Rates Fund Direct-GrowthNAV: ₹1,685.72	1,519.48 Cr	6.57%	7.18%	6.34%	0.44%
SBI Floating Interest Rates Fund Direct-GrowthNAV: ₹14.49	688.44 Cr	6.60%	7.65%	6.75%	0.28%
DSP Floating Interest Rates Fund Direct-GrowthNAV: ₹14.33	321.18 Cr	5.85%	7.86%	6.72%	0.28%
Franklin India Floating Interest Rates Fund Direct-GrowthNAV: ₹48.14	281.35 Cr	6.80%	8.17%	7.19%	0.38%
Bandhan Floating Interest Rates Fund Direct-GrowthNAV: ₹14.26	223.75 Cr	7.00%	7.93%	6.81%	0.09%
Axis Floating Interest Rates Fund Direct-GrowthNAV: ₹1,427.76	148.60 Cr	7.43%	8.40%	7.23%	0.22%
Tata Floating Interest Rates Fund Direct-GrowthNAV: ₹13.99	113.85 Cr	6.67%	7.52%	6.77%	0.32%

Floating Interest Rate vs Other Categories

5Y CAGR Return Comparison

10.54%

6.96%

6.81%

6.73%

6.68%

Credit Risk

Medium Term

Floating Interest Rate

Short Term

Ultra Short to Short Term

Key Insights

Floating Interest Rate delivered 6.81% CAGR over the last 5 years.

It ranks #3 out of 18 categories based on 5Y performance.

Above the category average return of 6.49%.

2 categories outperform it, while 15 categories have lower returns.

Top performer: Credit Risk (10.54%).

Lowest performer: Long Term (5.63%).

Let's have a closer look

Now let us jump and check about these top 15 mutual fund schemes.

HDFC Floating Interest Rates Fund Direct Plan-Growth

Fund Performance: HDFC Floating Interest Rates Fund Direct Plan-Growth has given 7.69% annualized returns in the past three years and 6.89% in the last 5 years. The HDFC Floating Interest Rates Fund Direct Plan-Growth comes under the Debt category of HDFC Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in HDFC Floating Interest Rates Fund Direct Plan-Growth via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 16,133.30Cr

1Y Returns

6.42%

Expense Ratio

0.27%

Aditya Birla Sun Life Floating Interest Rate Direct Fund-Growth

Fund Performance: Aditya Birla Sun Life Floating Interest Rate Direct Fund-Growth has given 7.51% annualized returns in the past three years and 6.77% in the last 5 years. The Aditya Birla Sun Life Floating Interest Rate Direct Fund-Growth comes under the Debt category of Aditya Birla Sun Life Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Aditya Birla Sun Life Floating Interest Rate Direct Fund-Growth via lump sum is ₹ 1,000.00 and via SIP is ₹ 1,000.00.

Min Investment Amt

₹ 1,000.00

AUM

₹ 13,211.50Cr

1Y Returns

6.41%

Expense Ratio

0.25%

ICICI Prudential Floating Interest Rates Fund Direct-Growth

Fund Performance: ICICI Prudential Floating Interest Rates Fund Direct-Growth has given 7.97% annualized returns in the past three years and 7.12% in the last 5 years. The ICICI Prudential Floating Interest Rates Fund Direct-Growth comes under the Debt category of ICICI Prudential Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Floating Interest Rates Fund Direct-Growth via lump sum is ₹ 500.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 500.00

AUM

₹ 9,118.82Cr

1Y Returns

6.97%

Expense Ratio

0.29%

Nippon India Floating Interest Rates Fund Direct-Growth

Fund Performance: Nippon India Floating Interest Rates Fund Direct-Growth has given 7.57% annualized returns in the past three years and 6.59% in the last 5 years. The Nippon India Floating Interest Rates Fund Direct-Growth comes under the Debt category of Nippon India Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Floating Interest Rates Fund Direct-Growth via lump sum is ₹ 5,000.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 7,507.90Cr

1Y Returns

5.95%

Expense Ratio

0.36%

Kotak Floating Interest Rates Fund Direct-Growth

Fund Performance: Kotak Floating Interest Rates Fund Direct-Growth has given 7.83% annualized returns in the past three years and 6.73% in the last 5 years. The Kotak Floating Interest Rates Fund Direct-Growth comes under the Debt category of Kotak Mahindra Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Kotak Floating Interest Rates Fund Direct-Growth via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 3,424.74Cr

1Y Returns

6.31%

Expense Ratio

0.25%

UTI Floating Interest Rates Fund Direct-Growth

Fund Performance: UTI Floating Interest Rates Fund Direct-Growth has given 7.18% annualized returns in the past three years and 6.34% in the last 5 years. The UTI Floating Interest Rates Fund Direct-Growth comes under the Debt category of UTI Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in UTI Floating Interest Rates Fund Direct-Growth via lump sum is ₹ 500.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 500.00

AUM

₹ 1,519.48Cr

1Y Returns

6.57%

Expense Ratio

0.44%

SBI Floating Interest Rates Fund Direct-Growth

Fund Performance: SBI Floating Interest Rates Fund Direct-Growth has given 7.65% annualized returns in the past three years and 6.75% in the last 5 years. The SBI Floating Interest Rates Fund Direct-Growth comes under the Debt category of SBI Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in SBI Floating Interest Rates Fund Direct-Growth via lump sum is ₹ 5,000.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 688.44Cr

1Y Returns

6.60%

Expense Ratio

0.28%

DSP Floating Interest Rates Fund Direct-Growth

Fund Performance: DSP Floating Interest Rates Fund Direct-Growth has given 7.86% annualized returns in the past three years and 6.72% in the last 5 years. The DSP Floating Interest Rates Fund Direct-Growth comes under the Debt category of DSP Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in DSP Floating Interest Rates Fund Direct-Growth via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 321.18Cr

1Y Returns

5.85%

Expense Ratio

0.28%

Franklin India Floating Interest Rates Fund Direct-Growth

Fund Performance: Franklin India Floating Interest Rates Fund Direct-Growth has given 8.17% annualized returns in the past three years and 7.19% in the last 5 years. The Franklin India Floating Interest Rates Fund Direct-Growth comes under the Debt category of Franklin Templeton Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Franklin India Floating Interest Rates Fund Direct-Growth via lump sum is ₹ 1,000.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 1,000.00

AUM

₹ 281.35Cr

1Y Returns

6.80%

Expense Ratio

0.38%

Bandhan Floating Interest Rates Fund Direct-Growth

Fund Performance: Bandhan Floating Interest Rates Fund Direct-Growth has given 7.93% annualized returns in the past three years and 6.81% in the last 5 years. The Bandhan Floating Interest Rates Fund Direct-Growth comes under the Debt category of Bandhan Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Bandhan Floating Interest Rates Fund Direct-Growth via lump sum is ₹ 1,000.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 1,000.00

AUM

₹ 223.75Cr

1Y Returns

7.00%

Expense Ratio

0.09%

Axis Floating Interest Rates Fund Direct-Growth

Fund Performance: Axis Floating Interest Rates Fund Direct-Growth has given 8.40% annualized returns in the past three years and 7.23% in the last 5 years. The Axis Floating Interest Rates Fund Direct-Growth comes under the Debt category of Axis Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Axis Floating Interest Rates Fund Direct-Growth via lump sum is ₹ 5,000.00 and via SIP is ₹ 1,000.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 148.60Cr

1Y Returns

7.43%

Expense Ratio

0.22%

Tata Floating Interest Rates Fund Direct-Growth

Fund Performance: Tata Floating Interest Rates Fund Direct-Growth has given 7.52% annualized returns in the past three years and 6.77% in the last 5 years. The Tata Floating Interest Rates Fund Direct-Growth comes under the Debt category of Tata Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Tata Floating Interest Rates Fund Direct-Growth via lump sum is ₹ 5,000.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 113.85Cr

1Y Returns

6.67%

Expense Ratio

0.32%

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Frequently asked questions

The largest Floating Interest Rate funds by Assets Under Management (AUM) are HDFC Floating Interest Rates Fund Direct Plan-Growth with ₹ 16,133.30 crore, Aditya Birla Sun Life Floating Interest Rate Direct Fund-Growth with ₹ 13,211.50 crore, and ICICI Prudential Floating Interest Rates Fund Direct-Growth with ₹ 9,118.82 crore. Together, there are 12 Floating Interest Rate funds available in India.