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This Floater Fund Given Good Returns On 5 Years SIP, Check Returns and Portfolio

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If you're brand new to financial planning, the notion of risk appetite might be a little perplexing. In such a situation, investing in debt funds, such as floater funds, might be a viable investment choice for you. Debt funds that invest at least 65 percent of their assets in floating-rate bonds are known as floater funds. The interest rates on these bonds fluctuate with the economy's interest rates. Rates are updated on a regular basis to maintain them in line with market rates. One such fund is Nippon India Floating Rate Fund. Here, we have given the fund's returns performance, portfolio, and other details.

 

Nippon India Floating Rate Fund - Direct Plan-Growth

Nippon India Floating Rate Fund - Direct Plan-Growth

This is a debt Floater mutual fund scheme, launched on 1 January 2013 by the Nippon India Mutual Fund. Nippon India Floating Rate Fund Direct-Growth has Rs 18754.31 Crores worth of assets under management (AUM). And the NAV as of 11th March 2022 is Rs 37.6199. It has an expense ratio of 0.26%, which is very close to the average expense ratio of the floater funds.

It is an open-ended mid-sized fund of its category. It has given average return performance among its peers. It is a low to moderate risk fund. A minimum investment of Rs 5000 is required for a lump sum, on the other to start SIP, a minimum investment of Rs 100 is required. Direct Growth plans of the fund have no lock-in period.

The scheme aims to create consistent income by investing primarily in floating rate and money market instruments, as well as fixed-rate debt products.

 

Returns
 

Returns

Absolute and Annualised Returns

The fund outperformed the category average returns in every invested period.

Invested forAbsolute ReturnsAnnualised ReturnsCategory Avg
1 Year5.18%5.17%4.47%
2 Year14.57%7.04%6.22%
3 Year25.92%7.98%7.00%
5 Year44.27%7.60%7.14%
Since Inception107.40%8.26%5.96%

Source - Money Control

SIP Returns

It has offered more than 10% absolute returns on more than 3 years of SIP. 

Invested forAbsolute ReturnsAnnualised Returns
1 Year2.16%4.04%
2 Year5.53%5.28%
3 Year10.54%6.63%
5 Year20.40%7.36%

Source - Money Control

Portfolio

Portfolio

The fund has a debt investment of 94.33 percent, with 28.13 percent in government securities and 66.2 percent in funds with extremely low-risk securities. The fund's credit record is outstanding, suggesting that it has been loaned to borrowers of high quality. Because most funds in this category lend to comparable borrowers, the risk of default is similar across the board. GOI, State Bank of India, Indian Railway Finance Corpn. Ltd., Reliance Industries Ltd., and L&T Finance Ltd. are among the fund's top holdings.

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme-related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.

Story first published: Saturday, March 12, 2022, 16:39 [IST]
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