This One Year Old Floater Fund Has Given 4.40% Annual Average Returns, Check Details

Debt funds that invest at least 65 per cent of their assets in floating-rate bonds are known as floater funds. The interest rates on these bonds fluctuate in response to changes in the economy's interest rates. Rates are updated on a regular basis to keep them in tune with market rates. In the last year, floater funds have given a respectable average return to their investors. The floater fund mentioned below is a one-year-old floater fund that has given good capital gains to the investors in the last 1 year.

SBI Floating Rate Debt Fund - Direct Plan-Growth

This Floater Fund was launched on 27th October 2020, introduced by the SBI Mutual Fund. The fund's Direct Plan-Growth scheme has worth Rs 2,714.3 Crores of assets under management (AUM). Its NAV declared on 26th April 2022 is Rs 10.6655. The fund has an expense ratio of 0.25%, which is close to its category average however, it is less than average. It is a medium-sized fund of its category. 

It is a moderate risky fund for investment. Its benchmark is NIFTY Short Duration Index. For investment in this fund, the minimum amount required is Rs 5,000. The minimum additional investment amount is Rs 1000. Whereas, for SIP, it is Rs 500. There is no lock-in period in this fund. However, it charges, 0.1% for redemption within 3 days of investment.

Absolute And Annualised Returns

Lump-Sum Return

Since its launch, it has delivered 4.40% average annual returns.

Tenure	Absolute Returns	Annualised Returns
3 Month	0.88%	-
6 Month	1.46%	-
YTD	1.19%	-
1 Year	4.26%	4.26%
Since Inception	6.65%	4.40%

SIP Returns

Tenure	Absolute Returns	Annualised Returns
1 Year	2.03%	3.79%

Portfolio

The fund has 91.84% investment in Debt of which 27.31% in Government securities, and 64.53% in funds invested in very low-risk securities. The fund's credit profile is high indicating it has lent to borrowers whose quality is great. Most funds in this category lend to better borrowers and hence the risk of default in this fund is higher than in the category. The fund's top holdings are in the Government of India, Cholamandalam Investment & Finance Co. Ltd., Air India Assets Holdings Ltd., and Small Industries Devp. Bank of India Ltd., and Reliance Jio Infratel Pvt. Ltd.

Disclaimers

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.