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Best Floater Debt Funds in 2025

What are Debt: Floater funds?


Funds Included All Fund Returns
(3Y annualised)		 Top 5 fund Returns
(3Y annualised)
12 8.13% 8.43%

This fund category is an example of Debt Scheme funds.

Debt funds invest primarily in fixed-income securities such as government bonds, corporate bonds, debentures, treasury bills, and money market instruments. They aim to provide steady income and capital preservation with lower volatility compared to equity funds. Depending on portfolio maturity and credit quality, debt funds range from liquid and short-duration funds to gilt and dynamic bond funds. Suitable for investors with moderate to low risk appetite seeking regular income.

Trailing returns for Debt: Floater funds

These are average returns over the indicated period.

Monthly trailing returns:
Nov-2025Oct-2025Sep-2025Aug-2025Jul-2025Jun-2025
0.39%0.71%0.66%0.00%0.63%0.34%

Quarterly trailing returns:
2025Q42025Q32025Q22025Q12024Q42024Q3
1.11%1.29%2.68%2.25%1.72%2.48%

Yearly trailing returns:
202520242023202220212020
7.53%8.55%7.69%4.47%4.02%9.11%

Rolling returns for Debt: Floater funds

SIP
10% Step-up SIP
Lump sum
SWP
10% Step-up SWP
Metric Any 1Y SIPAny 2Y SIPAny 3Y SIPAny 5Y SIPAny 7Y SIPAny 10Y SIP
Minimum3.96%6.81%6.77%6.55%7.17%7.36%
Median7.05%7.65%7.93%7.39%7.35%7.39%
Maximum10.04%8.29%8.87%8.01%7.53%7.42%
Risk1.42%0.38%0.52%0.41%0.13%0.01%
Sharpe Ratio3.22%168.33%180.06%94.26%278.67%2771.43%
Data as of 14-Dec-2025
Metric Any 1Y SIPAny 2Y 目↑ SIPAny 3Y 目↑ SIPAny 5Y 目↑ SIPAny 7Y 目↑ SIPAny 10Y 目↑ SIP
Minimum3.96%8.03%8.14%7.57%7.37%7.45%
Median7.05%8.24%8.27%7.61%7.39%7.47%
Maximum10.04%8.36%8.35%7.64%7.41%7.49%
Risk1.42%0.1%0.06%0.02%0.01%0.01%
Sharpe Ratio3.22%1265.25%2119.44%3056.25%3371.43%3371.43%
Data as of 14-Dec-2025
Metric Any 1YAny 2YAny 3YAny 5YAny 7YAny 10Y
Minimum4.16%7.06%6.86%6.48%7.3%7.57%
Median7.1%7.59%7.8%6.91%7.46%7.58%
Maximum9.78%7.9%8.63%7.54%7.62%7.6%
Risk1.39%0.23%0.47%0.34%0.11%0.01%
Sharpe Ratio7.11%258.39%171.48%-27.01%428.12%0%
Data as of 14-Dec-2025
Metric Any 1Y SWPAny 2Y SWPAny 3Y SWPAny 5Y SWPAny 7Y SWPAny 10Y SWP
Minimum3.74%7.07%6.45%5.54%7.39%7.78%
Median7.06%7.56%7.76%6.63%7.58%7.82%
Maximum10.45%7.83%8.69%7.6%7.74%7.85%
Risk1.49%0.18%0.56%0.58%0.09%0.02%
Sharpe Ratio4.03%302.26%135.81%-63.77%612.28%3718.18%
Data as of 14-Dec-2025
Metric Any 1Y SWPAny 2Y 目↑ SWPAny 3Y 目↑ SWPAny 5Y 目↑ SWPAny 7Y 目↑ SWPAny 10Y 目↑ SWP
Minimum3.74%8.7%8.02%5.66%7.35%7.56%
Median7.06%8.76%8.08%5.7%7.37%7.58%
Maximum10.45%8.81%8.13%5.75%7.41%7.59%
Risk1.49%0.03%0.03%0.03%0.02%0.01%
Sharpe Ratio4.03%5705.41%3413.16%-4938.1%1866.67%0%
Data as of 14-Dec-2025

Fundwise SIP, Lumpsum and SWP returns


Rolling SIP returns (less than 1 year)
Fund Any 1M SIPAny 3M SIPAny 6M SIP
DSP Floater Fund5.68%6.8%5.98%
SBI Floating Rate Debt Fund6.05%5.36%5.1%
HDFC Floating Rate Debt Fund7.24%7.58%6.76%
Nippon India Floater Fund6.38%7.62%6.65%
Axis Floater Fund3.76%6.69%4.6%
ICICI Prudential Floating Interest Fund11.13%9.39%8.11%
UTI Floater Fund6.71%7.37%6.31%
Kotak Floating Rate Fund7.67%7.68%7.07%
Tata Floating Rate Fund7.86%8.87%6.75%
Bandhan Floater Fund6.81%7.79%6.44%
Franklin India Floating Rate Fund6.77%7.7%6.42%
Aditya Birla Sun Life Floating Rate Fund8.45%7.79%7.08%
Data as of 14-Dec-2025

Note: Returns for less than one year are annualised. However, given the nature of the calculation, XIRR for such periods are not meaningful.

Rolling SIP returns (1 year or more):

Fund Any 1Y SIPAny 3Y SIPAny 5Y SIP
DSP Floater Fund4.77%8.52%0%
SBI Floating Rate Debt Fund4.45%7.75%7.2%
HDFC Floating Rate Debt Fund8.25%7.83%7.88%
Nippon India Floater Fund8.07%8.42%7.56%
Axis Floater Fund6.9%8.42%0%
ICICI Prudential Floating Interest Fund8.58%8.58%7.98%
UTI Floater Fund7.29%6.02%6.38%
Kotak Floating Rate Fund8.33%8.61%7.72%
Tata Floating Rate Fund7.48%7.68%0%
Bandhan Floater Fund4.84%8.31%0%
Franklin India Floating Rate Fund7.39%7.13%6.99%
Aditya Birla Sun Life Floating Rate Fund8.2%7.93%7.41%
Data as of 14-Dec-2025
SIP Calculator


Rolling Lumpsum returns
Fund Any 1YAny 3YAny 5Y
DSP Floater Fund3.85%8.55%0%
SBI Floating Rate Debt Fund4.38%7.87%6.45%
HDFC Floating Rate Debt Fund8.54%7.89%8.15%
Nippon India Floater Fund8.56%8.19%6.54%
Axis Floater Fund7.74%8.31%0%
ICICI Prudential Floating Interest Fund8.61%8.52%7.46%
UTI Floater Fund7.31%5.85%6.27%
Kotak Floating Rate Fund8.73%8.32%6.66%
Tata Floating Rate Fund7.48%7.05%0%
Bandhan Floater Fund4.37%8.07%0%
Franklin India Floating Rate Fund7.45%7.0%6.92%
Aditya Birla Sun Life Floating Rate Fund8.17%8.0%6.81%
Data as of 14-Dec-2025

Rolling SWP returns
Fund Any 1Y SWPAny 3Y SWPAny 5Y SWP
DSP Floater Fund3.91%8.58%0%
SBI Floating Rate Debt Fund4.32%7.99%5.6%
HDFC Floating Rate Debt Fund8.56%8.21%8.12%
Nippon India Floater Fund9.07%7.96%5.4%
Axis Floater Fund8.58%8.28%0%
ICICI Prudential Floating Interest Fund8.71%8.45%7.76%
UTI Floater Fund7.56%6.36%6.12%
Kotak Floating Rate Fund7.03%8.0%5.48%
Tata Floating Rate Fund7.3%6.51%0%
Bandhan Floater Fund3.77%7.8%0%
Franklin India Floating Rate Fund7.45%7.07%6.92%
Aditya Birla Sun Life Floating Rate Fund8.46%7.93%7.66%
Data as of 14-Dec-2025

SIP and SWP returns with step-up


Rolling SIP returns with 10% step-up
Fund Any 1Y SIPAny 3Y 目↑ SIPAny 5Y 目↑ SIP
DSP Floater Fund4.77%8.5%0%
SBI Floating Rate Debt Fund4.45%7.72%7.24%
HDFC Floating Rate Debt Fund8.25%8.32%7.71%
Nippon India Floater Fund8.07%8.4%7.63%
Axis Floater Fund6.9%8.34%0%
ICICI Prudential Floating Interest Fund8.58%8.65%8.03%
UTI Floater Fund7.29%7.53%6.98%
Kotak Floating Rate Fund8.33%8.6%7.8%
Tata Floating Rate Fund7.48%8.12%0%
Bandhan Floater Fund4.84%8.31%0%
Franklin India Floating Rate Fund7.39%8.71%8.0%
Aditya Birla Sun Life Floating Rate Fund8.2%8.06%7.5%
Data as of 14-Dec-2025

Rolling SWP returns with 10% step-up
Fund Any 1Y SWPAny 3Y 目↑ SWPAny 5Y 目↑ SWP
DSP Floater Fund3.91%8.6%0%
SBI Floating Rate Debt Fund4.32%8.01%5.68%
HDFC Floating Rate Debt Fund8.56%8.13%5.89%
Nippon India Floater Fund9.07%7.98%5.5%
Axis Floater Fund8.58%8.31%0%
ICICI Prudential Floating Interest Fund8.71%8.42%6.18%
UTI Floater Fund7.56%7.49%5.28%
Kotak Floating Rate Fund7.03%8.03%5.58%
Tata Floating Rate Fund7.3%7.71%0%
Bandhan Floater Fund3.77%7.83%0%
Franklin India Floating Rate Fund7.45%8.53%5.9%
Aditya Birla Sun Life Floating Rate Fund8.46%7.93%5.62%
Data as of 14-Dec-2025

Note:N.A. in returns indicate that the fund does not have sufficient history.

Tables have been updated on 14-Dec-2025

How are Debt: Floater funds taxed on selling?

Debt Funds
Tax for FY2025-26		 STCG Rate LTCG Eligibility LTCG Rate
Bought Before
1 Apr 2023		 Slab After 2Y 12.5%
Bought After
31 Mar 2023		 Slab Always STCG Slab

Note:

  • Dividends from mutual funds (called IDCW or Income Distribution cum Capital Withdrawal funds), are added to the income of the investor and taxed at their highest applicable (slab) rate.
  • Cess and surcharge (if applicable) is to be applied to taxes from mutual funds from selling and dividends.
  • Switches, SWP and selling any lump sum amount are taxable as per the table above.

Explore All Funds Belonging to this Type

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Disclaimer: Mutual fund investments are subject to market risks, read all scheme related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of distributable surplus. Investors are requested to review the prospectus carefully and obtain expert professional advice with regard to specific legal, tax and financial implications of the investment/participation in the scheme.

Note: NAVs and returns updated on 14-Dec-2025.

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