ICICI Prudential Floating Interest Fund topped the one-year return chart in the floating-rate mutual fund category with a 6.2% CAGR. HDFC and Aditya Birla Sun Life funds followed with 5.9% returns. These figures highlight fund performance for schemes managing over ₹1,500 crore in assets.
Detailed Coverage
The floating-rate debt fund category has seen a notable performance gap over the past year, with the ICICI Prudential Floating Interest Fund delivering a compound annual growth rate (CAGR) of 6.2%. This category of mutual funds is designed to invest in debt instruments where interest rates are not fixed, allowing them to adjust periodically. This structure often helps these funds manage risks when market interest rates are changing.
Following the leader, HDFC Floating Rate Debt Fund and Aditya Birla Sun Life Floating Rate Fund both recorded returns of 5.9% over the same one-year period. These rankings, which focus on funds with an asset base of at least ₹1,500 crore, reflect performance data current as of July 21, 2026.
Asset Scale and Performance Trends
While one-year returns provide a snapshot of recent performance, the size of the fund's corpus is another factor investors often consider. Among the top-tier funds, the HDFC Floating Rate Debt Fund manages a substantial corpus of ₹16,451.6 crore, making it the largest among the qualifying funds in this category.
Performance consistency can vary significantly depending on the timeframe examined. For example, while the ICICI Prudential fund performed well over one year, other funds like the Kotak Floating Rate Fund showed higher returns in the short term, delivering 0.7% over one month and 1.7% over three months. Looking at a longer three-year horizon, the HDFC Floating Rate Debt Fund recorded a 7.6% CAGR, indicating that different funds may hold advantages depending on the market conditions of that specific period.
What Investors Should Monitor
Investors looking at floating-rate funds often prioritize stability and the ability of the fund manager to navigate interest rate movements. Because these funds are tied to variable rates, their performance is closely linked to shifts in the broader debt market and policy rate decisions. When reviewing these funds, it is useful to look beyond just the most recent returns and consider how the fund has performed across different market cycles. Investors may want to check the fund's portfolio credit quality and expense ratio in their next review, as these factors also play a critical role in the net returns delivered to unit holders.