Floater funds back in focus as interest rates are all set to climb

They are best suited among the bouquet debt funds to sail through volatility in debt markets, say industry players

With inflation and yields on the benchmark 10-year government securities edging higher it is only a matter of time before the Reserve Bank of India (RBI) starts raising interest rates.

Given this backdrop, floater funds are the best suited among the bouquet debt funds to sail through the volatility in debt markets, say industry players.

During the past few months, floater funds have seen net outflows due to the tightening of liquidity and average returns. But now things could turn around.

The data from Association of Mutual Funds in India (Amfi) shows that in March floater funds saw net outflows