Interest in floater funds wanes over massive outflows, faltering returns

Amfi data shows that floater funds saw net outflows of Rs 10,323 crore, highest in the current financial year, in Feb

Interest in floater funds has started to wane as returns of the category have faltered in the last few months. Market participants believe that with the tightening of liquidity, floater funds are seeing negative flows.

The data from the Association of Mutual Funds in India (Amfi) shows that in February, floater funds saw net outflows of Rs 10,323 crore, highest in the current financial year. In the last six months, the category has seen net outflows of Rs 8,440 crore.  

Unlike normal fixed rate funds, floater funds invest a minimum of 65 per cent in floating rate securities issued by