Sailing through floater funds in a scenario of rising interest rates

Floater funds have given returns of over 5 per cent in the last one year

During the past few months, floater funds have seen traction from the investors as well as the fund houses. The demand has risen for these funds as they are best suited to ride through during the rising interest rate environment.

During the past one-year floater funds have on an average given returns of 5.11 per cent, higher than other categories like short-duration fund, dynamic bond fund and banking and PSU funds, among others.

Market participants say that currently the economy is at the bottom of the interest rate cycle, as the Reserve Bank of India (RBI) is likely to roll