Mutual funds floater plan turns ₹10,000 monthly SIP to ₹7.17 lakh in 5 years

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Mutual funds: Investing in bonds become tricky when it comes to choose the right bond for higher yield. To solve this problem of a mutual fund investor, mutual fund houses offer floater plans. In such plans, fund houses invest in bonds keeping floating interest rates. In case of higher interest rate, mutual funds floater plans return will go down whereas in the case of lowering interest rates, floater plans return will go up.

ICICI Prudential Floating Interest Fund – Direct Plan is one such mutual funds floater plan that invests mainly in bonds. It is one of the viable options for those who are looking for a fixed viable income option in one’s portfolio. This plan has remained less volatile in changing interest rates. In fact, if an investor had started investing 10,000 per month in this scheme in SIP mode 5 years ago, it would have grown to 7.17 lakh today.

Mutual funds SIP return

In last one year, this funds has delivered around 1.90 absolute return to a SIP investor whereas its annualised return in one year stands at 3.55 per cent. In last 2 years, absolute return of this plan in SIP mode is 5.33 per cent while annualised return in this period stands at 5.08 per cent. In last 3 years, absolute return of this plan is 9.92 per cent whereas annualised return given by this SIP plan is 6.24 per cent. In last 5 years, this SIP plan has delivered around 19.60 per cent absolute return while annualised return given by this plan in same period is 7 per cent.

10,000 per months grows to 7.17 lakh in 5 years

If an investor had started 10,000 monthly SIP in this floater plan one year ago, it would have grown up to 1.22 lakh today. If the same invested had been started 3 years ago, in that case 10,000 monthly SIP would have grown up to 3.96 lakh. Similarly, if an investor had invested 10,000 per month in this mutual funds floater plan for last 5 years, its 10,000 monthly invested would have grown up to 7.17 lakh today.

Other mutual funds floater funds

Apart from this ICICI Prudential Floating Interest Fund – Direct Plan, there are some other floater funds as well. Aditya Birla Sun Life Floating Rate Fund – Direct Plan – Growth, Kotak Floating Rate Fund – Direct Plan – Growth and HDFC Floating Rate Debt Fund – Direct Plan – Growth are some of them.

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