September 24, 2022
mayank
Nippon India Floating Rate Fund
NAV Growth: Rs 38.1799
NAV IDCW Weekly: Rs 10.2154
NAV IDCW Quarterly: Rs 10.5745
NAV IDCW Monthly: Rs 11.1774
NAV IDCW Daily: Rs 10.2306
NAV IDCW: Rs 17.0500
Suitable For Which Investors?
“This is a fund that invests mainly in bonds whose rate of interest keeps changing with the prevailing interest rates in the economy. Given their investment mandate, such funds are usually less volatile in response to changing interest rates.
They can be a viable option for the fixed-income allocation in your portfolio. However, we believe that retail investors can avoid these funds altogether. There are far too many kinds of debt funds with a highly nuanced classification based on the type or duration of bonds they can invest in. We believe that so many fund categories add to complexity which is easily avoidable. Retail investors can simply invest in Liquid funds for an investment horizon of up to one year and Short Duration funds for the fixed income allocation (which should be 100 per cent for an investment horizon of up to three years) in their longer-term portfolios.
If you do decide to invest in them, remember that they are meant to deliver steady, but low to moderate returns and are not suitable to build wealth in the long run.”
Fund’s Investment Strategy:
The scheme aims to generate regular income through investment in a portfolio comprising substantially of floating rate debt. It would not invest more than 75% of its assets in fixed rate debt securities including fixed rate securitised debt, money market instruments and floating rate debt Instruments swapped for fixed returns.
Fund Manager:
1) Anju Chhajer
Education: Ms. Chhajer is a B.Com (H) and a Chartered Accountant.
Experience: Prior to joining Nippon India Mutual Fund Ltd. as a fund manager, she has worked with National Insurance Company as a Money Maker Instruments and D.C Dharewa & Co.
Investment Details
| Min. Investment (Rs) | 5,000 |
| Min. Addl Investment (Rs) | 1,000 |
| Min. SIP Investment (Rs) | 1,000 |
| Min. Withdrawal (Rs) | 100 |
| Min. No of Cheques | 6 |
| Min. Balance (Rs) | 1 |
| Lock-in Period | NA |
| Exit Load | 0 |
Basic Details
| Fund House | Nippon India Mutual Fund |
| Launch Date | 01-Jan-13 |
| Return Since Launch | 7.95% |
| Benchmark | CRISIL Short-Term Bond Index |
| Riskometer | Low to Moderate |
| Type | Open-ended |
| Assets | Rs 9,944 Cr |
| (As on 31-Aug-2022) | |
| Expense Ratio | 0.27% |
| (As on 31-Aug-2022) | |
| Risk Grade | — |
| Return Grade | — |
Nippon India Floating Rate Fund Trailing Returns (%)
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| Nippon Ind Floating Rate Dir | 2.21 | -0.07 | 0.07 | 1.21 | 1.29 | 2.82 | 6.7 | 6.86 | 7.42 | — |
| CCIL T Bill Liquidity Weight | 1.55 | 0.05 | 0.26 | 0.75 | 1.1 | 2.1 | 2.57 | 3.23 | 3.6 | — |
| Debt: Floater | 2.65 | -0.05 | 0.31 | 1.58 | 1.89 | 3.32 | 6.18 | 6.76 | 7.25 | — |
| Rank within category | 10 | 10 | 10 | 10 | 11 | 10 | 2 | 3 | 2 | — |
| Number of funds in category | 12 | 12 | 12 | 12 | 12 | 12 | 7 | 5 | 5 | 0 |
Nippon India Floating Rate Fund Peer Comparison
| Fund name | Rating | 1 Year Returns | 3 Year Returns | 5 Year Returns | Expense Ratio (%) | Net Assets (Rs Cr) | Return Since Launch (%) | Exit Load (Days) | Fund Age |
| Nippon Ind Floating Rate Dir | Unrated | 2.82 | 6.70 | 6.86 | 0.27 | 9,944 | 7.95 | — | 9yrs 8mo |
| HDFC Floating Rate Debt Dir | Unrated | 3.76 | 6.32 | 6.86 | 0.26 | 16,072 | 7.84 | — | 9yrs 8mo |
| ABSL Floating Rate Dir | Unrated | 3.91 | 5.99 | 6.78 | 0.23 | 12,404 | 8.01 | — | 9yrs 8mo |
| ICICI Pru Floating Interest Dir | Unrated | 3.58 | 6.88 | 7.20 | 0.60 | 11,680 | 8.28 | — | 9yrs 8mo |
| Kotak Floating Rate Dir | Unrated | 2.73 | 6.48 | — | 0.22 | 5,786 | 6.60 | — | 3yrs 4mo |
Portfolio Breakup
| Fund | Category | |
| Number of Securities | 109 | 62 |
| Modified Duration (yrs) | 0.83 | 1.04 |
| Average Maturity (yrs) | 1.07 | 2.88 |
| Yield to Maturity (%) | 6.53 | 6.52 |
| Avg Credit Rating | AAA | — |
Chanakya’s Mutual Fund Guidance For Nippon India Floating Rate Fund
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