Best Floater Funds

Fund Name
AUM
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3Y Returns
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Ratings
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ICICI Prudential Floating Interest Fund Direct Plan Weekly IDCW Payout

ICICI Prudential Floating Interest Fund Direct Plan Weekly IDCW Payout

Debt Floater Fund

₹9,557.71 Cr.

7.76%

4

ICICI Prudential Floating Interest Fund Direct Plan Weekly IDCW Reinvestment

ICICI Prudential Floating Interest Fund Direct Plan Weekly IDCW Reinvestment

Debt Floater Fund

₹9,557.71 Cr.

7.76%

4

ICICI Prudential Floating Interest Fund Direct Plan IDCW Others Reinvestment

ICICI Prudential Floating Interest Fund Direct Plan IDCW Others Reinvestment

Debt Floater Fund

₹9,557.71 Cr.

6.78%

4

ICICI Prudential Floating Interest Fund Direct Plan IDCW Others Payout

ICICI Prudential Floating Interest Fund Direct Plan IDCW Others Payout

Debt Floater Fund

₹9,557.71 Cr.

6.78%

4

ICICI Prudential Floating Interest Fund

ICICI Prudential Floating Interest Fund

Debt Floater Fund

₹9,557.71 Cr.

6.78%

4

ICICI Prudential Floating Interest Fund Direct Plan Daily IDCW Reinvestment

ICICI Prudential Floating Interest Fund Direct Plan Daily IDCW Reinvestment

Debt Floater Fund

₹9,557.71 Cr.

6.76%

4

Kotak Floating Rate Fund Direct Plan Standard Payout of IDCW Payout

Kotak Floating Rate Fund Direct Plan Standard Payout of IDCW Payout

Debt Floater Fund

₹5,281.10 Cr.

6.67%

3

Kotak Floating Rate Fund Direct Plan Standard Reinvestment of IDCW Reinvestment

Kotak Floating Rate Fund Direct Plan Standard Reinvestment of IDCW Reinvestment

Debt Floater Fund

₹5,281.10 Cr.

6.67%

3

Franklin India Floating Rate Fund

Franklin India Floating Rate Fund

Debt Floater Fund

₹306.74 Cr.

6.6%

1.5

HDFC Floating Rate Debt Fund

HDFC Floating Rate Debt Fund

Debt Floater Fund

₹14,524.29 Cr.

6.43%

4

Franklin India Floating Rate Fund Direct IDCW Reinvestment

Franklin India Floating Rate Fund Direct IDCW Reinvestment

Debt Floater Fund

₹306.74 Cr.

6.38%

1.5

SBI Floating Rate Debt Fund Direct Plan Quarterly IDCW Payout

SBI Floating Rate Debt Fund Direct Plan Quarterly IDCW Payout

Debt Floater Fund

₹1,153.82 Cr.

6.33%

0

SBI Floating Rate Debt Fund Direct Plan Quarterly IDCW Reinvestment

SBI Floating Rate Debt Fund Direct Plan Quarterly IDCW Reinvestment

Debt Floater Fund

₹1,153.82 Cr.

6.33%

0

SBI Floating Rate Debt Fund

SBI Floating Rate Debt Fund

Debt Floater Fund

₹1,153.82 Cr.

6.33%

0

SBI Floating Rate Debt Fund Direct Plan Monthly IDCW Payout

SBI Floating Rate Debt Fund Direct Plan Monthly IDCW Payout

Debt Floater Fund

₹1,153.82 Cr.

6.33%

0

SBI Floating Rate Debt Fund Direct Plan Monthly IDCW Reinvestment

SBI Floating Rate Debt Fund Direct Plan Monthly IDCW Reinvestment

Debt Floater Fund

₹1,153.82 Cr.

6.33%

0

Aditya Birla Sun Life Floating Rate Fund

Aditya Birla Sun Life Floating Rate Fund

Debt Floater Fund

₹12,399.83 Cr.

6.32%

5

DSP Floater Fund

DSP Floater Fund

Debt Floater Fund

₹876.12 Cr.

6.26%

0

DSP Floater Fund Direct Plan IDCW Payout

DSP Floater Fund Direct Plan IDCW Payout

Debt Floater Fund

₹876.12 Cr.

6.26%

0

DSP Floater Fund Direct Plan IDCW Reinvestment

DSP Floater Fund Direct Plan IDCW Reinvestment

Debt Floater Fund

₹876.12 Cr.

6.26%

0

Kotak Floating Rate Fund

Kotak Floating Rate Fund

Debt Floater Fund

₹3,793.54 Cr.

6.19%

3

TATA Floating Rate Fund

TATA Floating Rate Fund

Debt Floater Fund

₹209.01 Cr.

6.16%

0

TATA Floating Rate Fund Direct Plan IDCW Periodic Payout Payout

TATA Floating Rate Fund Direct Plan IDCW Periodic Payout Payout

Debt Floater Fund

₹209.01 Cr.

6.16%

0

TATA Floating Rate Fund Direct Plan IDCW Monthly Payout Payout

TATA Floating Rate Fund Direct Plan IDCW Monthly Payout Payout

Debt Floater Fund

₹209.01 Cr.

6.16%

0

TATA Floating Rate Fund Direct Plan IDCW Quarterly Payout Payout

TATA Floating Rate Fund Direct Plan IDCW Quarterly Payout Payout

Debt Floater Fund

₹209.01 Cr.

6.16%

0

TATA Floating Rate Fund Direct Plan IDCW Periodic Reinvestment Reinvestment

TATA Floating Rate Fund Direct Plan IDCW Periodic Reinvestment Reinvestment

Debt Floater Fund

₹209.01 Cr.

6.16%

0

TATA Floating Rate Fund Direct Plan IDCW Monthly Reinvestment Reinvestment

TATA Floating Rate Fund Direct Plan IDCW Monthly Reinvestment Reinvestment

Debt Floater Fund

₹209.01 Cr.

6.16%

0

TATA Floating Rate Fund Direct Plan IDCW Quarterly Reinvestment Reinvestment

TATA Floating Rate Fund Direct Plan IDCW Quarterly Reinvestment Reinvestment

Debt Floater Fund

₹209.01 Cr.

6.16%

0

Nippon India Floating Rate Fund Direct Plan Daily IDCW Reinvestment

Nippon India Floating Rate Fund Direct Plan Daily IDCW Reinvestment

Debt Floater Fund

₹7,817.10 Cr.

6.02%

2.5

Nippon India Floating Rate Fund

Nippon India Floating Rate Fund

Debt Floater Fund

₹7,817.10 Cr.

6.01%

2.5

Nippon India Floating Rate Fund Direct Plan Weekly IDCW Payout

Nippon India Floating Rate Fund Direct Plan Weekly IDCW Payout

Debt Floater Fund

₹7,817.10 Cr.

5.98%

2.5

Nippon India Floating Rate Fund Direct Plan Weekly IDCW Reinvestment

Nippon India Floating Rate Fund Direct Plan Weekly IDCW Reinvestment

Debt Floater Fund

₹7,817.10 Cr.

5.98%

2.5

Nippon India Floating Rate Fund Direct Plan IDCW Reinvestment

Nippon India Floating Rate Fund Direct Plan IDCW Reinvestment

Debt Floater Fund

₹7,817.10 Cr.

5.96%

2.5

Nippon India Floating Rate Fund Direct Plan IDCW Payout

Nippon India Floating Rate Fund Direct Plan IDCW Payout

Debt Floater Fund

₹7,817.10 Cr.

5.96%

2.5

Bandhan Floating Rate Fund

Bandhan Floating Rate Fund

Debt Floater Fund

₹260.44 Cr.

5.89%

0

Bandhan Floating Rate Fund Direct Plan Annual IDCW Payout

Bandhan Floating Rate Fund Direct Plan Annual IDCW Payout

Debt Floater Fund

₹260.44 Cr.

5.89%

0

Bandhan Floating Rate Fund Direct Plan Annual IDCW Reinvestment

Bandhan Floating Rate Fund Direct Plan Annual IDCW Reinvestment

Debt Floater Fund

₹260.44 Cr.

5.89%

0

Bandhan Floating Rate Fund Direct Plan Monthly IDCW Payout

Bandhan Floating Rate Fund Direct Plan Monthly IDCW Payout

Debt Floater Fund

₹260.44 Cr.

5.88%

0

Bandhan Floating Rate Fund Direct Plan Monthly IDCW Reinvestment

Bandhan Floating Rate Fund Direct Plan Monthly IDCW Reinvestment

Debt Floater Fund

₹260.44 Cr.

5.88%

0

Bandhan Floating Rate Fund Direct Plan Quarterly IDCW Payout

Bandhan Floating Rate Fund Direct Plan Quarterly IDCW Payout

Debt Floater Fund

₹260.44 Cr.

5.87%

0

Bandhan Floating Rate Fund Direct Plan Quarterly IDCW Reinvestment

Bandhan Floating Rate Fund Direct Plan Quarterly IDCW Reinvestment

Debt Floater Fund

₹260.44 Cr.

5.87%

0

UTI Floater Fund Direct Plan Annual IDCW Reinvestment

UTI Floater Fund Direct Plan Annual IDCW Reinvestment

Debt Floater Fund

₹1,382.47 Cr.

5.84%

0.5

UTI Floater Fund Direct Plan Annual IDCW Payout

UTI Floater Fund Direct Plan Annual IDCW Payout

Debt Floater Fund

₹1,382.47 Cr.

5.84%

0.5

UTI Floater Fund

UTI Floater Fund

Debt Floater Fund

₹1,382.47 Cr.

5.84%

0.5

UTI Floater Fund Direct Plan Half Yearly IDCW Payout

UTI Floater Fund Direct Plan Half Yearly IDCW Payout

Debt Floater Fund

₹1,382.47 Cr.

5.84%

0.5

UTI Floater Fund Direct Plan Half Yearly IDCW Reinvestment

UTI Floater Fund Direct Plan Half Yearly IDCW Reinvestment

Debt Floater Fund

₹1,382.47 Cr.

5.84%

0.5

UTI Floater Fund Direct Plan Flexi IDCW Payout

UTI Floater Fund Direct Plan Flexi IDCW Payout

Debt Floater Fund

₹1,382.47 Cr.

5.84%

0.5

UTI Floater Fund Direct Plan Flexi IDCW Reinvestment

UTI Floater Fund Direct Plan Flexi IDCW Reinvestment

Debt Floater Fund

₹1,382.47 Cr.

5.84%

0.5

Nippon India Floating Rate Fund Direct Plan Monthly IDCW Payout

Nippon India Floating Rate Fund Direct Plan Monthly IDCW Payout

Debt Floater Fund

₹7,817.10 Cr.

5.75%

2.5

Nippon India Floating Rate Fund Direct Plan Monthly IDCW Reinvestment

Nippon India Floating Rate Fund Direct Plan Monthly IDCW Reinvestment

Debt Floater Fund

₹7,817.10 Cr.

5.75%

2.5

Nippon India Floating Rate Fund Direct Plan Quarterly IDCW Payout

Nippon India Floating Rate Fund Direct Plan Quarterly IDCW Payout

Debt Floater Fund

₹7,817.10 Cr.

5.64%

2.5

Nippon India Floating Rate Fund Direct Plan Quarterly IDCW Reinvestment

Nippon India Floating Rate Fund Direct Plan Quarterly IDCW Reinvestment

Debt Floater Fund

₹7,817.10 Cr.

5.64%

2.5

UTI Floater Fund Direct Plan Quarterly IDCW Payout

UTI Floater Fund Direct Plan Quarterly IDCW Payout

Debt Floater Fund

₹1,382.47 Cr.

5.31%

0.5

UTI Floater Fund Direct Plan Quarterly IDCW Reinvestment

UTI Floater Fund Direct Plan Quarterly IDCW Reinvestment

Debt Floater Fund

₹1,382.47 Cr.

5.31%

0.5

Axis Floater Fund Direct Plan Monthly IDCW Payout

Axis Floater Fund Direct Plan Monthly IDCW Payout

Debt Floater Fund

₹256.09 Cr.

0%

0

Baroda BNP Paribas Floater Fund

Baroda BNP Paribas Floater Fund

Debt Floater Fund

₹20.17 Cr.

0%

0

Baroda BNP Paribas Floater Fund Direct Plan Weekly IDCW Payout

Baroda BNP Paribas Floater Fund Direct Plan Weekly IDCW Payout

Debt Floater Fund

₹20.17 Cr.

0%

0

Baroda BNP Paribas Floater Fund Direct Plan Weekly IDCW Reinvestment

Baroda BNP Paribas Floater Fund Direct Plan Weekly IDCW Reinvestment

Debt Floater Fund

₹20.17 Cr.

0%

0

Axis Floater Fund Direct Plan Quarterly IDCW Payout

Axis Floater Fund Direct Plan Quarterly IDCW Payout

Debt Floater Fund

₹256.09 Cr.

0%

0

Axis Floater Fund

Axis Floater Fund

Debt Floater Fund

₹256.09 Cr.

0%

0

Bandhan Floating Rate Fund Direct Plan Periodic IDCW Payout

Bandhan Floating Rate Fund Direct Plan Periodic IDCW Payout

Debt Floater Fund

₹260.44 Cr.

0%

0

Bandhan Floating Rate Fund Direct Plan Periodic IDCW Reinvestment

Bandhan Floating Rate Fund Direct Plan Periodic IDCW Reinvestment

Debt Floater Fund

₹260.44 Cr.

0%

0

Axis Floater Fund Direct Plan Annual IDCW Reinvestment

Axis Floater Fund Direct Plan Annual IDCW Reinvestment

Debt Floater Fund

₹256.09 Cr.

0%

0

Axis Floater Fund Direct Plan Quarterly IDCW Reinvestment

Axis Floater Fund Direct Plan Quarterly IDCW Reinvestment

Debt Floater Fund

₹256.09 Cr.

0%

0

Axis Floater Fund Direct Plan Annual IDCW Payout

Axis Floater Fund Direct Plan Annual IDCW Payout

Debt Floater Fund

₹256.09 Cr.

0%

0

Axis Floater Fund Direct Plan Monthly IDCW Reinvestment

Axis Floater Fund Direct Plan Monthly IDCW Reinvestment

Debt Floater Fund

₹256.09 Cr.

0%

0

About Floater Mutual Funds

A Floater fund is a type of debt fund where about 65% of fund assets are invested in floating-rate debt instruments. The asset class in this instrument constitutes corporate bonds or/and other similar instruments with a floating rate interest, unlike investing in government bonds that give a fixed interest rate.

Whenever RBI makes changes to repo rates, it impacts the floating rates. And a floater fund’s interest rate is determined by the prevailing floating rates in the market. This tells us that the RBI’s repo rate and the floater fund’s interest rate are directly proportional. If the repo rate increases, then the interest rate on floater funds also increases, and if the repo rate decreases, the floating interest rate decreases. The ideal time to invest in these funds is when there is an increasing trend in interest rates.

How Do Floater Funds Work?

Floating-rate instruments held by these funds are tied to specific benchmarks. The interest rates on these instruments fluctuate in response to changes in their benchmark rates. Typically, when interest rates rise in the debt market, the interest rates on these floating-rate instruments also increase, leading to higher returns for floater funds.

In contrast, fixed-interest instruments like bonds maintain a fixed interest rate, which causes them to underperform during periods of rising interest rates. Consequently, many investors opt for floater funds when interest rates are on the upswing, seeking to capitalise on the potential for greater returns compared to fixed-income funds.

Features of Floater Funds

Floater funds fall under the debt mutual fund category, and there are primarily two types in the Indian market: short-term and long-term. The following are the features of floater funds:

  1. Scheme type: The majority of floater funds are open-ended schemes, and this enables investors to invest in the fund at any time and exit when it is no longer viable for the investor to stay invested in the scheme.
  2. Diversification: A minimum investment of at least 65% of the fund’s assets should be in debt instruments for the fund to qualify as a floating rate-of-interest mutual fund. The rest of the fund can be invested in fixed-income securities. This way, the fund yields better returns and also mitigates the risk.
  3. Reduced risks: Floaters funds have considerably fewer risks when compared to equity funds. The risk can be mitigated by choosing better-rated funds or funds comprising high-rated securities.
  4. Investment tenure: There are two types of durations in floater funds – short-term and long-term maturity periods. The short-term floater funds invest in government securities such as treasury bills, certificates of deposit, etc., which have a duration of less than one year, while the long-term floater funds largely consist of corporate bonds, government bonds, debentures, etc., in their asset allocation.

Advantages of Floater Funds

  1. Higher returns: The earning capacity of floater funds is better in the long run in comparison to fixed-interest funds. When the economy has increasing interest rates, the floater funds can be considered a safer bet than fixed-rate bonds, which lose their value under such a situation. In contrast, as floating-rate bonds see their interest rates rising along with the market, their demand in the market increases or at least remains the same, leading to price stability.
  2. Moderate risks: Floater funds are suitable for those investors who are risk-averse with their investments but wish to yield better returns by having a relatively secure investment option. In comparison with equity funds, floater funds are more secure as an investment vehicle. It becomes vital that investors choose floater funds with a high credit rating as part of their portfolio.

Risks Involved in Floater Funds

Compared to fixed-income mutual funds, these schemes are highly volatile. The prevailing market conditions determine the performance of floater funds. The fund’s performance is directly proportional to any change in the repo rate. This type of risk that emanates from the interest rates changing in the economy is known as interest rate risk. Floater funds face the risk that interest rates may fall too low in the economy, causing the returns and the demand for the bonds to fall as well.

Although floater funds are regarded as a safer bet than equity funds, the underlying credit risk in these funds should not be ignored when an investor is making their decision. It is imperative that investors need to be cautious of their investment capital in floater funds. They are suggested to research the major debt allocations by the funds and to limit their exposure to floater funds by having a diversified portfolio and asset allocation.

That being said, one can also consider the fact that the fact that the interest rates of floating-rate bonds change with time acts as a hedge against the negative effects of interest rate increases.

Factors To Consider Before Investing in Floater Funds

  1. Limited Supply of Floating-Rate Bonds: Floating-rate bonds are relatively scarce in the Indian debt market, accounting for just around 5% of the total outstanding corporate bond issuances. Due to this restricted supply, fund managers of floating rate funds are compelled to employ derivative instruments such as Overnight Index Swaps (OIS) to navigate these constraints.These instruments allow them to transform fixed-coupon bonds with varying tenures into synthetic floating positions, aiding them in meeting regulatory requirements.
  2. Fund Benchmark and Strategy: Floater funds’ profitability hinges on benchmark interest rate increases. However, at the shorter end of the spectrum, the overnight interest rates, represented by MIBOR, do not fluctuate as dramatically as Treasury bill (T-bill) and Government securities (g-sec) rates, which are more sensitive to market sentiments.Moreover, there’s an inherent basis risk, which means that the interest rate swap might not completely offset changes in the yield of the underlying bond.
  3. Rate Uncertainty: Currently, the interest rate in the economy is at a multi-year low, with the 10-year benchmark G-sec yield sitting at 6.3% per annum. Given the gradual post-pandemic recovery of the economy, it’s improbable that the Reserve Bank of India (RBI) will swiftly increase rates.On the flip side, an expanding fiscal deficit is contributing to the risk of higher inflation rates, which could, in turn, exert upward pressure on interest rates.

Who Should Invest in Floater Funds?

Floater funds fall under the mutual debt fund category and are said to be comparatively less risky than equity funds. They possess credit risk and interest rate risk (related to changes in the RBI repo rate), making them somewhat riskier than fixed-income funds. These funds are, therefore, usually preferred by risk-averse investors.

Investors cannot ignore the risks involved due to the fund being categorised under the debt mutual category and consider floating funds part of the moderate risk category. Floater funds are ideally suitable for those investors whose financial goals and risk tolerance match the moderate risk profile of the fund. Once you know the floater fund’s meaning, you can decide whether you want to invest in floater funds or not.

Taxability of Floater Funds

Floater funds are part of the debt mutual funds category, and their taxation is similar to that of debt funds. Depending on the period of holding, these funds are subject to capital gain tax. The taxability structure of these funds is tabled below.

Type of capital gain Period of holding Tax rate
Short-term capital gains Less than 36 months Income tax slab rate of the investor.
Long-term capital gains 36 months and more 20% along with indexation benefit.

When an investor earns dividends on their floater fund investments, the dividends are included in their taxable income and subject to taxation based on their income tax bracket. In addition, if the dividend amount exceeds Rs. 5,000 in a financial year, a 10% Tax Deducted at Source (TDS) is applied to the excess amount.

How To Invest in Floater Funds?

Investing in Floater Funds can be easily done through your Angel One account. Just follow these simple steps:

Step 1: Log in to your Angel One account using your registered mobile number. Validate the OTP and enter your MPIN.

(Note: If you don’t have a Demat account with Angel One, you can quickly open one by completing the KYC procedure and submitting the necessary documents.)

Step 2: Search the most suitable fund based on your financial goals and risk tolerance. You can assess each fund in the mutual fund section on the Angel One app. Consider the following factors during this stage:

  • Search for your desired fund or take guidance from the recommended funds provided by Angel One.
  • Analyse the fund’s historical performance, tax implications, portfolio sectors, and holdings.
  • Estimate potential returns using the provided calculator.
  • Evaluate the fund’s risk level and compare it with your risk tolerance.
  • Review the fund’s ratings from reputable rating agencies (usually rated from 1 to 5).
  • Take note of the fund’s expense ratio to understand the cost of investment.

Step 3: Once you’ve decided on the fund(s) you want to invest in, access your Angel One account, navigate to the Mutual Funds section, and locate the chosen fund. Since this could be a long-term investment, exercise caution when making your selection. At this stage, consider the following:

  • Determine whether you want to invest a lump sum or opt for a monthly SIP (Systematic Investment Plan).
  • Enter the investment amount and choose your preferred payment method, with UPI being the recommended option. Alternatively, you can use net banking.
  • If you’re opting for the SIP investment route, you can set up a mandate for future instalments, making it hassle-free.

Top 5 Floater Funds to Invest in

Name of the Fund Assets Under Management (₹ in crore) Maximum Investment (₹) 3Y CAGR % 5Y CAGR %
ICICI Prudential Floating Interest Fund 11,650.70 500 6.65 7.21
Nippon India Floating Rate Fund 7,288.25 5,000 6.44 7.04
HDFC Floating Rate Fund 14,785.96 100 6.24 6.87
ABSL Floating Rate Fund 12,364.93 1,000 5.95 6.83
Franklin India Floating Rate Fund 311.25 1,000 5.35 6.23

The above-mentioned top funds are for informational purposes only and are not recommendations. The funds are based on a 5-yr CAGR, which is subject to change frequently. Check out real-time data on Angel One.

ICICI Prudential Floating Interest Fund

This fund has been managed by Rahul Goswami since September 2012. As of 31 March 2023, the fund has an AUM of ₹11,650.70 crore, and the minimum investment value is ₹500. The expense ratio of the fund is 0.62% under direct investment mode, and there is no exit load.

Nippon India Floating Rate Fund

This fund has been managed by Anju Chhajer since January 2011. As of 31 March 2023, the fund has an AUM of ₹7,288.25 crore and the minimum investment value is ₹5,000. The expense ratio of the fund is 0.27% under direct investment mode, and there is no exit load.

HDFC Floating Rate Fund

This fund has been managed by Shobhit Mehrotra since July 2007. As of 31 March 2023, the fund has an AUM of ₹14,785.96 crore and the minimum investment value is ₹100. The expense ratio of the fund is 0.26% under direct investment mode, and there is no exit load.

ABSL Floating Rate Fund

This fund has been managed by Kaustubh Gupta since July 2011. As of 31 March 2023, the fund has an AUM of ₹12,364.93 crore where the minimum investment value is ₹1,000. The expense ratio of the fund stands at 0.23% under direct investment mode and has no exit load.

Franklin India Floating Rate Fund

This fund has been managed by Pallab Roy since August 2006. As of 31 March 2023, the fund has an AUM of ₹311.25 crores, and the minimum investment value is ₹1,000. The expense ratio of the fund is 0.21% under direct investment mode and currently has no exit load.

Under the debt mutual funds category, floater funds are a relatively riskier choice where the investor needs to ensure that the gains that could be generated by such funds are more than the risk involved.

Mutual Funds Calculators

Floater Funds FAQs

Do floater funds carry high risk?

There are various factors that lead to the risks in a mutual fund. Floater funds also have some risks attached to them, like market volatility, credit risk, etc. However, in comparison to equity mutual funds, the risks are less.

Should I invest in floater funds?

If you are an investor who prefers risk-averse investment and has noted the risk and reward of a floater fund at the asset level and portfolio level, then you may invest in it. When the interest rates increase, you can consider investing in floating-rate funds.

What are the expected returns of floater funds?

This fund is helpful for investors looking to earn a decent return in the long run than fixed interest rate funds. When the economy has increasing interest rates, the floater funds can be regarded as a safe bet.

Are floater funds taxable?

Yes, they are taxable. Short-term capital gains tax is applicable for a holding period of up to 36 months, and beyond that duration, the long-term gains tax rate is applicable with an indexation benefit.

How much money should I invest in floater funds?

This is very subjective and varies from person to person, depending on one’s risk appetite. Ideally, invest that amount that feels comfortable and reevaluate it periodically, depending on your requirements.