Bandhan Floater Fund: 35% Growth in 5 Years, AUM Crosses ₹300 Crore

An investment of ₹1 lakh in Bandhan Floater Fund at its launch in February 2021 has grown to around ₹1.35 lakh by December 2025. The scheme completed 5 years on February 23, 2026.

This means the fund delivered over 35% total growth during this period.

Recent Performance

In the last one year, the Direct Plan (Growth option) of the fund generated a return of 8.19%.

How the Fund Invests

The fund is an open-ended debt scheme that mainly invests in floating-rate instruments.

It may also invest in fixed-rate bonds but convert them into floating-rate exposure using swaps and derivatives. This strategy helps the portfolio adjust when interest rates change.

The fund also invests in:

• Longer-term government securities
• Selected higher-yield instruments

The scheme is managed by Brijesh Shah and Debraj Lahiri.

Fund Size and Investment Details

As of December 2025, the fund’s average assets under management (AUM) crossed ₹300 crore.

• Minimum lump-sum investment: ₹1,000
• Minimum SIP investment: ₹100

Also Read: How to Increase SIP Investments After a Pay Raise?

Risk Factors

The fund carries a relatively high interest rate risk and moderate credit risk. Returns depend on changes in interest rates and overall credit conditions.

Investors should assess whether the product matches their risk appetite and investment horizon. Past returns do not guarantee future performance.

Conclusion

Bandhan Floater Fund has delivered steady returns over the past five years, benefiting from its floating rate strategy during changing interest rate cycles. While it has shown consistent performance and growth in AUM, investors should carefully consider market risks before investing.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.