DSP Floating Interest Rates Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 17, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
DSP Floating Interest Rates Fund Direct Growth Plan currently has a NAV of ₹14.3158 as of 16 September 2026 and a scheme AUM of ₹321 Cr. Its 1-year, 3-year and 5-year returns are 5.57%, 7.71% and 6.67% respectively, and the fund sits in the Balanced Risk category. Our view is that this is a steadier debt option for investors who want floating-rate exposure with moderate return consistency rather than sharp short-term swings.
The fund has stayed ahead of the benchmark across all the tracked periods, which supports its case as a relatively resilient debt allocation. The portfolio is led by government securities, banks and other high-quality debt instruments, so the structure appears built more for stability and rate sensitivity than for aggressive yield chasing.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹14.3158 as of 16 Sep 2026 |
| AUM | ₹321 Cr |
| Expense Ratio | 0.25% |
| Launch Date | 19 Mar 2021 |
| Min SIP | ₹100 |
| Risk Category | Balanced Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | No exit load |
| Fund Managers | Shantanu Godambe, Karan Mundhra |
The fund is managed by Shantanu Godambe and Karan Mundhra.
Source data date: as of 16 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -0.03% | -4.41% |
| 3M | 1.4% | -3.6% |
| 1Y | 5.57% | -7.76% |
| 3Y | 7.71% | 5.74% |
| 5Y | 6.67% | 5.67% |
The recent pattern is constructive. Over 1 month, the fund was close to flat, while the benchmark was weaker. Over 3 months, the fund moved into positive territory even as the benchmark stayed negative. That tells us the fund has been more stable in the short run, which matters for investors who want a smoother debt allocation rather than a sharp drawdown profile.
The 1-year return of 5.57% is also stronger than the benchmark’s -7.76%, which shows the fund held up far better through the recent period tracked here. The longer record is even more supportive: 7.71% over 3 years and 6.67% over 5 years both sit above the benchmark’s 5.74% and 5.67%. That is a good sign for compounding consistency.
We read the full pattern as one of moderate but persistent growth, not a sudden spike. The fund’s trajectory across the 3-year and 5-year windows suggests that it has been able to compound steadily while the benchmark has been more uneven. The 1-month figure is slightly negative, but that does not alter the broader picture of relative strength over medium and longer horizons.
For investors, the key point is that the fund’s recent softness is mild and does not break the longer-term trend. The return profile looks more stable than the benchmark across every visible period, which is the main analytical takeaway from this review.
Source data date: as of 16 Sep 2026
Should you BUY or HOLD DSP Floating Interest Rates?
A fund’s past returns alone don’t tell you whether you should buy it today or continue holding it.
The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.
Already holding DSP Floating Interest Rates? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| DSP Floating Interest Rates Fund Direct Growth Plan | 5.57% | 7.71% | 6.67% |
| Axis Floating Interest Rates Fund Direct Growth Plan | 7.19% | 8.26% | 7.18% |
| Bandhan Floating Interest Rates Fund Direct Growth Plan | 6.81% | 7.84% | 6.77% |
| Franklin India Floating Interest Rates Fund Direct Growth Plan | 6.75% | 8.03% | 7.18% |
| ICICI Pru Floating Interest Rates Fund Direct Growth Plan | 6.7% | 7.75% | 7.05% |
| SBI Floating Interest Rates Fund Direct Growth Plan | 6.56% | 7.44% | 6.71% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On the 1-year number, the fund trails the stronger peer returns in this set, with Axis, Bandhan, Franklin India, ICICI Pru and SBI all ahead on that period. The picture improves at longer horizons: the fund’s 3-year return stays in the middle of the visible group, and its 5-year return is close to the lower end but still in the same general band as the rest. That makes the short-term comparison weaker than the longer-term one.
What stands out is consistency rather than outlier performance. The fund does not lead the peer set on the visible return figures, but it also avoids a large gap versus most of the peer group over 3 years and 5 years. For a debt investor, that combination can matter more than chasing the strongest single-period result.
Source data date: as of 16 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| 6.75% GOI FRB 22092033 | Government Securities | 21.71% |
| REC Limited** | Corporate Debt | 8.1% |
| 7.43% Maharashtra SDL 03122040 | Government Securities | 7.76% |
| Mindspace Business Parks Reit** | Corporate Debt | 7.76% |
| Export-Import Bank of India | Commercial Paper | 7.65% |
| Bank of Baroda** | Certificate of Deposit | 7.57% |
| Canara Bank** | Certificate of Deposit | 7.56% |
| Kotak Mahindra Bank Limited** | Certificate of Deposit | 7.56% |
| HDFC Bank Limited** | Certificate of Deposit | 7.54% |
| Bharti Telecom Limited** | Corporate Debt | 6.58% |
The largest holding is 6.75% GOI FRB 22092033 at 21.71%, which is a sizeable anchor position. After that, the weights drop into a much tighter band around 8% to 6.5% for the next nine holdings, so the portfolio does not rely on one dominant position alone. The tenth holding still carries 6.58%, which suggests the visible book remains fairly evenly spread after the top weight.
The top 10 holdings together account for approximately 89.79% of the portfolio, and there are 15 disclosed holdings in total. That tells us the fund is meaningfully concentrated in the names shown here, even though the individual weights after the first holding are not extreme. In practical terms, the largest government security is likely to have greater influence on the portfolio than any single later position, but it is not the only driver.
This structure may appeal to investors who are comfortable with a debt fund that still keeps meaningful exposure to government securities, banks and other credit instruments. Because the disclosed holdings cover most of the portfolio, the visible mix gives a fairly clear picture of what is likely to matter most for returns and interest-rate sensitivity.
To see all holdings, visit the DSP Floating Interest Rates Fund Direct Growth Plan page
Source data date: as of 16 Sep 2026
Who should invest
This fund may suit investors with moderate risk tolerance who want a debt allocation with steady compounding rather than very high income volatility. The Balanced Risk label, the positive return record over 1 year, 3 years and 5 years, and the better-than-benchmark pattern all point to a fund that has handled the recent cycle more smoothly than its comparison index.
The main trade-off is that the portfolio is not designed to behave like a defensive cash substitute, yet it also does not aim for equity-style upside. Investors who can hold for at least a medium-term horizon may find the combination of floating-rate exposure, government securities and bank debt more relevant than those looking for ultra-short-term parking.
Tax and exit load
| Holding period | Tax rate | Description |
|---|---|---|
| Units held less than 1 year | 20% | Short-term capital gains tax |
| Units held more than 1 year | 12.5% | Long-term capital gains tax |
Exit load: No exit load.
Source data date: as of 16 Sep 2026
Frequently asked questions
What is the current NAV of DSP Floating Interest Rates Fund Direct Growth Plan?
The current NAV is ₹14.3158 as of 16 September 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s returns are 5.57% over 1 year, 7.71% over 3 years and 6.67% over 5 years.
How has the fund performed versus its benchmark?
It has stayed ahead of the benchmark across all the tracked periods shown here. The gap is especially visible over 1 year, where the fund is positive while the benchmark is negative.
How does it compare with the peer funds shown here?
Its 1-year return is below several visible peers, but its 3-year and 5-year returns remain broadly in the same range as the peer group. That makes the short-term comparison weaker than the longer-term one.
What is the minimum SIP amount?
The minimum SIP amount is ₹100.
Who manages the fund and what is the exit load?
The fund is managed by Shantanu Godambe and Karan Mundhra. The exit load is no exit load.
Bottom line
DSP Floating Interest Rates Fund Direct Growth Plan looks steadier over longer stretches than in the very latest month, and its returns remain ahead of the benchmark across the visible time frames. The peer comparison is more mixed on the 1-year figure, but the 3-year and 5-year numbers stay competitive. With a Balanced Risk label and a portfolio led by government securities, bank paper and other debt instruments, it appears better suited to investors who want a medium-term debt holding with a defined interest-rate profile rather than a low-movement parking option.
Published on 17 September 2026 at 9:42 AM IST
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RIA disclosure
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.