Franklin India Floating Interest Rates Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

Franklin India Floating Interest Rates Fund Direct Growth Plan currently has a NAV of ₹48.1245 as of 04 Sep 2026 and a scheme AUM of ₹281 Cr. Its 1-year, 3-year and 5-year returns are 6.96%, 8.19% and 7.18%, and the scheme is placed in the Medium Risk bucket. Our view is that this is a conservative-style debt fund with a steady longer-run track record rather than a high-octane return story.

The fund’s return pattern is fairly balanced across shorter and longer windows, while the portfolio is built around government securities, CDs and short-dated debt. That mix may help keep day-to-day swings contained, although the benchmark comparison suggests the fund has generally behaved better than NIFTY 50 over the same periods.

Quick facts

The fund is managed by Pallab Roy and Rohan Maru.

Source data date: as of 04 Sep 2026

Performance

The short-term pattern is constructive. Over 1 month and 1 year, the fund stayed positive, while the benchmark moved lower over 1 year and remained weaker over 1 month. That tells us the fund has held up better than NIFTY 50 in a choppier stretch, even though the 3-month comparison is fairly close.

The 3-year return of 8.19% is ahead of the benchmark’s 5.88%, and the 5-year return of 7.18% also sits above the benchmark’s 6.29%. That matters because it suggests the fund has done more than just protect capital in the recent period; it has also compounded at a better pace over longer windows than the benchmark used here.

At the same time, the path has not been perfectly smooth. The movement in the recent 1-year and 3-year periods shows a few softer patches and recoveries, which is typical of a debt fund that still carries interest-rate and credit allocation effects. Our read is that the fund’s longer-run compounding is more important than any one short burst, and that longer-run picture remains stable rather than dramatic.

In practical terms, this is the kind of profile that may suit investors who want measured debt exposure with a reasonable chance of keeping pace over time, rather than chasing sharp short-term spikes.

Source data date: as of 04 Sep 2026

Peer comparison

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.

The fund trails the strongest 1-year peer figure in this set, but the gap is not large. On the longer windows, its 3-year return is ahead of every peer shown here, and its 5-year return also stands comfortably above most of them.

That mix tells us the recent period has been slightly softer than the best peer numbers, while the longer-term record remains sturdier. For an investor comparing debt funds on consistency, the 3-year and 5-year numbers matter more than a one-period finish, and on that basis the fund looks competitive rather than stretched.

Source data date: as of 04 Sep 2026

Portfolio: where your money goes

The largest holding is 7.31% Karnataka SDL (04-Sep-2033) at 9.16%, so no single position dominates the portfolio. The tenth holding is 7.82% Bajaj Finance Ltd (31-Jan-2034) ** at 7.41%, which means the drop from the largest position to the tenth is moderate rather than steep.

The top 10 holdings together account for approximately 85.68% of the portfolio, so the disclosed book is fairly concentrated in a small set of positions even though the holdings themselves are split across government securities, certificate of deposit and corporate debt names. Because the total disclosed holding count is 15, there is also a longer tail beyond the largest names, which may provide some diversification beyond the visible core.

Overall, the allocation suggests a portfolio where a handful of large positions could meaningfully influence returns, but the spread across issuers and instruments may also help reduce reliance on any one credit or security. That profile fits a fund that is trying to balance carry with controlled exposure rather than making a single large directional bet.

To see all holdings, visit the Franklin India Floating Interest Rates Fund Direct Growth Plan page

Source data date: as of 04 Sep 2026

Who should invest

This fund may suit investors with a moderate comfort level on debt-fund volatility and a medium-to-long holding horizon. The Medium Risk tag, along with a return pattern that has stayed positive across 1-year, 3-year and 5-year windows, points to a relatively steady profile rather than a sharply cyclical one.

The main trade-off is that the fund appears more stable than equity-linked options, but it is still influenced by interest-rate and credit allocation decisions. Investors who want a debt-oriented holding that has compared well with the benchmark and has held up reasonably against peer returns may find the profile appealing, provided they are comfortable with returns that can vary from one period to the next.

Tax and exit load

Exit load: No exit load after holding period.

Source data date: as of 04 Sep 2026

Frequently asked questions

What is the current NAV of Franklin India Floating Interest Rates Fund Direct Growth Plan?
Its current NAV is ₹48.1245 as of 04 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s 1-year return is 6.96%, its 3-year return is 8.19% and its 5-year return is 7.18%.

How does it compare with the benchmark?
It has stayed ahead of NIFTY 50 across the 1-year, 3-year and 5-year windows shown here. The difference is especially visible over 1 year and remains positive over the longer periods.

How does it compare with the peer funds shown here?
Its 3-year and 5-year returns compare well with the other floating-rate funds in the table, while the 1-year return is slightly below the strongest peer figure shown. The longer record looks more persuasive than the latest period alone.

Is there a minimum SIP amount?
Yes, the minimum SIP amount is ₹500.

Who manages the fund and what is the exit load?
The fund is managed by Pallab Roy and Rohan Maru. There is no exit load after the holding period.

Bottom line

Franklin India Floating Interest Rates Fund Direct Growth Plan has shown a steadier longer-term record than the benchmark, and its 3-year and 5-year returns are also competitive against the peer set shown here. Recent performance is a little softer than the strongest peer 1-year number, but not enough to change the broader picture. The Medium Risk label, combined with a portfolio built around government securities, CDs and corporate debt, points to a fund that may work best as a measured debt allocation rather than a return-chasing one.

Published on 5 September 2026 at 2:58 PM IST