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

HDFC Floating Interest Rates Fund Direct Growth Plan has a NAV of ₹54.8878 as of 03 Sep 2026 and a scheme AUM of ₹16,133 Cr. Its 1-year, 3-year and 5-year returns are 6.41%, 7.69% and 6.87% respectively, and the fund sits in the Medium Risk category.

Our view is that this is a steady debt option rather than a return-chasing one. The longer track record is more balanced than the recent 1-year figure, and the portfolio is anchored by government securities, floating-rate exposure and a meaningful slice of securitised and corporate debt.

Quick facts

The fund is managed by Anil Bamboli.

Source data date: as of 03 Sep 2026

Performance

The recent pattern is constructive. Over 1 month, the fund held up while the benchmark was negative, and over 3 months it stayed slightly ahead of the benchmark. That tells us the fund has been able to provide a steadier path than a broad equity benchmark in the short run.

The 1-year figure is more telling. The fund delivered 6.41% while the benchmark was negative, so the relative gap is substantial over that window. For investors, that suggests the portfolio has been doing what a floating-rate debt strategy is expected to do: preserve stability when equity-style moves are weak, while still generating positive income-led returns.

The longer record looks even more balanced. The 3-year return of 7.69% is above the benchmark’s 5.74%, and the 5-year return of 6.87% is also ahead of the benchmark’s 6.27%. The gap is not dramatic, but it does show that the fund has stayed competitive over a full market cycle rather than relying only on a strong recent patch.

The return path is not perfectly smooth, and that is visible in the mid-term swings. Even so, the overall compounding trend remains positive, and recent behaviour is broadly consistent with the longer-term picture rather than sharply different from it.

Source data date: as of 03 Sep 2026

Peer comparison

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

Against the peer set, the fund’s 1-year return is below several of the better recent numbers, with Axis at 7.98%, Bandhan at 7.13% and Franklin India at 7.06%. ICICI Pru at 6.96% and Tata at 6.75% are closer, so the short-term picture is competitive but not the strongest among the names listed.

The longer-term picture is more even. The fund’s 3-year and 5-year returns of 7.69% and 6.87% are respectable, but several peers are ahead on both horizons, especially Axis and Franklin India. That said, the spread is not extreme, which suggests the fund remains in the same broad return band as its peers rather than diverging sharply from them.

So the short-term and longer-term comparisons point in the same general direction: the fund is steady, but not the most aggressive compounder in this group. For an investor, that usually matters more than a single good quarter, because the broader return profile still needs to justify the debt allocation.

Source data date: as of 03 Sep 2026

Portfolio: where your money goes

The top 10 holdings account for approximately 31.2% of the portfolio.

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

The largest holding is 6.64% GOI Mat 071231 at 6.77%, which is meaningful but not dominant. The next few positions also sit in the low-single-digit range, so the fund does not rely on one security for most of its outcome.

The weight curve from the first holding to the tenth is fairly gradual. That usually points to a portfolio where several positions may influence results rather than a single concentrated bet, even though the government-security and floating-rate exposures are clearly central.

With 65 disclosed holdings and the top 10 together accounting for 31.2%, the portfolio appears to be spread across a longer tail of smaller positions. That structure may help reduce dependency on any one issuer, while still keeping the portfolio anchored in higher-quality debt instruments.

Source data date: as of 03 Sep 2026

Who should invest

This fund may suit investors who want debt exposure with a moderate risk profile and who can stay invested for a meaningful period rather than judge it on a few months of movement. The 1-year return is lower than some peers, but the 3-year and 5-year figures remain steady, which supports a longer horizon view.

The main trade-off is that the fund looks more like a stable income-oriented holding than a high-octane return play. Investors who are comfortable with Medium Risk, value benchmark-beating consistency over a full cycle, and prefer a portfolio built around government securities, floating-rate paper and diversified credit exposure may find it relevant.

Tax and exit load

Exit load: No exit load after holding period.

Source data date: as of 03 Sep 2026

Frequently asked questions

What is the current NAV of HDFC Floating Interest Rates Fund Direct Growth Plan?
It is ₹54.8878 as of 03 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The returns are 6.41%, 7.69% and 6.87% respectively.

How has the fund performed against its benchmark?
It is ahead of the benchmark across the 1-year, 3-year and 5-year periods shown here. The gap is strongest over 1 year, where the benchmark return is negative.

How does it compare with peer funds?
Its recent return is below several peers, while its 3-year and 5-year figures are also slightly to meaningfully lower than the stronger peer numbers in the list. It still sits within a similar broad return range.

Is there a minimum SIP amount?
No minimum SIP amount is stated here.

Who manages the fund and what is the exit load?
Anil Bamboli manages the fund. The exit load is stated as no exit load after the holding period.

Bottom line

HDFC Floating Interest Rates Fund Direct Growth Plan has a steadier long-term profile than its recent 1-year number alone might suggest. It has stayed ahead of the benchmark across 1-year, 3-year and 5-year periods, while peer comparisons show it is competitive but not the strongest recent compounder in the group. The portfolio is tilted toward government securities, floating-rate exposure and other debt instruments, which fits the fund’s Medium Risk profile and income-oriented role.

Published on 4 September 2026 at 10:57 AM IST