UTI Floating Interest Rates Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 16, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
UTI Floating Interest Rates Fund Direct Growth Plan has a NAV of ₹1684.4282 as of 15 Sep 2026 and a scheme AUM of ₹1,574 Cr. Its 1-year, 3-year and 5-year returns are 6.46%, 7.16% and 6.33%, and the fund sits in the Balanced Risk category. Our view is that this is a steady debt option for investors who want floating-rate exposure with moderate price movement and a return pattern that has stayed broadly consistent across longer periods.
The fund has delivered returns that are close to its longer-term trend, while the benchmark has been weaker over the same horizons. That combination, along with its portfolio mix of corporate debt, government securities and cash, makes it more suitable for investors who value relative stability over aggressive return swings.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹1,684.4282 as of 15 Sep 2026 |
| AUM | ₹1,574 Cr |
| Expense Ratio | 0.37% |
| Launch Date | 30 Oct 2018 |
| Min SIP | ₹500 |
| Risk Category | Balanced Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | No exit load |
| Fund Managers | Pankaj Pathak |
The fund is managed by Pankaj Pathak.
Source data date: as of 15 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.27% | -4.81% |
| 3M | 1.51% | -3.63% |
| 1Y | 6.46% | -8.27% |
| 3Y | 7.16% | 5.59% |
| 5Y | 6.33% | 5.58% |
The shorter periods have been constructive for the fund, with positive 1-month, 3-month and 1-year returns, while the benchmark has been negative over the same windows. That tells us the scheme has held up better than the benchmark in recent periods and has done so with limited day-to-day drift in the displayed movement pattern.
Over 3 years and 5 years, the fund has stayed in a fairly narrow return band around the mid-6% to low-7% area. That is not a dramatic growth profile, but it does point to consistency. The benchmark has lagged over those horizons as well, so the fund has remained ahead on the available trailing return figures.
We also see a change in tone across the time windows: the near-term figures are better than the benchmark by a wide margin, but the longer-term numbers are only modestly above the fund’s own shorter-term pace. In our view, that suggests a disciplined debt strategy rather than a fund that depends on sharp market moves to deliver results.
Source data date: as of 15 Sep 2026
Should you BUY or HOLD UTI 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 UTI Floating Interest Rates? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| UTI Floating Interest Rates Fund Direct Growth Plan | 6.46% | 7.16% | 6.33% |
| Axis Floating Interest Rates Fund Direct Growth Plan | 7.41% | 8.4% | 7.2% |
| Franklin India Floating Interest Rates Fund Direct Growth Plan | 6.75% | 8.03% | 7.17% |
| Bandhan Floating Interest Rates Fund Direct Growth Plan | 6.75% | 7.82% | 6.76% |
| ICICI Pru Floating Interest Rates Fund Direct Growth Plan | 6.68% | 7.74% | 7.05% |
| Tata Floating Interest Rates Fund Direct Growth Plan | 6.68% | 7.5% | 6.76% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On the 1-year figure, the fund trails the strongest peer in this set and sits slightly below several others, though the gap is not large versus the middle of the group. The longer-term picture is also mixed: its 3-year and 5-year returns are below the leading peer figures shown here, but they remain within a fairly tight cluster, which points to a competitive though not standout run.
What matters more is that the short-term and long-term stories are broadly aligned. The fund is not showing a sudden jump in recent performance, and it is also not falling far behind the peer set on the longer horizon. That makes it a steadier comparison rather than a sharp outlier.
Source data date: as of 15 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| NCD National Bank for Agriculture and Rural Development | Corporate Debt | 7.92% |
| NCD Small Industries Development Bank of India | Corporate Debt | 7.89% |
| NCD REC Ltd | Corporate Debt | 7.87% |
| 06.36% Gsec Mat- 16/02/2031 | Government Securities | 6.29% |
| NCD Power Finance Corporation Ltd. | Corporate Debt | 5.41% |
| Net Current Assets | Cash & Cash Equivalents and Net Assets | 5.31% |
| GOI FRB – Mat 04/10/2028 | Government Securities | 4.8% |
| NCD Mahindra and Mahindra Financial Services Ltd | Corporate Debt | 4.77% |
| NCD Embassy Office Parks Reit | Corporate Debt | 4.76% |
| NCD Tata Capital Housing Finance Ltd | Corporate Debt | 4.75% |
The top 10 holdings account for approximately 59.77% of the portfolio.
To see all holdings, visit the UTI Floating Interest Rates Fund Direct Growth Plan page
The largest holding is 7.92%, so no single position dominates the portfolio. The weights then step down gradually, with the tenth holding at 4.75%, which suggests that the visible book is spread across several positions rather than concentrated in just one or two names.
At the same time, the top 10 holdings together account for 59.77% of the portfolio, so the fund still has meaningful exposure in its leading positions. With 27 disclosed holdings in total, the remaining positions likely create a longer tail that may help diversify idiosyncratic credit exposure. In our view, that balance between visible concentration and a broader tail fits a cautious floating-rate debt strategy.
Source data date: as of 15 Sep 2026
Who should invest
This fund suits investors who are comfortable with a Balanced Risk debt allocation and want a relatively steady return profile rather than sharp upside. The 1-year, 3-year and 5-year numbers show consistency, and the benchmark comparison also leans in the fund’s favour over the same periods.
The main trade-off is that the fund’s longer-term returns are solid but not especially high versus the stronger peer figures shown here. That makes it a better fit for medium- to longer-term investors who value stability, floating-rate debt exposure and a portfolio that is not overly dependent on a single holding.
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 |
No exit load applies.
Source data date: as of 15 Sep 2026
Frequently asked questions
What is the current NAV of UTI Floating Interest Rates Fund Direct Growth Plan?
The current NAV is ₹1684.4282 as of 15 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s returns are 6.46% for 1 year, 7.16% for 3 years and 6.33% for 5 years.
How has the fund performed against its benchmark?
It has done better than the benchmark across 1 month, 3 months, 1 year, 3 years and 5 years on the available return figures. The benchmark figures are weaker over the shorter windows and lower over the longer ones too.
How does the fund compare with other floating interest rate funds on returns?
Its 1-year, 3-year and 5-year returns are competitive but not the strongest in the set shown. Several peer funds have slightly higher trailing returns across one or more periods.
Is there a minimum SIP amount?
Yes. The minimum SIP is ₹500.
What should investors know about risk, holdings and exit load?
The fund is classified as Balanced Risk. Its largest holdings are mostly corporate debt positions, with government securities and cash also present, and there is no exit load.
Bottom line
UTI Floating Interest Rates Fund Direct Growth Plan has shown a steady return pattern, with recent performance broadly in line with its longer-term track record. It has also compared well with its benchmark on the available trailing periods, while peer comparisons show a competitive but not leading return profile. The portfolio is led by corporate debt positions, with government securities and cash adding balance. Overall, it looks more suited to investors seeking measured debt exposure than those chasing the highest possible short-term return.
Published on 16 September 2026 at 9:04 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.