Hdfc Floating Rate Debt Fund

Review Date: 25-03-2025

Beginning of Analysis

In the Floater Fund category, Hdfc Floating Rate Debt Fund is the top ranked fund. The category has total 12 funds. The Hdfc Floating Rate Debt Fund has shown an excellent past performence in Floater Fund category. The fund has a Sharpe Ratio of 0.45 which is higher than the category average of -0.07.
The past performance of the Hdfc Floating Rate Debt Fund may or may not be sustained in the future. The review is not investment advice nor is it a recommendation to buy or sell funds.
Floater Mutual Funds are a category of debt mutual funds that primarily invest in floating-rate debt instruments. These instruments have interest rates that reset periodically, typically linked to a benchmark rate such as the MIBOR (Mumbai Interbank Offered Rate) or the repo rate. Floater Mutual Funds are ideal for investors looking to minimize interest rate risk while earning stable returns. These funds perform well in a rising interest rate environment and are suitable for conservative investors with a short to medium-term investment horizon. However, they may underperform in a falling interest rate scenario, and investors should carefully assess their financial goals and risk tolerance before investing. Additionally, choosing funds managed by experienced professionals can enhance the potential for better risk-adjusted returns.

Hdfc Floating Rate Debt Fund Return Analysis

The fund has given a return of 0.66%, 1.99 and 3.88 in last one, three and six months respectively. In the same period the category average return was 0.78%, 2.06% and 3.79% respectively. The fund has given a return of 8.53% in last one year, 7.41% in last three years, 7.35% in last five years and 7.58% in last ten years. In the same period the category average return was 8.65%, 7.3%, 7.29% and 7.53% respectively. The fund has Good performance in last ten years in Floater Fund.

The fund has given a SIP return of 8.24% in last one year. In the same period the category average SIP return was 8.42%. The fund has SIP return of 8.1% in last three years whereas category average SIP return is 8.1%. The category average SIP return is 6.31% and the fund has given a SIP return of 6.44% in last five years.

Hdfc Floating Rate Debt Fund Risk Analysis

The fund has a standard deviation of 0.74 and semi deviation of 0.61. The category average standard deviation is 0.85 and semi deviation is 0.67. The fund has a Value at Risk (VaR) of 0.0 and a maximum drawdown of -0.21. The category average VaR is -0.06 and the maximum drawdown is -0.26.

Standard deviation measures the fund's return volatility and Semi deviation focuses on downside volatility. Value at Risk (VaR) is a measure of the risk of investments. Maximum Drawdown is the maximum loss from a peak to a trough of a portfolio. Beta measures the volatility of the fund compared to the benchmark. A beta of 1 indicates that the fund will move in line with the benchmark. A beta of more than 1 indicates that the fund will be more volatile than the benchmark and vice versa.