- Changing interest rate environment brings an element of volatility to debt investments. This is because when interest rates fluctuate, price of debt instruments too will vary. For example, when interest rate increases, price of existing, lower interest rate debt instruments can fall.

- Short term conservative investors who are looking for debt investments may be bun willing to take on such volatility.

- Floating rate debt instruments can be relied on here. The interest rates on these debt instruments are linked to benchmark rates and thus change in response to market interest rate changes, thereby minimising the duration/interest risk for investors.

- Floating rate mutual funds invest in a mix of floating and fixed rate debt instruments (majority in floating rate); as per the market interest rate scenario, to generate better returns for investors, with minimal risks.

- Aditya Birla Sun Floating Rate Fund is an open-ended debt fund that predominantly invests in high quality floating rate debt instruments. The fund manager will manage asset allocation between fixed and floating rate instruments, in a way that seeks to better manage both interest and credit risk of the portfolio, while generating regular income with capital growth over the short-term for investors.