Kotak's recently launched unit-linked plans — Kotak flexi plan and Kotak retirement income plan (ULIP) — already have the floating rate fund option. With the extension of the floating rate to these ULIP products, Kotak now offers a floating rate fund with all Kotak Life Insurance unit-linked plans.

According to Gaurang Shah, MD, Kotak Life Insurance, " We have added the floating rate fund in 'Kotak easy growth plan' and 'Kotak safe investment plan II', since it seeks to deliver returns in line with the market interest rate, from a portfolio invested primarily in floating rate debt instruments. This is ideal for people looking for liquidity and safety as their investments will not suffer capital loss due to interest rate fluctuations as the returns are aligned to the prevailing interest rates."

The 'Kotak easy growth plan' (KEGP), which combines insurance and investment, offers five investment options: 'money market fund', 'bond fund', 'balanced fund', 'growth fund' and 'floating rate fund'. Depending on the risk-return appetite an investor can opt for investments in one or a combination of funds. In addition, the investor can switch between the funds during the term.

'Kotak safe investment plan II' (KSIP II), a low-cost unit-linked plan, which offers long-term equity exposure while guaranteeing the sum assured also offers five investment options 'gilt fund', 'balanced fund', 'bond fund', 'growth fund' and 'floating rate fund'. This plan also provides the facility of lump sum injection, partial withdrawal and limited premium payment options and also permits switching between funds, loan facility and surrender facility after three years.