In mutual funds so "variable" rates and "floating" rates mean the same thing?

I have a floating rate mutual fund, for retirement income with keeping the principle the same or nearly the same. Is this the mutual fund for me?

Floating Rate refers to a fund which holds debt securities that have a floating, or variable, interest rate. It may hold variable rate mortgages or it may hold corporate bonds or more probably a mixture of both.

Is it the right fund for your retirement? That depends on a number of factors, such as; how far off is retirement for you, have you accumulated enough already to be fairly assured of a secure retirement, etc.

These funds are not designed to maintain stability of principal, but to grow (unless you are already in retirement). If the balance is the same as it was a year ago, you're doing okay considering the current market conditions. If it's been like that for five years, it could probably be better deployed. I certainly hope your retirement nest egg is diversified among other asset classes and that this fund doesn't represent more than 5-10% of the total.

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