HDFC Ultra Short to Short Term Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 4, 2026
- Posted by: Harsh Piplani
- Category: Mutual Funds
HDFC Ultra Short to Short Term Fund Direct Growth Plan has a NAV of ₹67.5313 as of 03 Sep 2026 and a scheme AUM of ₹17,793 Cr. Its 1-year, 3-year and 5-year returns are 6.52%, 7.49% and 6.74%, and the fund sits in the Medium Risk bucket.
Our view is that this is a steady debt option for conservative investors who want relatively contained volatility with a return profile that has stayed close to mid-single digits to high-single digits over multiple holding periods. The portfolio is built around debt instruments, government securities and CDs, so the behaviour is more about income stability than aggressive growth.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹67.5313 as of 03 Sep 2026 |
| AUM | ₹17,793 Cr |
| Expense Ratio | 0.45% |
| Launch Date | 01 Jan 2013 |
| Risk Category | Medium Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | No exit load after holding period |
| Fund Managers | Anupam Joshi, Praveen Jain |
The fund is managed by Anupam Joshi and Praveen Jain.
Source data date: as of 03 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.54% | -3.01% |
| 3M | 2.14% | 1.95% |
| 1Y | 6.52% | -4.4% |
| 3Y | 7.49% | 5.74% |
| 5Y | 6.74% | 6.27% |
The short-term picture is stronger than the benchmark. Over 1 month and 1 year, the fund stayed positive while the benchmark was negative, which tells us the scheme has been more defensive than the reference index in recent periods. The 3-month period is also slightly ahead, though the gap is smaller there.
The longer view is more balanced but still supportive. The 3-year return of 7.49% is better than the benchmark’s 5.74%, while the 5-year return of 6.74% is also ahead of the benchmark’s 6.27%. That suggests the scheme has delivered a fairly consistent compounding pattern rather than depending on one strong stretch.
The recent path has not been perfectly smooth, but the movement has remained contained relative to what equity-style funds would typically show. For a debt scheme, that is useful because the main appeal is a return stream that does not swing sharply when market sentiment weakens.
On the whole, the performance pattern points to a fund that has been able to preserve a modest edge over the benchmark across both near-term and longer-term windows.
Source data date: as of 03 Sep 2026
Should you BUY or HOLD HDFC Ultra Short to Short Term?
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 HDFC Ultra Short to Short Term? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| HDFC Ultra Short to Short Term Fund Direct Growth Plan | 6.52% | 7.49% | 6.74% |
| Nippon India Ultra Short to Short Term Fund Direct Growth Plan | 6.64% | 7.51% | 6.74% |
| Nippon India Ultra Short to Short Term Fund(B)-Direct Plan | 6.64% | 7.51% | 6.74% |
| Franklin India Ultra Short to Short Term Fund Direct Growth Plan | 6.64% | Data not available | Data not available |
| Baroda BNP Paribas Ultra Short to Short Term Fund Direct Growth Plan | 6.61% | 7.43% | 6.59% |
| Mirae Asset Ultra Short to Short Term Fund Direct Growth Plan | 6.61% | 7.51% | 6.6% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. The current fund’s 1-year return is slightly below the best available peer figures, but the gap is narrow. Over 3 years and 5 years, its returns sit close to the stronger peer results rather than trailing them materially.
The peer set tells a mixed story: the fund is not the fastest recent performer, yet its longer-horizon numbers remain in the same band as several peers with available data. That combination supports a view of consistency rather than standout short-term momentum.
Source data date: as of 03 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| 7.75% Small Industries Development Bank^ | Corporate Debt | 5.15% |
| 6.17% Floating Rate GOI 2028 | Government Securities | 4.39% |
| Yes Bank Ltd.^ | Certificate of Deposit | 3.81% |
| Jubilant Beverages Limited^ | Corporate Debt | 3.74% |
| 7.53% National Bank for Agri & Rural Dev. | Corporate Debt | 3.62% |
| 6.75% Floating Rate GOI 2033^ | Government Securities | 2.93% |
| 7.59% National Housing Bank^ | Corporate Debt | 2.65% |
| Net Current Assets | Cash & Cash Equivalents and Net Assets | 2.54% |
| 7.8% National Bank for Agri & Rural Dev. | Corporate Debt | 2.53% |
| 8.1% Bajaj Housing Finance Ltd. | Corporate Debt | 2.11% |
The top 10 holdings account for approximately 33.47% of the portfolio.
To see all holdings, visit the HDFC Ultra Short to Short Term Fund Direct Growth Plan page
The largest holding is 7.75% Small Industries Development Bank^ at 5.15%, and the tenth holding is 8.1% Bajaj Housing Finance Ltd. at 2.11%. The gap between the largest and smallest disclosed holding is not extreme, which suggests the visible book is not built around a single dominant position.
Weight does ease down across the table, with government securities, CDs and corporate debt appearing repeatedly. That mix may help reduce reliance on any one issuer, while still keeping the fund focused on income-oriented instruments rather than broader market bets.
Because the top 10 holdings make up 33.47% of the portfolio and there are 68 disclosed holdings in total, the fund appears to use a fairly long tail beyond the largest positions. That means the visible holdings are spread across many instruments, even though the leading names are still likely to have greater influence on short-term behaviour.
Source data date: as of 03 Sep 2026
Who should invest
This fund may suit conservative investors who want debt exposure with a moderate risk label rather than a low-volatility guarantee. The return pattern is useful for investors who can stay invested over at least 3 to 5 years and who value steadier compounding more than sudden jumps in performance.
The main trade-off is that the fund has beaten the benchmark over the recent and longer windows, but the absolute return range still stays in the mid-single to high-single digits. That makes it more suitable for parking money with a view to stability and income orientation than for chasing large capital gains.
Given the portfolio mix of debt instruments, government securities and CDs, this fund fits investors who want a relatively controlled profile and can accept that returns may remain modest even when they are consistent.
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 |
Exit load: No exit load after holding period.
Source data date: as of 03 Sep 2026
Frequently asked questions
What is the current NAV of HDFC Ultra Short to Short Term Fund Direct Growth Plan?
The current NAV is ₹67.5313 as of 03 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The 1-year return is 6.52%, the 3-year return is 7.49% and the 5-year return is 6.74%.
How does the fund compare with the benchmark?
It has stayed ahead of the benchmark across all the listed periods. The gap is especially clear over 1 year, where the fund is positive and the benchmark is negative.
How does it compare with the peer funds listed here?
Its 1-year return is slightly below the strongest peer figures shown, while its 3-year and 5-year returns remain close to the better peer outcomes. That makes the overall comparison fairly balanced.
What is the minimum SIP?
A minimum SIP amount is not stated here.
Who manages the fund and is there an exit load?
The fund is managed by Anupam Joshi and Praveen Jain. There is no exit load after the holding period.
Bottom line
HDFC Ultra Short to Short Term Fund Direct Growth Plan has shown a steadier longer-term pattern than its benchmark, and the recent numbers are also comfortably positive. It does not lead the peer set on the latest 1-year figure, but its 3-year and 5-year returns remain close to the stronger peer band. With a Medium Risk profile and a portfolio tilted toward debt instruments, government securities and CDs, it looks suited to investors who want controlled exposure and are comfortable with moderate returns.
Published on 4 September 2026 at 11:09 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.
