DSP Short Term Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

DSP Short Term Fund Direct Growth Plan had a NAV of ₹54.056 as of 04 Sep 2026 and a scheme AUM of ₹3,522 Cr. Its 1-year, 3-year and 5-year returns are 5.72%, 7.33% and 6.26%, and it sits in the Medium Risk bucket.

Our view is that this is a steady debt fund for investors who can accept some duration movement in exchange for smoother long-term compounding than an equity-led strategy. The portfolio is tilted toward government securities, corporate debt and securitised exposure, which supports a conservative income-oriented profile.

Quick facts

The fund is managed by Karan Mundhra and Shantanu Godambe.

Source data date: as of 04 Sep 2026

Performance

Short-term behaviour has been calm overall. Over the most recent month, the fund held up slightly positive while the benchmark stayed negative, which points to a defensive profile in a weak stretch. The 3-month period was more balanced, with the fund close to the benchmark and slightly lower, so recent gains have not come from aggressive outperformance.

The 1-year picture is notably stronger for the fund because the benchmark was negative while the scheme delivered a positive return. That gap matters for investors who want stability rather than equity-like swings. It suggests the fund has been able to preserve returns through a difficult benchmark backdrop over the last year.

Over 3 years, the fund’s return of 7.33% is ahead of the benchmark’s 5.88%, which indicates healthier compounding than the index path over that window. Over 5 years, the fund and benchmark are almost level, so the long horizon does not point to a large structural edge. Taken together, the pattern is one of moderate resilience: better than the benchmark in some recent and medium-term windows, but not dramatically different over the full five-year span.

Source data date: as of 04 Sep 2026

Peer comparison

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.

On the latest 1-year figure, this fund trails all five peer schemes listed here, but the gap is not extreme versus the lower end of the group. The more telling comparison is over 3 years and 5 years: the fund is below the stronger peer outcomes in both periods, especially where ICICI Pru Short Term Fund Direct Growth Plan has a firmer 3-year and 5-year showing.

The short-term comparison and the longer-term comparison tell a slightly different story. In the recent window, the fund’s defence of capital is the main story; over longer periods, the peers have generally compounded a little better. That means the scheme still looks serviceable for cautious debt allocation, but the peer set shows that some alternatives have translated the same broad category exposure into stronger trailing returns.

Source data date: as of 04 Sep 2026

Portfolio: where your money goes

The largest holding is 6.94% GOI 11052036 at 9.44%, which is meaningful but not outsized for a debt portfolio. The drop from the first holding to the tenth is gradual rather than abrupt, and that points to a structure where several positions can matter rather than one security dominating the outcome.

The top ten holdings together account for approximately 54.52% of the portfolio, and the fund discloses 34 holdings in total. That suggests a reasonably broad spread beyond the most visible positions, although the listed top ten still carry more than half the assets. In our view, this mix may keep the fund anchored in a core set of issuers while still leaving room for diversification across the longer tail.

Government securities and public-sector or financial-sector debt make up a large share of the visible holdings, so interest-rate changes may still influence returns. At the same time, the presence of securitised debt and corporate issuers means the portfolio is not limited to only sovereign exposure. For an investor, that combination may feel more balanced than a narrow single-theme debt book.

To see all holdings, visit the DSP Short Term Fund Direct Growth Plan page

Source data date: as of 04 Sep 2026

Who should invest

This fund is better suited to investors who are comfortable with Medium Risk rather than capital-protection-only expectations. The 1-year return has stayed positive even when the benchmark was negative, while the 3-year figure has been better than the benchmark, so the scheme can appeal to someone seeking steadier debt-style compounding over a medium horizon.

The 5-year result is close to the benchmark, which tells us that long-run excess return is not the main reason to own it. The trade-off is straightforward: you get a portfolio that has behaved defensively in some recent stretches, but you should not expect equity-like upside or a large performance gap versus the benchmark over every period.

Tax and exit load

Exit load: No exit load.

Source data date: as of 04 Sep 2026

Frequently asked questions

What is the current NAV of DSP Short Term Fund Direct Growth Plan?

The current NAV is ₹54.056 as of 04 Sep 2026.

What are the 1-year, 3-year and 5-year returns?

The fund’s 1-year, 3-year and 5-year returns are 5.72%, 7.33% and 6.26%.

How does the fund compare with the benchmark?

It has outperformed the benchmark over 1 year and 3 years, while the 5-year return is almost the same as the benchmark.

How does it compare with the peer funds listed here?

Its recent 1-year return is below the peer names shown here, and the longer-term 3-year and 5-year figures are also generally below the stronger peer outcomes in this group.

What is the minimum SIP amount?

The minimum SIP amount is ₹100.

Who manages the fund and what is the exit load?

The fund is managed by Karan Mundhra and Shantanu Godambe, and it has no exit load.

Bottom line

DSP Short Term Fund Direct Growth Plan has shown a steadier recent profile than its benchmark, and its 3-year return also compares well, but the 5-year picture is much closer to the index. Among the peer funds listed here, the short-term and long-term returns are generally a little weaker, which tempers the case for it as a standout option. The portfolio is built around government securities and high-quality debt issuers, so it may suit investors looking for a conservative debt allocation with moderate risk rather than a high-return chase.

Published on 5 September 2026 at 3:08 PM IST