Kotak Ultra Short Term Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 10, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Kotak Ultra Short Term Fund Direct Growth Plan has a NAV of ₹48.5169 as of 09 Sep 2026 and scheme AUM of ₹15,961 Cr. Its 1-year, 3-year and 5-year returns are 6.67%, 7.26% and 6.57%, and the scheme sits in the Medium Risk bucket.
Our view is that the fund suits conservative investors who want relatively steady ultra-short duration exposure with a large diversified portfolio of 66 holdings. The recent return pattern is stable rather than aggressive, and the fund has stayed close to its benchmark over longer periods while remaining ahead over 1 year.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹48.5169 as of 09 Sep 2026 |
| AUM | ₹15,961 Cr |
| Expense Ratio | 0.37% |
| Launch Date | 01 Jan 2013 |
| Risk Category | Medium Risk |
| Benchmark | Nifty 50 |
| Fund Category | Equity |
| Exit Load | No exit load after holding period |
| Fund Managers | Deepak Agrawal, Manu Sharma |
The fund is managed by Deepak Agrawal and Manu Sharma.
Source data date: as of 09 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.60% | -4.69% |
| 3M | 1.84% | 0.93% |
| 1Y | 6.67% | -7.16% |
| 3Y | 7.26% | 6.00% |
| 5Y | 6.57% | 5.87% |
The short-term pattern has been firm. Over 1 month and 3 months, the fund has held positive ground while the benchmark has been weaker at the 1-month mark and only modestly positive over 3 months, which points to better near-term resilience.
The 1-year figure is the clearest contrast: the fund remains positive while the benchmark is negative. That gap suggests the scheme has handled the recent period better than the benchmark, even if the path was not perfectly smooth.
At longer horizons, the story becomes more measured. The 3-year and 5-year returns are both close to the benchmark and only modestly ahead, which tells us the fund has been steady rather than strongly differentiated over a full cycle.
The movement pattern also looks fairly contained, with gradual gains and only limited swings around the trend. That kind of profile often appeals to investors who prefer consistency over sharp upside, but it also means the fund has not shown a large separation from the benchmark in the long run.
Source data date: as of 09 Sep 2026
Should you BUY or HOLD Kotak Ultra 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 Kotak Ultra Short Term? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Kotak Ultra Short Term Fund Direct Growth Plan | 6.67% | 7.26% | 6.57% |
| TRUSTMF Multi Cap Fund Direct Growth Plan | 20.08% | Data not available | Data not available |
| Groww Multicap Fund Direct Growth Plan | 19.52% | Data not available | Data not available |
| Mahindra Manulife Multi Cap Fund Direct Growth Plan | 16.01% | 17.38% | 16.79% |
| ITI Multi Cap Fund Direct Growth Plan | 14.26% | 17.17% | 14.52% |
| Bank of India Multi Cap Fund Direct Growth Plan | 14.17% | 17.58% | Data not available |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
Against the listed comparison set, the fund’s 1-year return is far lower than the multi-cap peers shown, but that is not the most useful comparison because the fund itself is built for short-duration stability rather than equity-style growth. The more relevant takeaway is that its 3-year and 5-year returns are steady and close to the benchmark, which supports a defensive, income-oriented profile rather than a high-growth one.
Within the available longer-horizon figures, the fund does not stand out dramatically, but it does look consistent. The short-term resilience is stronger than the benchmark’s recent patch, while the longer-term numbers suggest a measured compounding pattern rather than a sharp performance edge.
Source data date: as of 09 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| Axis Bank Ltd.(^)** | Certificate of Deposit | 4.31% |
| Bank of Baroda** | Certificate of Deposit | 3.8% |
| 7.8% National Bank for Agriculture & Rural Development(^) | Corporate Debt | 3.61% |
| Small Industries Development Bank of India** | Certificate of Deposit | 3.3% |
| 182 Days Treasury Bill 11/02/2027 | Treasury Bills | 3.21% |
| HDFC Bank Ltd.(^)** | Certificate of Deposit | 3.19% |
| 6.54% Tamil Nadu State Govt – 2029 – Tamil Nadu(^) | Government Securities | 2.79% |
| National Bank for Agriculture & Rural Development(^) | Certificate of Deposit | 2.44% |
| Small Industries Development Bank of India** | Commercial Paper | 2.22% |
| HDFC Bank Ltd.** | Certificate of Deposit | 2.01% |
The top 10 holdings account for approximately 30.88% of the portfolio.
To see all holdings, visit the Kotak Ultra Short Term Fund Direct Growth Plan page
The largest holding is Axis Bank Ltd.(^)** at 4.31%, so no single position dominates the disclosed top slice. The gap from the first holding to the tenth is modest rather than extreme, which suggests the visible portfolio is spread across several issuers and instruments rather than concentrated in one or two bets.
The mix of certificate of deposit, treasury bill, government security and corporate debt exposure may help limit sharp portfolio swings. Because the top 10 make up about 30.88% of the portfolio and there are 66 disclosed holdings in total, the fund appears to rely on a broad tail of smaller positions for the rest of the exposure.
That structure could mean any one holding has only limited influence, even though the largest names still matter. For conservative investors, this kind of spread may be more comfortable than a narrowly concentrated debt portfolio.
Source data date: as of 09 Sep 2026
Who should invest
This fund is better suited to investors with a conservative to moderate risk tolerance who want short-duration exposure and a steadier return pattern. The Medium Risk label and the relatively contained movement profile support an investor who values consistency more than aggressive upside.
A longer holding period makes more sense than a very short trading-style stay, even though the fund has shown stable near-term behaviour. The main trade-off is that the fund may offer smoother performance than a more volatile strategy, but it is unlikely to deliver the kind of return jump associated with equity-heavy funds.
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 09 Sep 2026
Frequently asked questions
What is the current NAV of Kotak Ultra Short Term Fund Direct Growth Plan?
Its NAV is ₹48.5169 as of 09 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s 1-year, 3-year and 5-year returns are 6.67%, 7.26% and 6.57%.
How has the fund performed versus the benchmark?
It has been ahead of the benchmark over 1 month, 3 months, 1 year, 3 years and 5 years. The gap is widest over 1 year, where the benchmark is negative and the fund remains positive.
How does it compare with the peer funds listed here?
Its 1-year return is far below the listed multi-cap peers, but that comparison is not directly like-for-like because this scheme has a very different return profile. Its 3-year and 5-year numbers are steady and closer to the benchmark than to the equity-oriented peer figures.
Is there a minimum SIP amount mentioned for this scheme?
No minimum SIP amount is mentioned for this scheme.
Who manages the fund and what is the exit load?
The fund is managed by Deepak Agrawal and Manu Sharma. The exit-load rule shown for the scheme is no exit load after the holding period.
Bottom line
Kotak Ultra Short Term Fund Direct Growth Plan has shown a steadier short-term and medium-term pattern than its benchmark, with the strongest relative showing in the latest 1-year period. Its longer-term returns are more measured, and the comparison set includes equity-style funds with much higher return figures, so the useful takeaway is the fund’s defensive profile rather than a growth chase. The portfolio is spread across many holdings, with the top 10 accounting for 30.88% of the portfolio, which supports a diversified short-duration stance.
Published on 10 September 2026 at 11:31 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.