Sundaram Medium Term Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 10, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Sundaram Medium Term Fund Direct Growth Plan has a current NAV of ₹80.936 as of 09 Sep 2026 and manages ₹32 Cr. Its 1-year, 3-year and 5-year returns are 4.25%, 6.15% and 4.96%, and the fund sits in the Medium Risk bucket. Our view is that this is a conservative debt option for investors who can accept some price movement in return for a steadier profile than equity, though the recent return pattern has been modest rather than strong.
The fund’s longer-run numbers are firmer than its latest 1-year result, and its portfolio is anchored by government securities and high-quality corporate debt. That mix may support stability, but the benchmark comparison shows the fund has not consistently stayed ahead of NIFTY 50 over every period. For investors seeking medium-term debt exposure with an emphasis on credit quality and limited concentration in the top holdings, it may be a reasonable watchlist name.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹80.936 as of 09 Sep 2026 |
| AUM | ₹32 Cr |
| Expense Ratio | 1.09% |
| Launch Date | 02 Jan 2013 |
| Min SIP | ₹250 |
| Risk Category | Medium Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | 1% on or before 12M, Nil after 12M |
| Fund Managers | Sandeep Agarwal, Kumaresh Ramakrishnan |
The fund is managed by Sandeep Agarwal and Kumaresh Ramakrishnan.
Source data date: as of 09 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -0.06% | -4.69% |
| 3M | 1.28% | 0.93% |
| 1Y | 4.25% | -7.16% |
| 3Y | 6.15% | 6% |
| 5Y | 4.96% | 5.87% |
The short-term pattern is mixed, but it is not weak in absolute terms. Over 1 month, the fund was slightly negative while the benchmark fell much more sharply, which tells us the scheme held up better in a difficult stretch. Over 3 months, it turned positive and also stayed ahead of the benchmark, suggesting a steadier run in the most recent quarter.
The 1-year picture is more striking because the fund delivered a positive 4.25% while the benchmark was negative. That is a meaningful difference in favour of the scheme over the last year, even though the 1-year figure is still only moderate for an investor looking for stronger debt-fund compounding. The 3-year result is close to the benchmark, which indicates that the fund has broadly tracked the same direction of travel without creating a large return gap.
Over 5 years, the fund’s 4.96% is below the benchmark’s 5.87%. Our read is that the long-term record is acceptable but not decisively ahead of the benchmark. The time pattern also suggests a fund that has recovered from earlier softness and then settled into a more stable, lower-volatility phase rather than a high-growth phase.
The overall picture is therefore one of modest but relatively controlled performance. The scheme has been better behaved than the benchmark in some recent windows, but the longer horizon does not show a clear lead.
Source data date: as of 09 Sep 2026
Should you BUY or HOLD Sundaram Medium 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 Sundaram Medium Term? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Sundaram Medium Term Fund Direct Growth Plan | 4.25% | 6.15% | 4.96% |
| Aditya Birla SL Medium Term Fund Direct Growth Plan | 9.46% | 10.68% | 12.75% |
| ICICI Pru Medium Term Fund Direct Growth Plan | 7.98% | 8.55% | 7.42% |
| Kotak Medium Term Fund Direct Growth Plan | 7.76% | 9.07% | 7.46% |
| SBI Medium Term Fund Direct Growth Plan | 7.2% | 7.92% | 6.89% |
| Axis Medium Term Fund Direct Growth Plan | 7.18% | 8.47% | 7.39% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. The current fund trails the stronger peer 1-year numbers by a clear margin, so its recent return profile looks more subdued than the better-performing schemes here. The longer horizon also points to a weaker relative record, because the 3-year and 5-year figures sit below each of the peer figures listed above.
That said, the comparison is not telling a single story. The fund’s 1-year result is better than the benchmark, so the recent stretch has been steadier than the market reference. Against peers, however, the fund still looks conservative in return terms, which can matter for investors who value a more tempered debt-fund profile over aggressive compounding.
Source data date: as of 09 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| 6.48% Central Government Securities 06/10/2035 | Government Securities | 28.3% |
| 6.36% Central Government Securities 16/02/2031 | Government Securities | 12.16% |
| TREPS | Cash & Cash Equivalents and Net Assets | 11.2% |
| Cholamandalam Investment and Finance Company Ltd – 7.38% – 28/05/2027** | Corporate Debt | 6.1% |
| Small Industries Development Bank of India – 7.42% – 12/03/2029** | Corporate Debt | 6.1% |
| National Bank for Agriculture & Rural Development – 7.01% – 16/03/2029** | Corporate Debt | 6.04% |
| Power Finance Corporation Ltd – 6.61% – 15/07/2028** | Corporate Debt | 6.03% |
| REC Ltd – 7.28% – 31/08/2029 | Corporate Debt | 4.56% |
| 360 One Prime Ltd – 8.95% – 04/06/2027** | Corporate Debt | 3.07% |
| Can Fin Homes Ltd – 8.09% – 04/01/2027** | Corporate Debt | 3.07% |
The largest holding is 6.48% Central Government Securities 06/10/2035 at 28.3%, which is large enough to matter materially to the portfolio’s return path and mark-to-market behaviour. The next holding drops to 12.16%, so there is a clear step down from the largest line to the rest of the top of the book.
From the first to the tenth holding, weights move from 28.3% to 3.07%. That is a steep fall, but not unusual for a debt portfolio that mixes sovereign exposure, cash-like instruments and a spread of corporate debt lines. The top 10 disclosed holdings together account for approximately 86.63% of the portfolio, which indicates that most of the disclosed book sits in a relatively short list of positions rather than a very long tail.
At the same time, the individual positions are not all concentrated in one credit bucket. Government securities and TREPS make up a meaningful base, while the corporate debt sleeve is distributed across several issuers with similar mid-single-digit weights. With 15 total holding rows disclosed, our view is that the portfolio looks focused but not narrowly dependent on a single security beyond the leading government bond.
To see all holdings, visit the Sundaram Medium Term Fund Direct Growth Plan page
Source data date: as of 09 Sep 2026
Who should invest
This fund suits investors who want a debt-oriented allocation with moderate volatility rather than an equity-style growth profile. The Medium Risk label fits that framing: the portfolio leans heavily on government securities and high-quality corporate debt, which may appeal to conservative investors who still want some return potential beyond a simple cash-like product.
The return pattern suggests a medium-term horizon is more sensible than a very short holding period. The 1-year result has been better than the benchmark, while the 3-year and 5-year figures are more restrained, so the trade-off is between stability and the chance of stronger compounding. Investors who want a steadier debt fund and can accept returns that may trail better peer outcomes in some periods are the closer fit here.
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
1% if units are sold within 12 months; nil after 12 months.
Source data date: as of 09 Sep 2026
Frequently asked questions
What is the current NAV of Sundaram Medium Term Fund Direct Growth Plan?
Its current NAV is ₹80.936 as of 09 Sep 2026.
What are the 1-year, 3-year and 5-year returns?
The fund’s 1-year return is 4.25%, the 3-year return is 6.15% and the 5-year return is 4.96%.
How does it compare with the benchmark?
Over 1 year, the fund is ahead of NIFTY 50, which was -7.16%. Over 3 years it is close to the benchmark, while over 5 years it trails the benchmark’s 5.87%.
How does it compare with the peer funds listed here?
Its 1-year, 3-year and 5-year returns are lower than the peer figures shown for the other medium-term funds in this comparison set.
Is there a minimum SIP amount?
The minimum SIP amount is not stated here, so it is best to check the fund page for the latest application details.
Who manages the fund and what kind of risk does it take?
The fund is managed by Sandeep Agarwal and Kumaresh Ramakrishnan, and it is tagged as Medium Risk. Its portfolio is led by government securities and corporate debt, which supports that profile.
Bottom line
Sundaram Medium Term Fund Direct Growth Plan looks like a controlled debt allocation rather than a return leader. Its latest 1-year result is better than the benchmark, but the 3-year and 5-year numbers are more subdued, and the peer comparison also points to a weaker return profile than the stronger schemes in this set. The portfolio is anchored by government securities, which may help explain the more measured risk shape. For investors who prefer a medium-risk debt fund with a focused holding structure, it can still fit the brief.
Published on 10 September 2026 at 1:46 PM 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.