UTI Short Term Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 10, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
UTI Short Term Fund Direct Growth Plan has a NAV of ₹36.136 as of 09 Sep 2026 and manages ₹1,798 Cr. Its 1-year, 3-year and 5-year returns are 5.75%, 7.48% and 7.57%, and it sits in the Medium Risk category. Our view is that this is a steady debt fund for investors who want moderate return potential with a lower-volatility profile, but it is still sensitive to duration and credit choices in its portfolio.
It has delivered a calm long-term pattern, and the current return profile is broadly consistent with that. The fund looks more suitable for conservative investors who can stay invested long enough to smooth out short-term swings, rather than those looking for equity-like upside.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹36.136 as of 09 Sep 2026 |
| AUM | ₹1,798 Cr |
| Expense Ratio | 0.38% |
| Launch Date | 01 Jan 2013 |
| Min SIP | ₹500 |
| Risk Category | Medium Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | No exit load |
| Fund Managers | Anurag Mittal |
The fund is managed by Anurag Mittal.
Source data date: as of 09 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.17% | -4.69% |
| 3M | 1.69% | 0.93% |
| 1Y | 5.75% | -7.16% |
| 3Y | 7.48% | 6% |
| 5Y | 7.57% | 5.87% |
The short-term picture is mixed but still constructive. Over 1 month, the fund stayed positive while the benchmark was negative, which tells us the scheme has held up better in a weak stretch for the comparison index. Over 3 months, the fund also stayed ahead, though the margin was not large, so the recent edge is present but not dramatic.
The 1-year gap is more meaningful. The fund’s 5.75% return contrasts with the benchmark’s -7.16%, showing that the scheme has preserved capital far better through the same period. For debt investors, that is an important signal because it suggests the fund has not been forced into the kind of drawdown that the benchmark experienced.
The longer view is steadier. The 3-year and 5-year numbers are close to the high-7% zone, which points to a fairly consistent compounding path rather than a spiky return pattern. The benchmark also improves over those longer windows, but the fund remains ahead on both 3-year and 5-year horizons.
What stands out most is that recent behaviour does not look meaningfully different from the longer trend. The fund has not needed a sudden jump in the last few months to support its record; instead, it has shown a gradual and relatively even return pattern across periods.
Source data date: as of 09 Sep 2026
Should you BUY or HOLD UTI 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 UTI Short Term? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| UTI Short Term Fund Direct Growth Plan | 5.75% | 7.48% | 7.57% |
| Tata Ultra Short Term Fund Direct Growth Plan | 7.11% | 7.55% | 6.77% |
| Aditya Birla SL Ultra Short Term Fund Direct Growth Plan | 6.79% | 7.53% | 6.76% |
| ICICI Pru Short Term Fund Direct Growth Plan | 6.6% | 7.93% | 7.19% |
| Mahindra Manulife Short Term Fund Direct Growth Plan | 6.27% | 7.86% | 6.66% |
| Axis Short Term Fund Direct Growth Plan | 6.23% | 7.86% | 6.82% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. The fund’s 1-year return trails the better recent peer numbers in this set, where several schemes are above 6.2% and one is above 7%. Even so, its 3-year and 5-year returns are competitive and sit close to the better longer-term figures among the peer list, which tells a more balanced story than the 1-year comparison alone.
That split matters. On the short end, the fund does not lead the recent-return group, but over 3 years and 5 years it stays in the same band as the stronger longer-term peer outcomes. For investors who care more about consistency than the latest 12-month figure, that makes the comparison more reassuring than the recent number by itself might suggest.
Source data date: as of 09 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| NCD REC Ltd | Corporate Debt | 9.75% |
| NCD Export Import Bank of India | Corporate Debt | 9.63% |
| Net Current Assets | Cash & Cash Equivalents and Net Assets | 7.98% |
| NCD LIC Housing Finance Ltd. | Corporate Debt | 7.01% |
| NCD Small Industries Development Bank of India | Corporate Debt | 6.9% |
| NCD Poonawalla Fincorp Ltd. | Corporate Debt | 5.54% |
| NCD Vedanta Ltd | Corporate Debt | 5.48% |
| NCD 360 One Prime Ltd | Corporate Debt | 4.98% |
| NCD Piramal Finance Limited | Corporate Debt | 4.74% |
| NCD Indian Railway Finance Corporation Limited | Corporate Debt | 4.16% |
The largest holding, NCD REC Ltd, is 9.75%, so no single position dominates the fund on its own. The tenth holding is still 4.16%, which shows that the portfolio does not drop off sharply after the first few names; instead, the top holdings remain fairly close in size.
The top 10 holdings together account for approximately 66.17% of the portfolio, and there are 27 disclosed holding rows overall. That combination suggests a meaningful concentration in a core group of debt instruments, while still leaving room for a broader tail of positions beyond the largest exposures.
For a short-term debt strategy, that structure may help returns stay anchored to a relatively focused set of credit and cash positions. At the same time, it means the fund’s path can be influenced by how those larger debt holdings behave, so the weight spread is not so broad that any one position becomes irrelevant.
To see all holdings, visit the UTI Short Term Fund Direct Growth Plan page
Source data date: as of 09 Sep 2026
Who should invest
This fund may suit investors with moderate risk tolerance who want debt exposure with a reasonably steady return profile. The Medium Risk label matters here: it is not a cash-like parking option, but the return history is still more controlled than an equity fund.
A longer holding period is likely to make more sense than a very short one, especially because the fund has shown a stable 3-year and 5-year pattern rather than a sharp short-term spike. The main trade-off is that you are accepting some portfolio and rate sensitivity in exchange for returns that have generally stayed ahead of the benchmark over longer windows.
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.
Source data date: as of 09 Sep 2026
Frequently asked questions
What is the current NAV of UTI Short Term Fund Direct Growth Plan?
The current NAV is ₹36.136 as of 09 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s returns are 5.75% over 1 year, 7.48% over 3 years and 7.57% over 5 years.
How has the fund performed against the benchmark?
It has outpaced the benchmark over 1 month, 3 months, 1 year, 3 years and 5 years. The widest gap appears over the 1-year period, where the benchmark was negative while the fund stayed positive.
How does it compare with peer funds on recent returns?
Its 1-year return is lower than several peer funds in the comparison set, but its 3-year and 5-year returns remain competitive with the stronger longer-term peer figures.
Is there an exit load?
No, there is no exit load if units are sold at any time.
Who manages the fund?
Anurag Mittal manages the fund.
Bottom line
UTI Short Term Fund Direct Growth Plan has a steadier long-term return pattern than its most recent 1-year number suggests. It stays ahead of the benchmark across the periods shown, while peer comparison shows a softer 1-year result but competitive 3-year and 5-year figures. The portfolio is anchored by a fairly concentrated set of corporate debt positions, which may matter more to returns than any single short-term market move. Overall, it looks better suited to investors who want a medium-risk debt fund with a measured, longer-horizon profile.
Published on 10 September 2026 at 1:48 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.