Union Dynamic Term Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 10, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Union Dynamic Term Fund Direct Growth Plan currently has a NAV of ₹24.8777 as of 09 Sep 2026 and scheme AUM of ₹62 Cr. Its 1-year, 3-year and 5-year returns are 1.71%, 5.23% and 4.29%, and the fund carries a Medium Risk tag.
Our view is that this is a debt fund shaped more by stability than by aggressive return seeking. The portfolio is anchored in long-dated government securities, so the return pattern has been steady but modest, and it has lagged the NIFTY 50 benchmark over the longer periods shown.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹24.8777 as of 09 Sep 2026 |
| AUM | ₹62 Cr |
| Expense Ratio | 1.26% |
| 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 | Parijat Agrawal, Devesh Thacker |
The fund is managed by Parijat Agrawal and Devesh Thacker.
Source data date: as of 09 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -1.17% | -4.69% |
| 3M | 1.16% | 0.93% |
| 1Y | 1.71% | -7.16% |
| 3Y | 5.23% | 6% |
| 5Y | 4.29% | 5.87% |
The recent pattern is mixed but not erratic. Over one month the fund was negative, yet it still held up better than the benchmark, and over three months it stayed slightly ahead. That suggests some short-term resilience, even though the fund is not delivering strong upside in absolute terms.
The longer view is steadier. The 1-year return is positive, but the 3-year and 5-year figures remain moderate for a debt scheme with a benchmark proxy tied to equities. The fund has trailed the benchmark at 3 years and 5 years, which tells us that the benchmark’s longer-run compounding has been stronger, even if the gap narrows in some shorter windows.
The time pattern also points to a fund that has moved in small steps rather than large swings. The trajectory improved through parts of the 3-year and 5-year periods, but it also gave back some ground along the way. For investors, that usually means the fund may suit a steadier return profile more than a high-momentum one.
Source data date: as of 09 Sep 2026
Should you BUY or HOLD Union Dynamic 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 Union Dynamic Term? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Union Dynamic Term Fund Direct Growth Plan | 1.71% | 5.23% | 4.29% |
| Bandhan Dynamic Term Fund Direct Growth Plan | 7.36% | 7.66% | 6.14% |
| Axis Dynamic Term Fund Direct Growth Plan | 6.61% | 7.52% | 6.28% |
| Kotak Dynamic Term Fund Direct Growth Plan | 6.57% | 7.87% | 6.64% |
| 360 ONE Dynamic Term Fund Direct Growth Plan | 6.48% | 8.19% | 6.91% |
| ICICI Pru Dynamic Term Fund Direct Growth Plan | 6.02% | 7.82% | 7.09% |
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 well below the peer set shown here, while the 3-year and 5-year figures also sit below the better-performing peer returns available for comparison. That makes the short-term picture look softer than the peer group, and the longer-term picture does not fully close the gap.
What stands out is that several peers have stronger numbers across all three periods, while this fund shows a more restrained pattern. The result is a comparison where the current fund’s return profile looks less forceful both near term and over multi-year windows, even though its debt-oriented portfolio structure may appeal to investors prioritising steadier behaviour over stronger upside.
Source data date: as of 09 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| GOI 6.90% 2065 | Government Securities | 46.41% |
| GOI 7.24% 2055 | Government Securities | 23.07% |
| Indian Railway Finance Corporation Ltd.** | Corporate Debt | 8.14% |
| REC Ltd.** | Corporate Debt | 8% |
| National Bank for Agriculture and Rural Development | Corporate Debt | 7.97% |
| Net Receivable / Payable | Cash & Cash Equivalents and Net Assets | 3.63% |
| TREPS | Cash & Cash Equivalents and Net Assets | 2.15% |
| Corporate Debt MKT Devp. Fund-A2 | Alternative Investment Fund | 0.53% |
The largest position, GOI 6.90% 2065, is 46.41% of the portfolio, so a single sovereign bond is likely to have a meaningful influence on returns and duration behaviour. The next holding, GOI 7.24% 2055, is also large at 23.07%, which means the portfolio is heavily anchored in long-dated government securities.
After those two positions, the allocation drops to single-digit weights in corporate debt and then smaller cash and receivable entries. That step-down is quite steep, so the top of the portfolio carries much more weight than the tail. With only 8 disclosed holdings and the top holdings already accounting for 99.9% of the portfolio, the fund looks highly concentrated within the set of positions it discloses.
That concentration does not automatically make the fund unsuitable, but it does mean the return pattern may be shaped more by a small number of large fixed-income positions than by broad diversification across many issuers. For investors, that can be useful if they want clarity on what drives the portfolio, but it also means the fund may move with the characteristics of those dominant holdings.
Source data date: as of 09 Sep 2026
Who should invest
This fund may suit investors who can accept Medium Risk and who are looking for a debt scheme with a relatively steady, low-drama return pattern rather than sharp upside. The 1-year, 3-year and 5-year returns are modest, and the longer-term figures trail the benchmark, so the main trade-off is between stability and stronger compounding. Given the heavy weight in government securities, it may appeal more to investors with a medium-to-long horizon who value clarity on portfolio structure and are comfortable with restrained return potential.
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 Union Dynamic Term Fund Direct Growth Plan?
The current NAV is ₹24.8777 as of 09 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s returns are 1.71% over 1 year, 5.23% over 3 years and 4.29% over 5 years.
How does it compare with the benchmark?
It has outpaced the benchmark over 1 month, 3 months and 1 year, but it has trailed the benchmark over 3 years and 5 years. That means the shorter window looks better than the longer one.
How does it compare with the peer funds shown here?
Its 1-year, 3-year and 5-year returns are below the peer figures shown for several comparable funds. The gap is most visible in the 1-year number, where peers are clustered much higher.
What is the minimum SIP amount?
The minimum SIP amount is ₹500.
Who manages the fund and what is the exit load?
The fund is managed by Parijat Agrawal and Devesh Thacker. It has no exit load.
Bottom line
This fund’s recent performance is steadier than dramatic, and its longer-term return profile remains modest relative to the benchmark and the peer set shown here. The Medium Risk label fits a portfolio that is dominated by long-dated government securities and a small number of large holdings. For investors who prefer a clear fixed-income structure and can accept subdued compounding, it may be a fit; for those seeking stronger return momentum, the numbers here suggest a more measured profile.
Published on 10 September 2026 at 3:26 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.