Nippon India Medium Term Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 11, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Nippon India Medium Term Fund Direct Growth Plan had a NAV of ₹18.3958 as of 10 September 2026 and a scheme AUM of ₹147 Cr. Its 1-year, 3-year and 5-year returns are 6.53%, 8.48% and 6.86%, and it sits in the Medium Risk category.
Our view is that this is a steady debt fund rather than a high-octane return seeker. The 3-year record has been a little stronger than the 5-year outcome, and the portfolio is led by government securities and corporate debt, which points to a measured credit-and-rate exposure mix.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹18.3958 as of 10 Sep 2026 |
| AUM | ₹147 Cr |
| Expense Ratio | 0.52% |
| Launch Date | 26 Jun 2014 |
| Risk Category | Medium Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | 1% on or before 12M, Nil after 12M |
| Fund Managers | Sushil Budhia |
The fund is managed by Sushil Budhia.
Source data date: as of 10 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.08% | -4.06% |
| 3M | 1.81% | 1.37% |
| 1Y | 6.53% | -7.31% |
| 3Y | 8.48% | 6.07% |
| 5Y | 6.86% | 5.91% |
The most recent numbers are mixed in a useful way. The fund held a small positive return over 1 month and 3 months, while the benchmark was weaker over 1 month and only modestly positive over 3 months. That tells us the fund has kept a steadier profile than the benchmark in the latest stretch.
The 1-year return is much better than the benchmark’s negative 1-year outcome, which matters because it shows the fund has navigated a difficult comparative period with far less strain. For a medium-duration debt fund, that kind of relative resilience is often more relevant than a short burst of absolute upside.
Over 3 years, the fund’s 8.48% return is ahead of the benchmark’s 6.07%, and over 5 years it remains ahead as well. The longer record does not look explosive, but it does look orderly, with the fund compounding at a pace that is slightly better than the benchmark while avoiding the sharp swings seen in the benchmark’s 1-year figure.
The time pattern also matters. The fund’s path appears fairly controlled, with a gentle recovery rather than abrupt jumps, which fits a medium-risk debt strategy. Our view is that the fund has been more consistent than dramatic, and that is exactly the kind of behaviour many debt investors look for when they want return visibility and less volatility.
Source data date: as of 10 Sep 2026
Should you BUY or HOLD Nippon India 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 Nippon India Medium Term? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Nippon India Medium Term Fund Direct Growth Plan | 6.53% | 8.48% | 6.86% |
| Aditya Birla SL Medium Term Fund Direct Growth Plan | 9.4% | 10.65% | 12.73% |
| ICICI Pru Medium Term Fund Direct Growth Plan | 7.88% | 8.53% | 7.41% |
| Kotak Medium Term Fund Direct Growth Plan | 7.65% | 9.04% | 7.43% |
| SBI Medium Term Fund Direct Growth Plan | 7.16% | 7.89% | 6.87% |
| Axis Medium Term Fund Direct Growth Plan | 7.1% | 8.45% | 7.37% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On the short-term measure, the fund trails the stronger peer figures shown here, especially the 9.4% one-year return from Aditya Birla SL Medium Term Fund Direct Growth Plan. That said, its 3-year and 5-year returns are still competitive enough to sit in the middle of this peer set rather than looking out of line.
The longer-term picture is more balanced than the one-year view. Kotak Medium Term Fund Direct Growth Plan and ICICI Pru Medium Term Fund Direct Growth Plan are close on 3-year and 5-year numbers, while Aditya Birla SL Medium Term Fund Direct Growth Plan is materially ahead on both horizons. The current fund does not lead this group on available return data, but its record is not weak enough to stand apart negatively either. The short-term and long-term comparisons therefore tell slightly different stories: recent returns look softer, while the multi-year profile remains orderly.
Source data date: as of 10 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| 6.79% Government of India | Government Securities | 6.76% |
| 7.44% National Bank for Agriculture and Rural Development** | Corporate Debt | 6.75% |
| 9.15% Andhra Pradesh State Beverages Corporation Limited** | Corporate Debt | 3.81% |
| Indian Railway Finance Corporation Limited** | Corporate Debt | 3.62% |
| 7.26% Government of India | Government Securities | 3.5% |
| 10.5% Triumph Composites Limited** | Corporate Debt | 3.49% |
| 8.8% REC Limited** | Corporate Debt | 3.49% |
| 7.1% Government of India | Government Securities | 3.45% |
| 9.25% Truhome Finance Limited** | Corporate Debt | 3.43% |
| 7.27% State Government Securities | Government Securities | 3.42% |
The top 10 holdings account for approximately 41.72% of the portfolio.
To see all holdings, visit the Nippon India Medium Term Fund Direct Growth Plan page
The largest holding is 6.79% Government of India at 6.76%, so no single position dominates the disclosed book. The weight then steps down fairly quickly: the second holding is only marginally lower at 6.75%, and the rest of the top 10 sit in a tighter band around the mid-3% range. That pattern suggests the fund is not relying on one outsized exposure to drive outcomes.
Because the top 10 holdings together make up 41.72% of the portfolio and the fund discloses 29 holdings, the rest of the portfolio is spread across a longer tail. That mix may reduce dependence on any one security, while still leaving the disclosed list meaningful enough for the larger positions to matter. In our view, the portfolio looks moderately spread rather than highly concentrated.
Source data date: as of 10 Sep 2026
Who should invest
This fund is better suited to investors who are comfortable with medium risk and want a debt allocation that is not overly aggressive. The 1-year outcome has been steadier than the benchmark, while the 3-year and 5-year numbers show a reasonably consistent compounding pattern.
The main trade-off is that the fund does not appear designed for standout upside; instead, it aims for a more measured path with a portfolio built around government securities and corporate debt. Investors with a medium-term horizon and a preference for relative stability may find that mix sensible, while those seeking sharper return acceleration may look elsewhere.
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 10 Sep 2026
Frequently asked questions
What is the current NAV of Nippon India Medium Term Fund Direct Growth Plan?
The current NAV is ₹18.3958 as of 10 September 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The 1-year return is 6.53%, the 3-year return is 8.48% and the 5-year return is 6.86%.
How has the fund compared with its benchmark?
It has been ahead of the benchmark across the 1-year, 3-year and 5-year periods shown here. The gap is especially clear over 1 year, where the benchmark is negative while the fund remains positive.
How does it compare with the peer funds listed here?
Its recent return is below several peer funds, especially Aditya Birla SL Medium Term Fund Direct Growth Plan. Over 3 years and 5 years, it stays closer to the middle of the peer set than to the strongest figures.
Is there a minimum SIP amount mentioned?
No minimum SIP amount is stated here. The available details do not specify one.
What risk level, portfolio style and exit load does the fund have?
It is a Medium Risk fund managed by Sushil Budhia. The portfolio is led by government securities and corporate debt, and the exit load is 1% on or before 12 months, with nil exit load after 12 months.
Bottom line
Nippon India Medium Term Fund Direct Growth Plan has a steadier long-term profile than its latest one-year comparison suggests. It stays ahead of the benchmark on the key return windows shown here, but several peers have posted stronger recent and multi-year numbers. The Medium Risk label and the mix of government securities and corporate debt point to a measured debt strategy rather than a return-maximising one. That makes the fund more relevant for investors who want a reasonably stable medium-term debt exposure with a spread of holdings rather than a concentrated bet.
Published on 11 September 2026 at 10:52 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.