Groww Short Term Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 11, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Groww Short Term Fund Direct Growth Plan has a NAV of ₹2564.5097 as of 10 Sep 2026 and manages ₹95 Cr. Its 1-year, 3-year and 5-year returns are 5.9%, 7.6% and 6.18%, and the fund sits in the Balanced Risk category.
Our view is that this is a relatively steady debt-oriented option for investors who want moderate compounding rather than sharp short-term jumps. The portfolio is led by cash equivalents and a mix of corporate debt, which supports a measured risk profile, although the benchmark experience has been uneven in the recent period.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹2,564.5097 as of 10 Sep 2026 |
| AUM | ₹95 Cr |
| Expense Ratio | 0.3% |
| Launch Date | 16 Sep 2013 |
| Min SIP | ₹500 |
| Risk Category | Balanced Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | No exit load after holding period |
| Fund Managers | Kaustubh Sule, Wilfred Gonsalves |
The fund is managed by Kaustubh Sule and Wilfred Gonsalves.
Source data date: as of 10 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.28% | -4.06% |
| 3M | 1.95% | 1.37% |
| 1Y | 5.9% | -7.31% |
| 3Y | 7.6% | 6.07% |
| 5Y | 6.18% | 5.91% |
The recent picture is better than the benchmark over every period shown. In the 1-month view, the fund stayed slightly positive while the benchmark slipped, and the 3-month return also held above the benchmark. That tells us the portfolio has been able to avoid the same degree of weakness seen in the benchmark during a choppier stretch.
The 1-year number is the clearest sign of resilience because the benchmark is negative while the fund remains positive. That gap matters more than a simple one-period comparison, because it suggests the fund was able to preserve capital better through a tougher year for the benchmark. For investors who care about smoother outcomes, that is an important quality.
Over 3 years and 5 years, the fund still stays ahead of the benchmark, but the margin is more modest. That is a useful contrast: short-term leadership has been stronger than the longer-run edge. Our view is that this pattern points to a fund that has recently behaved more defensively than the benchmark, while still preserving a positive long-term compounding profile.
The time pattern also looks less linear than a pure steady-return debt fund. There are periods of softness and recovery, but the broader direction remains upward. That combination is typical of a portfolio that can absorb some rate or spread movement without abandoning the longer-term return trend.
Source data date: as of 10 Sep 2026
Should you BUY or HOLD Groww 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 Groww Short Term? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Groww Short Term Fund Direct Growth Plan | 5.9% | 7.6% | 6.18% |
| Tata Ultra Short Term Fund Direct Growth Plan | 7.13% | 7.55% | 6.77% |
| Aditya Birla SL Ultra Short Term Fund Direct Growth Plan | 6.79% | 7.52% | 6.75% |
| ICICI Pru Short Term Fund Direct Growth Plan | 6.57% | 7.91% | 7.18% |
| Mahindra Manulife Short Term Fund Direct Growth Plan | 6.22% | 7.84% | 6.65% |
| Axis Short Term Fund Direct Growth Plan | 6.18% | 7.84% | 6.81% |
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 stronger peer figures in this group, so the recent momentum looks more subdued than several alternatives. At the same time, its 3-year return is ahead of two peers in this set, and its 5-year return remains competitive, which keeps the longer-run picture from looking weak.
What stands out most is the split between the near term and the medium term. The shorter-term numbers are not the strongest in the peer set, but the 3-year and 5-year figures show that the fund has still participated in the longer compounding trend. For readers comparing consistency rather than chasing the newest spike, that difference matters.
Source data date: as of 10 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| TREPS 01-Sep-2026 | Cash & Cash Equivalents and Net Assets | 31.62% |
| 7.28% REC Limited 31-Aug-2029 | Corporate Debt | 9.89% |
| 7.725% Larsen & Toubro Limited 28-Apr-2028** | Corporate Debt | 9.5% |
| 7.35% Exim Bank 27-Jul-2028** | Corporate Debt | 9.45% |
| 7.44% NABARD 17-Jul-2029** | Corporate Debt | 9.4% |
| Punjab National Bank 09-Feb-2027**# | Certificate of Deposit | 5.61% |
| 7.988% HDB Financial Services Limited 08-Dec-2026** | Corporate Debt | 5.27% |
| 6.8% NHPC Limited 24-Apr-2028** | Corporate Debt | 5.21% |
| Bank of Baroda 05-Mar-2027**# | Certificate of Deposit | 5.08% |
| 6.47% Indian Railway Finance Corporation Ltd 30-May-2028** | Corporate Debt | 4.86% |
The largest holding is TREPS 01-Sep-2026 at 31.62%, which means cash and cash equivalents form a meaningful liquidity buffer inside the disclosed holdings. After that, weights step down into a cluster of corporate debt positions in the 9% to 10% range, so the portfolio does not depend on a single credit line after the cash position.
The fall from the first holding to the tenth is still noticeable, but not extreme: the top ten disclosed positions stay within a fairly narrow band once cash is set aside. That pattern suggests a controlled spread across several issuers, with no second position anywhere near the size of the cash holding.
The top 10 holdings account for approximately 95.89% of the portfolio. With 13 disclosed holdings in total, the visible portfolio is fairly concentrated in the sense that most of the weight sits in a limited set of positions, yet it also shows enough spread across different issuers to reduce dependence on any one non-cash holding. To see all holdings, visit the Groww Short Term Fund Direct Growth Plan page
Source data date: as of 10 Sep 2026
Who should invest
This fund may suit investors who can tolerate moderate fluctuations and want a debt-oriented allocation with a smoother profile than equity-heavy strategies. The Balanced Risk label and the mostly positive 1-year, 3-year and 5-year returns suggest that it is designed for stability-minded investors who still want some compounding over time.
The main trade-off is that the fund has not matched the strongest short-term peer numbers, even though its longer-run returns remain competitive. That makes it more suitable for a medium-to-longer holding horizon where consistency and portfolio discipline matter more than trying to maximise the newest one-period return.
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 10 Sep 2026
Frequently asked questions
What is the current NAV of Groww Short Term Fund Direct Growth Plan?
The current NAV is ₹2564.5097 as of 10 Sep 2026.
What are the 1-year, 3-year and 5-year returns?
The fund’s 1-year, 3-year and 5-year returns are 5.9%, 7.6% and 6.18%.
How has the fund done versus the benchmark?
It has stayed ahead of the benchmark across 1 month, 3 months, 1 year, 3 years and 5 years. The clearest gap appears in the 1-year figure, where the benchmark is negative and the fund is positive.
How does it compare with peer funds on available return data?
Its 1-year return is lower than several peers in the comparison set, while its 3-year and 5-year returns remain competitive. That creates a mixed picture of softer recent momentum but acceptable longer-term compounding.
What is the minimum SIP amount?
The minimum SIP amount is ₹500.
Who manages the fund and what is the risk profile?
The fund is managed by Kaustubh Sule and Wilfred Gonsalves. Its risk category is Balanced Risk, and the portfolio leans heavily on cash equivalents and corporate debt within the disclosed holdings.
Bottom line
Groww Short Term Fund Direct Growth Plan shows a steadier recent run than the benchmark, while its 3-year and 5-year numbers still keep the longer-term picture positive. Against peers, the latest 1-year figure is more modest, but the multi-year returns remain broadly in the conversation. The portfolio is anchored by a large cash-equivalent position and then a spread of debt holdings, which supports a measured profile. Overall, this looks better suited to investors who value debt-oriented stability and moderate compounding over the strongest short-term burst.
Published on 11 September 2026 at 11:19 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.