HSBC Medium Term Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 11, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
HSBC Medium Term Fund Direct Growth Plan had a NAV of ₹23.9245 as of 10 Sep 2026 and managed ₹683 Cr. Its 1-year, 3-year and 5-year returns are 6.01%, 7.84% and 6.74%, and the scheme is tagged as Medium Risk.
Our view is that this is a steady, income-oriented debt fund rather than a fast-return story. The five-year track record is modest but stable, the recent one-year return has held close to the longer trend, and the portfolio is anchored by sovereign and corporate debt positions that may support smoother behaviour over time.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹23.9245 as of 10 Sep 2026 |
| AUM | ₹683 Cr |
| Expense Ratio | 0.4% |
| Launch Date | 02 Feb 2015 |
| Min SIP | ₹1,000 |
| Risk Category | Medium Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | No exit load |
| Fund Managers | Shriram Ramanathan |
The fund is managed by Shriram Ramanathan.
Source data date: as of 10 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -0.03% | -4.06% |
| 3M | 1.59% | 1.37% |
| 1Y | 6.01% | -7.31% |
| 3Y | 7.84% | 6.07% |
| 5Y | 6.74% | 5.91% |
The recent picture is constructive. Over one month, the fund was nearly flat while the benchmark slipped more sharply, which suggests better near-term resilience. The three-month return is also slightly better than the benchmark, and that helps confirm that the last few weeks have been calmer than the benchmark path.
The larger story is still one of gradual compounding rather than sharp spikes. The 1-year return is clearly ahead of the benchmark, while the 3-year and 5-year numbers stay ahead as well, which points to a fund that has managed to preserve a steady return profile over multiple market conditions. That is important in a debt-oriented strategy, where consistency often matters more than sudden bursts.
Our reading is that the recent performance does not look out of line with the longer record. The fund has not relied on one strong year to build its track record; instead, the 3-year and 5-year figures remain reasonably close to the recent pace. That makes the return pattern look orderly, although the level of return is still moderate rather than high.
Against the benchmark, the fund is ahead in every listed period. The gap is most visible over 1 year, but it is also present over 3 years and 5 years. For investors who want debt exposure with a smoother return path than the benchmark’s recent swings, that relative behaviour is a useful point in its favour.
Source data date: as of 10 Sep 2026
Should you BUY or HOLD HSBC 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 HSBC Medium Term? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| HSBC Medium Term Fund Direct Growth Plan | 6.01% | 7.84% | 6.74% |
| 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.
The fund trails the stronger peer return profiles on the 1-year figure, where the gap is noticeable, and it also sits below the better 3-year and 5-year numbers in this group. That said, its returns are still positive across all the listed periods, and the longer-term pattern remains stable rather than erratic.
The peer set tells a mixed story for this scheme. Some peers have delivered higher recent and longer-term returns, but the current fund’s own record is more even across periods, which may appeal to investors who prefer steadier debt-fund behaviour over chasing the highest available number in a single period.
Source data date: as of 10 Sep 2026
Want to know more? Log in to Univest for more mutual fund insights.
Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| 6.94% GOI 11-May-2036 | Government Securities | 17.9% |
| Indian Railway Finance Corporation Ltd** | Corporate Debt | 7.52% |
| Sidbi** | Corporate Debt | 6.22% |
| Delhi International Airport Limited** | Corporate Debt | 4.53% |
| Aditya Birla Renewables Limited** | Corporate Debt | 3.96% |
| JTPM Metal Traders** | Corporate Debt | 3.94% |
| JSW Kalinga Steel Ltd** | Corporate Debt | 3.78% |
| 360 One Prime Limited** | Corporate Debt | 3.74% |
| Housing and Urban Development Corp. Ltd.** | Corporate Debt | 3.66% |
| NABARD** | Corporate Debt | 3.66% |
The top 10 holdings account for approximately 58.91% of the portfolio.
To see all holdings, visit the HSBC Medium Term Fund Direct Growth Plan page
The largest holding is a 17.9% allocation to a government security maturing in 2036, so it is likely to have the greatest influence on the portfolio’s interest-rate sensitivity. After that, the weights step down fairly quickly into single-digit positions, with the tenth holding at 3.66%. That gap suggests the fund is not dependent on just one position, even though the first holding is still materially larger than the rest.
The displayed holdings are spread across 10 names, and the top 10 together make up 58.91% of the portfolio. With 27 holdings disclosed in total, the fund appears to mix a few larger anchors with a longer tail of smaller positions. That structure may help diversify issuer exposure, while still leaving the bigger holdings with meaningful influence on outcomes.
Source data date: as of 10 Sep 2026
Who should invest
This fund may suit investors who can tolerate moderate risk and want a debt allocation that is not overly aggressive. Its return pattern is fairly even across 1-year, 3-year and 5-year periods, and it has stayed ahead of the benchmark in the available periods, which supports a case for patient investors.
The main trade-off is that the fund does not aim for equity-like upside, but it also avoids the sharper swings that investors often associate with riskier assets. The portfolio is built around government and corporate debt rather than a broad equity mix, so the likely fit is a medium-horizon investor who values steadier compounding more than chasing the highest short-term 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.
Source data date: as of 10 Sep 2026
Frequently asked questions
What is the current NAV of HSBC Medium Term Fund Direct Growth Plan?
The current NAV is ₹23.9245 as of 10 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The 1-year, 3-year and 5-year returns are 6.01%, 7.84% and 6.74%.
How has the fund performed against the benchmark?
It has stayed ahead of the benchmark in each listed period: 1 month, 3 months, 1 year, 3 years and 5 years. The gap is especially clear over 1 year.
How does it compare with the peer funds listed here?
Its 1-year, 3-year and 5-year returns are below the stronger peer figures shown here, although the fund still posts positive returns across the periods. The comparison points to a steadier return pattern rather than the strongest absolute numbers in the group.
Does the fund allow SIP investing?
Yes, SIP is allowed. The fund is set up for systematic investing as well as lumpsum participation.
Who manages the fund and what is the exit load?
The fund is managed by Shriram Ramanathan, and the exit load is nil. That means units can be redeemed without an exit-load charge.
Bottom line
HSBC Medium Term Fund Direct Growth Plan looks like a steady debt option rather than a high-octane return seeker. Its recent performance is broadly in line with the longer record, and it has stayed ahead of the benchmark across the listed periods. Compared with peers, the return profile is more modest, but the portfolio still carries a meaningful anchor in government securities and a spread of corporate debt positions. It may suit investors who prefer moderate risk, a measured horizon and a smoother compounding pattern.
Published on 11 September 2026 at 4:23 PM IST
Explore mutual funds with Univest
Review mutual fund data, compare performance and explore fund insights on Univest.
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.