LIC MF Short Term Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 16, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
LIC MF Short Term Fund Direct Growth Plan has a NAV of ₹16.6564 as of 15 Sep 2026 and an AUM of ₹124 Cr. Its 1-year, 3-year and 5-year returns are 5.67%, 7.48% and 6.25%, and the scheme sits in the Medium Risk category. Our view is that it suits conservative debt investors who want relatively steady outcomes rather than sharp return swings, while still accepting that short-term debt returns can move around.
The fund’s portfolio is led by high-quality debt and cash positions, with a meaningful allocation to TREPS and a mix of government and corporate debt. That structure supports a more defensive profile, but the return history also shows periods of mild volatility. In our view, the fund is better suited to investors looking for a short-term debt allocation with moderate risk rather than those chasing top-end income returns.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹16.6564 as of 15 Sep 2026 |
| AUM | ₹124 Cr |
| Expense Ratio | 0.36% |
| Launch Date | 01 Feb 2019 |
| Min SIP | ₹200 |
| Risk Category | Medium Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | No exit load |
| Fund Managers | Pratik Shroff, Rahul Singh |
The fund is managed by Pratik Shroff and Rahul Singh.
Source data date: as of 15 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -0.06% | -4.81% |
| 3M | 1.12% | -3.63% |
| 1Y | 5.67% | -8.27% |
| 3Y | 7.48% | 5.59% |
| 5Y | 6.25% | 5.58% |
Recent performance has been stable enough for a short-term debt scheme, with the 1-month result near flat and the 3-month result modestly positive. That is a better pattern than the benchmark over the same windows, where the index stayed negative in both periods. For investors, this matters because the fund has shown the ability to preserve a calm trajectory when the reference index has been weak.
Over 1 year, the fund has returned 5.67% while the benchmark has fallen -8.27%. That gap is large and points to very different behaviour between a managed short-term debt portfolio and the chosen index. The fund’s own return path also suggests uneven but orderly compounding rather than a straight line, which is normal for debt funds that actively manage credit and duration exposure.
The longer view is more measured. The 3-year return of 7.48% is above the benchmark’s 5.59%, while the 5-year return of 6.25% is also ahead of the benchmark’s 5.58%. So the fund has not only protected better in the recent period; it has also kept a modest lead over the benchmark over longer holding periods. The trade-off is that the edge is not dramatic, so the fund reads more like a steady short-term debt option than a return-maximising one.
Source data date: as of 15 Sep 2026
Should you BUY or HOLD LIC MF 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 LIC MF Short Term? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| LIC MF Short Term Fund Direct Growth Plan | 5.67% | 7.48% | 6.25% |
| Tata Ultra Short Term Fund Direct Growth Plan | 7.09% | 7.53% | 6.76% |
| Aditya Birla SL Ultra Short Term Fund Direct Growth Plan | 6.68% | 7.48% | 6.74% |
| ICICI Pru Short Term Fund Direct Growth Plan | 6.21% | 7.73% | 7.11% |
| Axis Short Term Fund Direct Growth Plan | 6.06% | 7.82% | 6.78% |
| Aditya Birla SL Short Term Fund Direct Growth Plan | 5.86% | 7.61% | 6.82% |
The fund’s 1-year return trails the stronger peer figures in this set, where several funds are above 6% and one is above 7%. Over 3 years, it sits in the same broad range as the group, although some peers show a slightly better stretch, and over 5 years the fund is also a touch behind the stronger figures available here. That makes the recent picture a little weaker than the best peer outcomes, even though the longer record remains competitive.
What stands out is the split between short-term and longer-term readings. The fund looks less compelling on the latest 1-year comparison, but its 3-year and 5-year returns still hold up reasonably well against other short-term debt options. This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
Source data date: as of 15 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| TREPS | Cash & Cash Equivalents and Net Assets | 11.4% |
| 7.48% National BK for Agriculture & Rural Dev. | Corporate Debt | 8.62% |
| 7.34% Small Industries Development BK of India ** | Corporate Debt | 8.55% |
| 7.45% Bharti Telecom Ltd. ** | Corporate Debt | 8.36% |
| 8.95% 360 One Prime Ltd. ** | Corporate Debt | 8.24% |
| 7.49% National Highways Authority of India ** | Corporate Debt | 8.14% |
| 6.78% State Government of Maharashtra | Government Securities | 8.08% |
| 6.61% Power Finance Corporation Ltd. ** | Corporate Debt | 8.07% |
| 8.14% Nuclear Power Corporation ** | Corporate Debt | 4.27% |
| 8.13% Nuclear Power Corporation ** | Corporate Debt | 4.22% |
The top 10 holdings account for approximately 77.95% of the portfolio.
To see all holdings, visit the LIC MF Short Term Fund Direct Growth Plan page
The largest holding, TREPS, is 11.4% of the portfolio, so it has the biggest single influence among the disclosed positions. After that, weights cluster tightly in the 8% range across several debt instruments, and the fall from the first holding to the tenth is not steep in absolute terms. That shape suggests the portfolio is not built around one dominant position, but around a set of comparable exposures.
Because the top 10 holdings together make up 77.95% of the portfolio, the disclosed book looks fairly concentrated in its leading positions, even though those positions are spread across multiple issuers and instruments. With 17 total holdings disclosed, the fund likely still has a meaningful tail beyond the top 10, but the largest names may still drive most short-term behaviour.
That mix can suit investors who are comfortable with a debt portfolio that keeps a substantial share in visible, high-quality holdings while also maintaining liquidity through TREPS. It may help the fund stay relatively orderly, but it also means the top positions could matter more than in a very broad, highly diversified debt allocation.
Source data date: as of 15 Sep 2026
Who should invest
This fund fits investors who can accept Medium Risk in a short-term debt scheme and who want a portfolio that is calmer than the benchmark over recent periods. The 1-year, 3-year and 5-year returns show a relatively steady debt profile, with the longer record staying ahead of the benchmark while the latest 1-year figure is also materially better than the benchmark.
Our view is that the fund is more suitable for a short-to-medium holding period rather than a very brief parking of cash, because debt returns still move with market conditions and portfolio mix. The main trade-off is that the fund offers steadier behaviour and a modest return edge, but not the kind of strong upside that equity investors might expect.
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 15 Sep 2026
Frequently asked questions
What is the current NAV of LIC MF Short Term Fund Direct Growth Plan?
The current NAV is ₹16.6564 as of 15 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s returns are 5.67% for 1 year, 7.48% for 3 years and 6.25% for 5 years.
How has it performed versus the benchmark?
It has done better than the benchmark across 1M, 3M, 1Y, 3Y and 5Y. The gap is widest over 1 year, where the fund is positive while the benchmark is negative.
How does it compare with the peer funds shown here?
Its recent 1-year return is lower than several peers, but its 3-year and 5-year figures remain in the same broad range as the comparison set. That points to a mixed but still competitive longer-term picture.
Is there an exit load?
No exit load applies.
Who manages the fund?
The fund is managed by Pratik Shroff and Rahul Singh.
Bottom line
LIC MF Short Term Fund Direct Growth Plan has a steadier longer-term profile than the benchmark and a recent return path that remains orderly rather than erratic. Its short-term showing is less striking than some peer funds, but the 3-year and 5-year numbers keep it in a reasonable competitive range. The Medium Risk label, the mix of TREPS, government securities and corporate debt, and the relatively concentrated leading holdings make it a fit for investors who want a short-term debt allocation with measured behaviour rather than aggressive return chasing.
Published on 16 September 2026 at 10:10 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.