Axis Short Term Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

Axis Short Term Fund Direct Growth Plan is at a NAV of ₹36.3084 as of 04 Sep 2026, with scheme AUM of ₹7,501 Cr. Its 1-year, 3-year and 5-year returns are 6.3%, 7.84% and 6.8%, and the scheme sits in the Medium Risk category. Our view is that it suits investors looking for a debt fund with a steadier profile than equities, while still accepting that returns can move around the benchmark and that shorter holding periods may not match the longer-run pattern.

The fund has been in the market since 01 Jan 2013, and its direct growth structure, no exit load and debt orientation make it more relevant for conservative to moderate investors with a medium horizon. The portfolio is spread across government securities, corporate debt, securitised debt and cash-like balances, so the outcome is likely to depend more on credit selection and duration management than on any single theme.

Quick facts

The fund is managed by Devang Shah and Aditya Pagaria.

Source data date: as of 04 Sep 2026

Performance

The recent pattern has been calmer than the benchmark over the latest month, where the fund stayed marginally positive while the benchmark was negative. Over three months, the fund and benchmark are close, but the fund has been a touch softer, which suggests that recent gains have been steady rather than sharp.

The longer view is stronger. At 1 year, the fund is clearly ahead of the benchmark, and the same is true over 3 years and 5 years. That tells us the scheme has rewarded patience better than short trading horizons, even if the most recent stretch has not been as decisive as the full-year number.

The 3-year return of 7.84% is the strongest of the three headline periods, while the 5-year return of 6.8% remains above the benchmark’s 6.29%. That combination points to a fund that has compounded at a moderate pace, with enough consistency to stay ahead of the index over longer periods without showing the kind of aggressive swings that usually come with equity-heavy portfolios.

Its time pattern also hints at intermittent ups and downs rather than a perfectly straight path. For investors, that matters because the fund’s appeal lies less in near-term bursts and more in whether it can continue to deliver a controlled return profile across a full market cycle.

Source data date: as of 04 Sep 2026

Peer comparison

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On the 1-year measure, the fund trails the strongest peer figures in this set, although it remains close to the middle of the group rather than far away from it. The longer view is more mixed: its 3-year return is competitive, but the 5-year number is below the stronger long-run peer figures available here.

That split matters. The recent 1-year result does not lead the peer set, yet the 3-year result holds up reasonably well and sits ahead of some peers while remaining behind the best 5-year figures. In our view, the comparison says the fund has been dependable enough over longer stretches, but the current snapshot is not the most assertive relative to the peer group.

Source data date: as of 04 Sep 2026

Portfolio: where your money goes

The top 10 holdings account for approximately 27.77% of the portfolio.

To see all holdings, visit the Axis Short Term Fund Direct Growth Plan page

The largest holding is net receivables and payables at 4.74%, which is a meaningful but not dominating position. The next few holdings are clustered fairly closely around the 2% to 4% range, and the tenth holding still sits at 1.71%, so the decline from first to tenth is noticeable but not extreme.

That pattern suggests the portfolio is not concentrated in a single instrument alone. Instead, it may be driven by a relatively broad mix of debt exposures, with the disclosed top holdings accounting for just over a quarter of the portfolio and a long tail left outside the table across 65 disclosed holdings.

For investors, that spread can matter because no one position appears large enough to dominate the outcome by itself. At the same time, the listed holdings still show a clear tilt toward corporate debt and related fixed-income instruments, so credit quality and instrument selection remain important.

Source data date: as of 04 Sep 2026

Who should invest

This fund fits investors who are comfortable with Medium Risk and want debt exposure rather than equity-style volatility. The 1-year, 3-year and 5-year pattern suggests a steadier long-term profile than the benchmark, while the recent numbers show that shorter stretches can still be uneven.

Our view is that it makes more sense for a medium investment horizon than for very short parking of money, because the longer return record is more supportive than the latest month-to-three-month stretch. The main trade-off is simple: you may accept moderate return consistency and portfolio credit risk in exchange for a smoother profile than most equity-oriented options.

Tax and exit load

Exit load: No exit load after holding period.

Source data date: as of 04 Sep 2026

Frequently asked questions

What is the current NAV of Axis Short Term Fund Direct Growth Plan?

The current NAV is ₹36.3084 as of 04 Sep 2026.

What are the 1-year, 3-year and 5-year returns?

The 1-year return is 6.3%, the 3-year return is 7.84% and the 5-year return is 6.8%.

How does the fund compare with its benchmark?

It is ahead of the benchmark over 1 year, 3 years and 5 years. Over 1 month, it is positive while the benchmark is negative, and over 3 months the two are close.

How does it compare with the peer funds shown here?

Its 1-year return trails the best peer figure in this set, while its 3-year return is competitive and its 5-year return sits below the stronger long-run peer numbers shown here.

What is the minimum SIP amount?

The minimum SIP amount is ₹100.

Who manages the fund and what is the exit load?

The fund is managed by Devang Shah and Aditya Pagaria. There is no exit load after the holding period.

Bottom line

Axis Short Term Fund Direct Growth Plan shows a steadier longer-term picture than its latest short-run results, and it has stayed ahead of the benchmark across 1-year, 3-year and 5-year periods. The peer comparison is more balanced: the fund is competitive, but not the strongest on the recent 1-year or the longer 5-year measure. With Medium Risk and a portfolio spread across debt instruments rather than a single large bet, it looks best suited to investors who want controlled debt exposure and can stay invested long enough for the longer pattern to matter.

Published on 5 September 2026 at 2:50 PM IST