Axis Ultra Short Term Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 16, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Axis Ultra Short Term Fund Direct Growth Plan has a NAV of ₹16.9258 as of 15 Sep 2026 and a scheme AUM of ₹6,073 Cr. Its 1-year, 3-year and 5-year returns are 6.86%, 7.46% and 6.76%, and the fund is tagged under Balanced Risk. Our view is that it fits investors looking for a short-duration debt option with steady compounding rather than sharp market-beating moves.
The portfolio is built around short-dated money-market and credit instruments, which helps explain the relatively measured return pattern. The fund has also stayed close to a stable upward path over longer periods, so it may suit investors who want debt allocation with some return consistency and can accept modest movement along the way.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹16.9258 as of 15 Sep 2026 |
| AUM | ₹6,073 Cr |
| Expense Ratio | 0.38% |
| Launch Date | 10 Sep 2018 |
| Min SIP | ₹100 |
| Risk Category | Balanced Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | No exit load |
| Fund Managers | Sachin Jain, Hardik Shah |
The fund is managed by Sachin Jain and Hardik Shah.
Source data date: as of 15 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.53% | -4.81% |
| 3M | 1.84% | -3.63% |
| 1Y | 6.86% | -8.27% |
| 3Y | 7.46% | 5.59% |
| 5Y | 6.76% | 5.58% |
The one-month and three-month numbers point to a mild but steady upward trend for the fund while the benchmark moved lower over the same windows. That tells us the strategy has kept its footing in a short run that was choppier for the benchmark, even though the fund’s gains were not large in absolute terms.
Over one year, the gap becomes clearer: the fund’s 6.86% return stands against a negative benchmark print. That is a meaningful divergence and suggests the portfolio’s debt-oriented construction has insulated it better than the equity benchmark it is measured against. The pattern is more relevant for risk control than for high upside.
The longer horizon is more balanced. At 3 years, the fund’s 7.46% return is above the benchmark’s 5.59%, and at 5 years it stays ahead as well. The time series also shows a largely orderly climb with some temporary softness, which is what we would expect from an ultra-short-term style rather than a fast-changing return profile.
In our view, the recent and medium-term picture is consistent: the fund has not relied on one exceptional stretch, but has compounded in a controlled way. The key question for investors is whether they want this kind of steadier debt behaviour instead of the possibility of stronger, but less predictable, upside elsewhere.
Source data date: as of 15 Sep 2026
Should you BUY or HOLD Axis Ultra 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 Axis Ultra Short Term? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Nippon India Ultra Short Term Fund Direct Growth Plan | 7.02% | 7.58% | 6.97% |
| Axis Ultra Short Term Fund Direct Growth Plan | 6.86% | 7.46% | 6.76% |
| Invesco India Ultra Short Term Fund Direct Growth Plan | 6.8% | 7.34% | 6.6% |
| DSP Ultra Short Term Fund Direct Growth Plan | 6.8% | 7.44% | 6.65% |
| UTI Ultra Short Term Fund Direct Growth Plan | 6.74% | 7.34% | 7.18% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
Against the peer set, the fund’s 1-year return is a touch below the strongest displayed figure, but still very close to the group’s upper band. The difference is small enough that the recent story is one of competitive, not standout, short-term performance.
The 3-year and 5-year figures are also broadly in line with the better long-term numbers in this group, though not the highest in every period. That means the fund looks reasonably consistent over time, even if another peer edges it on one horizon or another.
The interesting part is that the shorter and longer horizons do not tell very different stories here. The fund remains near the stronger end of the displayed return set across periods, but the peer comparison suggests a tight cluster rather than a large performance gap between schemes.
Source data date: as of 15 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| 182 Days Tbill (MD 17/12/2026) | Treasury Bills | 7.3% |
| Small Industries Dev Bank of India (28/01/2027) ** | Certificate of Deposit | 4.8% |
| Bank of Baroda (04/12/2026) | Certificate of Deposit | 4.05% |
| Canara Bank (28/01/2027) ** | Certificate of Deposit | 3.61% |
| 8.03% Mindspace Business Parks Reit (10/12/2026) ** | Corporate Debt | 3.3% |
| National Bank for Agriculture and Rural Development (14/01/2027) | Certificate of Deposit | 3.21% |
| Union Bank of India (19/01/2027) ** | Certificate of Deposit | 3.21% |
| Net Receivables / (Payables) | Cash & Cash Equivalents and Net Assets | 3.11% |
| HDFC Bank Limited (14/12/2026) | Certificate of Deposit | 2.83% |
| Punjab National Bank (15/12/2026) | Certificate of Deposit | 2.83% |
The top 10 holdings account for approximately 38.25% of the portfolio.
To see all holdings, visit the Axis Ultra Short Term Fund Direct Growth Plan page
The largest holding is 182 Days Tbill (MD 17/12/2026) at 7.3%, which is meaningful but not dominant. The next positions are mostly certificate-of-deposit exposures, and the list then steps down gradually into the 3% range, so influence is spread across several short-dated instruments rather than concentrated in one very large bet.
The drop from the first holding to the tenth is fairly moderate, from 7.3% to 2.83%. That shape suggests the portfolio may not depend heavily on a single line item, even though a few holdings are likely to have greater influence than the rest.
With 57 disclosed holdings in total and the top 10 accounting for 38.25%, the fund appears to use a broad tail beyond the largest positions. That combination may support smoother portfolio behaviour, because the visible weights are not packed into only a handful of securities.
Source data date: as of 15 Sep 2026
Who should invest
This fund suits investors who are comfortable with debt-fund style movement and want a return profile that has stayed relatively stable over 1 year, 3 years and 5 years. The Balanced Risk tag and the short-dated portfolio mix point to a strategy that is meant to preserve steadier compounding rather than chase aggressive upside.
It is more relevant for an investment horizon where consistency matters and where the investor can accept that benchmark comparisons may look strong on some horizons and less meaningful on others. The main trade-off is that this steadier profile usually means less room for sharp gains than more aggressive or longer-duration alternatives.
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 Axis Ultra Short Term Fund Direct Growth Plan?
The current NAV is ₹16.9258 as of 15 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s 1-year return is 6.86%, its 3-year return is 7.46%, and its 5-year return is 6.76%.
How does the fund compare with its benchmark?
It has outperformed the benchmark across the displayed 1M, 3M, 1Y, 3Y and 5Y periods. The gap is especially wide over 1 year because the benchmark return is negative in that period.
How does it compare with the peer funds shown here?
Its recent and longer-term returns are close to the stronger displayed peer figures, though another peer is slightly ahead on some horizons. The peer set looks tightly grouped rather than widely separated.
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 Sachin Jain and Hardik Shah. The exit load is no exit load.
Bottom line
Axis Ultra Short Term Fund Direct Growth Plan has shown a steady return pattern rather than a dramatic one, and its 1-year, 3-year and 5-year figures remain comfortably ahead of the benchmark provided here. The peer set suggests it stays close to the stronger return band, though without a clear edge on every horizon. A short-dated, debt-heavy portfolio and a balanced-risk label make it more suitable for investors who prefer measured compounding and a broader spread of holdings over a concentrated bet.
Published on 16 September 2026 at 8:28 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.