DSP Ultra Short Term Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 4, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
DSP Ultra Short Term Fund Direct Growth Plan is an ultra short duration debt fund with a current NAV of ₹4,006.425 as of 08 Sep 2026 and scheme AUM of ₹4,599 Cr. Its 1-year, 3-year and 5-year returns are 6.85%, 7.46% and 6.66%, and the scheme is tagged as Medium Risk.
Our view is that the fund suits investors who want a debt allocation that has been relatively steady over time, but still accept some mark-to-market movement. The return pattern is modest rather than flashy, and the portfolio is built around short-duration debt instruments and deposit placements, which supports a conservative core holding for investors who do not need equity-like growth.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹4,006.425 as of 08 Sep 2026 |
| AUM | ₹4,599 Cr |
| Expense Ratio | 0.3% |
| Launch Date | 01 Jan 2013 |
| Min SIP | ₹100 |
| Risk Category | Medium Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | No exit load after holding period |
| Fund Managers | Shalini Vasanta, Karan Mundhra |
The fund is managed by Shalini Vasanta and Karan Mundhra.
Source data date: as of 08 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.6% | -3.86% |
| 3M | 1.97% | 1.69% |
| 1Y | 6.85% | -5.72% |
| 3Y | 7.46% | 6.3% |
| 5Y | 6.66% | 6.05% |
Recent performance has been stable rather than dramatic. The 1-month return was mildly positive while the benchmark was negative, and the 3-month return stayed positive as well. That suggests the fund has held up reasonably through a short stretch where the benchmark was more uneven.
Over longer periods, the picture is more consistent. The 1-year return of 6.85% is well ahead of the benchmark’s -5.72%, while the 3-year and 5-year returns remain modest but positive. In our view, that mix points to a debt fund that has preserved compounding better than the benchmark over time, without taking on a growth profile that would be out of character for the category.
The time pattern also looks relatively controlled. There is no sign of a sharp step-up or a deep drawdown in the longer window, which is what we would expect from an ultra short duration strategy. The main takeaway is that the fund has delivered steady accumulation, and the longer-term trend is more important here than any one short window.
Compared with the benchmark, the fund is ahead in every period shown. The gap is especially wide at 1 year, while the 3-year and 5-year margins are narrower and more in line with a conservative debt mandate. That makes the fund easier to read as a stability-first holding than as a return-chasing one.
Source data date: as of 08 Sep 2026
Should you BUY or HOLD DSP 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 DSP 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 | 7.1% | 7.62% | 6.98% |
| Axis Ultra Short Term Fund Direct Growth Plan | 6.89% | 7.48% | 6.77% |
| Invesco India Ultra Short Term Fund Direct Growth Plan | 6.87% | 7.38% | 6.61% |
| DSP Ultra Short Term Fund Direct Growth Plan | 6.85% | 7.46% | 6.66% |
| ICICI Pru Ultra Short Term Fund Direct Growth Plan | 6.85% | 7.46% | 6.77% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
On the 1-year view, the fund trails the stronger peer returns at the top of the table, although it stays close to the middle of the range. The 3-year number is also in the same broad band as the better-known peers, and the 5-year result sits below the strongest 5-year figures but remains solid for a conservative debt fund.
What stands out is that the shorter and longer horizons tell a slightly different story. The fund is not the quickest mover in the peer set, but its 3-year and 5-year numbers remain competitive enough to support a steadier investment case. For investors comparing ultra short duration options, that balance may matter more than any single period.
Source data date: as of 08 Sep 2026
Want to know more? Log in to Univest for more mutual fund insights.
Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| HDFC Bank Limited** | Certificate of Deposit | 7.37% |
| Canara Bank | Certificate of Deposit | 6.29% |
| LIC Housing Finance Limited** | Corporate Debt | 5.33% |
| Small Industries Development Bank of India** | Certificate of Deposit | 3.63% |
| Axis Bank Limited** | Certificate of Deposit | 3.19% |
| National Bank for Agriculture & Rural Development** | Certificate of Deposit | 3.16% |
| 5.74% GOI 15112026 | Government Securities | 2.77% |
| Kotak Mahindra Bank Limited | Certificate of Deposit | 2.67% |
| Torrent Power Limited** | Corporate Debt | 2.26% |
| Federal Bank Limited** | Certificate of Deposit | 2.1% |
The top 10 holdings account for approximately 38.77% of the portfolio.
To see all holdings, visit the DSP Ultra Short Term Fund Direct Growth Plan page
The largest holding, HDFC Bank Limited**, carries a 7.37% weight, which is meaningful but not overpowering for a debt portfolio. The drop from the first holding to the tenth is fairly gradual, ending at 2.1%, so the visible part of the portfolio is not dominated by a single name.
Because the disclosed top 10 add up to 38.77% and the total disclosed holding count is 61, the portfolio appears to have a reasonably broad tail beyond the largest positions. That structure may help reduce dependence on any one holding, although the larger CD and corporate debt positions are still likely to have greater influence on returns and day-to-day movement than the smaller entries.
In our view, this is consistent with an ultra short duration fund that tries to keep credit exposure spread across issuers while still maintaining enough quality and liquidity in the larger holdings to support the strategy.
Source data date: as of 08 Sep 2026
Who should invest
This fund is better suited to investors with a moderate risk tolerance who want a debt allocation rather than an equity substitute. The Medium Risk tag, steady longer-term returns and benchmark-beating results point to a profile that may work for parking money over a short to medium horizon, especially when capital stability matters more than chasing high upside.
The trade-off is that returns are likely to stay modest, even when the fund does well relative to the benchmark. Investors who are comfortable with that compromise may find the mix of short-duration debt and deposit-heavy holdings useful, while those looking for stronger growth or very low volatility may prefer a different category.
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 08 Sep 2026
Frequently asked questions
What is the current NAV of DSP Ultra Short Term Fund Direct Growth Plan?
The current NAV is ₹4,006.425 as of 08 Sep 2026.
How has the fund performed over 1 year, 3 years and 5 years?
Its returns are 6.85% over 1 year, 7.46% over 3 years and 6.66% over 5 years.
How does the fund compare with its benchmark?
It has outperformed the benchmark in every period shown. The difference is most visible over 1 year, where the fund is positive and the benchmark is negative.
How does it compare with other ultra short term funds?
Its 1-year return sits close to the middle of the peer set shown, while the 3-year and 5-year figures remain broadly competitive. The strongest peer figures are a little higher, but the fund stays in the same general return band.
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 Shalini Vasanta and Karan Mundhra. There is no exit load after the holding period.
Bottom line
The fund’s longer-term profile is steadier than its short-term swings, and that matters more here than any one month or quarter. It has stayed ahead of the benchmark across the periods shown, while remaining a measured debt fund rather than a high-octane return story. The portfolio is also built around a fairly spread-out set of holdings, with no single position dominating the visible allocation. For investors who want a conservative debt allocation with moderate risk and reasonable compounding, the fund fits that brief well.
Published on 9 September 2026 at 1:26 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.