DSP Ultra Short to Short Term Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 11, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
DSP Ultra Short to Short Term Fund Direct Growth Plan is priced at ₹22.0495 as of 10 Sep 2026, and the scheme manages ₹4,750 Cr. Its 1-year, 3-year and 5-year returns are 6.28%, 7.20% and 6.43% respectively, and the fund sits in the Balanced Risk category. In our view, this is a debt fund that has delivered steady compounding rather than sharp swings, which may suit investors looking for relatively measured return behaviour over a medium holding period.
The fund’s recent return pattern is close to its longer-run trend, while its benchmark behaviour has been weaker over the same horizons. That combination, along with a portfolio that is spread across many debt and money-market-like instruments, makes it more relevant for investors who value income-oriented stability over equity-like upside.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹22.0495 as of 10 Sep 2026 |
| AUM | ₹4,750 Cr |
| Expense Ratio | 0.3% |
| Launch Date | 10 Mar 2015 |
| Min SIP | ₹100 |
| Risk Category | Balanced Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | No exit load after holding period |
| Fund Managers | Karan Mundhra, Shalini Vasanta |
The fund is managed by Karan Mundhra and Shalini Vasanta.
Source data date: as of 10 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.46% | -4.06% |
| 3M | 1.87% | 1.37% |
| 1Y | 6.28% | -7.31% |
| 3Y | 7.20% | 6.07% |
| 5Y | 6.43% | 5.91% |
The short-term numbers look better than the benchmark, especially over 1 month and 1 year. The fund’s 1-year return of 6.28% stands out against the benchmark’s -7.31%, which tells us the scheme has held up far better than the market reference over the latest 12 months.
Over 3 years and 5 years, the pattern remains constructive. The fund is ahead of the benchmark in both periods, but the gap is not dramatic, which suggests this has been a steady rather than high-octane performer. The 3-year return of 7.20% is slightly above the 6.07% benchmark return, while the 5-year return of 6.43% is also ahead of the benchmark’s 5.91%.
The recent movement inside the return path looks somewhat uneven, but not unstable. There were softer phases in the shorter-window trend, followed by recovery, and the longer-window shape still points to gradual compounding rather than abrupt jumps. Our view is that the fund has behaved more like a controlled debt allocation than a return-chasing product.
That matters because the benchmark comparison is strongest in the latest year, but the 3-year and 5-year results show that the outperformance has also held up over longer holding periods. So the recent picture is not a one-off; it fits the broader trend.
Source data date: as of 10 Sep 2026
Should you BUY or HOLD DSP Ultra Short to 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 to Short Term? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| DSP Ultra Short to Short Term Fund Direct Growth Plan | 6.28% | 7.20% | 6.43% |
| Franklin India Ultra Short to Short Term Fund Direct Growth Plan | 6.70% | Data not available | Data not available |
| Nippon India Ultra Short to Short Term Fund Direct Growth Plan | 6.66% | 7.52% | 6.75% |
| Nippon India Ultra Short to Short Term Fund(B)-Direct Plan | 6.66% | 7.52% | 6.75% |
| Mahindra Manulife Ultra Short to Short Term Fund Direct Growth Plan | 6.63% | 7.53% | 6.68% |
| Tata Ultra Short to Short Term Fund Direct Growth Plan | 6.62% | 7.36% | 6.51% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On 1-year return, the fund trails Franklin India Ultra Short to Short Term Fund Direct Growth Plan, Nippon India Ultra Short to Short Term Fund Direct Growth Plan, Nippon India Ultra Short to Short Term Fund(B)-Direct Plan, Mahindra Manulife Ultra Short to Short Term Fund Direct Growth Plan and Tata Ultra Short to Short Term Fund Direct Growth Plan. However, the longer view is more balanced: its 3-year and 5-year returns remain competitive, although the available peer numbers for Nippon India and Mahindra Manulife sit slightly higher on those horizons. The short-term gap versus the stronger recent peer returns is therefore real, but it does not overturn the fund’s steadier longer-term profile.
Source data date: as of 10 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| National Bank for Agriculture & Rural Development | Corporate Debt | 7.51% |
| REC Limited** | Corporate Debt | 6.8% |
| Small Industries Development Bank of India** | Corporate Debt | 6.44% |
| HDFC Bank Limited** | Certificate of Deposit | 5.4% |
| Bharti Telecom Limited** | Corporate Debt | 4.99% |
| Bank of Baroda** | Certificate of Deposit | 4.62% |
| TREPS / Reverse Repo Investments | Cash & Cash Equivalents and Net Assets | 4.06% |
| LIC Housing Finance Limited** | Corporate Debt | 3.87% |
| Indian Bank** | Certificate of Deposit | 3.55% |
| Bajaj Housing Finance Limited** | Corporate Debt | 3.22% |
The largest holding is National Bank for Agriculture & Rural Development at 7.51%, which is meaningful but not dominant on its own. The weight then steps down fairly gradually through the next few holdings, with the tenth position still at 3.22%, so the gap from the top holding to the tail of the displayed list is moderate rather than extreme.
The top 10 holdings together account for approximately 50.46% of the portfolio, and the fund has 47 disclosed holdings in total. That tells us the visible part of the portfolio is spread across multiple positions rather than concentrated in only a handful. In our view, this mix may reduce dependence on any one issuer, while still leaving the largest few positions likely to have greater influence on day-to-day portfolio behaviour.
Because the portfolio includes a mix of corporate debt, certificates of deposit and cash-like instruments, it may support steadier short-duration management. The concentration is present, but it is not so heavy that a single security appears to dominate the scheme.
To see all holdings, visit the DSP Ultra Short to Short Term Fund Direct Growth Plan page
Source data date: as of 10 Sep 2026
Who should invest
This fund is more suitable for investors who can accept moderate risk within a debt allocation and who want a holding period long enough for the shorter-term noise to smooth out. The Balanced Risk label, along with the fund’s 1-year, 3-year and 5-year pattern, points to a scheme that has delivered steady returns without dramatic benchmark-like swings.
The main trade-off is that the fund does not aim for equity-style upside, even though it has outpaced the benchmark over the periods shown. Investors who want a relatively measured return profile, a short-to-medium horizon and a portfolio built around debt and cash-like holdings may find the setup more relevant than those seeking rapid capital growth.
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 |
No exit load after holding period.
Source data date: as of 10 Sep 2026
Frequently asked questions
What is the current NAV of DSP Ultra Short to Short Term Fund Direct Growth Plan?
The current NAV is ₹22.0495 as of 10 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s returns are 6.28% over 1 year, 7.20% over 3 years and 6.43% over 5 years.
How has the fund performed against its benchmark?
It has been ahead of the benchmark across 1 month, 3 months, 1 year, 3 years and 5 years. The biggest gap is in the 1-year period, where the benchmark is negative while the fund remains positive.
How does the fund compare with peer funds on available return data?
Its 1-year return is below several peer schemes shown here, while its 3-year and 5-year numbers remain competitive. Some peers have slightly stronger longer-term returns, but the spread is not wide on the available figures.
What is the minimum SIP amount?
The minimum SIP amount is ₹100.
What is the risk category and who manages the fund?
The fund is in the Balanced Risk category and is managed by Karan Mundhra and Shalini Vasanta. Its portfolio is spread across 47 disclosed holdings, which may help reduce dependence on any single position.
Bottom line
This fund’s recent results are not a departure from its longer-term pattern; they fit a steady compounding profile that has stayed ahead of the benchmark across the periods shown. Relative to the peer set, the latest 1-year return is a little softer, but the 3-year and 5-year figures still look competitive. The portfolio is diversified across many holdings, with no single position appearing overwhelming. Overall, it looks more suitable for investors who want a measured debt allocation with moderate risk and a medium holding horizon.
Published on 11 September 2026 at 4:47 PM 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.