Franklin India Short Term Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 18, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Franklin India Short Term Fund Direct Growth Plan had a NAV of ₹10.0488 as of 17 September 2026 and an AUM of ₹263 Cr. Its 1-year, 3-year and 5-year returns are 0%, 0% and 0%, and the scheme sits in the Balanced Risk category.
Our view is that this is a short-duration debt fund whose early return pattern is still modest, but whose current portfolio leans heavily toward corporate debt and high-quality debt instruments rather than equities. That mix can make it suitable for investors who want a debt allocation with a balanced-risk profile and are comfortable with returns that may build gradually rather than move sharply.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹10.0488 as of 17 Sep 2026 |
| AUM | ₹263 Cr |
| Expense Ratio | 0.0% |
| Launch Date | 12 Aug 2026 |
| Min SIP | ₹500 |
| Risk Category | Balanced Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | No exit load |
| Fund Managers | Anuj Tagra, Rohan Maru, Rahul Goswami |
The fund is managed by Anuj Tagra, Rohan Maru and Rahul Goswami.
Source data date: as of 17 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.38% | -3.66% |
| 3M | Data not available | Data not available |
| 1Y | 0% | Data not available |
| 3Y | 0% | Data not available |
| 5Y | 0% | Data not available |
The latest month was positive for the fund, while the benchmark was weak over the same period. That creates a short-term contrast in favour of the fund, even though the available longer-horizon figures remain at 0% because the scheme has only recently launched.
Because the fund launched on 12 August 2026, the return history is very short. We therefore place more weight on the recent monthly behaviour than on the 1-year, 3-year or 5-year figures, which do not yet offer a meaningful longer track record for comparison.
Even so, the early pattern is useful. The fund has held near a stable level, while the benchmark has shown more movement in the opposite direction over the same month. For a debt fund, that kind of steadier opening pattern can matter more than a single swing, especially when an investor wants limited equity-style volatility.
In our view, the current reading suggests a scheme that is still building its history rather than one with a long record of compounding. Investors should treat the short-term comparison as a first signal, not a full performance judgment.
Source data date: as of 17 Sep 2026
Should you BUY or HOLD Franklin India 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 Franklin India Short Term? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Franklin India Short Term Fund Direct Growth Plan | 0% | 0% | 0% |
| Franklin India Short Term Fund Direct Growth Plan | Data not available | Data not available | Data not available |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
The current fund’s recent 1-month return is positive, while the peer entry in this set does not provide comparable recent figures in a usable way. That means the short-term comparison is not rich enough to separate the two on near-term behaviour.
On the longer horizons, the available figures remain at 0% for the current fund, while the peer row does not provide usable 3-year or 5-year values. So the peer set does not yet give us a meaningful longer-term contrast either, and the main conclusion remains that this scheme is still too new for a full peer-style return reading.
Source data date: as of 17 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| Call, Cash & Other Assets | Cash & Cash Equivalents and Net Assets | 12.31% |
| 8.65% Bharti Telecom Ltd (05-Nov-2027) ** | Corporate Debt | 10.22% |
| 7.58% Poonawalla Fincorp Ltd (08-Sep-2028) ** | Corporate Debt | 10.19% |
| 7.70% National Bank for Agriculture & Rural Development (30-Sep-2027) ** | Corporate Debt | 10.18% |
| 7.80% LIC Housing Finance Ltd (22-Dec-2027) ** | Corporate Debt | 10.02% |
| 8.85% Power Finance Corporation Ltd (25-May-2029) ** | Corporate Debt | 9.98% |
| 6.95% REC Ltd (18-Feb-2028) ** | Corporate Debt | 9.77% |
| HDFC Bank Ltd (04-Sep-2026) | Certificate of Deposit | 9.49% |
| Canara Bank (29-Jun-2027) | Certificate of Deposit | 8.97% |
| Small Industries Development Bank of India (20-Aug-2027) ** | Certificate of Deposit | 8.86% |
The largest holding is cash and other assets at 12.31%, so the portfolio keeps a meaningful liquidity buffer. The next positions are each close to the 10% mark, which suggests that no single credit exposure completely dominates the visible book.
Weight does not fall away sharply from the first holding to the tenth. The spread from 12.31% to 8.86% is fairly tight, so the visible basket looks balanced across several issuers rather than heavily tilted to one or two names. That can reduce reliance on any single position, although each large holding may still matter to portfolio behaviour.
With 10 disclosed holdings accounting for 99.99% of the portfolio, the fund appears highly concentrated in the visible sleeve, even if the allocation is spread across several debt and cash positions. In our view, that structure may suit investors who are comfortable with a short list of large, credit-oriented exposures and want a debt fund that keeps liquidity and issuer selection central to the portfolio.
Source data date: as of 17 Sep 2026
Who should invest
This fund may suit investors who are comfortable with a Balanced Risk profile and who want debt-oriented exposure rather than equity-like growth. The current return record is still short, so the most sensible horizon is one where an investor can allow time for the scheme to build a fuller history.
The main trade-off is between stability and the possibility of only gradual returns at first. The portfolio is led by corporate debt, certificate of deposit holdings and cash, which may appeal to investors who want a relatively measured credit mix and can accept that the benchmark comparison is still limited by the fund’s short life.
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 17 Sep 2026
Frequently asked questions
What is the current NAV of Franklin India Short Term Fund Direct Growth Plan?
Its NAV is ₹10.0488 as of 17 September 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s 1-year, 3-year and 5-year returns are 0%, 0% and 0%.
How has the fund done versus the benchmark recently?
Over 1 month, the fund returned 0.38% while the benchmark returned -3.66%. That shows a better short-term result for the fund in the latest month.
What is the minimum SIP amount?
The minimum SIP amount is ₹500.
How many fund managers manage the scheme?
Three current managers are listed: Anuj Tagra, Rohan Maru and Rahul Goswami.
What is the exit load and tax treatment?
There is no exit load. For tax, units held less than 1 year attract 20% short-term capital gains tax, and units held more than 1 year attract 12.5% long-term capital gains tax.
Bottom line
Franklin India Short Term Fund Direct Growth Plan is still at an early stage, so its short return history is not yet enough to judge long-term compounding. The latest month was better than the benchmark, but the longer figures remain untested in a meaningful way. The portfolio is built around a relatively tight set of debt and cash positions, which may appeal to investors who want a measured credit-oriented allocation and are comfortable with a Balanced Risk profile rather than a fast-moving return profile.
Published on 18 September 2026 at 8:25 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.