Franklin India Ultra Short Term Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 11, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Franklin India Ultra Short Term Fund Direct Growth Plan has a NAV of ₹11.5313 as of 10 Sep 2026 and a scheme AUM of ₹281 Cr. Its 1-year, 3-year and 5-year returns are 6.67%, 0% and 0%, and the scheme sits in the Balanced Risk category. Our view is that the fund currently looks better suited to investors who want a relatively steady debt allocation than those looking for strong multi-year compounding, because the recent return profile is modest and the portfolio is built around short-dated debt and money-market style positions.
The fund’s behaviour against the benchmark and its portfolio structure suggest a controlled, income-oriented approach rather than a high-growth one. That can appeal to investors who value stability and shorter duration exposure, but the long-term return record is still limited because the scheme launched on 29 Aug 2024.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹11.5313 as of 10 Sep 2026 |
| AUM | ₹281 Cr |
| Expense Ratio | 0.28% |
| Launch Date | 29 Aug 2024 |
| Min SIP | ₹500 |
| Risk Category | Balanced Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | No exit load |
| Fund Managers | Rohan Maru, Pallab Roy, Rahul Goswami |
The fund is managed by Rohan Maru, Pallab Roy and Rahul Goswami.
Source data date: as of 10 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.57% | -4.06% |
| 3M | 1.92% | 1.37% |
| 1Y | 6.67% | -7.31% |
| 3Y | Data not available | Data not available |
| 5Y | Data not available | Data not available |
Near-term behaviour has been stable enough, with the 1-month and 3-month periods both showing positive progress. That matters because ultra-short-term debt funds are often judged first on whether they can preserve value while still delivering small, steady gains. In that context, the fund’s recent numbers look orderly rather than volatile, which is consistent with the gradual changes visible in the performance pattern.
The 1-year result is the clearest part of the record so far. A 6.67% return over 1 year is materially better than the benchmark’s -7.31% over the same period, so the fund has done a better job of holding up than the benchmark in this window. That said, the benchmark is Nifty 50, which moves very differently from a short-duration debt scheme, so the comparison is most useful as a broad reference point rather than a like-for-like contest.
The longer pattern also shows why we would not read too much into one strong year. The fund does not have 3-year or 5-year returns yet because it is a newer launch, and the shorter history points to a modest, controlled compounding path. Our view is that the fund’s recent steadiness is its more important characteristic than any headline return figure.
Source data date: as of 10 Sep 2026
Should you BUY or HOLD Franklin India 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 Franklin India Ultra Short Term? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Franklin India Ultra Short Term Fund Direct Growth Plan | 6.67% | Data not available | Data not available |
| Nippon India Ultra Short Term Fund Direct Growth Plan | 7.11% | 7.61% | 6.98% |
| Axis Ultra Short Term Fund Direct Growth Plan | 6.9% | 7.47% | 6.77% |
| Invesco India Ultra Short Term Fund Direct Growth Plan | 6.87% | 7.37% | 6.61% |
| ICICI Pru Ultra Short Term Fund Direct Growth Plan | 6.84% | 7.44% | 6.76% |
| DSP Ultra Short Term Fund Direct Growth Plan | 6.83% | 7.45% | 6.65% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
On 1-year numbers, the fund is a little behind the strongest peer figures in this group, but it remains close to the middle of the pack on a return basis. The larger distinction is that several peers also show a fuller 3-year and 5-year record, while this fund does not yet have those histories because it is comparatively new. That makes the peer comparison useful for context, but the fund’s own short record is still the main frame for judging it. Recent performance therefore looks acceptable, while the longer comparison set points to a modest rather than standout profile.
Source data date: as of 10 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| 7.70% Sundaram Home Finance Ltd (26-Mar-2027) ** | Corporate Debt | 9.18% |
| 7.23% Indian Railway Finance Corporation Ltd (15-Oct-2026) | Corporate Debt | 9.13% |
| 7.59% National Housing Bank (08-Sep-2027) ** | Corporate Debt | 9.03% |
| 6.99% Sundaram Finance Ltd (28-May-2027) ** | Corporate Debt | 8.99% |
| Small Industries Development Bank of India (13-Oct-2026) ** | Certificate of Deposit | 8.82% |
| National Bank for Agriculture & Rural Development (28-Jan-2027) ** | Certificate of Deposit | 8.64% |
| HDFC Bank Ltd (09-Mar-2027) ** | Certificate of Deposit | 8.58% |
| 0.00% Jubilant Bevco Ltd (31-May-2028) ** | Corporate Debt | 6.99% |
| Call, Cash & Other Assets | Cash & Cash Equivalents and Net Assets | 5.97% |
| Mahindra & Mahindra Financial Services Ltd (18-Feb-2027) **@ | Commercial Paper | 5.15% |
The top 10 holdings account for approximately 80.48% of the portfolio.
To see all holdings, visit the Franklin India Ultra Short Term Fund Direct Growth Plan page
The largest disclosed holding is 9.18%, which is meaningful but not extreme for a short-duration debt portfolio. The weight then stays clustered in a fairly tight band through the next several positions, with the tenth holding still at 5.15%. That suggests the portfolio is not built around one dominant security; instead, influence is spread across several similar-sized positions.
The concentration picture becomes clearer when we look at the top 10 together. At 80.48% of the portfolio across 16 disclosed holdings, the fund is fairly concentrated in its visible core, even though no single position overwhelms the rest. This kind of structure may help keep the portfolio anchored around a defined set of short-term debt and money-market exposures, while still leaving room for diversification across issuers and instruments.
For investors, the main takeaway is that the fund’s largest positions are close in size, so outcomes may be shaped more by the combined behaviour of the portfolio than by any one line item. That can be consistent with a cautious income-focused approach.
Source data date: as of 10 Sep 2026
Who should invest
This fund is more suitable for investors who can accept moderate risk and want a debt allocation with a short-term orientation. The Balanced Risk category, the steady recent return pattern and the short-duration style of the portfolio all point toward a holding that is designed for stability rather than aggressive growth.
The main trade-off is that the fund may offer smoother behaviour than equity-like assets, but it is not built to deliver the kind of long-run compounding investors expect from growth-oriented funds. The lack of a longer return track record also means investors should treat it as a newer debt option where the emphasis is on consistency, not on chasing standout performance.
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 10 Sep 2026
Frequently asked questions
What is the current NAV of Franklin India Ultra Short Term Fund Direct Growth Plan?
The current NAV is ₹11.5313 as of 10 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s 1-year return is 6.67%. Its 3-year and 5-year returns are Data not available because the scheme does not yet have those full periods available.
How has the fund done versus the benchmark?
It has done better than the benchmark over 1 year, with 6.67% versus -7.31%. Over 1 month and 3 months, the fund also stayed positive while the benchmark was weaker in 1 month and slightly positive in 3 months.
How does it compare with peer funds on available return data?
Its 1-year return is slightly below the strongest peer figures in the listed group, but it remains close to the cluster of peer returns. Several peers also have longer 3-year and 5-year histories available.
What is the minimum SIP amount?
The minimum SIP amount is ₹500.
Who manages the fund and what is the exit load?
The fund is managed by Rohan Maru, Pallab Roy and Rahul Goswami. The exit load is nil, so no exit load applies on sale.
Bottom line
Franklin India Ultra Short Term Fund Direct Growth Plan has shown a steadier short-term pattern than its benchmark, but its longer history is still limited because the scheme is relatively new. On available peer return data, it sits near the pack rather than separating itself clearly. The risk profile is measured, and the portfolio is built around a fairly concentrated core of short-dated debt and cash-like holdings, which may suit investors seeking controlled exposure and modest income-oriented behaviour.
Published on 11 September 2026 at 5:36 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.