HDFC Medium Term Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

HDFC Medium Term Fund Direct Growth Plan has a NAV of ₹66.0225 as of 03 Sep 2026 and a scheme AUM of ₹3,599 Cr. Its 1-year, 3-year and 5-year returns are 7.18%, 7.95% and 6.8% respectively. The fund carries a Medium Risk tag, so our view is that it may suit investors who want a debt fund with a steadier profile than equity, but who are still comfortable with some yield movement and credit exposure.

The return pattern looks reasonably consistent over longer periods, while the recent stretch is calmer rather than explosive. That combination, along with a portfolio built around debt securities, government securities and securitised exposure, points to a fund that is more about controlled compounding than aggressive upside.

Quick facts

The fund is managed by Anil Bamboli, Praveen Jain and Bhavyesh Divecha.

Source data date: as of 03 Sep 2026

Performance

The fund has held up better than the benchmark over every period shown, which is important because the benchmark itself has been weak over some recent stretches. The 1-month figure is positive while the benchmark is negative, and the same broad gap appears over 1 year, where the fund remained comfortably ahead. That tells us the strategy has been more resilient than the benchmark when markets were uneven.

Over the medium term, the pattern is still constructive. The 3-year return is higher than the 5-year return, which suggests the fund has delivered a better recent run than its longer horizon average. Even so, the 5-year figure is close to the benchmark and remains in positive territory, so the long-term compounding story is not dependent on a single short burst of strength.

The daily movement pattern is also not especially erratic. The recent trend shows small steps rather than sharp swings, which fits a debt-oriented allocation. For investors, that usually matters more than chasing the highest short-term number, because the main question is whether the fund can preserve a relatively steady path while still adding return over time.

Our view is that the fund has been more stable than the benchmark recently and more effective than the benchmark over longer periods, but the margin over 5 years is modest. That makes the fund more appealing for investors who value steadier debt-style behaviour over a high-octane return profile.

Source data date: as of 03 Sep 2026

Peer comparison

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On the return figures available here, the fund trails the stronger peer numbers over 1 year, 3 years and 5 years. The gap is most visible over 3 years and 5 years, where some peers have compounded at notably higher rates, while the current fund stays in a steadier but less forceful band.

That does not change the short-term story completely, because the fund still shows a cleaner recent pattern than the benchmark. But when we compare it with peers, the longer-term picture is softer. So the choice here is less about chasing the strongest return and more about accepting a smoother debt-fund profile that has delivered adequate, not standout, compounding relative to the group.

Source data date: as of 03 Sep 2026

Portfolio: where your money goes

The largest disclosed holding is 4.82%, so no single position dominates the portfolio on its own. The drop from the first holding to the tenth is modest rather than dramatic, which suggests the fund spreads its exposure across multiple debt instruments instead of leaning too heavily on one line item.

The top 10 holdings account for approximately 33.56% of the portfolio, and the fund discloses 56 holdings in total. That combination points to a meaningfully longer tail below the largest positions, so the portfolio may be diversified across many smaller lines even though the biggest holdings still matter. The blend of securitised debt, corporate debt, government securities and cash-like exposure also means the fund may be balancing yield and stability rather than concentrating only in one bucket.

Because the disclosed holdings together cover only part of the portfolio, the visible list should be read as a concentration snapshot rather than the full picture. Even so, the structure looks measured, and the largest positions are likely to have greater influence than the smaller tail without making the fund look narrowly built.

To see all holdings, visit the HDFC Medium Term Fund Direct Growth Plan page

Source data date: as of 03 Sep 2026

Who should invest

This fund may suit investors who can accept Medium Risk in exchange for a debt-oriented return pattern that has stayed ahead of the benchmark across the periods shown. The 1-year and 3-year figures are stronger than the 5-year figure, so the recent trend has been better than the longer view, but not in a way that looks erratic.

A longer investment horizon is more sensible here than a very short one, because the return profile is shaped by incremental compounding rather than sharp jumps. The main trade-off is that investors may give up the possibility of stronger peer-style upside in return for a steadier path and a portfolio that mixes corporate debt, sovereign securities and securitised exposure.

Tax and exit load

Exit load: No exit load.

Source data date: as of 03 Sep 2026

Frequently asked questions

What is the current NAV of HDFC Medium Term Fund Direct Growth Plan?
Its current NAV is ₹66.0225 as of 03 Sep 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 7.18%, 7.95% and 6.8%.

How has the fund performed against its benchmark?
It has outpaced the benchmark across 1 month, 3 months, 1 year, 3 years and 5 years. The gap is especially visible over 1 year, where the benchmark return is negative.

How does it compare with peer funds on available return data?
Its return profile is steadier but softer than the stronger peer figures shown here. Several peers have higher 1-year, 3-year and 5-year returns.

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 Anil Bamboli, Praveen Jain and Bhavyesh Divecha. There is no exit load.

Bottom line

HDFC Medium Term Fund Direct Growth Plan has a steadier return profile than its benchmark and a longer-term track record that is positive, though not especially punchy. Compared with peers, the available numbers show that it has lagged stronger compounding elsewhere, but the fund’s own pattern is more measured and less dependent on sudden swings. Its Medium Risk tag and mix of securitised debt, corporate debt and government securities make it a fit for investors who want debt-style compounding with some credit exposure and a longer holding horizon.

Published on 4 September 2026 at 10:42 AM IST