HSBC Ultra Short to Short Term Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 10, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
HSBC Ultra Short to Short Term Fund Direct Growth Plan has a NAV of ₹32.6943 as of 09 Sep 2026 and manages ₹875 Cr. Its 1-year, 3-year and 5-year returns are 6.57%, 7.92% and 6.94%, respectively, and the scheme carries a Balanced Risk tag. Our view is that this is a steady debt option for investors who want a relatively smoother return pattern than equity, while still accepting that short-term outcomes can move around.
The fund’s portfolio leans toward corporate debt and government securities, which supports its moderate return profile rather than an aggressive one. With a 0.39% expense ratio and no exit load, it may suit investors looking for a direct-growth debt fund with a fairly diversified fixed-income mix and a medium-to-long holding mindset.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹32.6943 as of 09 Sep 2026 |
| AUM | ₹875 Cr |
| Expense Ratio | 0.39% |
| Launch Date | 01 Jan 2013 |
| Min SIP | ₹1,000 |
| Risk Category | Balanced Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | No exit load |
| Fund Managers | Shriram Ramanathan, Mohd Asif Rizwi |
The fund is managed by Shriram Ramanathan and Mohd Asif Rizwi.
Source data date: as of 09 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.52% | -4.69% |
| 3M | 1.82% | 0.93% |
| 1Y | 6.57% | -7.16% |
| 3Y | 7.92% | 6% |
| 5Y | 6.94% | 5.87% |
The recent picture is constructive. Over 1 month and 3 months, the fund stayed positive while the benchmark was weaker over the same windows, which suggests a more stable short-run path than the reference index.
Over 1 year, the gap is even clearer: the fund posted 6.57% while the benchmark was negative at -7.16%. That tells us the scheme held up much better through a difficult period for the benchmark, even though short-term debt-fund performance can still reflect rate movements and portfolio positioning.
The longer record remains solid rather than flashy. The 3-year return of 7.92% is ahead of the benchmark’s 6%, and the 5-year return of 6.94% also stays above the benchmark’s 5.87%. That supports the view that the scheme has compounded in a fairly consistent way over longer windows.
Overall, the pattern is one of stability more than speed. The fund has not relied on a single short burst; it has also stayed ahead of the benchmark across the 3-year and 5-year periods, which is useful for investors who care more about return durability than sharp upside.
Source data date: as of 09 Sep 2026
Should you BUY or HOLD HSBC 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 HSBC Ultra Short to Short Term? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| HSBC Ultra Short to Short Term Fund Direct Growth Plan | 6.57% | 7.92% | 6.94% |
| Franklin India Ultra Short to Short Term Fund Direct Growth Plan | 6.69% | 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 | 6.65% | 7.54% | 6.68% |
| Mirae Asset Ultra Short to Short Term Fund Direct Growth Plan | 6.63% | 7.52% | 6.62% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
On the latest 1-year figures, the fund sits close to the stronger peer readings, with Franklin India slightly ahead at 6.69% and Nippon India at 6.66%. That keeps the fund broadly competitive on recent returns without claiming a clear lead.
Over 3 years and 5 years, the fund’s 7.92% and 6.94% returns are above the peer figures shown for Nippon India, Mahindra Manulife and Mirae Asset. The shorter-window comparison is tighter, but the longer-window comparison points to a more durable edge in compounding.
Franklin India does not show longer-horizon figures here, so the available peer view is strongest when judged against the funds with 3-year and 5-year numbers. That makes the fund’s longer record more useful than its one-year number alone.
Source data date: as of 09 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| REC Limited** | Corporate Debt | 9.40% |
| Sidbi** | Corporate Debt | 8.94% |
| LIC Housing Finance Limited** | Corporate Debt | 7.55% |
| 7.38% GOI Mat 20-Jun-2027 | Government Securities | 5.86% |
| Power Finance Corporation Limited** | Corporate Debt | 5.80% |
| Punjab National Bank^ | Certificate of Deposit | 5.55% |
| NABARD** | Corporate Debt | 4.90% |
| 182 Days Treasury Bill 19-Nov-2026 | Treasury Bills | 3.39% |
| GOI Floating Rate FRB 22-Sep-2033 | Government Securities | 3.06% |
| NABARD^ | Corporate Debt | 2.99% |
The top 10 holdings account for approximately 57.44% of the portfolio.
To see all holdings, visit the HSBC Ultra Short to Short Term Fund Direct Growth Plan page
The largest position, REC Limited at 9.40%, is meaningful but not dominant. The drop from the first holding to the tenth is fairly gradual, which suggests the portfolio is built from several mid-sized positions rather than one very large anchor.
That mix may reduce dependence on a single issuer, although the top holdings still account for 57.44% of the portfolio. With 33 disclosed holdings in total, the scheme appears to balance a visible core with a longer tail of smaller positions.
In practical terms, that means the largest names may have greater influence on returns, but the spread across 10 disclosed holdings and 33 total positions points to a reasonably broad fixed-income book for a debt scheme.
Source data date: as of 09 Sep 2026
Who should invest
This fund fits investors who want a debt-oriented allocation with moderate risk tolerance and a holding period that is not purely tactical. The Balanced Risk label and the return pattern suggest it is better suited to investors who can accept some rate-driven movement in exchange for steadier compounding than equity funds.
The 1-year result is stronger than the benchmark, while the 3-year and 5-year numbers remain ahead as well. That makes the scheme more suitable for investors who value consistency across different market conditions and are comfortable holding through short-term fluctuations rather than chasing quick jumps.
The main trade-off is that the portfolio’s return profile is likely to be steadier than growth-oriented funds, but also less explosive. The allocation to corporate debt and government securities supports that profile, so the fund is most useful as a measured debt holding rather than a high-growth satellite position.
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 if units are sold anytime.
Source data date: as of 09 Sep 2026
Frequently asked questions
What is the current NAV of HSBC Ultra Short to Short Term Fund Direct Growth Plan?
The current NAV is ₹32.6943 as of 09 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 6.57%, 7.92% and 6.94%.
How has the fund performed versus its benchmark?
It has outperformed the benchmark across the displayed periods. The benchmark return is -7.16% over 1 year, 6% over 3 years and 5.87% over 5 years, while the fund is ahead in each case.
How does the fund compare with peers on the available return figures?
Its 1-year return is close to the peer set, while its 3-year and 5-year figures are stronger than the peer funds shown with long-horizon data. Franklin India has a slightly higher 1-year return, but longer-horizon data is missing for that fund.
What is the minimum SIP amount?
The minimum SIP amount is not shown here, so it is best to check the plan details before investing. The available facts do confirm that SIP investment is allowed.
Who manages the fund and what is the exit load?
The fund is managed by Shriram Ramanathan and Mohd Asif Rizwi. There is no exit load if units are sold anytime.
Bottom line
The fund’s recent return pattern is stable rather than erratic, and its 3-year and 5-year outcomes continue to sit ahead of the benchmark. Against the peer set, the shorter-term figure is competitive, while the longer-horizon figures are more convincing. The portfolio leans heavily toward corporate debt with a meaningful government-securities sleeve, which supports a measured debt profile. For investors seeking a debt fund with moderate risk and a steadier compounding record, this scheme looks aligned with that brief.
Published on 10 September 2026 at 1:03 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.