ITI Dynamic Term Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 21, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
ITI Dynamic Term Fund Direct Growth Plan has a NAV of ₹13.4571 as of 18 Sep 2026, with scheme assets of ₹25 Cr. Its 1-year, 3-year and 5-year returns are 3.11%, 6.15% and 5.79%, and it sits in the Medium Risk category. Our view is that this is a conservative debt fund profile with restrained long-term compounding, while the recent numbers show only modest momentum.
The portfolio is dominated by government securities and cash-like instruments, which supports stability more than aggressive growth. That mix, together with a low 0.15% expense ratio and no exit load, makes it most relevant for investors who value relatively steady debt exposure and can live with modest return expectations.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹13.4571 as of 18 Sep 2026 |
| AUM | ₹25 Cr |
| Expense Ratio | 0.15% |
| Launch Date | 14 Jul 2021 |
| Min SIP | ₹500 |
| Risk Category | Medium Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | No exit load |
| Fund Managers | Laukik Bagwe |
The fund is managed by Laukik Bagwe.
Source data date: as of 18 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -0.53% | -3.73% |
| 3M | 0.02% | -3.14% |
| 1Y | 3.11% | -5.31% |
| 3Y | 6.15% | 6.3% |
| 5Y | 5.79% | 5.79% |
The recent picture is mixed but not weak in context. Over 1 month, the fund slipped slightly, yet that decline was much smaller than the benchmark’s fall. Over 3 months, the fund was nearly flat while the benchmark stayed negative, so the fund has held up better in the short run.
The 1-year return is still positive at 3.11%, while the benchmark is negative over the same period. That tells us the fund has protected capital better than the benchmark over the last year, even if the absolute return is modest. For debt investors, that matters because downside control often counts more than headline upside.
Over 3 years, the fund’s 6.15% return is slightly below the benchmark’s 6.3%, so the gap is small. Over 5 years, both sit at 5.79%, which suggests the fund has broadly tracked the benchmark over the long horizon rather than consistently outperforming it. The time pattern also supports that view: the fund has shown periods of recovery after softer stretches, but the compounding path has been measured rather than sharp.
Overall, the fund’s short-term behaviour looks better than the benchmark, while the medium- and long-term picture is closer to the index than clearly ahead of it.
Source data date: as of 18 Sep 2026
Should you BUY or HOLD ITI Dynamic 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 ITI Dynamic Term? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| ITI Dynamic Term Fund Direct Growth Plan | 3.11% | 6.15% | 5.79% |
| Bandhan Dynamic Term Fund Direct Growth Plan | 7.19% | 7.58% | 6.14% |
| Axis Dynamic Term Fund Direct Growth Plan | 6.39% | 7.42% | 6.15% |
| Kotak Dynamic Term Fund Direct Growth Plan | 6.28% | 7.82% | 6.6% |
| Aditya Birla SL Dynamic Term Fund Direct Growth Plan | 5.8% | 7.65% | 7.21% |
| 360 ONE Dynamic Term Fund Direct Growth Plan | 5.71% | 8.04% | 6.81% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On 1-year performance, this fund trails the stronger peer outcomes and sits well below the top recent returns in the group. That said, the longer view is more balanced: its 3-year and 5-year numbers are closer to the peer cluster than the 1-year figure suggests.
What stands out is that the fund’s short-term return is more subdued than all five peers, while the 3-year and 5-year figures are not dramatically detached from the group. In other words, recent underperformance relative to the peer set is more visible than the long-term gap. Investors comparing only the latest year may find the difference meaningful, but the medium-term story is less one-sided.
Source data date: as of 18 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| 6.94% Government of India (11/05/2036) | Government Securities | 68.3% |
| Net Receivables / (Payables) | Cash & Cash Equivalents and Net Assets | 14.81% |
| 6.9% Government of India (15/04/2065) | Government Securities | 14.18% |
| TREPS 01-Sep-2026 | Cash & Cash Equivalents and Net Assets | 1.45% |
| Corporate Debt Market Development Fund Class A2 | Alternative Investment Fund | 1.26% |
The largest holding is the 6.94% Government of India paper at 68.3%, which is a very large single-position weight for a debt portfolio. That position alone likely has a meaningful influence on the fund’s interest-rate sensitivity and overall return path.
The weight falls quickly after the top holding. The second and third positions are 14.81% and 14.18%, and the remaining holdings are all below 1.5%, so the portfolio does not show a long tail of similarly sized positions. Instead, it is anchored by two government securities and a small set of cash-like or liquidity-oriented exposures.
Because the five disclosed holdings together account for 100% of the portfolio, the exposure looks highly concentrated in a handful of instruments rather than broadly spread across many names. That concentration could make the fund’s behaviour more dependent on movements in government securities, although the cash and receivable positions may cushion day-to-day shifts to some extent.
Source data date: as of 18 Sep 2026
Who should invest
This fund is most suitable for investors with a conservative to moderate risk tolerance who want debt exposure rather than equity-style growth. Its Medium Risk label, short-term resilience versus the benchmark, and long-term return pattern point to an investor who can accept modest upside in exchange for a more controlled path.
A medium- to long-term horizon fits better than a very short holding period, because the 1-year result is positive but not exciting, and the 3-year and 5-year figures suggest steady rather than fast compounding. The main trade-off is that the portfolio’s government-securities tilt may support stability, but it can also limit return acceleration when compared with stronger-performing peers.
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 18 Sep 2026
Frequently asked questions
What is the current NAV of ITI Dynamic Term Fund Direct Growth Plan?
Its NAV is ₹13.4571 as of 18 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The returns are 3.11% for 1 year, 6.15% for 3 years and 5.79% for 5 years.
How does the fund compare with its benchmark?
It has beaten the benchmark over 1 month, 3 months and 1 year, while the 3-year and 5-year numbers are close to the benchmark.
How does it compare with peer funds on recent returns?
Its 1-year return is lower than the listed peers, while the 3-year and 5-year figures are closer to the peer range.
What is the minimum SIP amount?
The minimum SIP amount is ₹500.
What are the main portfolio and exit-load features?
The portfolio is heavily tilted to government securities, led by a 68.3% position in a Government of India security. The fund has no exit load.
Bottom line
ITI Dynamic Term Fund Direct Growth Plan looks like a stable, government-securities-heavy debt fund with a modest return profile. Its recent returns are less impressive than the stronger peer figures, but its longer-term numbers are steadier and close to the benchmark, which suggests a more measured compounding pattern than a standout growth story. The Medium Risk label and concentrated portfolio make it best suited to investors who prioritise controlled debt exposure and can accept that returns may remain subdued rather than aggressive.
Published on 21 September 2026 at 9:36 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.