ITI Ultra Short Term Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 17, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
ITI Ultra Short Term Fund Direct Growth Plan is an ultra-short duration debt fund with a current NAV of ₹1380.8789 as of 16 Sep 2026 and scheme AUM of ₹165 Cr. Its 1-year, 3-year and 5-year returns are 6.49%, 7.08% and 6.37%, and the scheme sits in the Balanced Risk category.
Our view is that the fund has delivered steady compounding rather than sharp swings, which fits a conservative debt allocation better than a return-chasing one. The portfolio is built around CDs, CPs, T-bills and select corporate debt, so the return profile has more to do with credit-quality and rate management than with broad equity-market moves.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹1,380.8789 as of 16 Sep 2026 |
| AUM | ₹165 Cr |
| Expense Ratio | 0.13% |
| Launch Date | 05 May 2021 |
| Min SIP | ₹500 |
| Risk Category | Balanced 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 16 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.48% | -4.41% |
| 3M | 1.68% | -3.6% |
| 1Y | 6.49% | -7.76% |
| 3Y | 7.08% | 5.74% |
| 5Y | 6.37% | 5.67% |
The short-term profile has been constructive. Over 1 month and 3 months, the fund has stayed positive while the benchmark has been negative, which points to much better near-term stability in this debt strategy than in the equity index it is measured against.
The 1-year figure also shows a clear gap in favour of the fund, but the more important read-through is that the fund has not relied on one isolated burst of outperformance. The return path suggests gradual accretion with limited disruption, which is what investors usually want from an ultra-short term allocation.
Over 3 years and 5 years, the fund has continued to compound at a pace above the benchmark. The margin is not dramatic, but it is consistent, and that consistency matters more than a single strong month in a debt scheme. The pattern also suggests that the fund has been able to preserve a positive trajectory even when equity benchmarks have been weak over shorter windows.
That said, the return pattern is still modest in absolute terms, which is normal for this kind of fund. For investors, the key point is not excitement; it is whether the fund can keep compounding with controlled day-to-day variation, and the recent series is broadly in line with that expectation.
Source data date: as of 16 Sep 2026
Should you BUY or HOLD ITI 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 ITI Ultra Short Term? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| ITI Ultra Short Term Fund Direct Growth Plan | 6.49% | 7.08% | 6.37% |
| Nippon India Ultra Short Term Fund Direct Growth Plan | 7.02% | 7.58% | 6.97% |
| Axis Ultra Short Term Fund Direct Growth Plan | 6.81% | 7.44% | 6.76% |
| Invesco India Ultra Short Term Fund Direct Growth Plan | 6.78% | 7.34% | 6.61% |
| LIC MF Ultra Short Term Fund Direct Growth Plan | 6.74% | 7.22% | 6.29% |
| DSP Ultra Short Term Fund Direct Growth Plan | 6.73% | 7.42% | 6.65% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
The fund is a little behind the stronger peer figures on the 1-year measure, and that is also true for the 3-year and 5-year windows. Even so, the gaps are not large, which tells us the fund is operating in the same broad return band as the better-known ultra-short term options rather than falling materially away from them.
The short-term table looks slightly softer than the longer-term picture, because the recent 1-year number trails the leading peer returns by a narrower margin than the same fund trails the best multi-year figures. That mix suggests the fund has remained competitive, but it has not quite matched the strongest consistency shown by a few peers across every window.
Source data date: as of 16 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| Indian Bank (24/06/2027) | Certificate of Deposit | 8.57% |
| Bank of Baroda (05/03/2027) | Certificate of Deposit | 8.18% |
| Axis Finance Limited (18/09/2026) | Commercial Paper | 7.53% |
| 91 Days Tbill (MD 17/09/2026) | Treasury Bills | 7.24% |
| ICICI Securities Limited (03/09/2026) | Commercial Paper | 6.65% |
| 7.95% REC Limited (12/03/2027) | Corporate Debt | 6.06% |
| Axis Bank Limited (12/02/2027) | Certificate of Deposit | 5.87% |
| Small Industries Dev Bank of India (18/02/2027) | Certificate of Deposit | 5.86% |
| National Bank for Agriculture and Rural Development (04/09/2026) | Commercial Paper | 5.44% |
| TREPS 01-Sep-2026 | Cash & Cash Equivalents and Net Assets | 4.64% |
The top 10 holdings account for approximately 66.04% of the portfolio.
To see all holdings, visit the ITI Ultra Short Term Fund Direct Growth Plan page
The largest holding is Indian Bank (24/06/2027) at 8.57%, and the next few positions remain in a fairly tight band, with the tenth holding still at 4.64%. That tells us the portfolio is not depending on a single outsized exposure; instead, it spreads the active weight across several CDs, CPs, a Treasury Bill and one corporate debt position.
The drop from the first holding to the tenth is noticeable but not extreme, so the construction looks moderately layered rather than highly concentrated. Because the displayed ten holdings together make up 66.04% of the portfolio, these positions are likely to have greater influence on the fund’s near-term behaviour than the rest of the disclosed tail.
At the same time, there are 24 disclosed holdings in total, so the portfolio does extend beyond the top names. That longer tail may help distribute issuer exposure, while the heavier weights in the first few lines still keep the fund anchored to a relatively focused ultra-short duration credit-and-liquidity mix.
Source data date: as of 16 Sep 2026
Who should invest
This fund suits investors who are comfortable with debt-fund style movement and want a return profile that has stayed steadier than the equity benchmark across short and long windows. The Balanced Risk label and the portfolio mix suggest a moderate sensitivity to credit and rate conditions, so it fits better as a parking or near-parking allocation than as a high-growth holding.
The return pattern is most suitable for investors with a shorter-to-medium holding horizon who value consistency over the chance of sharp gains. The trade-off is straightforward: in exchange for steadier compounding and a low expense ratio, investors should accept that returns are likely to remain measured rather than exciting, and that peer leaders have still done a little better across the same periods.
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 16 Sep 2026
Frequently asked questions
What is the current NAV of ITI Ultra Short Term Fund Direct Growth Plan?
The current NAV is ₹1380.8789 as of 16 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s returns are 6.49% for 1 year, 7.08% for 3 years and 6.37% for 5 years.
How does the fund compare with its benchmark?
It has outperformed the benchmark across 1 month, 3 months, 1 year, 3 years and 5 years. The gap is especially wide over the shorter windows, where the benchmark has been negative.
How does it compare with the peer funds listed here?
Its 1-year, 3-year and 5-year returns are a little below the stronger peer figures, but the differences are not large. That keeps it within the same broad ultra-short-term return band.
Is there a minimum SIP amount?
Yes, the minimum SIP amount is ₹500.
What are the risk profile, exit load and fund management details?
The fund is in the Balanced Risk category, has no exit load and is managed by Laukik Bagwe.
Bottom line
This fund has shown steadier short-term and long-term compounding than its benchmark, while remaining close to the peer pack on most return windows. Its recent behaviour is consistent with its 3-year and 5-year pattern rather than a sudden shift, which is a positive sign for investors looking for predictability. The portfolio’s spread across CDs, CPs, T-bills and select debt papers supports a measured, income-oriented profile. Overall, it looks best suited to investors who want restrained debt-fund behaviour with moderate return expectations.
Published on 17 September 2026 at 10:05 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.