Sundaram Ultra Short Term Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 9, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Sundaram Ultra Short Term Fund Direct Growth Plan has a NAV of ₹3164.1261 as of 08 Sep 2026 and scheme AUM of ₹2,416 Cr. Its 1-year, 3-year and 5-year returns are 6.66%, 7.32% and 6.61%, and the fund sits in the Balanced Risk category.
Our view is that this is a steady debt option rather than a return-chasing one. The portfolio leans on short-dated credit instruments and treasury bills, so the fund may suit investors who want moderate stability and can accept that returns are closer to benchmark-like debt compounding than to equity-style growth.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹3,164.1261 as of 08 Sep 2026 |
| AUM | ₹2,416 Cr |
| Expense Ratio | 0.23% |
| Launch Date | 01 Jan 2013 |
| Min SIP | ₹1,000 |
| Risk Category | Balanced Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | No exit load after holding period |
| Fund Managers | Sandeep Agarwal, Kumaresh Ramakrishnan, Ronak Shah |
The fund is managed by Sandeep Agarwal, Kumaresh Ramakrishnan and Ronak Shah.
Source data date: as of 08 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.6% | -3.86% |
| 3M | 1.97% | 1.69% |
| 1Y | 6.66% | -5.72% |
| 3Y | 7.32% | 6.3% |
| 5Y | 6.61% | 6.05% |
The recent picture is constructive. Over 1 month and 3 months, the fund has stayed positive, while the benchmark has been weaker over 1 month and only slightly positive over 3 months. That tells us the fund has handled the latest stretch more smoothly than the benchmark.
The longer view is also stable rather than explosive. The 3-year return of 7.32% is a touch ahead of the benchmark’s 6.3%, and the 5-year return of 6.61% is also modestly above the benchmark’s 6.05%. The margin is not wide, but it does show consistent compounding through different market phases.
The 1-year figure stands out because the fund has remained positive while the benchmark return is negative. That gap suggests the fund has been relatively resilient in the latest 12-month window. At the same time, the 1-month and 3-month readings indicate that the fund still moves in a fairly restrained band, which is exactly what many debt investors want from an ultra-short-term mandate.
In our view, the pattern is one of stability with measured upside rather than sharp jumps. The fund has not needed aggressive swings to stay ahead of the benchmark over longer periods, and that makes the recent behaviour consistent with the 3-year and 5-year trend.
Source data date: as of 08 Sep 2026
Should you BUY or HOLD Sundaram 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 Sundaram Ultra Short Term? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Sundaram Ultra Short Term Fund Direct Growth Plan | 6.66% | 7.32% | 6.61% |
| Nippon India Ultra Short Term Fund Direct Growth Plan | 7.1% | 7.62% | 6.98% |
| Axis Ultra Short Term Fund Direct Growth Plan | 6.89% | 7.48% | 6.77% |
| Invesco India Ultra Short Term Fund Direct Growth Plan | 6.87% | 7.38% | 6.61% |
| DSP Ultra Short Term Fund Direct Growth Plan | 6.85% | 7.46% | 6.66% |
| ICICI Pru Ultra Short Term Fund Direct Growth Plan | 6.85% | 7.46% | 6.77% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
Against the peer set, the fund’s 1-year return trails the stronger recent numbers posted by Nippon India Ultra Short Term Fund Direct Growth Plan, Axis Ultra Short Term Fund Direct Growth Plan and Invesco India Ultra Short Term Fund Direct Growth Plan. The gap is modest, but it means the fund has not led the group on the latest 12-month reading.
The longer view is more balanced. Its 3-year return of 7.32% is below the stronger peer figures shown here, while its 5-year return of 6.61% is close to Invesco India Ultra Short Term Fund Direct Growth Plan and DSP Ultra Short Term Fund Direct Growth Plan. So the short-term and long-term comparisons tell slightly different stories: the fund is steadier than exceptional, with a longer record that remains competitive but not dominant.
Source data date: as of 08 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| PUNJAB NATIONAL BANK – 05/02/2027 | Certificate of Deposit | 4.63% |
| AXIS BANK LTD – 07/12/2026** | Certificate of Deposit | 4.07% |
| PILANI INVESTMENT AND INDUSTRIES CORPORATION LTD. – 11/03/2027** | Commercial Paper | 3.98% |
| UNION BANK OF INDIA – 15/09/2026** | Certificate of Deposit | 3.1% |
| 364 DAYS – T BILL – 03/12/2026 | Treasury Bills | 3.06% |
| SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA – 16/12/2026** | Certificate of Deposit | 3.05% |
| THE FEDERAL BANK LTD – 10/12/2026** | Certificate of Deposit | 3.05% |
| NATIONAL BANK FOR AGRICULTURE & RURAL DEVELOPMENT – 18/03/2027 | Certificate of Deposit | 2.99% |
| PUNJAB NATIONAL BANK – 04/02/2027** | Certificate of Deposit | 2.41% |
| HDFC BANK LTD – 11/09/2026** | Certificate of Deposit | 2.07% |
The top 10 holdings account for approximately 32.41% of the portfolio.
To see all holdings, visit the Sundaram Ultra Short Term Fund Direct Growth Plan page
The largest position is Punjab National Bank – 05/02/2027 at 4.63%, which is large enough to matter but not so large that one holding dominates the portfolio. The gap to the tenth holding, HDFC Bank Ltd – 11/09/2026**, is 2.07%, so the visible allocation tapers gradually rather than dropping off sharply.
That shape suggests a portfolio built around several similar-sized short-duration credit exposures. Certificate of deposit holdings are prominent, and treasury bills also appear among the largest positions, which may help keep the structure relatively defensive for an ultra-short-term debt scheme.
Because the top 10 holdings together make up 32.41% of the portfolio and the scheme reports 61 holdings in total, the visible sleeve is only part of a longer tail. Our view is that this points to moderate concentration in the largest names, but with enough spread across other positions that the portfolio is not overly dependent on a single issuer.
Source data date: as of 08 Sep 2026
Who should invest
This fund may suit investors who want debt exposure with a relatively steady return profile and can accept the Balanced Risk label without expecting very high upside. The 1-year, 3-year and 5-year figures suggest a fund that has been reasonably consistent, with longer-term returns holding slightly ahead of the benchmark.
The main trade-off is between stability and return depth. The portfolio is tilted toward certificate of deposit and treasury-bill exposure, so the fund may appeal to investors who prefer shorter-duration credit positioning and a measured compounding path. A longer holding horizon is still useful, but the fund is best viewed as a moderate-risk debt allocation rather than a high-growth product.
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 |
No exit load after holding period.
Source data date: as of 08 Sep 2026
Frequently asked questions
What is the current NAV of Sundaram Ultra Short Term Fund Direct Growth Plan?
The current NAV is ₹3164.1261 as of 08 Sep 2026.
How have the 1-year, 3-year and 5-year returns looked?
The 1-year return is 6.66%, the 3-year return is 7.32%, and the 5-year return is 6.61%. The pattern is steady rather than dramatic.
How does the fund compare with its benchmark?
It has outpaced the benchmark over 1 year, 3 years and 5 years. The benchmark return is -5.72% over 1 year, 6.3% over 3 years and 6.05% over 5 years.
How does it compare with other ultra short-term funds on available return data?
Its 1-year and 3-year returns are below the stronger peer readings shown here, while its 5-year return is still broadly competitive with several peers. The comparison points to a stable fund rather than a standout recent performer.
What is the minimum SIP amount?
The minimum SIP amount is ₹1000.
Who manages the fund and what is the exit load?
The fund is managed by Sandeep Agarwal, Kumaresh Ramakrishnan and Ronak Shah. There is no exit load after the holding period.
Bottom line
Sundaram Ultra Short Term Fund Direct Growth Plan has shown a steadier longer-term pattern than its recent benchmark has, and its 1-year, 3-year and 5-year returns all point to consistent debt-style compounding. Compared with the peer returns shown here, it looks competitive but not the strongest on the latest numbers. The Balanced Risk label and the portfolio’s heavy use of certificate of deposit and treasury-bill exposure make it more suitable for investors who value stability and short-duration debt positioning over sharp return spikes.
Published on 9 September 2026 at 2:30 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.