Tata Short Term Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 10, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Tata Short Term Fund Direct Growth Plan has a NAV of ₹56.5998 as of 09 Sep 2026 and an AUM of ₹2,926 Cr. Its 1-year, 3-year and 5-year returns are 5.69%, 7.31% and 6.36%, and the fund sits in the Medium Risk category.
Our view is that this is a steady debt option rather than a return-chasing one. The portfolio is built around government securities and corporate debt, so it may suit investors who want moderate income-oriented exposure with a relatively conservative profile.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹56.5998 as of 09 Sep 2026 |
| AUM | ₹2,926 Cr |
| Expense Ratio | 0.34% |
| Launch Date | 01 Jan 2013 |
| Min SIP | ₹500 |
| Risk Category | Medium Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | No exit load |
| Fund Managers | Amit Somani, Dhawal Joshi |
The fund is managed by Amit Somani and Dhawal Joshi.
Source data date: as of 09 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.23% | -4.69% |
| 3M | 1.64% | 0.93% |
| 1Y | 5.69% | -7.16% |
| 3Y | 7.31% | 6% |
| 5Y | 6.36% | 5.87% |
Performance has been steadier over the short windows than the benchmark. The 1-month and 3-month figures are both positive, while the benchmark has been weaker over the last month and only mildly positive over three months. That points to a fund that has held up better in the recent period.
Over longer periods, the pattern is still constructive. The 3-year return is 7.31%, ahead of the benchmark’s 6%, and the 5-year return is 6.36%, slightly above the benchmark’s 5.87%. That suggests the fund has done a decent job of compounding in line with its debt mandate rather than relying on one strong burst of performance.
The one-year result stands out because the fund delivered a positive 5.69% while the benchmark was negative at -7.16%. In our view, that gap is the clearest sign that the fund’s return path has been more resilient than the benchmark over the last year. The recent trajectory looks supportive, but the scale of gains remains moderate, which is typical for a short-term debt strategy.
Across the displayed time pattern, the fund appears to have moved through a few softer stretches and then recovered, without the sharp swings that are usually associated with higher-volatility categories. That supports the case for investors who value consistency and want a debt fund that has generally stayed ahead of the benchmark over medium and longer horizons.
Source data date: as of 09 Sep 2026
Should you BUY or HOLD Tata 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 Tata Short Term? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Tata Short Term Fund Direct Growth Plan | 5.69% | 7.31% | 6.36% |
| Tata Ultra Short Term Fund Direct Growth Plan | 7.11% | 7.55% | 6.77% |
| Aditya Birla SL Ultra Short Term Fund Direct Growth Plan | 6.79% | 7.53% | 6.76% |
| ICICI Pru Short Term Fund Direct Growth Plan | 6.6% | 7.93% | 7.19% |
| Mahindra Manulife Short Term Fund Direct Growth Plan | 6.27% | 7.86% | 6.66% |
| Axis Short Term Fund Direct Growth Plan | 6.23% | 7.86% | 6.82% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
On 1-year returns, the fund trails the stronger peer figures in this set, led by 7.11% and 6.79%. That said, its 5.69% is still a positive result in the same broad short-term debt bucket. The gap is less important than the direction: the fund has remained constructive, even if some peers have posted higher recent gains.
The longer-term picture is more balanced. Its 3-year return of 7.31% sits below a few peers, while its 5-year return of 6.36% is also below several available peer figures. That tells us the fund has been steady, but not the most assertive compounder among the listed names. The shorter-term comparison and the medium-term comparison therefore point to the same general conclusion: acceptable, but not the strongest return profile in this group.
Source data date: as of 09 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| GOI – 6.94% (11/05/2036) | Government Securities | 7.34% |
| ** 07.45 % Exim – 12/04/2028 | Corporate Debt | 5.13% |
| ** 06.96 % Power Finance Corporation – 02/03/2028 | Corporate Debt | 4.74% |
| ** 07.54 % Mindspace Business Parks Reit – 18/02/2028 | Corporate Debt | 4.27% |
| ** 07.54 % Indian Railways Finance Corporation Ltd – 31/10/2027 | Corporate Debt | 4.04% |
| ** 07.40 % Bharti Telecom Ltd – 01/02/2029 | Corporate Debt | 3.52% |
| GOI – 7.32% (13/11/2030) | Government Securities | 3.51% |
| ** 07.59 % National Housing Bank – 08/09/2027 | Corporate Debt | 3.42% |
| ** 07.45 % Power Finance Corporation – 15/07/2028 | Corporate Debt | 3.41% |
| ** 07.48 % NABARD – 15/09/2028 | Corporate Debt | 3.41% |
The top 10 holdings account for approximately 42.79% of the portfolio.
To see all holdings, visit the Tata Short Term Fund Direct Growth Plan page
The largest holding is a 7.34% allocation to a government security, which gives that position the most influence among the disclosed names. The tenth holding still carries 3.41%, so the drop from the first to the tenth is noticeable but not extreme. That shape suggests a portfolio that spreads risk across several bonds rather than relying on just one or two positions.
The displayed holdings are also fairly diversified across government securities and corporate debt. Because the top 10 add up to 42.79% and the fund has 38 disclosed holdings in total, the portfolio may have a meaningful tail beyond the visible list. In our view, that makes the structure look moderately spread out rather than tightly concentrated.
For investors, this kind of mix may matter more than any single bond line. The biggest holdings are large enough to influence outcomes, but the long list of additional positions could soften the impact of any one issue. That is generally consistent with a short-term debt fund aiming for stability while still seeking regular income opportunities.
Source data date: as of 09 Sep 2026
Who should invest
This fund may appeal to investors with a moderate risk tolerance who want a debt allocation rather than an equity-style growth profile. The Medium Risk label fits a short-term debt fund that has delivered positive returns over 1, 3 and 5 years, with the 1-year period looking better than the benchmark.
A longer holding period is still sensible because the 3-year and 5-year numbers give a clearer view of how the strategy behaves across cycles. The main trade-off is simple: you get steadier debt-fund behaviour and benchmark resilience, but you should not expect the kind of sharp upside that comes from higher-risk asset classes.
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 09 Sep 2026
Frequently asked questions
What is the current NAV of Tata Short Term Fund Direct Growth Plan?
The current NAV is ₹56.5998 as of 09 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s returns are 5.69% over 1 year, 7.31% over 3 years and 6.36% over 5 years.
How has it performed against the benchmark?
It has been ahead of the benchmark across the displayed periods, including 5.69% versus -7.16% over 1 year and 6.36% versus 5.87% over 5 years.
How does it compare with the peer funds listed here?
Its recent and longer-term returns are respectable, but several peers have shown stronger 1-year, 3-year and 5-year figures. The fund remains competitive, though not the strongest performer in the list.
Is there an exit load?
No exit load applies.
Who manages the fund?
The fund is managed by Amit Somani and Dhawal Joshi.
Bottom line
Tata Short Term Fund Direct Growth Plan has shown a steadier return pattern over time, with the 1-year figure looking materially better than the benchmark and the 3-year and 5-year figures staying ahead as well. Compared with the peer set shown here, the returns are solid but not the highest across the available horizons. The portfolio leans meaningfully toward government securities and corporate debt, which supports a relatively measured debt-fund profile for investors who want stability over aggressive upside.
Published on 10 September 2026 at 1:27 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.