Union Short Term Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 16, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Union Short Term Fund Direct Growth Plan has a NAV of ₹11.0556 as of 15 September 2026 and manages ₹112 Cr. Its 1-year, 3-year and 5-year returns are 4.94%, 0% and 0%, and the fund sits in the Medium Risk category.
Our view is that this is a cautious debt fund with a short track record and a portfolio built around cash, corporate debt, certificates of deposit and sovereign exposure. The return pattern has been modest so far, but the mix suggests a relatively conservative short-term credit and liquidity profile rather than a high-growth one.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹11.0556 as of 15 Sep 2026 |
| AUM | ₹112 Cr |
| Expense Ratio | 0.33% |
| Launch Date | 31 Jan 2025 |
| Min SIP | ₹500 |
| Risk Category | Medium Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | No exit load |
| Fund Managers | Anindya Sarkar, Shrenuj Parekh |
The fund is managed by Anindya Sarkar and Shrenuj Parekh.
Source data date: as of 15 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -0.17% | -4.81% |
| 3M | 0.93% | -3.63% |
| 1Y | 4.94% | -8.27% |
| 3Y | Data not available | Data not available |
| 5Y | Data not available | Data not available |
The recent numbers show a fund that has been steadier than its benchmark across the listed horizons. Over 1 month, the fund was slightly negative, while the benchmark fell more sharply. The 3-month picture improved, and the fund stayed positive when the benchmark was still weaker. That gap matters because it points to a defensive profile rather than a tightly cyclical one.
The 1-year return is the clearest hard number available for a longer look, and it remains positive at 4.94% while the benchmark is still negative over the same period. That tells us the fund has preserved value better than the benchmark through a difficult stretch. At the same time, the lack of 3-year and 5-year figures means we should avoid reading too much into long-run compounding just yet.
The daily pattern behind the numbers also suggests a restrained move rather than a sharp swing. The fund did not show the kind of drawdown or rebound profile we would associate with a more volatile allocation. For investors, that usually means the appeal lies more in relative stability and credit exposure management than in fast return acceleration.
Overall, the recent trend is more supportive than the longer sample size might appear at first glance, but the fund still needs more time before it can be judged on a full multi-year record.
Source data date: as of 15 Sep 2026
Should you BUY or HOLD Union 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 Union Short Term? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Union Short Term Fund Direct Growth Plan | 4.94% | Data not available | Data not available |
| Tata Ultra Short Term Fund Direct Growth Plan | 7.09% | 7.53% | 6.76% |
| Aditya Birla SL Ultra Short Term Fund Direct Growth Plan | 6.68% | 7.48% | 6.74% |
| ICICI Pru Short Term Fund Direct Growth Plan | 6.21% | 7.73% | 7.11% |
| Axis Short Term Fund Direct Growth Plan | 6.06% | 7.82% | 6.78% |
| Aditya Birla SL Short Term Fund Direct Growth Plan | 5.86% | 7.61% | 6.82% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
On the 1-year number, this fund trails all five peer funds listed here. That is a meaningful gap because the peers are clustered in the mid-5% to low-7% range, while this fund is below 5%. On the longer horizons where peer data is available, the same pattern continues: the peers show stronger 3-year and 5-year returns, while this fund has no comparable multi-year history yet.
So the short-term comparison and the longer-term comparison tell a similar story rather than two different ones. The fund has been more defensive, but it has not yet shown the return depth seen in the peer set. For an investor, that makes the trade-off clearer: a calmer short-term debt profile versus a record that is still building against stronger-performing peers.
Source data date: as of 15 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| TREPS | Cash & Cash Equivalents and Net Assets | 14.24% |
| Indian Oil Corporation Ltd.** | Corporate Debt | 8.89% |
| Jio Credit Ltd.** | Corporate Debt | 8.77% |
| REC Ltd. | Corporate Debt | 8.72% |
| Power Finance Corporation Ltd.** | Corporate Debt | 8.71% |
| Kotak Mahindra Bank Ltd.** | Certificate of Deposit | 8.61% |
| GOI 6.68% 2040 | Government Securities | 8.60% |
| National Bank for Agriculture and Rural Development | Corporate Debt | 7.11% |
| Bank of Baroda** | Certificate of Deposit | 6.88% |
| Canara Bank** | Certificate of Deposit | 6.88% |
The top 10 holdings account for approximately 87.41% of the portfolio.
To see all holdings, visit the Union Short Term Fund Direct Growth Plan page
The largest position is TREPS at 14.24%, which gives the fund a meaningful cash-and-equivalent buffer at the top of the list. After that, the weights stay fairly close together, mostly in the 6.88% to 8.89% range, so there is no single bond exposure that overwhelms the rest of the disclosed book.
The drop from the largest holding to the tenth holding is noticeable but not extreme. That pattern suggests a portfolio built around several similarly sized positions rather than one or two outsized bets. The mix of corporate debt, certificates of deposit, government securities and cash equivalents may help keep returns from becoming too dependent on one line item.
Because the disclosed top 10 holdings already account for 87.41% of the portfolio and the full holding count is 14, the fund appears relatively concentrated in a compact set of names. That concentration may make each holding more influential, even though the portfolio is still spread across different issuer types and instruments.
Source data date: as of 15 Sep 2026
Who should invest
This fund may suit conservative investors who are comfortable with medium risk and want a short-term debt allocation rather than equity-style growth. The available return pattern is modest, but it has held up better than the benchmark in the periods shown, which may appeal to investors who value steadier behaviour over aggressive upside.
The main trade-off is that the portfolio is designed more for controlled credit and liquidity exposure than for standout return leadership. Investors with a short to medium horizon who want a debt fund that has so far behaved more defensively than the benchmark could find it relevant, but they should accept that the return record is still relatively young.
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 15 Sep 2026
Frequently asked questions
What is the current NAV of Union Short Term Fund Direct Growth Plan?
The current NAV is ₹11.0556 as of 15 September 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
Its 1-year return is 4.94%, while the 3-year and 5-year returns are not available in the current record.
How has it done against the benchmark?
It has been ahead of the benchmark across the listed periods. For example, the fund’s 1-year return is 4.94% versus the benchmark’s -8.27%.
How does it compare with the peer funds listed here?
Its 1-year return is below the peer figures shown here, while the peers with longer records also show stronger 3-year and 5-year returns.
Is there a minimum SIP amount?
Yes. The minimum SIP amount is ₹500.
What are the managers, risk category and exit load?
The fund is managed by Anindya Sarkar and Shrenuj Parekh, and its risk category is Medium Risk. There is no exit load.
Bottom line
Union Short Term Fund Direct Growth Plan has shown a steadier near-term pattern than its benchmark, but it does not yet have a long multi-year return history to lean on. In the peer set shown here, its 1-year return is weaker, while the portfolio itself looks fairly compact and built around cash, debt and deposit-style exposures. That combination may suit investors looking for a medium-risk debt fund with controlled positioning rather than a return leader.
Published on 16 September 2026 at 10:12 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.