Zerodha Nifty Short Duration G-Sec Index Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 21, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Zerodha Nifty Short Duration G-Sec Index Fund Direct Growth Plan has a current NAV of ₹1,028.1888 as of 18 Sep 2026 and a scheme AUM of ₹24 Cr. Its 1-year, 3-year and 5-year returns are 0%, 0% and 0%, and the risk category is Balanced Risk. In our view, it suits investors who want government-securities exposure with a relatively steady short-duration profile, rather than a fund built for stronger return bursts.
The scheme has a low expense ratio of 0.0% and a very focused portfolio, so the portfolio structure is likely to matter more than broad equity-style market swings. Against the benchmark’s weaker short-window behaviour, the fund has held up better in the recent period, but the longer track record is still limited because it launched in January 2026.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹1,028.1888 as of 18 Sep 2026 |
| AUM | ₹24 Cr |
| Expense Ratio | 0.0% |
| Launch Date | 14 Jan 2026 |
| Min SIP | ₹100 |
| Risk Category | Balanced Risk |
| Benchmark | Nifty 50 |
| Fund Category | Index Funds |
| Exit Load | No exit load |
| Fund Managers | Kedarnath Mirajkar |
The fund is managed by Kedarnath Mirajkar.
Source data date: as of 18 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.05% | -3.73% |
| 3M | 0.82% | -3.14% |
| 1Y | Data not available | Data not available |
| 3Y | Data not available | Data not available |
| 5Y | Data not available | Data not available |
In the shortest windows, the fund has been noticeably steadier than the benchmark. The 1-month return stayed slightly positive while the benchmark was negative, and the 3-month return also stayed in positive territory when the benchmark remained below zero. That pattern points to resilience in the recent period rather than dramatic upside.
The series also suggests a generally flat-to-firm path for the fund over the three-month window, with only small day-to-day moves. That kind of movement is consistent with a short-duration government-securities strategy, where the emphasis is usually on stability rather than sharp capital appreciation. For investors, that means the fund is behaving more like a low-volatility income-oriented product than an aggressive return seeker.
We would also read the benchmark comparison as useful context. The benchmark has been weaker over both short windows, so the fund’s recent edge is real, but it should not be overextended into a long-term conclusion because the scheme itself is newly launched. With no meaningful 1-year, 3-year or 5-year history yet, the current picture is mostly about early behaviour rather than a full cycle.
In our view, the main takeaway is that short-window steadiness has been better than the benchmark’s recent performance, but the evidence base is still short. That makes this a fund to assess for its structure and consistency, not for a long record of compounding.
Source data date: as of 18 Sep 2026
Should you BUY or HOLD Zerodha Nifty Short Duration G-Sec Index?
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 Zerodha Nifty Short Duration G-Sec Index? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Zerodha Nifty Short Duration G-Sec Index Fund Direct Growth Plan | Data not available | Data not available | Data not available |
| ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan | 31.6% | 30.84% | Data not available |
| Motilal Oswal Nifty Capital Market Index Fund Direct Growth Plan | 21.71% | Data not available | Data not available |
| Tata Nifty Capital Markets Index Fund Direct Growth Plan | 21.44% | Data not available | Data not available |
| Motilal Oswal Nifty MidSmall Financial Services Index Fund Direct Growth Plan | 21.24% | Data not available | Data not available |
| ICICI Pru Nifty Pharma Index Fund Direct Growth Plan | 18.45% | 19.9% | Data not available |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
On recent returns, the fund trails the strongest peer figures shown here by a wide margin, but those peers belong to very different market segments, so the comparison mainly highlights how modest this fund’s short-window return pattern is. The absence of meaningful 3-year and 5-year numbers for the current fund also means the peer table tells a different story for schemes with longer histories.
Where longer data is available for peers, some of them show materially stronger multi-year compounding, while the current fund does not yet have that time base. That makes the comparison more useful for context than for direct ranking. For this scheme, the short-term picture is the more relevant one, and it is still building.
Source data date: as of 18 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| 06.03 Govt. Stock 2029 | Government Securities | 40.17% |
| 7.04% GOI – 03-Jun-2029 | Government Securities | 26.73% |
| 7.06% GOI – 10-Apr-2028 | Government Securities | 20.93% |
| 7.26% GOI 14-Jan-2029 | Government Securities | 8.32% |
| Clearing Corporation of India Limited | Cash & Cash Equivalents and Net Assets | 2.63% |
| Net Receivable / Payable | Cash & Cash Equivalents and Net Assets | 1.23% |
The largest holding is 06.03 Govt. Stock 2029 at 40.17%, so a single government security has meaningful influence on the portfolio. The next three government securities also carry large weights, which means the core of the fund is built around a small set of sovereign exposures rather than a broad spread of many small positions.
The weight drop from the first holding to the rest is still visible, but not abrupt enough to suggest a single-position portfolio. The top four holdings together dominate the scheme, while the remaining cash and net asset lines are much smaller. That structure may keep the fund’s behaviour closely tied to movements in government securities with similar maturity bands.
Because the disclosed holdings table contains only six rows and the combined weight is 100%, the portfolio is fully explained by these positions. In our view, that points to a fairly concentrated but transparent structure, where government securities are likely to have greater influence than the smaller cash and receivable items.
Source data date: as of 18 Sep 2026
Who should invest
This fund is suited to investors who are comfortable with Balanced Risk and want a short-duration government-securities exposure rather than an equity-like growth profile. The recent return pattern is steady but modest, and the benchmark comparison shows better short-window resilience without changing the fact that this is still an early-stage scheme. Investors with a shorter-to-medium horizon and a preference for stability may find the structure more relevant than headline return chasing.
The main trade-off is that the portfolio may offer lower volatility than many equity-oriented funds, but it is also not built for high upside. The concentrated government-securities mix can support consistency, yet the limited history means the long-term behaviour is still being established. That makes it more appropriate for investors who value measured movement and short-duration bond exposure.
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 Zerodha Nifty Short Duration G-Sec Index Fund Direct Growth Plan?
The current NAV is ₹1,028.1888 as of 18 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
Its 1-year, 3-year and 5-year returns are all shown as 0% in the fund facts, but the scheme launched only in January 2026, so it does not yet have a full multi-year record.
How has the fund performed against its benchmark recently?
It has been steadier than the benchmark in the recent short windows. The fund shows 0.05% for 1 month and 0.82% for 3 months, while the benchmark is negative over both periods.
Does the fund have a minimum SIP amount?
Yes. The minimum SIP amount is ₹100.
What is the fund’s risk category?
The risk category is Balanced Risk. That fits the scheme’s government-securities-heavy structure and its short-duration orientation.
Who manages the fund and what does the portfolio look like?
The fund is managed by Kedarnath Mirajkar. Its disclosed portfolio is concentrated in government securities, led by 06.03 Govt. Stock 2029 at 40.17%.
Bottom line
This is an early-stage government-securities index fund whose recent short-window behaviour has been steadier than the benchmark, even though the longer-term record is not yet established. Compared with peers, the current fund’s available return profile is much more muted, while some peer schemes with longer histories show materially stronger compounding. The risk label is Balanced Risk, and the portfolio is concentrated in a few government securities, which gives the scheme a clear and focused structure. It looks most relevant for investors who value stability and short-duration bond exposure over high return ambition.
Published on 21 September 2026 at 11:09 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.