Bandhan Ultra Short Term Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

Bandhan Ultra Short Term Fund Direct Growth Plan has a NAV of ₹16.6336 as of 15 Sep 2026 and an AUM of ₹4,179 Cr. Its 1-year, 3-year and 5-year returns are 6.59%, 7.18% and 6.44% respectively, and the scheme sits in the Balanced Risk category. Our view is that this is a steady debt option for investors who want relatively contained swings, but the recent return pattern still needs to be read alongside the benchmark’s weaker behaviour and the fund’s portfolio mix.

The fund’s long-term compounding has been reasonably consistent, while the shorter-term numbers are softer than the 3-year trend. That makes it more suitable for investors who can hold through moderate variation and who value stability over headline upside. The portfolio is built around money-market-style and short-duration credit exposure, which can support smoother participation, though it also means returns are likely to move within a narrower band than equity-led products.

Quick facts

Particular	Details
NAV	₹16.6336 as of 15 Sep 2026
AUM	₹4,179 Cr
Expense Ratio	0.27%
Launch Date	18 Jul 2018
Min SIP	₹100
Risk Category	Balanced Risk
Benchmark	Nifty 50
Fund Category	Debt
Exit Load	No exit load
Fund Managers	Harshal Joshi

The fund is managed by Harshal Joshi.

Source data date: as of 15 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.46%	-4.81%
3M	1.76%	-3.63%
1Y	6.59%	-8.27%
3Y	7.18%	5.59%
5Y	6.44%	5.58%

The recent pattern is better read as stable than exciting. Over 1 month and 3 months, the fund has stayed positive while the benchmark has been negative, which suggests the scheme has been better insulated from near-term weakness.

The 1-year return of 6.59% also stands well ahead of the benchmark’s -8.27%, so the fund has clearly handled the last year better than the comparison index. That said, the gap is not the same story across longer horizons. The 3-year return of 7.18% is only moderately above the benchmark’s 5.59%, and the 5-year return of 6.44% is also ahead of the benchmark’s 5.58% but not by a wide margin.

What we see here is a fund that has preserved a steadier compounding profile than the benchmark, especially in recent periods, while still delivering mid-single-digit returns over the long run. The progression in the series is not abrupt, and that matters for a debt scheme: it points to a path that is more measured than volatile. For investors, that usually means the fund may be better suited to capital parking and shorter horizon debt allocation than to return-chasing.

The main takeaway is that the fund’s nearer-term behaviour has been stronger than the benchmark’s, but the 3-year and 5-year numbers show a more modest long-term edge. In other words, recent resilience is visible, yet the compounding profile remains disciplined rather than aggressive.

Source data date: as of 15 Sep 2026

Should you BUY or HOLD Bandhan 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 Bandhan Ultra Short Term? Thinking of investing now?

Get your portfolio analysed for FREE by SEBI-registered Investment Adviser (RIA) through Univest MF Premium

Peer comparison

Fund	1Y return	3Y return	5Y return
Bandhan Ultra Short Term Fund Direct Growth Plan	6.59%	7.18%	6.44%
Nippon India Ultra Short Term Fund Direct Growth Plan	7.06%	7.60%	6.97%
Axis Ultra Short Term Fund Direct Growth Plan	6.86%	7.46%	6.76%
Invesco India Ultra Short Term Fund Direct Growth Plan	6.83%	7.36%	6.60%
DSP Ultra Short Term Fund Direct Growth Plan	6.80%	7.44%	6.65%
ICICI Pru Ultra Short Term Fund Direct Growth Plan	6.79%	7.43%	6.75%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.

On the return table, the fund sits a little behind the stronger peer figures in the 1-year column, where Nippon India Ultra Short Term Fund Direct Growth Plan leads the group on the available numbers. The same pattern broadly continues over 3 years and 5 years, where the current fund trails the better peer readings but remains close enough to show a competitive, rather than weak, profile. The short-term and longer-term comparisons do not tell opposite stories; they both point to a fund that is steady, but not the strongest among the listed peers on return data alone.

Source data date: as of 15 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Triparty Repo TRP_010926	Cash & Cash Equivalents and Net Assets	10.74%
Bank of Baroda **	Certificate of Deposit	9.92%
National Bank for Agriculture and Rural Development **	Certificate of Deposit	8.73%
8.1% Tata Capital Housing Finance Limited **	Corporate Debt	4.68%
HDFC Bank Limited **	Certificate of Deposit	4.66%
HDFC Bank Limited	Certificate of Deposit	4.11%
Small Industries Dev Bank of India **	Certificate of Deposit	4.03%
ICICI Securities Limited **	Commercial Paper	3.51%
Mahindra & Mahindra Financial Services Limited **	Commercial Paper	2.93%
Axis Bank Limited **	Certificate of Deposit	2.92%

The top 10 holdings account for approximately 56.23% of the portfolio, which suggests a meaningful but not extreme concentration in the disclosed positions. The largest holding, Triparty Repo TRP_010926, is 10.74%, while the tenth holding is 2.92%, so the list tapers down fairly quickly from the highest weight to the lower end of the disclosed set.

That pattern may indicate a portfolio built around a cluster of short-duration, high-quality money-market instruments rather than one or two oversized bets. The presence of cash and cash equivalents, certificates of deposit and commercial paper also points to a structure that could help reduce day-to-day swings, although the individual credit instruments still matter for income generation.

There are 41 disclosed holdings in total, so the visible top 10 represent only part of the portfolio. Even so, the combined weight of the leading positions is large enough to matter, which means changes in a few key holdings may have a greater influence on returns than in a more evenly spread portfolio.

To see all holdings, visit the Bandhan Ultra Short Term Fund Direct Growth Plan page

Source data date: as of 15 Sep 2026

Who should invest

This fund may suit investors with a moderate tolerance for risk who want debt exposure with relatively controlled movement rather than equity-style volatility. The Balanced Risk label and the portfolio mix both point to a structure that is designed for steadier compounding, which can be useful for parking money over a short to medium horizon.

The 1-year number is stronger than the benchmark, while the 3-year and 5-year returns show a more measured but still positive long-term profile. The main trade-off is that investors may get stability and modest compounding, but not the faster upside that comes with more aggressive asset mixes. That makes the fund more relevant for investors prioritising preservation, liquidity planning and smoother short-horizon debt allocation.

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 Bandhan Ultra Short Term Fund Direct Growth Plan?

The NAV is ₹16.6336 as of 15 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?

The 1-year return is 6.59%, the 3-year return is 7.18% and the 5-year return is 6.44%.

How has it performed versus the benchmark?

It has done better than the benchmark over 1 month, 3 months, 1 year, 3 years and 5 years. The widest gap is in the 1-year period, where the fund is positive and the benchmark is negative.

How does it compare with peer funds on return data?

Its return profile is competitive, but several peer funds in the list have slightly stronger 1-year, 3-year and 5-year figures. The current fund still stays close to the group on all three periods.

Is there a minimum SIP requirement?

The scheme allows SIP investment, but a minimum SIP amount is not stated here.

Who manages the fund and what does the portfolio look like?

Harshal Joshi manages the fund. The portfolio is led by Triparty Repo TRP_010926 at 10.74%, followed by bank certificates of deposit and other short-duration credit instruments, and the scheme has no exit load.

Bottom line

Bandhan Ultra Short Term Fund Direct Growth Plan has shown a steadier recent profile than its benchmark, while its 3-year and 5-year returns point to a more modest long-term edge than a high-growth story. Against the listed peers, the return profile is competitive but not the strongest on the available figures. The Balanced Risk label, short-duration mix and no-exit-load structure make it a practical debt option for investors who want measured compounding and can accept that the upside is likely to remain moderate.

Published on 16 September 2026 at 8:02 AM IST

Explore mutual funds with Univest

Review mutual fund data, compare performance and explore fund insights on Univest.

Explore Univest

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.