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

Bank of India Ultra Short Term Fund Direct Growth Plan has a NAV of ₹3,530.0848 as of 10 Sep 2026 and a scheme AUM of ₹184 Cr. Its 1-year, 3-year and 5-year returns are 6.63%, 6.94% and 6.22%, and the scheme carries a Balanced Risk profile.

Our view is that this is a steady debt option rather than a fast-moving return story. The fund has held up better than its benchmark across the 1-year, 3-year and 5-year periods, while the portfolio mix leans heavily toward short-duration money market, bank deposit and corporate debt instruments.

Quick facts

Particular	Details
NAV	₹3,530.0848 as of 10 Sep 2026
AUM	₹184 Cr
Expense Ratio	0.34%
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	Mithraem Bharucha

The fund is managed by Mithraem Bharucha.

Source data date: as of 10 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.57%	-4.06%
3M	1.90%	1.37%
1Y	6.63%	-7.31%
3Y	6.94%	6.07%
5Y	6.22%	5.91%

The recent return pattern looks controlled rather than stretched. Over the last month, the fund has remained positive while the benchmark was weaker, and that supports the view that this scheme is built for stability rather than sharp swings. The three-month figure also stayed ahead of the benchmark, which suggests the recent run has been constructive.

The longer view is a little different in tone. The 1-year return has been strong relative to the benchmark, but the 3-year and 5-year figures show only a modest edge over the index. That tells us the fund has not relied on a single strong year to define its record; instead, it has compounded at a measured pace over time.

The return profile also suggests a fairly smooth path. The 1M and 3M trend lines point to limited short-term disruption, while the 1Y, 3Y and 5Y numbers show consistency rather than a sudden jump in performance. For investors who prefer a debt allocation with steadier behaviour, that is an important signal.

On the benchmark comparison, the fund is ahead across every displayed period. The gap is very large over 1 year because the benchmark was negative, but the advantage narrows over 3 years and 5 years, where the fund still stays slightly in front. That makes the recent outperformance meaningful, but not a sign of aggressive risk-taking.

Source data date: as of 10 Sep 2026

Should you BUY or HOLD Bank of India 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.

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Peer comparison

Fund	1Y return	3Y return	5Y return
Bank of India Ultra Short Term Fund Direct Growth Plan	6.63%	6.94%	6.22%
Nippon India Ultra Short Term Fund Direct Growth Plan	7.11%	7.61%	6.98%
Axis Ultra Short Term Fund Direct Growth Plan	6.90%	7.47%	6.77%
Invesco India Ultra Short Term Fund Direct Growth Plan	6.87%	7.37%	6.61%
ICICI Pru Ultra Short Term Fund Direct Growth Plan	6.84%	7.44%	6.76%
DSP Ultra Short Term Fund Direct Growth Plan	6.83%	7.45%	6.65%

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

Against the listed peers, this fund sits below the strongest 1-year numbers, with all five peer schemes showing a higher 1-year return. That said, the gap is not dramatic versus the lower half of the comparison set, so the recent picture is competitive even if it is not leading.

The 3-year and 5-year comparisons are closer. The fund trails the peer group on both measures, but by a relatively modest margin against several schemes. Our reading is that the fund’s edge is not in matching the very best peer figures; it is in keeping a stable, understandable return profile without wide swings.

The short-term and longer-term stories are broadly aligned. Peers have delivered stronger recent and multi-year returns, yet the current fund still shows consistency and a narrower spread between shorter and longer periods than some higher-return peers. For a debt investor, that makes the comparison more about steadiness versus a slightly higher return ceiling than about a dramatic gap in quality.

Source data date: as of 10 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Bajaj Finance Limited (02/09/2026)	Commercial Paper	8.68%
6.27% Power Finance Corporation Limited (15/07/2027)	Corporate Debt	7.52%
Kotak Mahindra Bank Limited (21/12/2026) #	Certificate of Deposit	7.45%
TREPS	Cash & Cash Equivalents and Net Assets	7.41%
7.59% REC Limited (31/05/2027) **	Corporate Debt	6.52%
Indian Bank (04/12/2026) #	Certificate of Deposit	6.40%
National Bank for Agriculture and Rural Development (17/03/2027) #	Certificate of Deposit	5.75%
Bank of Baroda (11/12/2026) ** #	Certificate of Deposit	5.33%
Axis Bank Limited (12/02/2027) ** #	Certificate of Deposit	5.27%
Small Industries Dev Bank of India (05/02/2027) ** #	Certificate of Deposit	5.27%

The largest holding, Bajaj Finance Limited, stands at 8.68%, which is large enough to matter but not so large that it dominates the fund on its own. The tenth holding is 5.27%, so the decline from the top position to the edge of the visible list is gradual rather than sharp.

The visible holdings together account for about 65.6% of the portfolio, and the fund discloses 20 holdings in total. That combination points to meaningful concentration in the disclosed top positions, but it also leaves room for a broader tail of smaller holdings beyond the top ten.

Our reading is that this structure may help keep the fund anchored in short-term credit and cash-like instruments while still spreading exposure across multiple issuers. The top ten are important enough to shape the portfolio, yet the overall composition does not look like a one-position story.

To see all holdings, visit the Bank of India Ultra Short Term Fund Direct Growth Plan page

Source data date: as of 10 Sep 2026

Who should invest

This fund suits investors who want a debt allocation with a measured return profile and can accept some variation in short-term outcomes. The Balanced Risk tag fits a scheme that has stayed ahead of the benchmark across the available horizons without looking especially aggressive.

A medium- to longer-term horizon makes more sense than chasing very short holding periods, because the 3-year and 5-year numbers show the steadier part of the story. The main trade-off is simple: you get a relatively calm debt allocation and diversified short-duration exposure, but not the higher return profile seen in some peer schemes.

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 after holding period.

Source data date: as of 10 Sep 2026

Frequently asked questions

What is the current NAV of Bank of India Ultra Short Term Fund Direct Growth Plan?
The current NAV is ₹3,530.0848 as of 10 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The returns are 6.63% for 1 year, 6.94% for 3 years and 6.22% for 5 years.

How does it compare with the benchmark?
It has stayed ahead of the benchmark across 1 month, 3 months, 1 year, 3 years and 5 years. The margin is widest over 1 year and narrower over 3 years and 5 years.

How does it compare with peers?
Its displayed 1-year, 3-year and 5-year returns are lower than the peer set shown here. The gap is smaller on the longer periods than on the 1-year figure.

Is there a minimum SIP amount?
Yes, the minimum SIP amount is ₹1,000.

Who manages the fund and what does the portfolio look like?
Mithraem Bharucha manages the fund. The portfolio is led by Bajaj Finance Limited at 8.68%, and the top ten holdings together account for about 65.6% of the portfolio.

Bottom line

The fund’s short-term and longer-term records tell a consistent story: stable compounding, benchmark outperformance and limited visible volatility. It does not lead the peer set on the displayed return figures, but it remains close enough to be competitive for investors who value a steadier debt profile. The portfolio is fairly concentrated in the disclosed top holdings, with credit and cash-like instruments playing a meaningful role. That makes it better suited to investors seeking a measured ultra-short-duration debt allocation than to those chasing the highest return number.

Published on 11 September 2026 at 10:41 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.