DSP Medium Term Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

DSP Medium Term Fund Direct Growth Plan has a current NAV of ₹92.4061 as of 03 Sep 2026 and an AUM of ₹254 Cr. Its 1-year, 3-year and 5-year returns are 5.43%, 7.35% and 6.26% respectively, and the scheme carries a Medium Risk tag. Our view is that it suits investors who want a debt fund with a measured return profile rather than a highly volatile strategy, especially because the portfolio is built heavily around government securities and certificate of deposit exposure.

The fund has been around since 01 Jan 2013, so the longer history gives some context to its fairly steady compounding pattern. The current return profile is constructive, but the gap versus the benchmark has widened in the shorter periods, which matters for investors comparing consistency with relative performance.

Quick facts

Particular	Details
NAV	₹92.4061 as of 03 Sep 2026
AUM	₹254 Cr
Expense Ratio	0.4%
Launch Date	01 Jan 2013
Min SIP	₹100
Risk Category	Medium Risk
Benchmark	Nifty 50
Fund Category	Debt
Exit Load	No exit load
Fund Managers	Vivekanand Ramakrishnan, Karan Mundhra

The fund is managed by Vivekanand Ramakrishnan and Karan Mundhra.

Source data date: as of 03 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-0.14%	-3.01%
3M	2.44%	1.95%
1Y	5.43%	-4.4%
3Y	7.35%	5.74%
5Y	6.26%	6.27%

The recent picture is mixed but still acceptable for a medium-term debt fund. Over 1 month, the fund was slightly negative, yet the benchmark fell more sharply, so the fund preserved capital better in that patch. The 3-month return improved to 2.44%, which is ahead of the benchmark’s 1.95% and points to a moderate recovery.

The 1-year return stands out more clearly because the fund stayed positive while the benchmark was negative. That tells us the fund has handled a difficult stretch better than the benchmark on a trailing basis. For debt investors, that kind of resilience can matter as much as the headline number, especially when the benchmark itself has been volatile.

On a 3-year view, the fund has compounded at 7.35%, which is comfortably ahead of the benchmark’s 5.74%. The 5-year figures are nearly identical, with the fund at 6.26% and the benchmark at 6.27%. That combination suggests the fund has not consistently outpaced the benchmark over every horizon, but it has been steadier over the medium term than the most recent year alone might imply.

Overall, the pattern is one of relatively controlled movement with periods of softness that have not derailed the longer-run trend. For investors, that usually signals a fund that can play a role in a debt allocation where stability and moderate compounding matter more than aggressive upside.

Source data date: as of 03 Sep 2026

Should you BUY or HOLD DSP Medium 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
DSP Medium Term Fund Direct Growth Plan	5.43%	7.35%	6.26%
Aditya Birla SL Medium Term Fund Direct Growth Plan	9.67%	10.64%	12.75%
ICICI Pru Medium Term Fund Direct Growth Plan	8.13%	8.53%	7.42%
Kotak Medium Term Fund Direct Growth Plan	8%	9.02%	7.46%
SBI Medium Term Fund Direct Growth Plan	7.39%	7.89%	6.87%
Axis Medium Term Fund Direct Growth Plan	7.29%	8.43%	7.37%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On a 1-year view, the fund trails most of the listed peer funds, even though it remains positive while the benchmark was negative. The gap narrows on the 3-year horizon, where the fund is closer to the middle of the peer set than in the latest year. On 5 years, it sits below several peers, but the fund’s own benchmark-like stability means the story is less about chasing the highest number and more about whether the investor values steadier medium-term debt compounding.

Source data date: as of 03 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
6.36% GOI 16022031	Government Securities	14.12%
7.13% Haryana SDL 05012032	Government Securities	13.8%
7.72% Maharashtra SDL 01032031	Government Securities	10.42%
7.73% Maharashtra SDL 29032032	Government Securities	10.36%
7.30% Karnataka SDL 09022032	Government Securities	10.25%
7.03% Chhattisgarh SDL 25092030	Government Securities	10.07%
6.83% Maharashtra SDL 23062031	Government Securities	9.83%
Indian Bank**	Certificate of Deposit	9.49%
Bank of Baroda**	Certificate of Deposit	7.59%
7.32% GOI 13112030	Government Securities	2.06%

The largest holding is 6.36% GOI 16022031 at 14.12%, which is a meaningful single-position weight for a debt fund. The weight then steps down gradually rather than collapsing sharply, with a cluster of sovereign and state-backed securities staying close to double-digit levels. That pattern suggests the portfolio may be built around a relatively deliberate duration and credit mix rather than around a handful of very small positions.

The tenth holding still carries 2.06%, so the spread from the top position to the bottom of the table is wide, but not erratic. The top 10 holdings account for approximately 97.99% of the portfolio, and the fund discloses 11 holdings in total. That means the visible book is fairly concentrated in a small set of instruments, even though it is spread across multiple issuers and instruments rather than one dominant line.

Because government securities make up most of the visible holdings and the rest sits in certificate of deposit exposure, the portfolio may help explain the fund’s steady debt-style profile. It is not a short-term parking vehicle in the way a cash fund might be, but it also does not look like a high-beta credit strategy.

To see all holdings, visit the DSP Medium Term Fund Direct Growth Plan page

Source data date: as of 03 Sep 2026

Who should invest

This fund is better suited to investors who are comfortable with medium risk and want a debt allocation with a reasonably steady compounding profile. The 1-year number is weaker than the 3-year and 5-year outcomes, so the fund looks more appropriate for investors who can hold through uneven shorter periods and focus on a longer horizon.

The trade-off is clear: the fund has delivered stability relative to the benchmark in the latest year, but it has not consistently matched the stronger peer returns visible over the same horizons. That makes it a fit for investors who value a disciplined debt portfolio and are willing to accept that the upside may be more muted than some peers while still aiming for smoother participation over time.

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 03 Sep 2026

Frequently asked questions

What is the current NAV of DSP Medium Term Fund Direct Growth Plan?
Its current NAV is ₹92.4061 as of 03 Sep 2026.

What are the 1-year, 3-year and 5-year returns?
The fund’s returns are 5.43% for 1 year, 7.35% for 3 years and 6.26% for 5 years.

How has the fund performed versus the benchmark?
It has outperformed the benchmark over 1 year and 3 years, and it is almost identical over 5 years. The latest 1-month and 3-month figures also show the fund holding up better than the benchmark in the short run.

How does it compare with the listed peer funds?
Its 1-year return is lower than most of the listed peers, while the 3-year and 5-year figures remain in a more middle-of-the-pack range. The comparison is more favourable on stability than on headline trailing returns.

Is there a minimum SIP amount?
Yes, the minimum SIP amount is ₹100.

Who manages the fund and what is the exit load?
The fund is managed by Vivekanand Ramakrishnan and Karan Mundhra. There is no exit load.

Bottom line

DSP Medium Term Fund Direct Growth Plan looks steadier over the medium term than its latest 1-year number alone suggests. It has matched the benchmark over 5 years, outperformed it over 3 years and stayed resilient in the short run, even though several peers have delivered stronger trailing returns. The portfolio is dominated by government securities with some CD exposure, which supports a more measured debt profile. That combination may suit investors who want medium-risk debt exposure and are comfortable trading away some upside for consistency.

Published on 4 September 2026 at 4:12 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.