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

Edelweiss Ultra Short Term Fund Direct Growth Plan has a NAV of ₹1004.4193 as of 17 Sep 2026 and scheme AUM of ₹896 Cr. Its 1-year, 3-year and 5-year returns are 0%, 0% and 0%, and the fund carries a Balanced Risk label. Our view is that this is a cash-and-credit heavy ultra-short duration debt fund that looks steady on paper, but the return record is too short to build a longer performance case yet.

The fund may suit investors who want low-volatility debt exposure, but the present record is still dominated by its recent launch and a portfolio built mainly around treasury bills, certificates of deposit and short-dated corporate paper. That makes the income profile more relevant than long-term compounding at this stage.

Quick facts

Particular	Details
NAV	₹1,004.4193 as of 17 Sep 2026
AUM	₹896 Cr
Expense Ratio	0.0%
Launch Date	25 Aug 2026
Min SIP	₹100
Risk Category	Balanced Risk
Benchmark	Nifty 50
Fund Category	Debt
Exit Load	No exit load
Fund Managers	Rahul Dedhia, Kedar Karnik

The fund is managed by Rahul Dedhia and Kedar Karnik.

Source data date: as of 17 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.44%	-3.66%
3M	Data not available	Data not available
1Y	0%	Data not available
3Y	0%	Data not available
5Y	0%	Data not available

The most recent month was stable for the fund, with a small positive return while the benchmark moved lower. That short-run pattern is consistent with a debt strategy that is designed to mute market swings rather than chase equity-like upside.

The deeper issue is that the fund’s 1-year, 3-year and 5-year figures are not yet telling a mature compounding story. The scheme launched only on 25 Aug 2026, so the visible return record is still too brief to judge how it behaves across different rate environments or credit cycles.

Even so, the available month-on-month pattern suggests limited volatility in the fund itself. For investors, that is useful only if the objective is parking money in a conservative short-duration debt bucket rather than seeking meaningful growth momentum.

Against the benchmark, the fund has held up better in the latest month. Beyond that, there is not enough history here to claim a sustained outperformance or underperformance pattern.

Source data date: as of 17 Sep 2026

Should you BUY or HOLD Edelweiss 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
Edelweiss Ultra Short Term Fund Direct Growth Plan	0%	0%	0%

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

With only the current fund available in the peer set, the comparison picture is narrow. The recent monthly profile is steadier than the benchmark, but the 1-year, 3-year and 5-year numbers do not yet provide a meaningful basis to compare longer-term compounding against other funds.

That means the current conversation is more about how the fund is behaving now than about a finished track record. For an ultra-short debt strategy, that can still be useful, but it does not yet answer whether the fund consistently stays ahead of alternatives over multiple cycles.

Source data date: as of 17 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
182 Days Tbill Red 10-09-2026	Treasury Bills	11.14%
7.71% REC Ltd SR 230A NCD Red 26-02-2027**	Corporate Debt	7.82%
NABARD CD Red 26-02-2027#**	Certificate of Deposit	7.55%
7.90% LIC HSG Fin TR421 NCD R 23-06-2027**	Corporate Debt	5.59%
Kotak Mahindra Bank CD Red 08-01-2027#	Certificate of Deposit	5.45%
Indian Bank CD Red 05-02-2027#	Certificate of Deposit	5.42%
Axis Bank Ltd CD Red 12-02-2027#**	Certificate of Deposit	5.41%
Axis Finance Ltd CP R 29-01-27**	Commercial Paper	5.41%
HDFC Bank CD Red 24-02-2027#**	Certificate of Deposit	5.4%
Canara Bank CD Red 11-03-2027#**	Certificate of Deposit	5.38%

The top 10 holdings account for approximately 64.57% of the portfolio.

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

The largest holding is 182 Days Tbill Red 10-09-2026 at 11.14%, and the next few positions are not far behind, with several holdings clustered in the 5.3% to 7.8% range. That pattern suggests the portfolio is not sitting on one dominant line item, even though treasury bills, CDs and short-dated debt instruments still shape most of the exposure.

The decline from the first holding to the tenth is noticeable but not dramatic, which points to a fairly even spread across the disclosed core bucket. The top 10 account for 64.57% of the portfolio, so the disclosed part of the book is significant but still leaves room for a longer tail across the remaining 9 holdings.

For investors, that mix may reduce dependence on any one issuer or security, but the portfolio can still be influenced by the behaviour of a relatively small set of short-dated debt positions. In our view, that is typical of an ultra-short strategy where stability matters more than high concentration in a single idea.

Source data date: as of 17 Sep 2026

Who should invest

This fund may suit investors with a cautious to moderate tolerance for risk who want debt exposure rather than equity-style growth. The Balanced Risk label and the heavy use of treasury bills, CDs and short-dated paper suggest an orientation toward stability, while the latest month’s return behaviour was calmer than the benchmark.

The main trade-off is that the fund does not yet have a long return history to prove consistency across rates and credit conditions. That makes it more appropriate for shorter holding horizons or for money that needs a relatively steady parking place, rather than for investors trying to build long-run compounding from the debt allocation alone.

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 17 Sep 2026

Frequently asked questions

What is the current NAV of Edelweiss Ultra Short Term Fund Direct Growth Plan?
The current NAV is ₹1004.4193 as of 17 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s 1-year, 3-year and 5-year returns are 0%, 0% and 0%.

How did the fund do against the benchmark in the latest month?
The fund returned 0.44% in 1 month, while the benchmark returned -3.66% in the same period.

Does the fund have an exit load?
No, the fund has no exit load.

Who manages the fund?
The fund is managed by Rahul Dedhia and Kedar Karnik.

What is the fund’s main portfolio character?
The portfolio is led by treasury bills, certificate of deposit exposure and short-dated corporate debt, with the largest disclosed holding at 11.14%.

Bottom line

Edelweiss Ultra Short Term Fund Direct Growth Plan currently looks like a short-duration debt fund with a restrained risk profile and a portfolio built around treasury bills, CDs and short-dated credit. The latest month was steadier than the benchmark, but the fund’s longer return history is still too short to establish a full cycle pattern. With 64.57% in the top 10 holdings and no exit load, it may appeal more to investors seeking a conservative debt parking option than to those looking for proven long-term compounding.

Published on 18 September 2026 at 8:31 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.