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

Franklin India Ultra Short to Short Term Fund Direct Growth Plan had a NAV of ₹11.1532 as of 15 September 2026 and an AUM of ₹392 Cr. Its 1-year, 3-year and 5-year returns are 6.56%, 0% and 0%, and the risk category is Medium Risk. Our view is that this is a conservative debt option for investors who want low-drift portfolio behaviour, but the short operating history means the longer-term return record is still limited.

The fund has stayed relatively steady versus its benchmark, but the available return pattern is uneven across shorter windows and the fund has not yet built a long track record. That makes it more relevant for investors who value stability in a debt allocation and can accept modest return variability in exchange for a portfolio built around high-quality debt and cash-like instruments.

Quick facts

Particular	Details
NAV	₹11.1532 as of 15 Sep 2026
AUM	₹392 Cr
Expense Ratio	0.26%
Launch Date	06 Mar 2025
Min SIP	₹500
Risk Category	Medium Risk
Benchmark	Nifty 50
Fund Category	Debt
Exit Load	No exit load
Fund Managers	Chandni Gupta, Rohan Maru, Rahul Goswami

The fund is managed by Chandni Gupta, Rohan Maru and Rahul Goswami.

Source data date: as of 15 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.4%	-4.81%
3M	1.57%	-3.63%
1Y	6.56%	-8.27%
3Y	Data not available	Data not available
5Y	Data not available	Data not available

The recent pattern is better than the benchmark on every available horizon. Over 1 month and 3 months, the fund stayed positive while the benchmark was negative, which points to a steadier path in a weak market backdrop. The 1-year return also remains comfortably positive, while the benchmark is still below zero, so the fund has protected capital more effectively in the periods we can observe.

The daily pattern looks fairly subdued rather than sharply trending. There are small upward steps over the 3-month and 1-year windows, but not the kind of steep movement that would signal aggressive duration bets. That fits a short-duration debt profile where the main objective is usually smoother accrual rather than fast capital appreciation.

Because the scheme launched on 06 Mar 2025, 3-year and 5-year returns are not available yet. That is important for interpretation: the current picture is useful for judging near-term behaviour, but it does not yet tell us how the fund behaves across a full rate cycle or across a longer holding period.

On the available evidence, the fund is ahead of the benchmark in the short and one-year windows. The more important question for investors is not whether it can outperform an equity-style benchmark over a debt horizon, but whether its lower-volatility profile and modest yield pattern suit the role it is meant to play in a portfolio.

Source data date: as of 15 Sep 2026

Should you BUY or HOLD Franklin India Ultra Short to 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
Franklin India Ultra Short to Short Term Fund Direct Growth Plan	6.56%	Data not available	Data not available
Tata Ultra Short to Short Term Fund Direct Growth Plan	6.56%	7.34%	6.5%
Axis Ultra Short to Short Term Fund Direct Growth Plan	6.51%	7.47%	6.67%
Nippon India Ultra Short to Short Term Fund Direct Growth Plan	6.51%	7.45%	6.73%
Nippon India Ultra Short to Short Term Fund(B)-Direct Plan	6.51%	7.45%	6.73%

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

On 1-year returns, this fund is tied with Tata Ultra Short to Short Term Fund Direct Growth Plan and slightly ahead of Axis and both Nippon India variants. That suggests its recent profile is competitive rather than exceptional, with no large gap versus the main comparison set.

The longer-term picture is harder to judge for this scheme because 3-year and 5-year figures are not available yet. By contrast, the peers with longer histories show solid mid-6% to mid-7% outcomes over 3 years and 5 years, so the current fund still needs time before it can be assessed on the same horizon.

For now, the short-term comparison and the longer-horizon peer record point in different directions: the fund is holding its own recently, but the peer set offers more history for investors who want to judge consistency across a longer cycle.

Source data date: as of 15 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
7.02% Punjab SDL (01-Jul-2030)	Government Securities	8.97%
0.00% Jubilant Bevco Ltd (31-May-2028) **	Corporate Debt	7.49%
Call, Cash & Other Assets	Cash & Cash Equivalents and Net Assets	6.89%
7.70% National Bank for Agriculture & Rural Development (30-Sep-2027) **	Corporate Debt	6.84%
7.25% RJ Corp Ltd (08-Dec-2028) **	Corporate Debt	6.58%
7.05% Embassy Office Parks Reit (18-Oct-2026) **	Corporate Debt	6.45%
7.9265% LIC Housing Finance (14-Jul-2027) **	Corporate Debt	6.45%
7.56% REC Ltd (31-Aug-2027) **	Corporate Debt	6.38%
7.55% Poonawalla Fincorp Ltd (25-Mar-2027)	Corporate Debt	5.26%
Mahindra & Mahindra Financial Services Ltd (3M Tbill + 210BPS) (18-May-2029) ** $	Corporate Debt	5.19%

The top 10 holdings account for approximately 66.5% of the portfolio.

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

The largest holding is 7.02% Punjab SDL (01-Jul-2030) at 8.97%, which is a meaningful single position but not an outsized one by itself. The tenth holding still sits at 5.19%, so the weight decline from first to tenth is gradual rather than steep. That tells us the portfolio is not built around one dominant security.

The mix also suggests a fairly broad spread across credit instruments, government securities and cash-like assets. With 21 disclosed holdings and 66.5% of the portfolio represented by the top 10, the fund appears to rely on a sizable core while still leaving room for a longer tail of smaller positions. That structure may reduce reliance on any one issuer, though the corporate-debt exposure still means individual credit quality remains important.

Source data date: as of 15 Sep 2026

Who should invest

This fund may suit investors with a conservative-to-moderate risk appetite who want a debt allocation that can stay relatively steady rather than chase aggressive growth. The Medium Risk tag and the subdued short-term return pattern point to a scheme that is more about stability and income-style compounding than high upside.

The better fit is usually a medium-term holding period where the investor can tolerate some fluctuation but is not depending on equity-like gains. The main trade-off is straightforward: the fund has looked steadier than the benchmark in the available windows, but it has not yet built a long performance history, so long-cycle consistency is still unproven.

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 Franklin India Ultra Short to Short Term Fund Direct Growth Plan?

The current NAV is ₹11.1532 as of 15 September 2026.

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

The 1-year return is 6.56%, while the 3-year and 5-year returns are not available yet because the fund is too new.

How has the fund done versus the benchmark?

It has stayed ahead of the benchmark in the available periods. The fund was positive over 1 month, 3 months and 1 year, while the benchmark was negative in those same windows.

How does it compare with peer funds on available returns?

Its 1-year return is 6.56%, which is in line with Tata Ultra Short to Short Term Fund Direct Growth Plan and slightly above Axis and the two Nippon India variants on the same measure. The peers with longer histories show 3-year returns in the mid-7% range and 5-year returns in the mid-6% to high-6% range.

Is there a minimum SIP amount?

Yes. The minimum SIP amount is ₹500.

What are the fund’s risk and exit-load features?

The fund is marked Medium Risk. It has no exit load, and the portfolio is managed by Chandni Gupta, Rohan Maru and Rahul Goswami.

Bottom line

Franklin India Ultra Short to Short Term Fund Direct Growth Plan has looked steadier than its benchmark in the available windows, but its longer-term record is still limited by the fund’s recent launch. Against peers, the 1-year return is competitive, while the longer-horizon comparison is still unavailable for this scheme. The portfolio is built around a fairly distributed set of debt positions, which may support smoother behaviour for investors who want a conservative debt sleeve with a medium risk label.

Published on 16 September 2026 at 2:20 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.