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

HDFC Dynamic Term Fund Direct Growth Plan closed at ₹103.6146 as of 03 Sep 2026, with scheme AUM of ₹494 Cr. Its 1-year, 3-year and 5-year returns are 5.77%, 6.86% and 5.91% respectively, and the fund sits in the Medium Risk bucket.

Our view is that this is a steady but not stand-out debt option: the return profile has held up reasonably well over 3 years and 5 years, while the 1-year number has stayed modest. The portfolio is led by sovereign paper and other high-grade debt, which supports stability, but the benchmark comparison suggests it has not consistently outpaced the market backdrop.

Quick facts

Particular	Details
NAV	₹103.6146 as of 03 Sep 2026
AUM	₹494 Cr
Expense Ratio	0.75%
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	Anil Bamboli

The fund is managed by Anil Bamboli.

Source data date: as of 03 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.03%	-3.01%
3M	2.87%	1.95%
1Y	5.77%	-4.4%
3Y	6.86%	5.74%
5Y	5.91%	6.27%

The recent picture is mixed, but not weak. Over 1 month, the fund was nearly flat while the benchmark was negative, which shows relative resilience in a softer stretch for the market measure used here. Over 3 months, the fund’s 2.87% return was above the benchmark’s 1.95%, so the shorter recovery phase has been better for the fund.

At 1 year, the fund has stayed positive at 5.77% while the benchmark has shown a negative return of -4.4%. That gap points to a meaningfully steadier outcome over the last year than the benchmark delivered. Still, when we extend the lens to 3 years and 5 years, the fund’s 6.86% and 5.91% returns are only slightly ahead on 3 years and a little behind on 5 years.

That split matters. The pattern suggests a fund that has protected and compounded in a measured way rather than one that has delivered an aggressive upswing. The time-series pattern also points to periods of modest drawdown and recovery rather than a smooth climb, which is typical of an income-oriented debt strategy that aims for balance more than speed.

Against the benchmark, the fund looks stronger in the recent 1-year window and somewhat better over 3 months, but the 5-year comparison is less favourable. Our view is that the fund has done a decent job of keeping pace over medium horizons, yet the latest long-run number does not show clear outperformance versus the benchmark.

Source data date: as of 03 Sep 2026

Should you BUY or HOLD HDFC Dynamic 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
HDFC Dynamic Term Fund Direct Growth Plan	5.77%	6.86%	5.91%
Bandhan Dynamic Term Fund Direct Growth Plan	8.1%	7.62%	6.13%
Kotak Dynamic Term Fund Direct Growth Plan	7.39%	7.85%	6.65%
Axis Dynamic Term Fund Direct Growth Plan	7.01%	7.52%	6.31%
360 ONE Dynamic Term Fund Direct Growth Plan	6.79%	8.16%	6.9%
Aditya Birla SL Dynamic Term Fund Direct Growth Plan	6.31%	7.72%	7.28%

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

On the latest 1-year reading, the fund trails every peer listed here, though the gap is not extreme versus the lower end of the group. The 3-year result is closer to the middle of the pack and does better than some peers, which suggests the recent year has been less supportive than the medium-term backdrop.

The 5-year comparison is also balanced rather than dominant. The fund is below several peers on that horizon, but it remains in the same broad band of outcomes, which means the short-term comparison and the longer-term comparison tell somewhat different stories.

Source data date: as of 03 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
7.34% GOI Mat 220464	Government Securities	14.41%
7.25% GOI Mat 120663	Government Securities	10.58%
7.3% GOI Mat 190653	Government Securities	8.81%
Net Current Assets	Cash & Cash Equivalents and Net Assets	5.43%
8.8% REC Limited.^	Corporate Debt	5.2%
7.44% National Bank for Agri & Rural Dev.	Corporate Debt	5.04%
6.74% Small Industries Development Bank^	Corporate Debt	4.95%
6.9% GOI Mat 150465	Government Securities	4.59%
Indus Infra Trust	Finance	4.4%
7.27% Gujarat SDL Isd 171225 Mat 171234^	Government Securities	3.99%

The top 10 holdings account for approximately 67.4% of the portfolio.

To see all holdings, visit the HDFC Dynamic Term Fund Direct Growth Plan page

The largest position is 14.41%, so one sovereign paper issue has a clear role in the portfolio’s outcome. After that, weights step down fairly quickly into the 10% to 8% range, then continue into mid-single digits, which indicates that influence is not carried by just one bond alone.

Even so, the top 10 holdings together make up 67.4% of the portfolio, so the disclosed book is still meaningfully concentrated in a limited set of securities. With 34 holdings in total, the longer tail may help diversify the rest of the book, but the visible positions suggest that a handful of sovereign and high-grade debt names are likely to have greater influence on returns.

This mix may suit investors who want debt exposure with a clear bias toward high-quality instruments rather than a very broad, highly fragmented book. The weight pattern could also help keep behaviour more predictable than a concentrated credit-heavy strategy, although the larger positions still matter a lot.

Source data date: as of 03 Sep 2026

Who should invest

This fund may suit investors with medium risk tolerance who are comfortable with debt-oriented returns that can move around, but not dramatically. The 1-year result is steady, the 3-year outcome is respectable, and the 5-year figure is more muted, so the best fit is likely someone who values stability and measured compounding over strong upside.

The benchmark comparison and peer table show that the fund has been competitive in some shorter windows, but not consistently ahead over longer periods. That makes it more appropriate for an investor with a medium to long horizon who can accept that returns may be ordinary in some stretches while the portfolio remains anchored in government securities and other high-grade debt.

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 HDFC Dynamic Term Fund Direct Growth Plan?

The current NAV is ₹103.6146 as of 03 Sep 2026.

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

The fund’s 1-year return is 5.77%, the 3-year return is 6.86%, and the 5-year return is 5.91%.

How has the fund done versus its benchmark?

It has outpaced the benchmark over 1 year and 3 months, and it is slightly ahead over 3 years. Over 5 years, it is a little behind the benchmark.

How does it compare with peer funds on available return data?

Its 1-year return is below the listed peers, while the 3-year and 5-year numbers sit in a more middle-of-the-group band. The short-term and longer-term comparisons do not tell the same story.

What is the minimum SIP amount?

The minimum SIP amount is ₹100.

Who manages the fund and what is the exit load?

The fund is managed by Anil Bamboli. There is no exit load.

Bottom line

HDFC Dynamic Term Fund Direct Growth Plan has delivered a steadier recent profile than its benchmark, especially over 1 year, but its longer-term numbers are less decisive. Against peers, the short-term result is softer, while the 3-year and 5-year comparisons are more balanced. The medium-risk profile and the heavy tilt toward government securities and other high-quality debt make it a measured debt allocation rather than a return-chasing one. It may fit investors seeking stability, moderate compounding and a cleaner credit profile.

Published on 4 September 2026 at 10:45 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.