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

HDFC Short Term Fund Direct Growth Plan is a debt fund with a NAV of ₹35.4134 as of 03 Sep 2026 and a scheme AUM of ₹14,486 Cr. Its 1-year, 3-year and 5-year returns are 6.01%, 7.57% and 6.6%, and it carries a Medium Risk label.

Our view is that this fund fits investors who want a relatively steady debt allocation and can stay invested through moderate ups and downs. The longer-term return pattern is more consistent than the benchmark, while the portfolio is spread across many debt positions rather than a handful of extreme bets.

Quick facts

Particular	Details
NAV	₹35.4134 as of 03 Sep 2026
AUM	₹14,486 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	Anil Bamboli

The fund is managed by Anil Bamboli.

Source data date: as of 03 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.19%	-3.01%
3M	2.24%	1.95%
1Y	6.01%	-4.4%
3Y	7.57%	5.74%
5Y	6.6%	6.27%

The recent pattern is fairly calm for a debt scheme. Over one month and three months, the fund stayed positive, which points to a measured return profile rather than sharp short-term swings.

The one-year return is materially stronger than the benchmark, which was negative over the same period. That gap matters because it shows the fund handled a weak benchmark environment much better than the index itself, even if the short three-month period was only slightly ahead.

Over three and five years, the fund has remained consistently positive and has also stayed ahead of the benchmark. The 3-year result is clearly stronger than the 5-year figure, so our view is that the fund’s more recent compounding has been better than its longer historical average.

This makes the fund look more dependable than cyclical. The pattern does not suggest dramatic upside, but it does point to a steadier debt return profile that has held up better than the benchmark across the listed time frames.

Source data date: as of 03 Sep 2026

Should you BUY or HOLD HDFC 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
HDFC Short Term Fund Direct Growth Plan	6.01%	7.57%	6.6%
Tata Ultra Short Term Fund Direct Growth Plan	7.08%	7.54%	6.76%
Aditya Birla SL Ultra Short Term Fund Direct Growth Plan	6.77%	7.53%	6.74%
ICICI Pru Short Term Fund Direct Growth Plan	6.65%	7.89%	7.18%
Axis Short Term Fund Direct Growth Plan	6.31%	7.82%	6.8%
Mahindra Manulife Short Term Fund Direct Growth Plan	6.29%	7.81%	6.64%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On the 1-year measure, the fund trails Tata Ultra Short Term Fund Direct Growth Plan, Aditya Birla SL Ultra Short Term Fund Direct Growth Plan and ICICI Pru Short Term Fund Direct Growth Plan, though it stays close to the broader set of short-term debt peers. On the 3-year and 5-year measures, it remains competitive, with the 3-year return above Tata Ultra Short Term Fund Direct Growth Plan and Aditya Birla SL Ultra Short Term Fund Direct Growth Plan, but below ICICI Pru Short Term Fund Direct Growth Plan on both the 3-year and 5-year numbers. The short-term and longer-term comparisons therefore tell a mixed story: the fund is not the strongest on the most recent year, but its medium-term profile is still well supported.

Source data date: as of 03 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Net Current Assets	Cash & Cash Equivalents and Net Assets	3.12%
Jubilant Beverages Limited^	Corporate Debt	2.96%
JTPM Metal Traders Limited^	Corporate Debt	2.68%
7.9% Jamnagar Utilities & Power Pvt. Limited^	Corporate Debt	2.42%
Shivshakti Securitisation Trust (Originator – Sikka Ports & Terminals Limited)^	PTC & Securitized Debt	2.38%
7.96% Pipeline Infrastructure Pvt. Ltd.^	Corporate Debt	2.26%
7.44% National Bank for Agri & Rural Dev.	Corporate Debt	2.18%
8.6% Aditya Birla Renewables Limited^	Corporate Debt	2.14%
7.7% National Bank for Agri & Rural Dev.^	Corporate Debt	2.07%
7.79% Small Industries Development Bank^	Corporate Debt	1.87%

The largest disclosed holding is Net Current Assets at 3.12%, which is modest for a debt portfolio and suggests no single position dominates the fund. The tenth holding is still 1.87%, so the drop from the largest position to the tenth is gradual rather than steep.

The displayed top ten holdings together account for approximately 24.08% of the portfolio, while the scheme has 85 disclosed holdings in total. That combination points to a portfolio that is spread across a long tail of positions, even though corporate debt names are prominent among the larger lines.

Our view is that this structure may reduce dependence on any one exposure, but it also means the fund’s results are likely to reflect a broad mix of debt holdings rather than a few standout contributors. The portfolio design looks measured rather than concentrated.

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

Source data date: as of 03 Sep 2026

Who should invest

This fund suits conservative to moderate investors who want debt exposure with a relatively steady return profile and can accept some variation in short-term performance. The Medium Risk label and the positive three- and five-year returns suggest a preference for investors who value stability more than aggressive upside.

A longer investment horizon makes more sense here than a very short holding period. The main trade-off is that the fund has generally been steadier than the benchmark, but it does not promise equity-like growth, so investors may need to accept moderate returns in exchange for a calmer profile.

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 Short Term Fund Direct Growth Plan?
Its NAV is ₹35.4134 as of 03 Sep 2026.

What are the 1-year, 3-year and 5-year returns?
The fund’s returns are 6.01% over 1 year, 7.57% over 3 years and 6.6% over 5 years.

How does it compare with the benchmark?
It has stayed ahead of the benchmark across the listed 1-year, 3-year and 5-year periods, with the clearest gap seen over 1 year.

How does it compare with the peer funds listed here?
Its 1-year return is below Tata Ultra Short Term Fund Direct Growth Plan and Aditya Birla SL Ultra Short Term Fund Direct Growth Plan, while its 3-year return is above those two peers but below ICICI Pru Short Term Fund Direct Growth Plan.

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. The exit load is no exit load.

Bottom line

HDFC Short Term Fund Direct Growth Plan has a steadier medium-term profile than its benchmark, with the 1-year number improving meaningfully versus the benchmark and the 3-year and 5-year returns staying positive. Against the listed peers, the recent year is a little softer, but the medium-term figures remain competitive. The risk label is Medium Risk, and the portfolio is diversified across 85 disclosed holdings, with no single top holding taking an outsized share. That makes it better suited to investors who want a disciplined debt allocation rather than a high-volatility return chase.

Published on 4 September 2026 at 10:18 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.