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

Updated: 10 Sept 2026 • 1:03 pm

Posted by:

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

HSBC Short Term Fund Direct Growth Plan has a NAV of ₹30.0188 as of 09 Sep 2026 and a scheme AUM of ₹3,869 Cr. Its 1-year, 3-year and 5-year returns are 5.67%, 7.39% and 6.18%, and the fund sits in the Medium Risk bucket.

Our view is that this is a steady short-duration debt option for investors who want moderated volatility rather than sharp return swings. The portfolio is spread across corporate debt, government securities and securitised exposure, which supports a more balanced income profile than a narrowly built portfolio.

Table of Contents

Quick facts

Particular	Details
NAV	₹30.0188 as of 09 Sep 2026
AUM	₹3,869 Cr
Expense Ratio	0.27%
Launch Date	01 Jan 2013
Min SIP	₹1,000
Risk Category	Medium Risk
Benchmark	Nifty 50
Fund Category	Debt
Exit Load	No exit load
Fund Managers	Shriram Ramanathan, Mohd Asif Rizwi

The fund is managed by Shriram Ramanathan and Mohd Asif Rizwi.

Source data date: as of 09 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.12%	-4.69%
3M	1.61%	0.93%
1Y	5.67%	-7.16%
3Y	7.39%	6.00%
5Y	6.18%	5.87%

The recent one-month and three-month figures show a stable income pattern, with the fund staying positive while the benchmark was weaker over one month and only mildly positive over three months. That tells us the fund has held up better in the latest stretch than the benchmark, which is useful for investors who care about consistency more than sharp upside.

The 1-year return is also materially ahead of the benchmark, helped by a smoother path through the year rather than a sharp one-off move. The monthly pattern points to gradual improvement with a few small pauses, which is what we would expect from a short-term debt portfolio that aims to compound steadily instead of moving aggressively.

Over 3 years and 5 years, the fund remains ahead of the benchmark on the supplied figures, but the margin is not dramatic. That is an important signal: the fund has not relied on a single burst of performance, and its longer-term compounding has been broadly orderly. For a debt scheme, that kind of profile is often more relevant than chasing a short-lived spike.

Overall, the return path looks more stable than flashy. Our view is that the fund fits investors who want a debt allocation with a reasonably consistent track record and who are comfortable with medium risk in exchange for a more dependable compounding pattern.

Source data date: as of 09 Sep 2026

Should you BUY or HOLD HSBC 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.

Already holding HSBC Short Term? Thinking of investing now?

Get your portfolio analysed for FREE by SEBI-registered Investment Adviser (RIA) through Univest MF Premium

Peer comparison

Fund	1Y return	3Y return	5Y return
HSBC Short Term Fund Direct Growth Plan	5.67%	7.39%	6.18%
Tata Ultra Short Term Fund Direct Growth Plan	7.11%	7.55%	6.77%
Aditya Birla SL Ultra Short Term Fund Direct Growth Plan	6.79%	7.53%	6.76%
ICICI Pru Short Term Fund Direct Growth Plan	6.60%	7.93%	7.19%
Mahindra Manulife Short Term Fund Direct Growth Plan	6.27%	7.86%	6.66%
Axis Short Term Fund Direct Growth Plan	6.23%	7.86%	6.82%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On the recent one-year measure, the fund trails all five peers shown here, even though it remains comfortably positive. The longer horizon picture is more balanced: its 3-year return is close to the peer cluster, while the 5-year figure sits below several peers and above some, which suggests the fund has been competitive but not leading on longer compounding.

The shorter-term comparison and the longer-term comparison do not tell exactly the same story. In the latest year, the fund has been more restrained than the strongest peers, but over 3 years and 5 years it has stayed within the same broad return band as much of the group. That supports a view of a fund that is steady, but not the most return-leaning option in the set.

Source data date: as of 09 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
NABARD^	Corporate Debt	5.43%
Sidbi**	Corporate Debt	4.48%
Bharti Telecom Limited**	Corporate Debt	4.12%
Embassy Office Parks Reit**	Corporate Debt	4.03%
6.94% GOI 11-May-2036	Government Securities	3.30%
Bajaj Housing Finance Ltd**	Corporate Debt	3.28%
Mindspace Business Parks Reit**	Corporate Debt	2.85%
REC Limited**	Corporate Debt	2.85%
NTPC Limited**	Corporate Debt	2.73%
Shivshakti Securitisation Trust**	PTC & Securitized Debt	2.67%

The largest holding is NABARD^ at 5.43%, which is a meaningful position but not an outsized one for a debt portfolio. The gap from the first holding to the tenth holding is not extreme in absolute terms, as the weights ease down in a controlled way rather than falling sharply. That points to a spread of exposures rather than a single-position dominated structure.

The top 10 holdings account for approximately 35.74% of the portfolio, while the scheme discloses 56 holdings in total. That combination suggests a fairly broad tail beyond the largest positions, so the fund is not built around just a handful of securities. At the same time, the top names still carry enough weight to matter, so the portfolio may be more influenced by the performance of its larger credit and sovereign exposures.

From a portfolio construction angle, the mix of corporate debt, government securities and securitised debt may help diversify the income stream. We would read this as a measured, not concentrated, structure, though the larger holdings are still likely to have greater influence on near-term outcomes than the smaller tail positions.

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

Source data date: as of 09 Sep 2026

Who should invest

This fund is better suited to investors who are comfortable with medium risk and want a debt allocation that can stay relatively steady across market phases. The 1-year return is softer than the stronger peer figures, but the 3-year and 5-year numbers show a more dependable long-term pattern, so the fund fits a moderate horizon rather than a very short holding period.

The main trade-off is between stability and standout upside. Its benchmark-beating record and broad debt portfolio may appeal to investors who prefer consistency and a diversified income profile, but those looking for the strongest peer-level return in the recent year may find the pace less compelling. The fund is therefore more aligned with measured, income-oriented investing than with return chasing.

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 09 Sep 2026

Frequently asked questions

What is the current NAV of HSBC Short Term Fund Direct Growth Plan?
The current NAV is ₹30.0188 as of 09 Sep 2026.

What are the 1-year, 3-year and 5-year returns?
The 1-year return is 5.67%, the 3-year return is 7.39% and the 5-year return is 6.18%.

How has the fund done versus its benchmark?
It has stayed ahead of the benchmark across 1 month, 3 months, 1 year, 3 years and 5 years on the figures shown here.

How does it compare with the peer funds listed here?
Its 1-year return is lower than the peer names shown, while its 3-year and 5-year returns sit in the same broad range as the group but are not the strongest among them.

Is there an exit load?
No exit load applies.

Who manages the fund and what is the risk category?
The fund is managed by Shriram Ramanathan and Mohd Asif Rizwi, and it is in the Medium Risk category.

Bottom line

HSBC Short Term Fund Direct Growth Plan shows a steadier longer-term pattern than its most recent one-year figure, which makes it more of a consistency-focused debt option than a return-chasing one. It has stayed ahead of the benchmark on the available periods, while peer comparisons show a mixed picture: softer in the last year, but broadly competitive over longer horizons. The portfolio is spread across 56 holdings, with the larger positions carrying influence but not overwhelming the whole scheme. That profile suits investors who want medium risk and measured compounding.

Published on 10 September 2026 at 1:02 PM IST

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.