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

HSBC Ultra Short Term Fund Direct Growth Plan has a NAV of ₹1482.9421 as of 15 Sep 2026 and an AUM of ₹3,628 Cr. Its 1-year, 3-year and 5-year returns are 6.61%, 7.23% and 6.54%, and the fund sits in the Balanced Risk category. Our view is that it suits investors who want a fairly steady debt-oriented allocation, with returns that have been moderate and consistent rather than aggressive.

The fund has stayed close to a low-volatility compounding pattern over time, while still lagging the benchmark on longer horizons. The portfolio mix is built around short-duration debt instruments, certificates of deposit, treasury bills and a limited amount of corporate debt, which supports a balanced risk profile.

Quick facts

Particular	Details
NAV	₹1,482.9421 as of 15 Sep 2026
AUM	₹3,628 Cr
Expense Ratio	0.16%
Launch Date	29 Jan 2020
Min SIP	₹1,000
Risk Category	Balanced Risk
Benchmark	Nifty Mid Cap
Fund Category	Equity
Exit Load	No exit load
Fund Managers	Mahesh Chhabria, Rahul Totla

The fund is managed by Mahesh Chhabria and Rahul Totla.

Source data date: as of 15 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.49%	-4.67%
3M	1.77%	-1.38%
1Y	6.61%	2.67%
3Y	7.23%	13.88%
5Y	6.54%	14.5%

The recent return pattern is calmer than the benchmark’s. Over 1 month and 3 months, the fund stayed positive while the benchmark was weak, which suggests the portfolio has been able to preserve a more stable path through short-term swings.

The longer picture is different. Over 1 year, the fund has done better than the benchmark, but over 3 years and 5 years it trails the benchmark by a wide margin. That tells us the fund has been steadier in the near term, yet it has not matched the benchmark’s stronger long-run compounding.

The time pattern also points to modest but persistent growth rather than sharp jumps. The fund’s moves have been gradual, with short periods of softness and recovery, which fits a lower-drift portfolio style. For investors, that means the return profile may feel smoother, but the trade-off is that upside has been more limited than the benchmark over longer holding periods.

In our view, the key point is that the fund’s short-term behaviour and long-term behaviour do not tell the same story. The short-end has been resilient, while the 3-year and 5-year numbers show that the benchmark has compounded more strongly over time.

Source data date: as of 15 Sep 2026

Should you BUY or HOLD HSBC 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
HSBC Ultra Short Term Fund Direct Growth Plan	6.61%	7.23%	6.54%
HSBC Midcap Fund Direct Growth Plan	16.86%	22.92%	18.09%
WOC Mid Cap Fund Direct Growth Plan	11.85%	21.03%	Data not available
Helios Mid Cap Fund Direct Growth Plan	10.68%	Data not available	Data not available
ITI Mid Cap Fund Direct Growth Plan	9.12%	19.14%	15.86%
Baroda BNP Paribas Mid Cap Fund Direct Growth Plan	8.87%	16.11%	14.75%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. The fund’s 1-year return is below the stronger peer figures in this group, while its 3-year and 5-year returns are also well behind the better long-run compounding seen in the comparison set. That makes the short-term and long-term story consistent here: relative to these peers, the fund has been more restrained across all the available periods. For an investor, the main comparison point is stability versus return ambition.

Source data date: as of 15 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Punjab National Bank^	Certificate of Deposit	8.05%
Bank of Baroda^	Certificate of Deposit	6.04%
91 Days Treasury Bill 24-Sep-2026	Treasury Bills	5.5%
Indian Bank**	Certificate of Deposit	5.41%
Mindspace Business Parks Reit**	Corporate Debt	4.87%
HDFC Bank Limited**	Certificate of Deposit	4.67%
LIC Housing Finance Limited**	Corporate Debt	4.32%
Axis Bank Limited**	Certificate of Deposit	4.02%
ICICI Securities Limited**	Commercial Paper	4%
TREPS	Cash & Cash Equivalents and Net Assets	3.51%

The top 10 holdings account for approximately 50.39% of the portfolio. To see all holdings, visit the HSBC Ultra Short Term Fund Direct Growth Plan page

The largest holding is Punjab National Bank^ at 8.05%, which is meaningful but not dominant on its own. The next few positions are also in a similar range, so the portfolio does not rely on one oversized exposure.

The weight falls gradually from the first holding to the tenth, from 8.05% to 3.51%. That kind of spacing suggests the fund may be spreading risk across multiple debt and cash-like positions rather than depending on a narrow set of bets. The fact that the top 10 account for just over half of the disclosed portfolio, across 33 holdings in total, also indicates a reasonably extended tail beyond the largest positions.

In our view, this structure may make the fund less sensitive to any single issuer than a highly concentrated portfolio, while still keeping the major holdings influential. The mix of certificate of deposit, treasury bill, corporate debt and cash-equivalent exposure points to a portfolio designed for stability more than for aggressive capital appreciation.

Source data date: as of 15 Sep 2026

Who should invest

This fund may suit investors who are comfortable with a Balanced Risk profile and want steadier movement rather than a fast-moving return journey. Its 1-year result is stronger than its 3-year and 5-year profile relative to the benchmark, so the main appeal is near-term resilience, not long-run outperformance versus the index.

The fund may fit an intermediate holding period where the investor values smoother compounding and can accept that benchmark-like upside has not been matched over longer stretches. The trade-off is clear: the portfolio characteristics support stability, but that also means giving up some of the stronger long-term growth captured by the benchmark and by several peer funds on the same comparison horizon.

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 HSBC Ultra Short Term Fund Direct Growth Plan?
Its NAV is ₹1482.9421 as of 15 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s returns are 6.61% over 1 year, 7.23% over 3 years and 6.54% over 5 years.

How has it performed against the benchmark?
It has beaten the benchmark over 1 month, 3 months and 1 year, but it trails the benchmark over 3 years and 5 years.

How does it compare with the listed peer funds?
Its 1-year, 3-year and 5-year returns are lower than the stronger figures shown by several of the peer funds in this comparison set.

What is the fund’s risk category?
It is in the Balanced Risk category. The portfolio mix is built around certificate of deposit, treasury bill, corporate debt and cash-equivalent exposure.

What exit load applies to this fund?
There is no exit load. Investors can redeem without an exit-load charge.

Bottom line

HSBC Ultra Short Term Fund Direct Growth Plan has looked steadier in the near term than it has over longer horizons. Its latest shorter-period results are positive, but the 3-year and 5-year numbers trail the benchmark and several peers with available data. The portfolio is spread across 33 holdings, led by certificates of deposit, a treasury bill and select corporate debt exposures, which supports a balanced risk profile and a relatively diversified debt structure. It is better read as a stability-oriented holding than a long-run return leader.

Published on 16 September 2026 at 2:32 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.