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

ICICI Pru Dynamic Term Fund Direct Growth Plan currently has a NAV of ₹42.674 as of 09 Sep 2026 and manages ₹13,162 Cr. Its 1-year, 3-year and 5-year returns are 6.02%, 7.82% and 7.09%, and the risk category is Medium Risk.

Our view is that this is a steady debt fund rather than a return-chasing one. The recent return pattern is softer than the medium-term trend, but the longer holding-period numbers still point to a stable compounding profile with moderate portfolio concentration.

Quick facts

Particular	Details
NAV	₹42.674 as of 09 Sep 2026
AUM	₹13,162 Cr
Expense Ratio	0.6%
Launch Date	02 Jan 2013
Min SIP	₹100
Risk Category	Medium Risk
Benchmark	Nifty 50
Fund Category	Debt
Exit Load	0.25% on or before 1M, Nil after 1M
Fund Managers	Manish Banthia, Nikhil Kabra

The fund is managed by Manish Banthia and Nikhil Kabra.

Source data date: as of 09 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-0.2%	-4.69%
3M	2.03%	0.93%
1Y	6.02%	-7.16%
3Y	7.82%	6%
5Y	7.09%	5.87%

The latest one-month result is slightly negative, but it is far better than the benchmark’s deeper decline over the same period. That tells us the fund held up comparatively well in a weak patch for the index.

Over three months, the fund has moved ahead of the benchmark again, and the 1-year figure is especially notable because the benchmark is still negative on that horizon. This is a useful sign that the fund’s debt positioning has been more resilient than the equity benchmark through the recent cycle.

The longer record is more balanced. The 3-year return is above the benchmark, while the 5-year spread is smaller but still in the fund’s favour. That combination suggests the fund has not only recovered from short-term softness, it has also preserved a respectable medium-term compounding pattern.

At the same time, the recent 1M and 3M numbers are lower than the 3Y result, so the path has not been linear. For debt investors, that usually matters more than a single point-in-time number because it shows how the fund behaves across changing rate and market conditions.

Source data date: as of 09 Sep 2026

Should you BUY or HOLD ICICI Pru 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
ICICI Pru Dynamic Term Fund Direct Growth Plan	6.02%	7.82%	7.09%
Bandhan Dynamic Term Fund Direct Growth Plan	7.36%	7.66%	6.14%
Axis Dynamic Term Fund Direct Growth Plan	6.61%	7.52%	6.28%
Kotak Dynamic Term Fund Direct Growth Plan	6.57%	7.87%	6.64%
360 ONE Dynamic Term Fund Direct Growth Plan	6.48%	8.19%	6.91%

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

On the latest one-year figure, the fund trails Bandhan and also sits behind Axis, Kotak and 360 ONE. That shows the recent year has been softer than several peers on the same horizon.

The longer picture is more mixed but still constructive. The 3-year return is stronger than Bandhan and Axis, though Kotak and 360 ONE are ahead on that measure. On 5 years, the fund is ahead of all four peer funds listed here, which supports the case for decent long-horizon compounding.

So the short-term and longer-term comparison tell different stories. Recent peers have been somewhat stronger on 1-year performance, but the fund’s 5-year outcome is more competitive, which may matter more for investors who plan to stay invested through rate cycles.

Source data date: as of 09 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
6.9% Government Securities	Government Securities	9.27%
7.58% LIC Housing Finance Ltd. **	Corporate Debt	7.13%
7.34% Government Securities	Government Securities	5.38%
7.24% Government Securities	Government Securities	3.44%
7.57% State Government of Madhya Pradesh	Government Securities	3.33%
9.4% Vedanta Ltd.	Corporate Debt	3.05%
7.12% State Government of Maharashtra	Government Securities	2.33%
7.09% Government Securities	Government Securities	2.31%
8.02% Cholamandalam Investment and Finance Company Ltd. **	Corporate Debt	2.28%
8.45% Muthoot Finance Ltd. **	Corporate Debt	2.27%

The largest disclosed holding is 6.9% Government Securities at 9.27%, which is meaningful but not dominant on its own. The weight then steps down fairly quickly, with the tenth holding down at 2.27%, so the visible book is not concentrated in one single position.

The top ten holdings together account for approximately 40.79% of the portfolio, and that suggests a sizeable but not overwhelming share sits in the largest disclosed positions. With 58 holdings disclosed overall, the fund appears to spread the rest of the book across a longer tail rather than relying only on a small cluster of securities.

That mix may help limit dependence on any one line item, while still leaving the government-securities allocation likely to play an important stabilising role. The corporate-debt names in the top list also indicate that credit exposure is part of the return engine, so investors are taking some portfolio-specific risk in exchange for yield and flexibility.

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

Source data date: as of 09 Sep 2026

Who should invest

This fund suits investors who are comfortable with a Medium Risk debt category and who can stay invested long enough for the 3-year and 5-year pattern to matter. The return profile has been steadier over longer windows than in the most recent month, so a short holding period may not capture the fund at its best.

The main trade-off is that the fund has recently lagged some peers on the 1-year measure, even though it has stayed competitive over 3 years and looked stronger over 5 years. Investors who want a debt fund with a meaningful government-securities anchor and a diversified holding base may find that balance useful, but they should accept that returns can move around from one period to the next.

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: 0.25% on or before 1 month, nil after 1 month.

Source data date: as of 09 Sep 2026

Frequently asked questions

What is the current NAV of ICICI Pru Dynamic Term Fund Direct Growth Plan?

The current NAV is ₹42.674 as of 09 Sep 2026.

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

The fund’s returns are 6.02% for 1 year, 7.82% for 3 years and 7.09% for 5 years.

How has the fund compared with the benchmark?

It has been ahead of the benchmark across all the displayed horizons. The gap is widest at 1 year, where the benchmark is negative while the fund is positive.

How does it compare with the listed peer funds?

On 1 year, it trails the listed peer funds shown here. On 3 years, it is ahead of some peers and behind others, while on 5 years it is stronger than all four listed peers.

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 Manish Banthia and Nikhil Kabra. The exit load is 0.25% on or before 1 month, and nil after 1 month.

Bottom line

ICICI Pru Dynamic Term Fund Direct Growth Plan has a softer recent stretch than its longer-term record, but the 3-year and 5-year numbers still point to a stable debt-fund profile. It has also stayed ahead of the benchmark across the displayed horizons, which supports the case for resilience rather than dramatic upside. The portfolio is meaningfully spread across 58 disclosed holdings, with government securities prominent and a measurable corporate-debt presence. That makes it better suited to investors who want a medium-risk debt allocation with a longer holding horizon.

Published on 10 September 2026 at 2:13 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.