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

ICICI Pru Ultra Short Term Fund Direct Growth Plan currently has a NAV of ₹32.4296 as of 10 Sep 2026 and a scheme AUM of ₹15,973 Cr. Its 1-year, 3-year and 5-year returns are 6.84%, 7.44% and 6.76% respectively, and it carries a Medium Risk tag. Our view is that it suits conservative debt investors who want relatively steady accrual-oriented exposure rather than sharp return swings.

The fund’s return pattern has been stable enough over time, while the benchmark has been weaker over the same long stretch. That combination, along with a portfolio built around cash equivalents, CDs, treasury bills and short-duration money-market style instruments, points to a fund that is more about consistency than aggressive upside.

Quick facts

Particular	Details
NAV	₹32.4296 as of 10 Sep 2026
AUM	₹15,973 Cr
Expense Ratio	0.39%
Launch Date	08 Jan 2013
Min SIP	₹1,000
Risk Category	Medium Risk
Benchmark	Nifty 50
Fund Category	Debt
Exit Load	No exit load
Fund Managers	Manish Banthia, Ritesh Lunawat

The fund is managed by Manish Banthia and Ritesh Lunawat.

Source data date: as of 10 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.59%	-4.06%
3M	1.94%	1.37%
1Y	6.84%	-7.31%
3Y	7.44%	6.07%
5Y	6.76%	5.91%

Recent performance has been constructive. Over 1 month, the fund has stayed positive while the benchmark has been negative, which tells us the scheme has continued to generate small accrual gains even when the comparison index was under pressure. The 3-month figure is also positive and slightly ahead of the benchmark, so the short-term trend does not look erratic.

The longer pattern is more important for this scheme. The 1-year return of 6.84% is meaningfully better than the benchmark’s -7.31%, and the 3-year and 5-year figures remain ahead as well. That gap does not signal high-flying growth; it points to a debt fund that has preserved a steadier return path than the benchmark used for comparison.

We also see some near-term variability in the rolling pattern, but not the kind that changes the overall picture. The fund’s 3-year and 5-year return profile suggests an accrual-led strategy that has compounded at a moderate pace, while recent months show that the fund has still been able to stay in positive territory.

For investors, the main takeaway is that this is not a momentum story. It is a relatively measured return profile with the advantage of being ahead of the benchmark across every displayed period.

Source data date: as of 10 Sep 2026

Should you BUY or HOLD ICICI Pru 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
Nippon India Ultra Short Term Fund Direct Growth Plan	7.11%	7.61%	6.98%
Axis Ultra Short Term Fund Direct Growth Plan	6.9%	7.47%	6.77%
Invesco India Ultra Short Term Fund Direct Growth Plan	6.87%	7.37%	6.61%
ICICI Pru Ultra Short Term Fund Direct Growth Plan	6.84%	7.44%	6.76%
DSP Ultra Short Term Fund Direct Growth Plan	6.83%	7.45%	6.65%

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

Against the strongest 1-year peer figure in this group, the fund sits a little lower, but the gap is small. The more useful comparison is that its 3-year return is stronger than several peers, while its 5-year return remains in the same general band as the better names in the list.

That tells us the fund has not relied on one sharp recent burst of outperformance. Its short-term showing is respectable, and its longer-term outcome looks competitive enough to support a stable income-style allocation. The peer set also suggests the difference between the schemes is fairly narrow, so the fund’s appeal comes more from consistent behaviour than from a standout one-period surge.

Source data date: as of 10 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
TREPS	Cash & Cash Equivalents and Net Assets	5.34%
Small Industries Development Bank of India. **	Certificate of Deposit	5.14%
91 Days Treasury Bills	Treasury Bills	4.98%
NABARD **	Certificate of Deposit	3.5%
Bank of Baroda **	Certificate of Deposit	3.05%
HDFC Bank Ltd. **	Certificate of Deposit	3.04%
Angel One Ltd. **	Commercial Paper	2.99%
Canara Bank	Certificate of Deposit	2.88%
Indusind Bank Ltd. **	Certificate of Deposit	2.43%
Punjab National Bank	Certificate of Deposit	2.43%

The top 10 holdings account for approximately 35.78% of the portfolio.

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

The largest holding is TREPS at 5.34%, which is not a dominant single-position bet. The tenth holding is 2.43%, so the drop from the largest position to the tenth is fairly gradual rather than abrupt. That pattern usually points to a portfolio where influence is spread across several short-duration instruments instead of being concentrated in one line item.

The displayed holdings also show a heavy tilt toward certificate of deposit exposure, alongside treasury bills, commercial paper and cash equivalents. Since the top 10 holdings make up 35.78% of the portfolio and the scheme has 55 disclosed holdings in total, the visible book may be fairly diversified across a longer tail even though the largest names still matter.

From an investor’s point of view, that mix may support steady accrual generation, but it can also mean the fund depends on the credit and liquidity profile of many smaller positions rather than a single obvious anchor. That is consistent with an ultra-short term debt approach.

Source data date: as of 10 Sep 2026

Who should invest

This fund is suited to investors who are comfortable with a Medium Risk debt scheme and want a relatively stable return pattern rather than equity-style upside. The 1-year, 3-year and 5-year numbers suggest a fairly consistent compounding profile, and the fund has also stayed ahead of the benchmark across the displayed periods.

The main trade-off is that the return profile is modest rather than aggressive, so it is better viewed as a short-horizon or intermediate cash-management style allocation than a high-growth holding. The portfolio mix, with TREPS, CDs and treasury bills among the largest positions, supports that role. Investors looking for steadier accrual with limited portfolio drama may find the fit more relevant than those seeking big return swings.

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 10 Sep 2026

Frequently asked questions

What is the current NAV of ICICI Pru Ultra Short Term Fund Direct Growth Plan?
Its NAV is ₹32.4296 as of 10 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s 1-year, 3-year and 5-year returns are 6.84%, 7.44% and 6.76%.

How has the fund performed versus the benchmark?
It has been ahead of the benchmark across 1 month, 3 months, 1 year, 3 years and 5 years. The benchmark’s 1-year return is negative, while the fund remains positive.

How does the fund compare with similar peers on returns?
Its 1-year return is close to the better peer figures in the set, and its 3-year and 5-year returns stay in the same competitive band. The peer spread is fairly narrow.

What is the fund’s minimum SIP amount?
The minimum SIP amount is ₹1,000.

Who manages the fund and what is the exit load?
The fund is managed by Manish Banthia and Ritesh Lunawat. It has no exit load.

Bottom line

This is a debt fund whose near-term behaviour is steady, while its 3-year and 5-year figures show a consistent compounding path. It compares well with the benchmark across all displayed periods, and its peer comparison is broadly competitive rather than extreme. The portfolio leans toward CDs, treasury bills and cash-like instruments, which fits the fund’s moderate-risk profile. For investors who want a measured ultra-short term allocation with a fairly even return pattern, that combination may be more relevant than chasing the highest short-term number.

Published on 11 September 2026 at 10:09 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.