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

Invesco India Ultra Short Term Fund Direct Growth Plan has a NAV of ₹3115.6438 as of 09 Sep 2026 and scheme AUM of ₹1,496 Cr. Its 1-year, 3-year and 5-year returns are 6.88%, 7.38% and 6.61%, and the fund carries a Balanced Risk label. Our view is that it suits investors who want a debt-oriented fund with steady medium-term compounding and a portfolio built around short-duration money-market and high-quality credit exposures rather than aggressive return chasing.

The combination of a low expense ratio, a long track record since 2013 and relatively even returns over 3 years and 5 years points to a fund that may fit a conservative-to-moderate allocation sleeve. It has also tracked its benchmark more closely over longer periods than in the near term, which matters for investors looking for stability over quick wins.

Quick facts

Particular	Details
NAV	₹3,115.6438 as of 09 Sep 2026
AUM	₹1,496 Cr
Expense Ratio	0.24%
Launch Date	01 Jan 2013
Min SIP	₹1,000
Risk Category	Balanced Risk
Benchmark	Nifty 50
Fund Category	Debt
Exit Load	No exit load after holding period
Fund Managers	Krishna Cheemalapati, Vikas Garg

The fund is managed by Krishna Cheemalapati and Vikas Garg.

Source data date: as of 09 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.64%	-4.69%
3M	2.01%	0.93%
1Y	6.88%	-7.16%
3Y	7.38%	6%
5Y	6.61%	5.87%

Recent performance has been steadier than the benchmark. Over 1 month and 1 year, the fund posted positive returns while the benchmark was negative, which tells us the scheme has been more resilient in the shorter windows covered here. The 3-month period also improved meaningfully, with the fund ahead of the benchmark by a clear margin.

The longer look is more important for this fund. The 3-year return of 7.38% and 5-year return of 6.61% indicate a fairly consistent compounding pattern rather than sharp swings. That is in line with a debt fund built for shorter holding periods and regular accrual, not a fund that depends on one strong market phase.

Compared with the benchmark, the fund has stayed ahead across the 1-year, 3-year and 5-year periods shown here. The gap is especially visible over 1 year, where the benchmark was negative. In our view, that makes the recent profile look stronger than the benchmark’s, while the longer-term profile still remains measured and not stretched.

The short-term pattern does differ from the benchmark’s near-term weakness, but it does not break from the broader multi-year trend. The return path suggests moderate consistency, which is generally what investors want from an ultra short-term debt-oriented holding.

Source data date: as of 09 Sep 2026

Should you BUY or HOLD Invesco India 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%	7.48%	6.77%
Invesco India Ultra Short Term Fund Direct Growth Plan	6.88%	7.38%	6.61%
DSP Ultra Short Term Fund Direct Growth Plan	6.86%	7.46%	6.66%
ICICI Pru Ultra Short Term Fund Direct Growth Plan	6.85%	7.45%	6.77%

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

Against the peer set, the fund’s 1-year return is close to the middle of the group, with Nippon India Ultra Short Term Fund Direct Growth Plan ahead and the rest clustered tightly around it. That narrow spread suggests the recent difference between funds is modest rather than dramatic.

On 3-year and 5-year figures, the fund trails the stronger names in this group, though not by a large margin. The longer-term comparison tells a similar story: the fund has been competitive, but a few peers have held a slightly better edge on the same return windows. The short-term and longer-term views are therefore aligned, not conflicting.

Source data date: as of 09 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Kotak Mahindra Bank Limited 2027 ** #	Certificate of Deposit	6.49%
National Bank for Agriculture and Rural Development 2027 ** #	Certificate of Deposit	6.46%
Bank of Baroda 2026 #	Certificate of Deposit	4.93%
7.96% Pipeline Infrastructure Private Limited 2027 **	Corporate Debt	4.02%
Punjab National Bank 2027 #	Certificate of Deposit	3.9%
182 Days Tbill (MD 19/11/2026)	Treasury Bills	3.3%
Axis Bank Limited 2026 ** #	Certificate of Deposit	3.28%
Export Import Bank of India 2026 **	Commercial Paper	3.28%
ICICI Bank Limited 2027 #	Certificate of Deposit	3.25%
Canara Bank 2027 #	Certificate of Deposit	3.23%

The largest holding is Kotak Mahindra Bank Limited 2027 ** # at 6.49%, so no single line item dominates the portfolio. The tenth holding is still above 3%, which means the visible part of the portfolio remains fairly even rather than sharply top-heavy.

The drop from the first holding to the tenth is moderate, not steep. That pattern may help reduce dependence on one or two exposures, while still leaving the fund sensitive to the credit and money-market names at the top of the book.

The top 10 holdings account for approximately 42.14% of the portfolio, and there are 43 disclosed holding rows in total. That mix suggests a reasonably spread tail beyond the largest positions, although the holdings we can see still have enough weight to matter meaningfully to returns and risk.

To see all holdings, visit the Invesco India Ultra 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 a debt-oriented profile and want a steadier return path than an equity fund can offer. Its Balanced Risk label, along with 1-year, 3-year and 5-year returns that stay in a relatively tight band, points to a portfolio built for patience rather than aggressive upside.

The benchmark comparison is also useful here. The fund has generally stayed ahead of the benchmark across the windows shown, but the margin is not the kind that changes the product’s basic character. Investors looking at this fund should be comfortable with moderate variability in short-term periods and should think in terms of a medium-horizon parking or liquidity-management role rather than a fast-return theme.

The main trade-off is that the fund may deliver more stability than growth-oriented options, but it will not usually match the upside of equity funds. It can fit investors who want a measured debt allocation with broad credit exposure and are prepared to accept modest return differences across peers.

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 after holding period.

Source data date: as of 09 Sep 2026

Frequently asked questions

What is the current NAV of Invesco India Ultra Short Term Fund Direct Growth Plan?

The current NAV is ₹3115.6438 as of 09 Sep 2026.

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

The fund’s 1-year return is 6.88%, the 3-year return is 7.38% and the 5-year return is 6.61%.

How does the fund compare with its benchmark?

The fund has outperformed the benchmark across the 1-month, 3-month, 1-year, 3-year and 5-year periods shown here. The gap is widest in the 1-year period, where the benchmark is negative while the fund stays positive.

How does it compare with peer funds on returns?

Its return profile is competitive but slightly behind the strongest peers shown here on 1-year, 3-year and 5-year figures. The differences are fairly narrow, so the comparison is about small edges rather than a large gap.

Is there a minimum SIP amount?

The minimum SIP amount is ₹1000.

Who manages the fund and what is the exit load?

The fund is managed by Krishna Cheemalapati and Vikas Garg. The exit load is stated as no exit load after the holding period.

Bottom line

Invesco India Ultra Short Term Fund Direct Growth Plan has a steadier long-term profile than its near-term benchmark comparison suggests, and its 1-year, 3-year and 5-year returns remain close enough to peers to show competitive but not standout positioning. The Balanced Risk label and the portfolio mix across certificates of deposit, treasury bills, commercial paper and corporate debt point to a conservative debt sleeve with diversified short-duration exposures. For investors who want measured compounding and can accept modest differences versus peers, it looks like a practical fit.

Published on 10 September 2026 at 11:27 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.