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

Mahindra Manulife Short Term Fund Direct Growth Plan is a debt scheme with a ₹14.2717 NAV as of 15 Sep 2026 and a scheme AUM of ₹81 Cr. Its 1-year, 3-year and 5-year returns are 5.83%, 7.66% and 6.59%, and the risk category is Balanced Risk. Our view is that it suits investors who want a short-term debt allocation with steadier compounding than the benchmark, while still accepting some NAV movement.

The fund’s return pattern is uneven in the near term but stronger over 3 years and 5 years, which points to a strategy that has held up better over longer holding periods. The portfolio is tilted toward corporate debt with a meaningful mix of government securities, so the fund may appeal to investors who prefer credit exposure over pure cash-like instruments.

Quick facts

Particular	Details
NAV	₹14.2717 as of 15 Sep 2026
AUM	₹81 Cr
Expense Ratio	0.28%
Launch Date	23 Feb 2021
Min SIP	₹500
Risk Category	Balanced Risk
Benchmark	Nifty 50
Fund Category	Debt
Exit Load	No exit load
Fund Managers	Rahul Pal, Kush Sonigara

The fund is managed by Rahul Pal and Kush Sonigara.

Source data date: as of 15 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-0.24%	-4.81%
3M	1.13%	-3.63%
1Y	5.83%	-8.27%
3Y	7.66%	5.59%
5Y	6.59%	5.58%

The recent picture is mixed, but it still looks better than the benchmark. Over 1 month and 3 months, the fund stayed slightly positive while the benchmark was negative, which suggests relatively smoother short-term behaviour. The 1-year return is also well ahead of the benchmark, even though the fund itself has not been a straight-line performer.

The longer view is more important here. The 3-year return of 7.66% and the 5-year return of 6.59% both sit above the benchmark’s comparable numbers, so the fund has compounded more effectively over medium and longer horizons. That pattern matters for a short-term debt allocation because it shows the scheme has been able to preserve an edge without relying on a single strong period.

The time pattern is not perfectly steady, especially in the last year, but it does not look disruptive either. In our view, the fund’s behaviour is consistent with a debt scheme that can absorb moderate fluctuations while still delivering better trailing outcomes than the benchmark. The main point for investors is that the short-term dip does not change the broader 3-year and 5-year picture, which remains constructive.

For investors, that means the fund looks more suitable as a return-seeking debt holding than as a parking instrument. It has not behaved like a cash substitute, yet the negative month-to-month moves have stayed contained relative to the benchmark’s weaker short-term run. That combination can be useful when the goal is to keep volatility moderate while still aiming for a return profile that is not flat.

Source data date: as of 15 Sep 2026

Should you BUY or HOLD Mahindra Manulife 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 Mahindra Manulife 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
Mahindra Manulife Short Term Fund Direct Growth Plan	5.83%	7.66%	6.59%
Tata Ultra Short Term Fund Direct Growth Plan	7.03%	7.51%	6.76%
Aditya Birla SL Ultra Short Term Fund Direct Growth Plan	6.68%	7.48%	6.74%
ICICI Pru Short Term Fund Direct Growth Plan	6.21%	7.73%	7.11%
Axis Short Term Fund Direct Growth Plan	5.94%	7.73%	6.76%
Aditya Birla SL Short Term Fund Direct Growth Plan	5.86%	7.61%	6.82%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On the 1-year view, the fund trails the stronger peer numbers such as 7.03% and 6.68%, so the recent run is not the strongest among the names shown. Even so, its 3-year return of 7.66% is competitive with the peer set and its 5-year return of 6.59% is broadly in line with the cluster. The short-term story is weaker than the medium-term story, but the longer horizon still supports a steady, credit-oriented debt profile.

Source data date: as of 15 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
7.77% REC Limited 2028 **	Corporate Debt	6.17%
7.45% Power Finance Corporation Limited 2028	Corporate Debt	6.14%
7.73% Embassy Office Parks Reit 2029 **	Corporate Debt	6.13%
7.27% Tata Capital Housing Finance Limited 2028 **	Corporate Debt	6.1%
7.34% Small Industries Dev Bank of India 2029 **	Corporate Debt	6.1%
6.9601% Mindspace Business Parks Reit 2028 **	Corporate Debt	6.06%
7.68% Godrej Seeds & Genetics Limited 2028 **	Corporate Debt	6.06%
6.85% National Bank for Agriculture and Rural Development 2029 **	Corporate Debt	6.04%
7.71% Government of India 2066	Government Securities	4.97%
8.75% Bharti Telecom Limited 2028 **	Corporate Debt	3.73%

The top 10 holdings account for approximately 57.5% of the portfolio.

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

The largest holding, 7.77% REC Limited 2028 **, carries a weight of 6.17%, which is meaningful for a single position in a debt fund of this size. The weights remain tightly grouped through the first eight holdings, all clustered around 6%, before easing to 4.97% and then 3.73% at the tenth position. That pattern suggests no single position dominates the visible sleeve, but the largest names are still important enough to influence outcomes.

Because the top 10 holdings together account for 57.5% of the portfolio and the fund discloses 25 holdings in total, the remaining exposure is spread across a longer tail. In our view, that can reduce reliance on just a few positions while still leaving the portfolio anchored in a relatively focused set of credit instruments. The mix of corporate debt and one government security also indicates that the fund may balance yield-oriented exposure with some sovereign allocation.

For investors, the key point is that this is not an ultra-fragmented debt book. The visible positions are numerous enough to avoid extreme concentration, yet large enough individually that credit selection will matter. That may make the scheme more suitable for investors who are comfortable with a measured amount of portfolio concentration inside a debt allocation.

Source data date: as of 15 Sep 2026

Who should invest

This fund fits investors who are comfortable with a balanced-risk debt scheme and want a holding period long enough for the 3-year and 5-year track record to matter. The 1-year return is positive but not standout versus stronger peer numbers, so the recent run does not tell the whole story. The longer-term pattern is more reassuring, especially because the fund has stayed ahead of the benchmark across the trailing periods shown.

The trade-off is that the portfolio is built around credit exposure rather than very low-volatility cash-like positioning, so investors may need to accept some NAV fluctuation. The mix of corporate debt with a smaller government-securities allocation suggests a return-oriented debt profile rather than a defensive one. That makes the scheme more relevant for investors who want moderate risk and can hold through shorter 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 15 Sep 2026

Frequently asked questions

What is the current NAV of Mahindra Manulife Short Term Fund Direct Growth Plan?
The NAV is ₹14.2717 as of 15 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The returns are 5.83% for 1 year, 7.66% for 3 years and 6.59% for 5 years.

How does it compare with the benchmark?
It has outperformed the benchmark across the trailing periods shown. The benchmark returns are -8.27% for 1 year, 5.59% for 3 years and 5.58% for 5 years.

How does it compare with peer funds on recent returns?
Its 1-year return is below several peer figures such as 7.03% and 6.68%, but its 3-year and 5-year numbers remain competitive within the group shown.

Is there a minimum SIP amount?
Yes. The minimum SIP amount is ₹500.

Who manages the fund and does it have an exit load?
The fund is managed by Rahul Pal and Kush Sonigara. It has no exit load.

Bottom line

Mahindra Manulife Short Term Fund Direct Growth Plan shows a weaker recent 1-year reading than some peers, but its 3-year and 5-year returns remain steady and ahead of the benchmark. That makes the fund more interesting for investors who care about longer holding periods rather than short bursts of outperformance. The balanced-risk tag, credit-heavy portfolio and 25 disclosed holdings suggest a moderate but not minimal level of portfolio risk. It is better viewed as a return-oriented debt allocation than a low-volatility parking option.

Published on 16 September 2026 at 6:22 PM IST

Explore mutual funds with Univest

Review mutual fund data, compare performance and explore fund insights on Univest.

Explore Univest

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.