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

Mahindra Manulife Ultra Short Term Fund Direct Growth Plan has a NAV of ₹1523.7107 as of 15 Sep 2026 and an AUM of ₹221 Cr. Its 1-year, 3-year and 5-year returns are 6.69%, 7.3% and 6.59%, and the fund sits in the Medium Risk category.

Our view is that this is a steadier debt option for conservative investors who want moderate income-oriented compounding without taking equity-style swings. The return profile has stayed broadly stable over longer periods, while the portfolio’s short-tenor debt and cash mix should help keep day-to-day movement contained.

Quick facts

Particular	Details
NAV	₹1,523.7107 as of 15 Sep 2026
AUM	₹221 Cr
Expense Ratio	0.28%
Launch Date	17 Oct 2019
Min SIP	₹500
Risk Category	Medium Risk
Benchmark	Nifty 50
Fund Category	Debt
Exit Load	No exit load
Fund Managers	Rahul Pal, Amit Garg

The fund is managed by Rahul Pal and Amit Garg.

Source data date: as of 15 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.48%	-4.81%
3M	1.75%	-3.63%
1Y	6.69%	-8.27%
3Y	7.3%	5.59%
5Y	6.59%	5.58%

The fund has held up well over the short term, with positive 1-month and 3-month returns while the benchmark was negative over the same periods. That tells us the portfolio has been able to avoid the sharper swings seen in the benchmark and still preserve a small positive return stream.

Over one year, the fund’s return is 6.69% versus -8.27% for the benchmark. That is a wide gap and it reinforces that the fund has behaved very differently from a broad equity-style index. For a debt fund, that separation is more important than chasing high upside, because it points to capital preservation and smoother compounding.

The 3-year return of 7.3% and the 5-year return of 6.59% both sit above the benchmark’s 5.59% and 5.58%. The longer-term pattern suggests a relatively consistent compounding profile rather than sharp bursts of performance. The recent numbers are also aligned with that longer-term picture, so we do not see a major disconnect between short-term behaviour and the 3-year or 5-year trend.

In practical terms, this is the kind of return path that suits an investor who values stability more than excitement. The fund has not relied on a single strong period to build its record; instead, it has shown a steadier pace that is easier to hold through changing rate conditions.

Source data date: as of 15 Sep 2026

Should you BUY or HOLD Mahindra Manulife 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.

Already holding Mahindra Manulife Ultra 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 Ultra Short Term Fund Direct Growth Plan	6.69%	7.3%	6.59%
Nippon India Ultra Short Term Fund Direct Growth Plan	7.02%	7.58%	6.97%
Axis Ultra Short Term Fund Direct Growth Plan	6.86%	7.46%	6.76%
Invesco India Ultra Short Term Fund Direct Growth Plan	6.8%	7.34%	6.6%
DSP Ultra Short Term Fund Direct Growth Plan	6.8%	7.44%	6.65%
UTI Ultra Short Term Fund Direct Growth Plan	6.74%	7.34%	7.18%

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

On 1-year return, the fund trails the stronger peer readings in this set, including Nippon India Ultra Short Term Fund Direct Growth Plan at 7.02% and Axis Ultra Short Term Fund Direct Growth Plan at 6.86%. The gap is not large, but it does show that the fund is a little behind the best recent numbers among the peers listed here.

The longer horizon picture is more balanced. Its 3-year return of 7.3% is below Nippon India and Axis, but still comfortably in the same band as the rest of the group. On 5-year return, it is also in the middle of the peer range, with UTI ahead at 7.18% and several peers close to its level. That makes the fund look more steady than standout on peer comparison, especially over the longer stretch.

So the short-term and longer-term comparisons tell a slightly different story: recent performance is decent but not the strongest in this set, while the multi-year record is more competitive and broadly consistent with a stable debt-fund profile.

Source data date: as of 15 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Small Industries Dev Bank of India 2027 ** #	Certificate of Deposit	8.32%
Canara Bank 2026 ** #	Certificate of Deposit	8.01%
7.83% Indian Railway Finance Corporation Limited 2027 **	Corporate Debt	7.24%
Reverse Repo	Cash & Cash Equivalents and Net Assets	7%
7.8% National Bank for Agriculture and Rural Development 2027	Corporate Debt	6.32%
7.64% REC Limited 2027	Corporate Debt	6.31%
8.30% Godrej Properties Limited 2027 **	Corporate Debt	5.43%
7.95% Mindspace Business Parks Reit 2027 **	Corporate Debt	4.52%
7.8445% Tata Capital Housing Finance Limited 2026 **	Corporate Debt	4.51%
364 Days Tbill 2026	Treasury Bills	4.49%

The top 10 holdings account for approximately 62.15% of the portfolio.

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

The largest position, Small Industries Dev Bank of India 2027 ** #, carries an 8.32% weight, so it is meaningful but not dominating on its own. The next few holdings are also sizeable, with the second through tenth positions stepping down gradually rather than falling off sharply.

That pattern suggests a portfolio that is spread across a set of short-duration money market and debt exposures, with certificate of deposit and corporate debt lines taking much of the visible allocation. The top 10 together make up 62.15% of the portfolio, and the fact that there are 29 disclosed holdings points to a reasonably broad tail beyond the largest names.

Our view is that this structure may help soften the impact of any single holding, while still allowing the larger positions to influence returns. It does not look overly concentrated in one issuer, but it also is not so dispersed that the top holdings lose importance.

Source data date: as of 15 Sep 2026

Who should invest

This fund suits investors who are comfortable with low-to-moderate volatility and want a debt allocation that has delivered stable compounding rather than sharp jumps. The Medium Risk label fits an investor who can accept some movement, but who mainly values preservation and smoother returns.

A longer investment horizon is more appropriate than a very short holding period, because the 3-year and 5-year numbers give a better picture of the fund’s steadiness than any single month. The main trade-off is clear: investors may give up some upside compared with riskier categories, but they get a return profile that has been more resilient than the benchmark and fairly consistent against peer funds.

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

No exit load.

Source data date: as of 15 Sep 2026

Frequently asked questions

What is the current NAV of Mahindra Manulife Ultra Short Term Fund Direct Growth Plan?
The current NAV is ₹1523.7107 as of 15 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s 1-year return is 6.69%, the 3-year return is 7.3% and the 5-year return is 6.59%.

How does the fund compare with its benchmark?
It has been ahead of the benchmark across the reported periods. For example, the benchmark’s 1-year return is -8.27% compared with the fund’s 6.69%.

How does it compare with the peer funds listed here?
Its recent return is a little below the strongest peer readings, but its 3-year and 5-year numbers remain broadly competitive. That makes the fund look steady rather than exceptional within the listed group.

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

Who manages the fund and is there an exit load?
The fund is managed by Rahul Pal and Amit Garg. There is no exit load if units are sold anytime.

Bottom line

Mahindra Manulife Ultra Short Term Fund Direct Growth Plan has shown steadier longer-term compounding than the benchmark, and its recent returns remain broadly in line with that stable pattern. Against the peer set, the fund is competitive over multiple years, though not the strongest recent performer. The Medium Risk profile, short-duration debt mix and meaningful cash-like exposure make it suitable for investors who want a calmer debt allocation with measured return potential rather than aggressive upside.

Published on 16 September 2026 at 1:53 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.