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

Nippon India Short Term Fund Direct Growth Plan currently has a NAV of ₹61.6619 as of 09 Sep 2026 and an AUM of ₹6,556 Cr. Its 1-year, 3-year and 5-year returns are 6.11%, 7.77% and 6.73%, and the scheme sits in the Medium Risk bucket.

Our view is that this is a steadier short-duration debt option for conservative investors who want moderate compounding rather than sharp return swings. The fund has stayed broadly ahead of the benchmark over the longer periods, while the latest 1-year outcome is still positive but more restrained than its 3-year profile.

Quick facts

Particular	Details
NAV	₹61.6619 as of 09 Sep 2026
AUM	₹6,556 Cr
Expense Ratio	0.38%
Launch Date	01 Jan 2013
Min SIP	₹100
Risk Category	Medium Risk
Benchmark	Nifty 50
Fund Category	Debt
Exit Load	No exit load
Fund Managers	Sushil Budhia, Vivek Sharma

The fund is managed by Sushil Budhia and Vivek Sharma.

Source data date: as of 09 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.11%	-4.69%
3M	1.61%	0.93%
1Y	6.11%	-7.16%
3Y	7.77%	6%
5Y	6.73%	5.87%

The short-term pattern has been better than the benchmark, especially over the latest month and the one-year window. That matters because the benchmark has been weak over 1 year and 1 month, while the fund still managed to stay in positive territory in both horizons.

At the same time, the fund is not showing a straight-line trend. The 3-month path improved after a softer start, and that matters for debt investors because it points to some month-to-month variation rather than a perfectly smooth glide path.

Over longer windows, the picture is more constructive. The 3-year return of 7.77% is ahead of the benchmark’s 6%, and the 5-year return of 6.73% is also above the benchmark’s 5.87%. That tells us the fund has been able to compound a little better than the benchmark across cycle lengths, even though the edge is not dramatic.

For an investor, the main point is balance. The fund has not relied on a single strong stretch to build its record; the longer-term numbers still support it, but the recent 1-year figure shows a more measured pace than the 3-year run. That makes it more suitable for investors who value consistency over excitement.

Source data date: as of 09 Sep 2026

Should you BUY or HOLD Nippon India 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 Short Term Fund Direct Growth Plan	6.11%	7.77%	6.73%
Tata Ultra Short Term Fund Direct Growth Plan	7.11%	7.55%	6.77%
Aditya Birla SL Ultra Short Term Fund Direct Growth Plan	6.79%	7.53%	6.76%
ICICI Pru Short Term Fund Direct Growth Plan	6.6%	7.93%	7.19%
Mahindra Manulife Short Term Fund Direct Growth Plan	6.27%	7.86%	6.66%
Axis Short Term Fund Direct Growth Plan	6.23%	7.86%	6.82%

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

On the latest one-year number, this fund trails Tata Ultra Short Term Fund Direct Growth Plan and Aditya Birla SL Ultra Short Term Fund Direct Growth Plan, while staying close to the other short-term peers. The bigger picture is more favourable: its 3-year return is competitive and its 5-year return remains above several peer figures, although ICICI Pru Short Term Fund Direct Growth Plan shows a stronger 5-year outcome.

What stands out is that the short-term comparison is tighter than the longer-term one. The fund does not clearly dominate the peer set on the most recent year, but its 3-year and 5-year figures support a steadier compounding profile. That combination suggests the recent period has been adequate rather than standout, while the longer arc remains constructive.

Source data date: as of 09 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Net Current Assets	Cash & Cash Equivalents and Net Assets	7.17%
Shivshakti Securitisation Trust**	PTC & Securitized Debt	3.33%
Siddhivinayak Securitisation Trust**	PTC & Securitized Debt	2.98%
8.97% Government of India	Government Securities	2.49%
7.54% Knowledge Realty Trust**	Corporate Debt	2.43%
Triparty Repo	Cash & Cash Equivalents and Net Assets	2.42%
Muthoot Finance Limited**	Floating Rate Instruments	2.35%
7.35% Export Import Bank of India**	Corporate Debt	2.29%
Small Industries Dev Bank of India**	Floating Rate Instruments	2.28%
8.54% REC Limited**	Corporate Debt	2.03%

The top 10 holdings account for approximately 29.77% of the portfolio.

To see all holdings, visit the Nippon India Short Term Fund Direct Growth Plan page

The single largest holding is Net Current Assets at 7.17%, and the next position drops to 3.33%. That gap shows that the biggest line item may have a noticeably larger day-to-day influence than each of the next few positions, even though no single line overwhelms the table on its own.

The tenth holding is 8.54% REC Limited** at 2.03%, so the visible weights taper off quite a bit from the top of the list. The spread from 7.17% to 2.03% suggests the portfolio is not concentrated in one or two oversized positions among the disclosed names; instead, the exposure is distributed across a series of smaller individual holdings.

At the same time, the top 10 holdings together account for 29.77% while the portfolio discloses 70 holdings overall. That combination implies a reasonably long tail beyond the largest names, so the scheme may have multiple moving parts rather than leaning on a narrow set of positions.

Source data date: as of 09 Sep 2026

Who should invest

This fund is best assessed as a conservative debt choice for investors who can accept Medium Risk and want a relatively steady return pattern rather than a high-growth profile. Its 1-year, 3-year and 5-year returns are all positive, and the longer windows sit ahead of the benchmark, which supports a patient holding period rather than a short tactical view.

The trade-off is that the recent 1-year gain is solid but not especially strong versus some peers, so investors may be giving up some near-term upside in exchange for a more measured short-term profile. The portfolio also has a broad spread of 70 holdings, which may help avoid overdependence on a small number of positions.

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 09 Sep 2026

Frequently asked questions

What is the current NAV of Nippon India Short Term Fund Direct Growth Plan?
Its current NAV is ₹61.6619 as of 09 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 6.11%, 7.77% and 6.73%.

How has the fund performed against its benchmark?
It has stayed ahead of the benchmark across the 1-year, 3-year and 5-year windows. The benchmark has been weaker over the latest year, while the fund remained positive.

How does it compare with the peer funds listed here?
Its 1-year return is below Tata Ultra Short Term Fund Direct Growth Plan and Aditya Birla SL Ultra Short Term Fund Direct Growth Plan, but its 3-year and 5-year figures remain competitive within the peer set. ICICI Pru Short Term Fund Direct Growth Plan has the stronger 5-year number among the listed peers.

Is there a minimum SIP amount?
No minimum SIP is stated here, and SIP investing is allowed.

Who manages the fund, and does it have an exit load?
The fund is managed by Sushil Budhia and Vivek Sharma. It has no exit load.

Bottom line

Nippon India Short Term Fund Direct Growth Plan looks like a steady debt fund with a better longer-term record than its benchmark and a recent 1-year return that is positive but less emphatic than its 3-year profile. Against peers, it is competitive rather than dominant on the latest year, while its longer-term numbers remain respectable. The portfolio is spread across 70 holdings, with the visible top positions making up only part of the scheme, which may support diversification within the debt bucket.

Published on 10 September 2026 at 10:34 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.