SBI Dynamic Term Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

SBI Dynamic Term Fund Direct Growth Plan currently has an NAV of ₹41.4973 as of 09 Sep 2026 and a scheme AUM of ₹3,552 Cr. Its 1-year, 3-year and 5-year returns are 5.68%, 7.44% and 6.79%, and the fund sits in the Medium Risk category.

Our view is that this is a steady debt option rather than a sharp income play. The portfolio has a large cash and cash-equivalent buffer, meaningful government and treasury exposure, and a spread across corporate debt, which can help smooth outcomes, though returns have remained moderate against the benchmark over the longer run.

Quick facts

Particular	Details
NAV	₹41.4973 as of 09 Sep 2026
AUM	₹3,552 Cr
Expense Ratio	0.63%
Launch Date	01 Jan 2013
Min SIP	₹500
Risk Category	Medium Risk
Benchmark	Nifty 50
Fund Category	Debt
Exit Load	Nil for 10% of investment and 0.25% for remaining Investment on or before 1M, Nil after 1M
Fund Managers	Sudhir Agarwal

The fund is managed by Sudhir Agarwal.

Source data date: as of 09 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.15%	-4.69%
3M	1.63%	0.93%
1Y	5.68%	-7.16%
3Y	7.44%	6%
5Y	6.79%	5.87%

In the most recent month, the fund held up better than the benchmark, which was negative. That suggests the portfolio has offered some short-term stability even when the market benchmark weakened.

Over three months, the fund also stayed ahead of the benchmark by a modest margin. The one-year picture is more notable: the fund delivered a positive return while the benchmark remained negative, so the fund clearly handled the latest year better than the comparison index.

The longer record is steadier than spectacular. The 3-year and 5-year returns are both positive and only slightly ahead of the benchmark, which tells us the fund has broadly matched the benchmark’s direction but without a large performance gap. The pattern also suggests that recent gains have been more resilient than the benchmark’s behaviour over the last year.

That combination matters for investors who want debt exposure with less drama than an equity-led portfolio. The trade-off is that the fund’s longer-term returns are moderate, so the appeal is more about steadier compounding and downside control than about standout upside.

Source data date: as of 09 Sep 2026

Should you BUY or HOLD SBI Dynamic 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
SBI Dynamic Term Fund Direct Growth Plan	5.68%	7.44%	6.79%
Bandhan Dynamic Term Fund Direct Growth Plan	7.36%	7.66%	6.14%
Axis Dynamic Term Fund Direct Growth Plan	6.61%	7.52%	6.28%
Kotak Dynamic Term Fund Direct Growth Plan	6.57%	7.87%	6.64%
360 ONE Dynamic Term Fund Direct Growth Plan	6.48%	8.19%	6.91%
ICICI Pru Dynamic Term Fund Direct Growth Plan	6.02%	7.82%	7.09%

Compared with peers on the latest 1-year number, this fund trails several of the listed funds, with Bandhan, Axis, Kotak, 360 ONE and ICICI Pru all showing stronger recent returns. That makes the fund look less compelling on the latest one-year snapshot than some of the peer options.

The longer-term picture is more balanced. On 3-year returns, it sits close to the group and remains ahead of Axis in the table, while on 5-year returns it is below several peers but ahead of Bandhan and Axis. So the short-term comparison looks weaker, while the mid- and long-term comparison is more mixed.

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

Source data date: as of 09 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
TREPS	Cash & Cash Equivalents and Net Assets	38.28%
7.28% State Government of Andhra Pradesh 2032	Government Securities	6.99%
Axis Bank Ltd.	Certificate of Deposit	6.81%
National Bank for Agriculture and Rural Development	Corporate Debt	6.24%
Bajaj Finance Ltd.	Corporate Debt	5.62%
Summit Digitel Infrastructure Pvt. Ltd.	Corporate Debt	4.36%
Net Receivable / Payable	Cash & Cash Equivalents and Net Assets	3.72%
REC Ltd.	Corporate Debt	3.53%
91 Day T-Bill 17.09.26	Treasury Bills	3.51%
National Highways Infra Trust	Corporate Debt	3.32%

The largest holding, TREPS at 38.28%, is large enough to shape day-to-day portfolio behaviour and may help the fund keep a meaningful cash and liquidity buffer. After that, the weights step down fairly quickly into the 6% range and then into the mid-3% range, so the top positions are clearly more important than the tail end of the table.

The top 10 holdings account for approximately 82.38% of the portfolio, which indicates a fairly concentrated visible book even though the exposures are spread across cash equivalents, government securities and corporate debt. With 17 disclosed holdings overall, the portfolio is not limited to a tiny set of names, but the largest positions could still have greater influence on returns and stability than the smaller ones.

That mix may suit investors who prefer a debt fund with a strong liquidity and high-quality debt component rather than a pure credit-heavy profile. The presence of cash equivalents, treasury bills and government securities also suggests the fund may have scope to manage short-term movements more cautiously than a portfolio built mainly around longer-dated credit exposure.

To see all holdings, visit the SBI Dynamic Term Fund Direct Growth Plan page

Source data date: as of 09 Sep 2026

Who should invest

This fund may suit investors who are comfortable with Medium Risk and want a debt allocation with a steadier pattern than the benchmark over recent periods. The 1-year return has been better than the benchmark, while the 3-year and 5-year numbers are positive but only modestly ahead, so the fund looks more like a stability-oriented debt holding than a high-octane return generator.

A medium-to-long investment horizon is more appropriate than a very short one, because the longer record helps smooth out periods when returns look less exciting. The main trade-off is that the portfolio’s liquidity and conservative cash-heavy structure can support stability, but that same stance may limit upside when compared with stronger peer stretches.

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: Nil for 10% of investment and 0.25% for the remaining investment if units are sold on or before 1 month; no exit load after the holding period.

Source data date: as of 09 Sep 2026

Frequently asked questions

What is the current NAV of SBI Dynamic Term Fund Direct Growth Plan?

The current NAV is ₹41.4973 as of 09 Sep 2026.

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

The fund’s returns are 5.68% over 1 year, 7.44% over 3 years and 6.79% over 5 years.

How does it compare with the benchmark?

It has outperformed the benchmark across the listed periods, including a positive 1-year return versus a negative benchmark return.

How does it compare with peer funds?

Its recent 1-year return is weaker than several of the listed peers, while its 3-year and 5-year returns are more mixed and closer to the group.

What is the minimum SIP amount?

The minimum SIP amount is ₹500.

What is the fund’s risk category and who manages it?

The fund is in the Medium Risk category and is managed by Sudhir Agarwal. The portfolio is also visibly tilted toward cash equivalents, government securities and corporate debt.

Bottom line

SBI Dynamic Term Fund Direct Growth Plan has shown a better recent pattern than its benchmark, especially over 1 year, but its longer-term returns remain moderate rather than standout. Against peers, the latest return is softer, while the 3-year and 5-year figures look more balanced. The portfolio’s large liquidity buffer and exposure to government and corporate debt support a steadier profile, which makes the fund more suitable for investors seeking measured debt exposure than for those expecting aggressive upside.

Published on 10 September 2026 at 11:57 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.