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

Tata Ultra Short Term Fund Direct Growth Plan has a NAV of ₹16.166 as of 15 Sep 2026 and scheme AUM of ₹6,494 Cr. Its 1-year, 3-year and 5-year returns are 7.09%, 7.53% and 6.76%, and the scheme sits in the Medium Risk category.

Our view is that this is a steady debt option for conservative investors who want short-duration exposure with moderate return consistency rather than sharp upsides. The portfolio leans heavily on high-quality short-term instruments such as CDs, corporate debt and treasury bills, which helps explain the lower-volatility profile.

Quick facts

Particular	Details
NAV	₹16.166 as of 15 Sep 2026
AUM	₹6,494 Cr
Expense Ratio	0.29%
Launch Date	22 Jan 2019
Risk Category	Medium Risk
Benchmark	Nifty 50
Fund Category	Debt
Exit Load	No exit load
Fund Managers	Dhawal Joshi, Amit Somani

The fund is managed by Dhawal Joshi and Amit Somani.

Source data date: as of 15 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.54%	-4.81%
3M	1.90%	-3.63%
1Y	7.09%	-8.27%
3Y	7.53%	5.59%
5Y	6.76%	5.58%

The short-term trend looks stable. Over the last month and quarter, the fund has stayed in positive territory while the benchmark has been negative, which points to a cushion effect in a debt portfolio when equity-linked reference values move sharply lower. That does not make the path smooth, but it does show that the scheme has held its ground better than the benchmark in the recent window.

Over 1 year, the fund’s 7.09% return is materially ahead of the benchmark’s -8.27%. That gap is large enough to tell us the scheme has behaved very differently from the benchmark across the latest annual period. For a debt fund, that is useful context: the return profile is shaped by fixed-income instruments rather than equity-like swings, so the benchmark comparison is more of a reference point than a direct peer for portfolio behaviour.

The 3-year and 5-year numbers are also constructive. The fund has delivered 7.53% over 3 years and 6.76% over 5 years, versus 5.59% and 5.58% for the benchmark. We read that as a reasonably steady compounding pattern rather than a one-off spike. The time pattern also suggests the scheme has generally preserved its positive drift after brief soft patches, which is what many investors seek from an ultra-short-duration debt allocation.

Overall, recent and longer-term behaviour are aligned: the fund has remained ahead of the benchmark on every return horizon shown here, while keeping the profile more restrained than an equity benchmark would imply.

Source data date: as of 15 Sep 2026

Should you BUY or HOLD Tata 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
Tata Ultra Short Term Fund Direct Growth Plan	7.09%	7.53%	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	6.06%	7.82%	6.78%
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 latest 1-year number, this scheme is ahead of the peer set shown here, with 7.09% versus 6.68%, 6.21%, 6.06% and 5.86% for the others listed. That makes the recent return picture fairly solid without requiring any dramatic risk-taking.

The longer-term comparison is more mixed. Its 3-year return is below two of the listed peers that show 7.73% and 7.82%, though it remains close to the 7.48% and 7.61% figures. On 5 years, it is slightly behind the 7.11% peer figure but close to the other peer outcomes. So the short-term story is stronger than the longer-term peer story, even though the fund still holds up reasonably well over time.

Source data date: as of 15 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
** 07.80 % NABARD – 15/03/2027	Corporate Debt	8.18%
** – HDFC Bank Ltd – CD – 14/12/2026	Certificate of Deposit	7.56%
Repo	Cash & Cash Equivalents and Net Assets	6.88%
** 07.59 % REC Ltd – 31/05/2027	Corporate Debt	6.16%
** – Indian Bank – CD – 04/12/2026	Certificate of Deposit	5.3%
** Treasury Bill 91 Days (08/10/2026)	Treasury Bills	5.13%
** – Small Indust Devlop Bank of India – CD – 27/08/2027	Certificate of Deposit	3.58%
** – Yes Bank Ltd – CD – 05/03/2027	Certificate of Deposit	3.35%
** – Ujjivan Small Finance Bank Ltd – CD – 18/03/2027 #	Certificate of Deposit	3.33%
** – Federal Bank Ltd – CD – 09/06/2027	Certificate of Deposit	3.28%

The largest holding is 8.18%, which is meaningful but not excessive on its own. The tenth holding is 3.28%, so the weight drops by nearly 5 percentage points across the top 10 list, which tells us the allocation is spread across several positions rather than concentrated in one dominant instrument.

The top 10 holdings together account for approximately 52.75% of the portfolio, and the scheme discloses 41 holdings in total. That combination suggests a layered structure: the largest positions are important enough to influence returns, but there is also a longer tail that may reduce dependence on any single security.

We also note that the visible mix is built around CDs, corporate debt, treasury bills and repo. In our view, that kind of structure may support a steadier income profile and limit large swings, although the individual holdings can still move with rates and liquidity conditions.

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

Source data date: as of 15 Sep 2026

Who should invest

This fund may suit investors with a conservative to moderately cautious risk appetite who want short-duration debt exposure rather than aggressive return chasing. The Medium Risk label fits the return pattern: positive numbers across 1 year, 3 years and 5 years, but without the kind of upside that would justify taking equity-style risk.

The better fit is a horizon of at least a few years, because that gives the compounding pattern time to work through normal rate changes. The main trade-off is that the fund aims for steadier debt-style growth, so investors may give up the chance of higher upside in exchange for a portfolio that has stayed ahead of the benchmark and used short-term fixed-income instruments to stay more stable.

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 Tata Ultra Short Term Fund Direct Growth Plan?
Its NAV is ₹16.166 as of 15 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The returns are 7.09% for 1 year, 7.53% for 3 years and 6.76% for 5 years.

How has the fund performed versus its benchmark?
It has outperformed the benchmark on every return horizon shown here. The gap is especially wide over 1 year, where the fund is positive and the benchmark is negative.

How does it compare with the peer funds listed here?
Its 1-year return is stronger than the peer figures shown, while its 3-year and 5-year returns are competitive but not the highest among the listed peers. The short-term picture is better than the longer-term peer picture.

Is there a minimum SIP amount mentioned?
No minimum SIP amount is stated here. The fund does allow SIP investing.

Who manages the fund and what is the exit load?
The fund is managed by Dhawal Joshi and Amit Somani. It has no exit load.

Bottom line

Tata Ultra Short Term Fund Direct Growth Plan shows a steadier debt-fund profile than its benchmark, with the recent return pattern broadly aligned with its longer-term compounding trend. It compares well on the latest 1-year figure against the peer set shown here, while its 3-year and 5-year numbers remain competitive even if not the strongest across all peers. The portfolio is spread across CDs, corporate debt, treasury bills and repo, which may support a more balanced short-duration stance for investors who prefer moderate risk and measured return visibility.

Published on 16 September 2026 at 10:22 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.