Union Corporate Bond Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

Union Corporate Bond Fund Direct Growth Plan is a debt fund with a ₹16.5403 NAV as of 11 September 2026 and a scheme AUM of ₹289 Cr. Its 1-year, 3-year and 5-year returns are 4.57%, 7.03% and 5.82%, and the fund sits in the Medium Risk category.

Our view is that this is a steady debt option for conservative investors who can accept some duration and credit movement in exchange for moderate compounding. The portfolio is anchored by sovereign and corporate debt exposures, which supports stability, but the recent return pattern shows that outcomes can still move around from period to period.

Quick facts

Particular	Details
NAV	₹16.5403 as of 11 Sep 2026
AUM	₹289 Cr
Expense Ratio	0.41%
Launch Date	25 May 2018
Min SIP	₹500
Risk Category	Medium Risk
Benchmark	Nifty 50
Fund Category	Debt
Exit Load	No exit load
Fund Managers	Parijat Agrawal, Anindya Sarkar, Shrenuj Parekh

The fund is managed by Parijat Agrawal, Anindya Sarkar and Shrenuj Parekh.

Source data date: as of 11 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-0.27%	-3.66%
3M	1.03%	-1.91%
1Y	4.57%	-7.62%
3Y	7.03%	6.22%
5Y	5.82%	5.84%

The recent picture is mixed but still constructive. Over 1 month, the fund slipped slightly, yet that was still much better than the benchmark’s weaker move. The 3-month return is positive and again ahead of the benchmark, which tells us the fund has handled the short window better than the reference index.

The 1-year figure is more important because it shows a cleaner gap: the fund has delivered a positive outcome while the benchmark has been negative. That suggests the fund has held up better through a difficult year for the comparison index, even though the path has not been smooth throughout the period.

Over longer periods, the story becomes more balanced. The 3-year return is ahead of the benchmark, while the 5-year return is almost identical to it. That means the fund has not separated itself dramatically over the full cycle, but it has shown a useful ability to preserve relative performance when shorter horizons have weakened. The pattern in the return path also points to intermittent swings rather than a straight line, so our view is that investors should expect moderate fluctuation rather than fixed monthly stability.

Source data date: as of 11 Sep 2026

Should you BUY or HOLD Union Corporate Bond?

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
Union Corporate Bond Fund Direct Growth Plan	4.57%	7.03%	5.82%
Franklin India Corporate Bond Fund-A Direct Growth Plan	6.43%	8.06%	6.74%
Baroda BNP Paribas Corp Bond Fund Direct Growth Plan	6.2%	7.82%	6.24%
DSP Corp Bond Fund Direct Growth Plan	6.14%	7.41%	6.03%
ICICI Pru Corp Bond Fund Direct Growth Plan	6.07%	7.5%	6.78%
Bandhan Corp Bond Fund Direct Growth Plan	5.89%	7.33%	6.1%

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

On the available return set, the fund trails several peers on the 1-year figure, while the longer-term spread is narrower. Its 3-year return is below the strongest peer figures but remains in a similar band, and the 5-year return is also close to the broader peer cluster. That creates a split story: the fund has not led the recent pack, but its longer horizon is still broadly competitive rather than weak.

For investors comparing only these return periods, the main takeaway is that the fund’s short-term momentum looks softer than the better peer outcomes, while its multi-year record is more balanced. The gap between the 1-year figure and the 3-year and 5-year numbers also suggests that recent conditions have been less favourable than the longer compounding pattern.

Source data date: as of 11 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
GOI 6.68% 2040	Government Securities	10.02%
TREPS	Cash & Cash Equivalents and Net Assets	8.88%
Bajaj Housing Finance Ltd.**	Corporate Debt	8.38%
Indian Railway Finance Corporation Ltd.**	Corporate Debt	6.93%
Bajaj Finance Ltd.**	Corporate Debt	6.91%
LIC Housing Finance Ltd.**	Corporate Debt	6.9%
Power Finance Corporation Ltd.**	Corporate Debt	6.9%
Kotak Mahindra Prime Ltd.**	Corporate Debt	5.16%
Small Industries Development Bank of India**	Corporate Debt	5.09%
Reliance Industries Ltd.**	Corporate Debt	3.5%

The top 10 holdings account for approximately 68.67% of the portfolio.

To see all holdings, visit the Union Corporate Bond Fund Direct Growth Plan page

The largest holding is GOI 6.68% 2040 at 10.02%, so sovereign exposure has a meaningful place in the portfolio. TREPS at 8.88% adds liquidity support, while the largest corporate debt lines sit close together in the 5% to 8% range, which may keep single-issuer influence from becoming extreme.

The decline from the first holding to the tenth is moderate rather than abrupt. That pattern suggests the portfolio is not dependent on one dominant position, but neither is it fully diffused across a very long tail. With 21 disclosed holdings and the top 10 making up 68.67%, the visible part of the portfolio appears reasonably concentrated in a handful of large lines, while still leaving room for additional positions beyond the table.

For a corporate bond fund, that mix may matter because the sovereign anchor and short-term cash line can temper swings, while the corporate debt basket could contribute carry over time. Our view is that the structure is consistent with a fund that seeks income with controlled but not negligible credit and duration exposure.

Source data date: as of 11 Sep 2026

Who should invest

This fund may suit investors who are comfortable with Medium Risk and want a debt allocation that can hold up better than the benchmark in weaker periods. The 1-year, 3-year and 5-year pattern shows that the fund has been reasonably steady over time, but the short-term path is not perfectly smooth.

A longer horizon is more sensible than a very short holding period, because the record shows more consistency over 3 years and 5 years than over 1 month or 3 months. The main trade-off is that investors get a portfolio with a meaningful corporate-debt tilt and some sovereign support, but they still need to accept return variation and do not get the same simplicity as a pure cash-like allocation.

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 11 Sep 2026

Frequently asked questions

What is the current NAV of Union Corporate Bond Fund Direct Growth Plan?
Its NAV is ₹16.5403 as of 11 September 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s returns are 4.57% for 1 year, 7.03% for 3 years and 5.82% for 5 years.

How has it done versus the benchmark?
It has been ahead of the benchmark over 1 month, 3 months, 1 year and 3 years, while the 5-year return is almost the same as the benchmark.

How does it compare with the peer funds listed here?
Its 1-year return is below several peer figures, while its 3-year and 5-year returns are closer to the peer range. The short-term comparison looks softer than the longer-term one.

What is the minimum SIP amount?
The minimum SIP amount is ₹500.

What is the exit load and who manages the fund?
There is no exit load. The fund is managed by Parijat Agrawal, Anindya Sarkar and Shrenuj Parekh.

Bottom line

Union Corporate Bond Fund Direct Growth Plan shows a steadier longer-term profile than its short-term numbers suggest. It has kept ahead of the benchmark over most measured periods, while peer comparisons show a softer 1-year outcome and a more balanced 3-year and 5-year picture. The portfolio’s mix of government securities, liquidity and corporate debt gives it a practical income-oriented structure, but the Medium Risk label and the uneven recent path mean investors should expect some variation rather than fixed stability.

Published on 15 September 2026 at 4:13 PM 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.