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

Updated: 21 Sept 2026 • 9:45 am

Posted by:

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

Union Gilt Fund Direct Growth Plan is valued at ₹12.4298 as of 18 September 2026, with an AUM of ₹81 Cr. Its 1-year, 3-year and 5-year returns are 1.39%, 5.07% and 0%, and the scheme carries a Medium Risk label. Our view is that this is a conservative debt fund with a portfolio built almost entirely around long-dated government securities, which may appeal more to investors seeking stability than to those looking for strong short-term upside.

The fund has stayed relatively contained versus its benchmark in the recent period, while the 3-year record is more supportive than the 1-year number. The main trade-off is clear: the portfolio is focused and government-heavy, which can help limit credit risk, but the return pattern has been modest and uneven.

Table of Contents

Quick facts

Particular	Details
NAV	₹12.4298 as of 18 Sep 2026
AUM	₹81 Cr
Expense Ratio	0.65%
Launch Date	08 Aug 2022
Min SIP	₹500
Risk Category	Medium Risk
Benchmark	Nifty 50
Fund Category	Debt
Exit Load	No exit load
Fund Managers	Parijat Agrawal, Anindya Sarkar

The fund is managed by Parijat Agrawal and Anindya Sarkar.

Source data date: as of 18 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-0.93%	-3.73%
3M	0.24%	-3.14%
1Y	1.39%	-5.31%
3Y	5.07%	6.3%
5Y	Data not available	Data not available

The recent numbers show a fund that has been steadier than its benchmark over shorter windows. The 1-month return was slightly negative, but it still held up better than the benchmark’s decline over the same stretch. Over 3 months, the fund moved back into positive territory while the benchmark remained negative, which suggests the fund has recently behaved with less downside than the market reference used here.

That picture changes when we widen the lens. The 1-year return is modest, but it is clearly ahead of the benchmark’s negative figure. The 3-year return is also positive, though it trails the benchmark on that horizon. Taken together, the pattern suggests the fund has been more resilient recently, but it has not consistently outpaced the benchmark over longer periods.

The return path over the broader 3-year window looks uneven rather than smooth. There were periods of progress, but also enough pullback to keep the overall compounding profile modest. For investors, that means the fund has offered some defensive value in softer periods, while the longer-run growth profile has remained limited.

Source data date: as of 18 Sep 2026

Should you BUY or HOLD Union Gilt?

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 Union Gilt? 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
Union Gilt Fund Direct Growth Plan	1.39%	5.07%	Data not available
Bandhan Gilt Fund Direct Growth Plan	7.74%	7.92%	6.38%
UTI Gilt Fund Direct Growth Plan	5.39%	6.7%	5.74%
Franklin India Gilt Fund Direct Growth Plan	5.33%	6.43%	5.35%
Bandhan 10 year Constant Maturity Gilt Fund Direct Growth Plan	4.63%	7.55%	5.76%
Axis Gilt Fund Direct Growth Plan	4.51%	7.12%	5.96%

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

The fund’s 1-year return trails the stronger peer figures by a wide margin, so its recent showing is softer than most of the peer set. The 3-year result is also below the leading peer numbers available here, which tells us the fund has not matched the stronger compounding profile seen elsewhere. On the 5-year horizon, the current fund has no figure available, while the peers with long-history numbers show materially higher returns.

That said, the short-term and longer-term comparisons do not tell exactly the same story. The fund has looked more resilient versus the benchmark in recent periods, but peer funds have generally delivered stronger returns across the horizons where figures are available. So the fund appears steadier than the benchmark in the near term, yet less compelling than several peers on multi-year return outcomes.

Source data date: as of 18 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
GOI 7.71% 2066	Government Securities	37.24%
GOI 7.24% 2055	Government Securities	35.53%
GOI 6.90% 2065	Government Securities	20.1%
TREPS	Cash & Cash Equivalents and Net Assets	4.86%
Net Receivable / Payable	Cash & Cash Equivalents and Net Assets	2.27%

The largest holding, GOI 7.71% 2066, accounts for 37.24% of the portfolio, so it is likely to have greater influence on the fund’s day-to-day movement than any other single position. The next two government securities are also large, at 35.53% and 20.1%, which means the portfolio is anchored by a small set of sovereign exposures rather than a wide spread of smaller holdings.

The weight drops from 37.24% at the top holding to 2.27% in the last disclosed row. That is a steep fall, and it shows how concentrated the visible book is around a few long-duration government securities and small cash-related positions. The small difference between the top three holdings and the remaining two entries suggests that most of the disclosed portfolio weight sits in the bond core.

All five disclosed holdings together account for 100% of the portfolio, and that indicates a fully disclosed, tightly held structure with no longer tail visible in the table. With only five holdings reported, the fund looks concentrated, but in a way that is consistent with a gilt strategy built around sovereign paper rather than diversified credit exposure.

Source data date: as of 18 Sep 2026

Who should invest

This fund may suit investors with a conservative to moderate risk tolerance who are comfortable with a Medium Risk debt scheme and can accept a return pattern that has been uneven over shorter windows. Its best use case is likely a medium- to longer-term allocation where stability of underlying sovereign holdings matters more than chasing high returns.

The main trade-off is between government-backed portfolio quality and modest performance. The fund has looked steadier than its benchmark in recent periods, but peer funds have generally delivered stronger multi-year returns where figures are available. Investors who value a concentrated gilt exposure and can tolerate periods of muted gains may find the profile more relevant than those seeking faster growth.

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 18 Sep 2026

Frequently asked questions

What is the current NAV of Union Gilt Fund Direct Growth Plan?
The current NAV is ₹12.4298 as of 18 September 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s returns are 1.39% for 1 year, 5.07% for 3 years and Data not available for 5 years.

How has the fund performed against its benchmark?
It has done better than the benchmark over 1 month, 3 months and 1 year, but it trails the benchmark over 3 years.

How does it compare with peer gilt funds on returns?
Its recent and multi-year returns are lower than several peers in the comparison set, especially on the 1-year measure. The peer figures available here also show stronger 3-year and 5-year outcomes in several cases.

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

Who manages the fund and what is the exit load?
The fund is managed by Parijat Agrawal and Anindya Sarkar. It has no exit load.

Bottom line

Union Gilt Fund Direct Growth Plan has shown a more resilient recent pattern than its benchmark, but its longer-run return profile is modest and uneven, and several peers have delivered stronger multi-year outcomes. The portfolio is heavily anchored in long-dated government securities, which supports a conservative sovereign-credit profile but also keeps the structure concentrated. In our view, this makes the fund more relevant for investors who want a gilt-focused debt allocation and can live with subdued growth rather than those looking for consistently stronger returns.

Published on 21 September 2026 at 9:44 AM IST

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.