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

Union Midcap Fund Direct Growth Plan has a NAV of ₹55.75 as of 15 September 2026 and a scheme AUM of ₹2,005 Cr. Its 1-year, 3-year and 5-year returns are 6.62%, 15.71% and 14.55%, and the fund is tagged as High Risk. Our view is that this is a midcap equity option for investors who can accept sharp swings in the shorter term in exchange for a stronger long-term growth profile.

The recent decline in NAV does not change the broader picture: the fund has stayed close to its benchmark over 5 years, but it has been more resilient than the index over 3 years and has been much better over 1 year. The portfolio is spread across 67 holdings, with a notable tilt toward financials, healthcare, IT and capital goods, so the return path is likely to remain uneven.

Quick facts

Particular	Details
NAV	₹55.75 as of 15 Sep 2026
AUM	₹2,005 Cr
Expense Ratio	0.72%
Launch Date	23 Mar 2020
Min SIP	₹500
Risk Category	High Risk
Benchmark	Nifty Mid Cap
Fund Category	Equity
Exit Load	1% on or before 15D, Nil after 15D
Fund Managers	Gaurav Chopra, Pratik Dharmshi

The fund is managed by Gaurav Chopra and Pratik Dharmshi.

Source data date: as of 15 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-4.36%	-4.67%
3M	1.66%	-1.38%
1Y	6.62%	2.67%
3Y	15.71%	13.88%
5Y	14.55%	14.5%

Over the most recent month, the fund and the benchmark both slipped, and the fund’s fall was slightly smaller. That tells us the latest phase has been weak for the whole midcap space, but the fund has not been meaningfully more fragile than the index in that stretch.

The 3-month picture is stronger for the fund. It has recovered enough to post a positive return while the benchmark is still negative, which suggests a more effective rebound during a choppy period. That matters because midcap funds often look similar over full cycles but can behave very differently when sentiment turns.

The one-year number is the clearest sign of relative strength. The fund’s 6.62% return is well ahead of the benchmark’s 2.67%, which means it has added value over the latest year even though the ride has not been smooth. The 1-year path also shows noticeable drawdowns and recoveries, so we would still describe the journey as volatile rather than steady.

Over 3 years, the fund remains ahead of the benchmark at 15.71% versus 13.88%. Over 5 years, the gap is very small, with 14.55% for the fund and 14.5% for the index. Our read is that the fund has been more useful in the recent period than in the full five-year stretch, where it has largely tracked the benchmark rather than separated itself clearly.

Source data date: as of 15 Sep 2026

Should you BUY or HOLD Union Midcap?

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 Midcap Fund Direct Growth Plan	6.62%	15.71%	14.55%
HSBC Midcap Fund Direct Growth Plan	16.86%	22.92%	18.09%
WOC Mid Cap Fund Direct Growth Plan	11.85%	21.03%	Data not available
Helios Mid Cap Fund Direct Growth Plan	10.68%	Data not available	Data not available
ITI Mid Cap Fund Direct Growth Plan	9.12%	19.14%	15.86%
Baroda BNP Paribas Mid Cap Fund Direct Growth Plan	8.87%	16.11%	14.75%

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

The fund trails the strongest peer 1-year return in this set, but it is still ahead of some other names on the same horizon. The longer view is more mixed: its 3-year and 5-year figures are below the better-performing peers shown here, yet the 5-year gap is narrow against some funds, which means the longer-term story is less weak than the short-term comparison might suggest.

That split matters for interpretation. The recent year has been the weakest part of the comparison, while the 5-year result is closer to the middle of the group than the latest one-year number would imply. So the peer set tells two different stories: softer recent momentum, but a more competitive long-run compounding record than the latest year alone would indicate.

Source data date: as of 15 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
The Federal Bank Ltd.	Bank	3.33%
One 97 Communications Ltd.	IT	3.01%
Max Financial Services Ltd.	Finance	2.82%
Multi Commodity Exchange of India Ltd.	Finance	2.65%
Fortis Healthcare Ltd.	Healthcare	2.44%
Ipca Laboratories Ltd.	Healthcare	2.43%
Coforge Ltd.	IT	2.29%
Nippon Life India Asset Management Ltd.	Finance	2.28%
Bharat Heavy Electricals Ltd.	Capital Goods	2.14%
Ge Vernova T&D India Ltd.	Capital Goods	2.07%

The top 10 holdings account for approximately 25.46% of the portfolio.

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

The largest position is The Federal Bank Ltd. at 3.33%, so no single stock dominates the portfolio. The gap from the first holding to the tenth is only 1.26 percentage points, which suggests the visible core is fairly tightly grouped rather than concentrated in one outsized position.

At the same time, the fund holds 67 positions overall, and the top 10 make up 25.46% of assets. That leaves a substantial tail beyond the largest names, so the portfolio may give individual holdings less room to drive results on their own than a much more concentrated midcap strategy would. The mix across bank, finance, healthcare, IT and capital goods also points to diversification across several parts of the midcap universe.

Because the displayed holdings absorb only about a quarter of the fund, the rest of the portfolio could still matter materially. Our view is that this balance may help reduce dependence on a single stock, while still leaving performance sensitive to broad midcap sentiment and sector rotation.

Source data date: as of 15 Sep 2026

Who should invest

This fund suits investors who are comfortable with High Risk and can stay invested for a longer horizon. The 1-year result has been weaker than the 3-year and 5-year numbers, but the fund has still stayed ahead of the benchmark over 1 year and 3 years, which makes it more suitable for investors who can tolerate uneven short-term outcomes.

The main trade-off is clear: you are accepting midcap volatility in return for the possibility of stronger compounding than a broad index over certain periods. The portfolio’s spread across 67 holdings and several sectors may help, but it does not remove the fact that midcap returns can swing sharply. This is better suited to investors who want growth exposure and can handle periods of underperformance without changing their plan too quickly.

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: 1% on or before 15 days; nil after 15 days.

Source data date: as of 15 Sep 2026

Frequently asked questions

What is the current NAV of Union Midcap Fund Direct Growth Plan?
Its current NAV is ₹55.75 as of 15 September 2026.

What are the 1-year, 3-year and 5-year returns?
The fund’s 1-year, 3-year and 5-year returns are 6.62%, 15.71% and 14.55%.

How does it compare with its benchmark?
It has outpaced the benchmark over 1 year and 3 years, and it is also slightly ahead over 5 years. The 3-year gap is more visible than the 5-year gap.

How does it compare with the peer funds shown here?
Its recent one-year return is below the strongest peer in the comparison set, while its 3-year and 5-year numbers are also below the better-performing peers shown. The 5-year figure is still fairly close to some peers.

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 Gaurav Chopra and Pratik Dharmshi. The exit load is 1% on or before 15 days and nil after 15 days.

Bottom line

Union Midcap Fund Direct Growth Plan has a mixed recent record but a solid longer-term shape. Its latest year is softer than the 3-year and 5-year numbers, yet it remains ahead of the benchmark over all three horizons. The portfolio is spread across many holdings rather than concentrated in one or two names, which may help balance stock-specific swings. That makes it a fit for investors who are comfortable with High Risk and want midcap exposure with a growth-oriented, but still diversified, profile.

Published on 16 September 2026 at 2:58 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.