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

Union Money Market Fund Direct Growth Plan has a NAV of ₹1371.6048 as of 16 Sep 2026 and a scheme AUM of ₹1,481 Cr. Its 1-year, 3-year and 5-year returns are 6.82%, 7.23% and 6.48%, and the scheme is placed in the Balanced Risk category. Our view is that it suits investors who want debt-oriented return stability with a steady compounding profile rather than sharp short-term swings.

The fund has also kept close to a controlled path in recent periods, with modest month-to-month movement and a long-run return profile that is broadly consistent with its benchmark-heavy, money-market style portfolio. That makes it more relevant for investors who want a liquid debt allocation with moderate return visibility and a low-expense structure.

Quick facts

Particular	Details
NAV	₹1,371.6048 as of 16 Sep 2026
AUM	₹1,481 Cr
Expense Ratio	0.16%
Launch Date	26 Aug 2021
Min SIP	₹500
Risk Category	Balanced Risk
Benchmark	Nifty 50
Fund Category	Debt
Exit Load	No exit load
Fund Managers	Parijat Agrawal, Devesh Thacker

The fund is managed by Parijat Agrawal and Devesh Thacker.

Source data date: as of 16 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.53%	-4.41%
3M	1.91%	-3.6%
1Y	6.82%	-7.76%
3Y	7.23%	5.74%
5Y	6.48%	5.67%

Recent performance has been steady rather than dramatic. Over 1 month and 3 months, the fund stayed positive while the benchmark stayed negative, which shows better resilience in the short run. That kind of pattern matters for debt investors because it suggests the scheme has not been forced into large drawdowns to generate return.

The 1-year return is also comfortably ahead of the benchmark, which reinforces the idea that the portfolio has recently delivered stable income-like growth rather than market-linked volatility. The time pattern supports that reading: gains accumulate gradually, with limited month-to-month noise and no sharp jumps.

Longer-term numbers look balanced as well. The 3-year return is above the benchmark, and the 5-year return remains ahead too, although the margin narrows over the longer window. Our view is that the fund’s return path has been consistent, with recent strength aligning with its broader compounding trend instead of looking like a one-off spike.

Source data date: as of 16 Sep 2026

Should you BUY or HOLD Union Money Market?

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 Money Market Fund Direct Growth Plan	6.82%	7.23%	6.48%
Bank of India Money Market Fund Direct Growth Plan	6.7%	Data not available	Data not available
Tata Money Market Fund Direct Growth Plan	6.69%	7.53%	6.84%
LIC MF Money Market Fund Direct Growth Plan	6.69%	6.81%	Data not available
Bandhan Money Market Fund Direct Growth Plan	6.68%	7.42%	6.67%

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

On the recent 1-year measure, the fund is slightly ahead of the peer set listed here, but the spread is narrow. Tata Money Market Fund Direct Growth Plan is close on 1-year return, while the other peer funds shown are only marginally lower, so the short-term gap is meaningful but not large.

On the 3-year and 5-year figures, the fund sits in the same broad return band as the stronger peers in this group, with Tata Money Market Fund Direct Growth Plan showing a higher 3-year and 5-year return. Bandhan Money Market Fund Direct Growth Plan is also close on the 3-year and 5-year horizon, so the longer-term comparison is more mixed than the 1-year snapshot.

That split matters. The recent edge versus peers looks modest, while the longer-term picture suggests the fund is competitive rather than clearly separated from the better comparable schemes. For investors, that usually points to a fund that is delivering solid consistency without a dramatic deviation from its peer group’s compounding pattern.

Source data date: as of 16 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
364 Day Treasury Bills	Treasury Bills	7.8%
Canara Bank	Certificate of Deposit	6.58%
Axis Bank Ltd.**	Certificate of Deposit	6.54%
National Bank for Agriculture and Rural Development	Certificate of Deposit	6.51%
Bank of Baroda	Certificate of Deposit	4.92%
LIC Housing Finance Ltd.**	Commercial Paper	4.89%
Bank of Baroda**	Certificate of Deposit	4.37%
Indian Bank	Certificate of Deposit	3.32%
Punjab National Bank	Certificate of Deposit	3.29%
Muthoot Finance Ltd.**	Commercial Paper	3.28%

The top 10 holdings account for approximately 51.5% of the portfolio.

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

The largest holding is 364 Day Treasury Bills at 7.8%, which is meaningful but not dominant by itself. The next few positions remain fairly close in size, so the portfolio does not appear to rely on one outsized security for most of its visible exposure.

Weight then eases down from the mid-6% range into the 4% and 3% range by the tenth holding. That pattern suggests a measured spread across short-dated debt instruments, certificates of deposit and commercial paper, rather than a very top-heavy structure. The displayed holdings may therefore have more balanced influence across the portfolio than a narrow concentration would indicate.

Because the top 10 account for 51.5% of the portfolio and 31 holdings are disclosed overall, the fund likely carries a noticeable tail beyond the largest positions. That can help diversify issuer exposure, although the visible group still remains the part most likely to influence near-term behaviour.

Source data date: as of 16 Sep 2026

Who should invest

This fund fits investors who are comfortable with a debt-oriented return profile and who can accept that short-term performance may move modestly even when the longer trend is steadier. The Balanced Risk label and the positive 1-year, 3-year and 5-year returns point to a scheme that is built more for controlled compounding than for high-volatility upside.

The benchmark comparison adds to that view. It has outpaced the benchmark across the periods shown, while the portfolio is anchored in treasury bills, certificates of deposit and commercial paper. That makes it more suitable for investors looking for a relatively steady holding period rather than a very short tactical trade.

The main trade-off is that stability and consistency may come with more modest upside than a riskier debt or hybrid approach. For investors who want a cash-management style allocation with a low expense ratio and a broad issuer mix, the fund can fit well over a medium-term horizon.

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 16 Sep 2026

Frequently asked questions

What is the current NAV of Union Money Market Fund Direct Growth Plan?
The current NAV is ₹1371.6048 as of 16 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s 1-year, 3-year and 5-year returns are 6.82%, 7.23% and 6.48%.

How has it performed versus the benchmark?
It has stayed ahead of the benchmark across 1 month, 3 months, 1 year, 3 years and 5 years. The gap is especially visible in the recent periods, where the benchmark stayed negative and the fund remained positive.

How does it compare with the listed peer funds?
Its 1-year return is slightly higher than the peer funds shown here, while its 3-year and 5-year returns remain broadly competitive. Tata Money Market Fund Direct Growth Plan shows somewhat stronger longer-term figures among the listed peers.

Is there a minimum SIP amount?
Yes. The minimum SIP amount is ₹500.

What risk and portfolio profile should investors note?
The scheme is in the Balanced Risk category, and its holdings are led by treasury bills, certificates of deposit and commercial paper. It also has no exit load.

Bottom line

Union Money Market Fund Direct Growth Plan shows a steadier recent pattern than its benchmark and a longer-term return profile that remains competitive rather than flashy. The listed peer comparison is close on the 1-year view and more mixed over 3 years and 5 years, which points to consistency more than clear separation. Its Balanced Risk label, low expense ratio and issuer-diversified money-market style portfolio make it relevant for investors seeking controlled debt exposure with moderate compounding potential.

Published on 17 September 2026 at 11:27 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.