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

Union Ultra Short to Short Term Fund Direct Growth Plan currently has a NAV of ₹10.691 as of 15 September 2026 and an AUM of ₹360 Cr. Its 1-year, 3-year and 5-year returns are 5.96%, 0% and 0%, and the fund sits in the Balanced Risk category. Our view is that this is a short-horizon debt-oriented option that has produced modest one-year gains, but it is too new to build a long multi-year record.

The portfolio is anchored in TREPS, corporate debt and certificates of deposit, which points to a conservative credit-and-liquidity mix rather than an equity-style return profile. The 1-year return is positive, but the benchmark has been weaker over the same period, so the fund has held up better than the reference index on the available numbers.

Quick facts

Particular	Details
NAV	₹10.691 as of 15 Sep 2026
AUM	₹360 Cr
Expense Ratio	0.25%
Launch Date	16 Jul 2025
Min SIP	₹500
Risk Category	Balanced Risk
Benchmark	Nifty 50
Exit Load	No exit load
Fund Managers	Anindya Sarkar, Devesh Thacker

The fund is managed by Anindya Sarkar and Devesh Thacker.

Source data date: as of 15 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.31%	-4.81%
3M	1.56%	-3.63%
1Y	5.96%	-8.27%
3Y	Data not available	Data not available
5Y	Data not available	Data not available

The recent picture is steadier than the benchmark. Over 1 month and 3 months, the fund posted small positive returns while the benchmark was negative, so the scheme has shown better short-term resilience.

The 1-year number adds the same message. A 5.96% fund return against -8.27% for the benchmark suggests the scheme has not simply moved with the broader market reference; it has held value better over the period covered.

The time pattern also looks measured rather than abrupt. The fund’s path has been relatively contained, with modest movement instead of sharp swings, which is consistent with a short-duration income fund that is trying to preserve capital while generating incremental return.

At the same time, the lack of 3-year and 5-year records means we should be careful not to overread the recent strength. The current pattern is encouraging, but it still reflects a young scheme with a limited history rather than a long-tested performance cycle.

Source data date: as of 15 Sep 2026

Should you BUY or HOLD Union Ultra Short to 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
Union Ultra Short to Short Term Fund Direct Growth Plan	5.96%	Data not available	Data not available
Baroda BNP Paribas Gold ETF FoF Direct Growth Plan	34.78%	Data not available	Data not available
Bajaj Finserv Small Cap Fund Direct Growth Plan	14.47%	Data not available	Data not available
HDFC Innovation Fund Direct Growth Plan	14.3%	Data not available	Data not available
Quant Equity Savings Fund Direct Growth Plan	9.25%	Data not available	Data not available
Kotak Active Momentum Fund Direct Growth Plan	6.59%	Data not available	Data not available

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

The fund’s 1-year return is below the stronger peer figures shown here, especially the equity- and gold-linked funds. It is also slightly behind Kotak Active Momentum Fund Direct Growth Plan on the available 1-year number, although the gap is not large.

Because the peer list does not provide usable 3-year or 5-year figures, the comparison is mainly a short-term one. On that basis, this fund looks more muted than the peer set on return, but its profile is also more defensive than most of the peer names shown.

Source data date: as of 15 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
TREPS	Cash & Cash Equivalents and Net Assets	10.19%
Jamnagar Utilities & Power Pvt. Ltd.**	Corporate Debt	6.95%
Bajaj Finance Ltd.**	Corporate Debt	6.92%
National Bank for Agriculture and Rural Development	Corporate Debt	6.91%
Tata Capital Housing Finance Ltd.**	Corporate Debt	6.9%
Power Finance Corporation Ltd.**	Corporate Debt	6.87%
REC Ltd.	Corporate Debt	6.84%
Punjab National Bank**	Certificate of Deposit	6.74%
Axis Bank Ltd.**	Certificate of Deposit	6.7%
Canara Bank**	Certificate of Deposit	6.7%

The largest holding, TREPS, is 10.19%, so the fund begins with a meaningful liquidity buffer. After that, the weights cluster tightly between 6.70% and 6.95%, which suggests that no single security dominates the visible book by a wide margin.

The drop from the first holding to the tenth is not steep. That pattern may point to a fairly even spread across the disclosed top positions, with corporate debt and bank certificates of deposit sharing the weight rather than one position carrying most of the exposure.

At 71.72% across the top 10 holdings, the disclosed slice is concentrated enough to matter, but the total holding count of 17 suggests there is still a longer tail beneath the visible names. In practical terms, the fund may be relying on several similarly weighted positions rather than a narrow bet on one or two securities.

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

Source data date: as of 15 Sep 2026

Who should invest

This fund suits investors who are comfortable with a Balanced Risk profile and want a relatively steady short-horizon income allocation rather than a high-growth product. The recent return pattern is positive, but the scheme is still young, so it fits better as a part of a conservative portfolio than as a core long-term equity substitute.

The main trade-off is simple: you may give up the upside that more growth-oriented funds can offer, but in return you get a portfolio that has been built around debt instruments and cash-like exposure. That can suit investors who want to keep risk contained over a shorter holding period and who value more stable behaviour than the benchmark has shown.

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 Union Ultra Short to Short Term Fund Direct Growth Plan?
The current NAV is ₹10.691 as of 15 September 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The 1-year return is 5.96%, while the 3-year and 5-year returns are Data not available.

How has it performed versus the benchmark?
It has done better than the benchmark across the available recent periods. The fund’s 1-year return is 5.96% versus -8.27% for the benchmark, and the shorter recent periods are also ahead.

How does it compare with the peer funds listed here?
Its 1-year return is below several of the peer figures shown, including Baroda BNP Paribas Gold ETF FoF Direct Growth Plan, Bajaj Finserv Small Cap Fund Direct Growth Plan and HDFC Innovation Fund Direct Growth Plan.

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

What are the risk category, fund managers and exit load?
The fund is in the Balanced Risk category and is managed by Anindya Sarkar and Devesh Thacker. It has no exit load.

Bottom line

Union Ultra Short to Short Term Fund Direct Growth Plan has shown a better recent return profile than its benchmark, but the longer-term picture is still incomplete because the scheme was launched only in July 2025. Its peer comparison is softer on the available 1-year figures, yet the portfolio structure is more conservative than most of the peer names shown here. With a 71.72% weight in the top 10 holdings and a mix of TREPS, corporate debt and bank certificates of deposit, the fund looks suited to investors seeking controlled short-horizon exposure rather than aggressive growth.

Published on 16 September 2026 at 6:18 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.