UTI Dynamic Term Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

UTI Dynamic Term Fund Direct Growth Plan had an NAV of ₹35.6217 as of 09 Sep 2026 and an AUM of ₹401 Cr. Its 1-year, 3-year and 5-year returns are 5.41%, 7.36% and 9.57%, respectively, and the fund sits in the Medium Risk category. Our view is that this is a steady debt-oriented option for conservative investors who can accept some mark-to-market movement in exchange for relatively measured long-term compounding.

The fund’s longer record is stronger than its latest stretch, and the portfolio is anchored by government securities plus a large share of corporate debt. That mix supports a more cautious profile, while the benchmark comparison shows the fund has stayed ahead over 3 years and 5 years even though recent performance has been softer.

Quick facts

Particular	Details
NAV	₹35.6217 as of 09 Sep 2026
AUM	₹401 Cr
Expense Ratio	0.73%
Launch Date	01 Jan 2013
Min SIP	₹500
Risk Category	Medium Risk
Benchmark	Nifty 50
Fund Category	Debt
Exit Load	No exit load
Fund Managers	Pankaj Pathak

The fund is managed by Pankaj Pathak.

Source data date: as of 09 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-0.11%	-4.69%
3M	1.30%	0.93%
1Y	5.41%	-7.16%
3Y	7.36%	6.00%
5Y	9.57%	5.87%

Short-term movement has been mixed, but the fund has remained more stable than the benchmark at the one-month and one-year marks. The one-month figure is slightly negative, yet it is still far better than the benchmark’s deeper decline over the same period. Over three months, the fund has held a small lead, which suggests the recent recovery has been gradual rather than sharp.

The bigger picture is more constructive. The 3-year and 5-year returns are both above the benchmark, which tells us the fund has compounded better over longer holding periods. That pattern is important because this is a debt scheme, where investors usually value consistency and drawdown control more than sudden jumps in return.

The recent path is not perfectly smooth, and that is visible in the shorter windows. Even so, the longer-run profile still points to disciplined compounding, with the fund maintaining an edge over the benchmark across the medium and long term. For investors, that makes the fund look more like a patience-and-stability product than a short-term return story.

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

Source data date: as of 09 Sep 2026

Should you BUY or HOLD UTI Dynamic 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
UTI Dynamic Term Fund Direct Growth Plan	5.41%	7.36%	9.57%
Bandhan Dynamic Term Fund Direct Growth Plan	7.36%	7.66%	6.14%
Axis Dynamic Term Fund Direct Growth Plan	6.61%	7.52%	6.28%
Kotak Dynamic Term Fund Direct Growth Plan	6.57%	7.87%	6.64%
360 ONE Dynamic Term Fund Direct Growth Plan	6.48%	8.19%	6.91%
ICICI Pru Dynamic Term Fund Direct Growth Plan	6.02%	7.82%	7.09%

The recent one-year return trails several peers, with the gap most visible against the stronger shorter-horizon figures in the peer set. Over three years, the fund stays in the same general band as most peers and remains competitive. Over five years, it stands out more clearly because its long-term return is higher than the peer figures shown here, which gives the scheme a stronger longer-horizon case than its recent period would suggest.

That split matters. Short-term performance does not lead the pack, but the 5-year number is the most compelling part of the comparison. The result is a fund that looks steadier on the long view than on the most recent one-year window, and that difference is worth noticing if an investor is comparing it with other dynamic term options.

Source data date: as of 09 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
6.90% Gsec Mat – 15/04/2065	Government Securities	28.29%
NCD Bharti Telecom Ltd.	Corporate Debt	6.26%
NCD Jamnagar Utilities and Power Private Limited	Corporate Debt	6.25%
NCD Mahindra Rural Housing Finance Ltd	Corporate Debt	6.25%
NCD REC Ltd	Corporate Debt	6.24%
NCD Indigrid Infrastructure Trust	Corporate Debt	6.23%
NCD National Bank for Agriculture and Rural Development	Corporate Debt	6.21%
NCD Canfin Homes Ltd.	Corporate Debt	5%
NCD Cholamandalam Investment and Finance Company Limited	Corporate Debt	4.96%
NCD Muthoot Finance Ltd	Corporate Debt	4.96%

The largest holding is the 6.90% Gsec Mat – 15/04/2065 position at 28.29%, which is large enough to have greater influence on the portfolio’s day-to-day movement than any other single holding. After that, the weights drop sharply into the 6% area and then stay fairly close together through the rest of the top ten, which suggests a concentrated core rather than a fully even spread.

The top 10 holdings account for approximately 80.65% of the portfolio. That is a high share for a disclosed subset of holdings, so the listed positions may have a meaningful effect on outcomes even though the fund also has 15 disclosed holdings in total. The presence of a sizable government security alongside several corporate debt positions may help balance the portfolio, but the concentration in the leading names means individual security selection could still matter.

Because the portfolio continues beyond the first ten holdings, the visible list does not tell the whole story, yet it does show where the fund currently places most of its weight. For investors, that means the scheme’s behaviour may be shaped more by a relatively small set of large fixed-income exposures than by a very long tail of tiny positions.

To see all holdings, visit the UTI Dynamic Term Fund Direct Growth Plan page

Source data date: as of 09 Sep 2026

Who should invest

This fund suits investors who are comfortable with Medium Risk and want a debt scheme with a longer holding horizon. Its 1-year return is more modest than several peer funds, but the 3-year and 5-year numbers, together with a benchmark lead over those horizons, point to a steadier long-term proposition.

The main trade-off is that short-term performance can look less impressive than the longer record. Investors who are focused on stability and multi-year compounding may find the profile more relevant than those looking for quick return bursts. The portfolio’s heavy exposure to government securities and corporate debt may also appeal to those who prefer a more defined fixed-income structure.

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 09 Sep 2026

Frequently asked questions

What is the current NAV of UTI Dynamic Term Fund Direct Growth Plan?
The current NAV is ₹35.6217 as of 09 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s returns are 5.41% for 1 year, 7.36% for 3 years and 9.57% for 5 years.

How does it compare with the benchmark?
It is ahead of the benchmark over 1 year, 3 years and 5 years. The benchmark return is -7.16% for 1 year, 6.00% for 3 years and 5.87% for 5 years.

How does it compare with peer funds on recent returns?
Its 1-year return is lower than several peers shown here, but its 5-year return is the strongest among the peer figures listed. The 3-year figure remains broadly competitive.

What is the fund’s expense ratio and risk category?
The expense ratio is 0.73%, and the risk category is Medium Risk. That combination fits a debt fund with moderate volatility expectations.

Who manages the fund and what is the exit load?
Pankaj Pathak manages the fund. The exit load is nil, so no exit load applies on redemption.

Bottom line

UTI Dynamic Term Fund Direct Growth Plan looks stronger over longer periods than over the latest one-year window. It has stayed ahead of the benchmark across 1-year, 3-year and 5-year periods, and its 5-year return compares favourably with the peer figures shown here. The portfolio is anchored by a large government security and a concentrated set of corporate debt positions, so the fund is likely to remain shaped by a relatively small number of major exposures. That makes it more suitable for investors seeking a measured debt allocation with a multi-year lens.

Published on 10 September 2026 at 3:45 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.