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

UTI Ultra Short Term Fund Direct Growth Plan closed at ₹4,917.5251 as of 09 Sep 2026, with an AUM of ₹3,347 Cr. Its 1-year, 3-year and 5-year returns are 6.77%, 7.36% and 7.19%, and the scheme sits in the Medium Risk bucket. Our view is that the fund has delivered steady compounding rather than sharp swings, so it can suit conservative debt investors who want a relatively stable profile with a visible yield-and-carry style return pattern.

The return track is comfortable versus the benchmark across the medium and long horizons, although the very short-term path has been more muted. With a diversified short-duration debt book, the fund may appeal to investors who value consistency and a lower-volatility debt allocation more than aggressive return chasing.

Quick facts

Particular	Details
NAV	₹4,917.5251 as of 09 Sep 2026
AUM	₹3,347 Cr
Expense Ratio	0.34%
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	Anurag Mittal

The fund is managed by Anurag Mittal.

Source data date: as of 09 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.62%	-4.69%
3M	1.96%	0.93%
1Y	6.77%	-7.16%
3Y	7.36%	6%
5Y	7.19%	5.87%

Recent performance looks controlled rather than flashy. Over 1 month and 3 months, the fund has kept moving up in a measured way, which is what we would expect from a short-duration debt strategy. The benchmark has been more uneven, especially over the latest month, while the fund has held its footing better in the very near term.

The longer view is stronger and more useful for judging this scheme. The 3-year return of 7.36% and 5-year return of 7.19% both indicate a fairly stable compounding profile, and the 1-year figure of 6.77% remains close to that band. That consistency matters more than any single short run, because the fund’s role is usually to preserve capital better than equity-like categories while still generating a reasonable return.

Against the benchmark, the fund is ahead across all five periods shown. The gap is widest over 1 year, where the benchmark is negative, but it narrows over 3 years and 5 years, where both have been positive. Our read is that the fund has shown better resilience than the benchmark, while the recent pace has been steadier than the benchmark’s more volatile pattern.

There is also a small difference between recent behaviour and the longer trend. The 1M and 3M outcomes are modest, but they do not break the overall pattern of gradual improvement that the 3Y and 5Y figures suggest. For an investor, that usually points to a fund whose return path depends more on carrying steady accruals than on aggressive duration calls.

Source data date: as of 09 Sep 2026

Should you BUY or HOLD UTI Ultra 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
UTI Ultra Short Term Fund Direct Growth Plan	6.77%	7.36%	7.19%
Nippon India Ultra Short Term Fund Direct Growth Plan	7.11%	7.61%	6.98%
Axis Ultra Short Term Fund Direct Growth Plan	6.9%	7.48%	6.77%
Invesco India Ultra Short Term Fund Direct Growth Plan	6.88%	7.38%	6.61%
DSP Ultra Short Term Fund Direct Growth Plan	6.86%	7.46%	6.66%
ICICI Pru Ultra Short Term Fund Direct Growth Plan	6.85%	7.45%	6.77%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On 1-year return, the fund trails the strongest peer in this set but stays close to the cluster of similar schemes. Over 3 years and 5 years, it remains competitive, with the 3-year figure sitting within a tight range and the 5-year figure ahead of several peers while still below the strongest 5-year outcome shown.

The short-term and longer-term views are slightly different. In the latest 1-year period, the fund is a bit behind the best peer return, but its 3-year and 5-year outcomes are steadier and compare well with most of the group. That tells us the scheme has been more about consistency than about winning every recent period.

Source data date: as of 09 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
364 Days T-Bill – 26/11/2026	Treasury Bills	5.90%
CD – Indian Bank – 22/01/2027	Certificate of Deposit	5.09%
Net Current Assets	Cash & Cash Equivalents and Net Assets	4.57%
NCD 360 One Prime Ltd	Corporate Debt	4.44%
CD – Axis Bank – 26/02/2027	Certificate of Deposit	4.34%
NCD Piramal Finance Limited	Corporate Debt	4.05%
CD – Exim Bank – 29/01/2027	Certificate of Deposit	3.63%
CP Muthoot Fincorp Limited	Commercial Paper	3.63%
NCD Nuvama Wealth Finance Ltd	Corporate Debt	3%
CD – Kotak Mahindra Bank Ltd – 21/12/2026	Certificate of Deposit	2.93%

The largest disclosed holding is 364 Days T-Bill – 26/11/2026 at 5.9%, which is meaningful but not oversized for a debt portfolio built around short-dated instruments. The tenth holding is 2.93%, so the weight drops by just under three percentage points from the first line to the tenth, suggesting the book is not overly reliant on one position.

The top 10 holdings together account for approximately 41.58% of the portfolio, and the scheme discloses 45 holdings in total. That combination points to a fairly spread-out portfolio with a long tail beyond the largest names. In our view, this may reduce dependence on any single issuer or security, while still allowing the biggest positions to influence returns through their steady accrual profile.

The mix is tilted toward Treasury Bills, certificates of deposit, corporate debt and commercial paper, with some net current assets as well. That blend may support a smoother return path, although it also means the outcome is likely to be shaped more by short-term credit and accrual dynamics than by a concentrated high-conviction bet.

To see all holdings, visit the UTI Ultra Short 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 steadier return profile over time. The 3-year and 5-year figures suggest it can compound at a measured pace, while the 1-year number shows it has not relied on an unusually strong recent burst to support the longer track.

It is better aligned with an investment horizon where short-term mark-to-market noise is acceptable, but the main expectation is stability rather than equity-like upside. Relative to the benchmark and the peer set, the scheme has shown resilience and competitive medium-term returns, although it has not always led the latest period.

The trade-off is straightforward: investors may get a more controlled path than more aggressive debt or equity strategies, but they should also expect returns to stay in a relatively moderate band.

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 Ultra Short Term Fund Direct Growth Plan?
The current NAV is ₹4,917.5251 as of 09 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 6.77%, 7.36% and 7.19%.

How has the fund compared with the benchmark?
It has stayed ahead of the benchmark across 1 month, 3 months, 1 year, 3 years and 5 years. The margin is widest over 1 year, where the benchmark is negative.

How does it compare with the peer funds shown here?
Its 1-year return is close to the peer group but below the strongest peer figure shown. Its 3-year and 5-year returns remain competitive, with the 5-year result ahead of several peers and the 3-year result sitting within a tight cluster.

Does the fund have a minimum SIP?
Yes. The minimum SIP amount is ₹500.

Who manages the fund and what is the exit load?
The fund is managed by Anurag Mittal. There is no exit load.

Bottom line

UTI Ultra Short Term Fund Direct Growth Plan has shown a steadier medium-term pattern than the benchmark, with the latest short-term numbers remaining modest but controlled. Relative to the peer set, its recent 1-year result is competitive without being the strongest, while the 3-year and 5-year figures remain broadly in the same band as similar schemes. The portfolio is spread across 45 holdings, with no single position dominating the book, which fits a conservative debt style that prioritises balance over concentration.

Published on 10 September 2026 at 3:54 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.