Tata Short Term Fund: Your Guide to Steady Short-Term Returns
By Market Desk
Explore the Tata Short Term Fund Direct-Growth. Learn about its NAV, fund size, expense ratio, and performance for your short-term financial goals.
Looking for a way to grow your money over the short term with moderate risk? The Tata Short Term Fund Direct-Growth is an open-ended debt scheme designed to help you generate regular income and appreciation.
Key Fund Details at a Glance
- Net Asset Value (NAV) as of August 27, 2026: Rs 56.40
- Fund Size as of July 31, 2026: Rs 2,941.40 crore
- Expense Ratio (Direct plan, August 21, 2026): 0.37%
- Minimum Investment: Rs 5,000
- Minimum SIP Investment: Rs 500
This fund has delivered consistent returns, which is great news if you’re looking for steady growth. It aims to offer appreciation over a short-term period, making it a potential option for your immediate financial plans.
Understanding Its Performance
- 1-year trailing return: 5.49%
- 3-year trailing return: 7.32%
- 5-year trailing return: 6.33%
- Return since its launch on January 1, 2013: 7.44%
The fund’s investment strategy focuses on stability, benchmarking its performance against the CRISIL Short Duration Debt A-II Index. It primarily invests in low-risk and government-backed securities, with a significant portion allocated to NCD & Bonds.
Inside the Fund’s Portfolio
- Average Maturity: 2.45 years
- Modified Duration: 2.0 years
- Yield to Maturity: 7.41%
Navigating tax implications can seem tricky, especially when it comes to capital gains. The rules depend on when you invested and how long you held your investment.
Important Tax Considerations
- For investments made after April 1, 2023: Capital gains are added to your income and taxed at your applicable slab rate.
- For investments made before April 1, 2023: Different rules apply for short-term (within 3 years) and long-term (after 3 years) gains, including indexation benefits for long-term holdings.
Any dividend income you receive from the fund is also added to your total income. It will be taxed according to your income slab, with a 10% TDS if your dividend income exceeds Rs 5,000 in a financial year.
The fund is currently managed by Amit Somani, who has been with the fund since June 2025, and Dhawal Joshi, who joined in June 2026. Their expertise guides the fund’s investment strategy and moderate risk profile.
With no exit load and flexible investment options, this fund offers a straightforward approach if you’re aiming for short-term financial appreciation.