+91-22-489139097 Best Arbitrage Mutual Funds 2025
Generally, people willing to invest in arbitrage funds look for the best arbitrage funds. But what are Arbitrage funds?
An arbitrage fund is a popular short-term financial investment in India. Arbitrage funds are Mutual Funds that leverage the differential price between the cash Market and derivative market to generate mutual fund returns.
The returns generated by arbitrage funds are dependent on the Volatility of the stock market. Arbitrage mutual funds are hybrid in nature and in times of high or persistent volatility, these funds offer relatively risk-free returns to investors. Before Investing in these funds it is important to understand arbitrage funds taxation and know the best arbitrage funds.
Why Invest in Arbitrage Funds?
Here are some of the benefits of investing in arbitrage funds:
1. Negligible Risk
Arbitrage funds are not 100% risk-free but they do carry negligible risk. They Bank on the mispricing happening in the markets. This gives the investor a safer option compared to other short-term funds since these funds offer better returns during market volatility.
2. Returns
These funds generally give a return of about 7-9% of the amount invested. This is higher compared to Liquid Funds or short-term debt funds in low rate enviornment (When RBI is reducing rate).
Thus, making arbitrage funds a lucrative investment option.
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3. Favourable Taxation
One of the biggest benefits of investing in these funds is the tax treatment. Equity Funds attract long term Capital gains. If the gains are made up to INR 1 lakh then it counts under tax-free. Tax at 10% applies to gains above INR 1 lakh.
Arbitrage Funds Taxation
As mentioned above, these funds are taxed favourably. They are said to be a combination of good Debt fund returns and the tax treatment of equity mutual funds. Arbitrage schemes are taxed similar to equity funds making it an attractive investment for people in higher tax brackets. For example, if you belong to a 30% tax bracket, investing in equity arbitrage funds can lower your tax rates to 10% for LTCG and 15% for STCG.
Top 7 Arbitrage Mutual Funds 2025 - 2026
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) UTI Arbitrage Fund Growth ₹35.2686
↑ 0.03 ₹7,863 1.4 3.4 6.9 7.1 5.7 7.7 SBI Arbitrage Opportunities Fund Growth ₹34.0399
↑ 0.03 ₹37,606 1.5 3.4 6.9 7.2 5.8 7.5 ICICI Prudential Equity Arbitrage Fund Growth ₹34.5306
↑ 0.04 ₹30,811 1.4 3.3 6.9 7.1 5.7 7.6 Kotak Equity Arbitrage Fund Growth ₹37.7144
↑ 0.04 ₹69,924 1.4 3.3 6.8 7.2 5.9 7.8 Invesco India Arbitrage Fund Growth ₹32.1233
↑ 0.04 ₹23,900 1.4 3.3 6.8 7.2 5.8 7.6 Aditya Birla Sun Life Arbitrage Fund Growth ₹26.7332
↑ 0.03 ₹20,646 1.4 3.3 6.8 7 5.6 7.5 Edelweiss Arbitrage Fund Growth ₹19.5059
↑ 0.02 ₹15,045 1.4 3.2 6.8 7.1 5.7 7.7 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 8 Aug 25 Research Highlights & Commentary of 7 Funds showcased
Commentary UTI Arbitrage Fund SBI Arbitrage Opportunities Fund ICICI Prudential Equity Arbitrage Fund Kotak Equity Arbitrage Fund Invesco India Arbitrage Fund Aditya Birla Sun Life Arbitrage Fund Edelweiss Arbitrage Fund Point 1 Bottom quartile AUM (₹7,863 Cr). Upper mid AUM (₹37,606 Cr). Upper mid AUM (₹30,811 Cr). Highest AUM (₹69,924 Cr). Lower mid AUM (₹23,900 Cr). Lower mid AUM (₹20,646 Cr). Bottom quartile AUM (₹15,045 Cr). Point 2 Oldest track record among peers (19 yrs). Established history (18+ yrs). Established history (18+ yrs). Established history (19+ yrs). Established history (18+ yrs). Established history (16+ yrs). Established history (11+ yrs). Point 3 Rating: 3★ (lower mid). Rating: 2★ (bottom quartile). Rating: 4★ (upper mid). Rating: 4★ (upper mid). Rating: 3★ (lower mid). Rating: 3★ (bottom quartile). Top rated. Point 4 Risk profile: Moderately Low. Risk profile: Moderately Low. Risk profile: Moderate. Risk profile: Moderately Low. Risk profile: Moderately Low. Risk profile: Moderate. Risk profile: Moderately Low. Point 5 5Y return: 5.68% (lower mid). 5Y return: 5.80% (upper mid). 5Y return: 5.68% (bottom quartile). 5Y return: 5.86% (top quartile). 5Y return: 5.80% (upper mid). 5Y return: 5.61% (bottom quartile). 5Y return: 5.70% (lower mid). Point 6 3Y return: 7.06% (lower mid). 3Y return: 7.20% (upper mid). 3Y return: 7.06% (lower mid). 3Y return: 7.22% (top quartile). 3Y return: 7.20% (upper mid). 3Y return: 6.97% (bottom quartile). 3Y return: 7.05% (bottom quartile). Point 7 1Y return: 6.91% (top quartile). 1Y return: 6.87% (upper mid). 1Y return: 6.86% (upper mid). 1Y return: 6.84% (lower mid). 1Y return: 6.82% (lower mid). 1Y return: 6.78% (bottom quartile). 1Y return: 6.76% (bottom quartile). Point 8 1M return: 0.51% (bottom quartile). 1M return: 0.54% (upper mid). 1M return: 0.52% (upper mid). 1M return: 0.52% (lower mid). 1M return: 0.57% (top quartile). 1M return: 0.51% (bottom quartile). 1M return: 0.52% (lower mid). Point 9 Alpha: 0.00 (upper mid). Alpha: 0.00 (upper mid). Alpha: 0.00 (lower mid). Alpha: 0.00 (lower mid). Alpha: 0.00 (bottom quartile). Alpha: 0.00 (bottom quartile). Alpha: 0.02 (top quartile). Point 10 Sharpe: 1.41 (top quartile). Sharpe: 1.14 (lower mid). Sharpe: 1.24 (upper mid). Sharpe: 1.24 (upper mid). Sharpe: 0.96 (lower mid). Sharpe: 0.91 (bottom quartile). Sharpe: 0.90 (bottom quartile). UTI Arbitrage Fund
SBI Arbitrage Opportunities Fund
ICICI Prudential Equity Arbitrage Fund
Kotak Equity Arbitrage Fund
Invesco India Arbitrage Fund
Aditya Birla Sun Life Arbitrage Fund
Edelweiss Arbitrage Fund
*Below is the list of Arbitrage funds sorted on last 1 year return and having AUM > 100 Crore.
(Erstwhile UTI SPREAD Fund) The investment objective of the scheme is to provide capital appreciation and dividend distribution through arbitrage opportunities arising out of price differences between the cash and derivative market by investing predominantly in equity and equity-related securities, derivatives and the balance portion in debt securities. However, there can be no assurance that the investment objective of the scheme will be realised. Below is the key information for UTI Arbitrage Fund Returns up to 1 year are on To provide capital appreciation and regular income for unitholders by identifying profitable arbitrage opportunities between the spot and derivative market segments as also through investment of surplus cash in debt and money market instruments. Research Highlights for SBI Arbitrage Opportunities Fund Below is the key information for SBI Arbitrage Opportunities Fund Returns up to 1 year are on The investment objective of Income Optimiser Plan under the scheme is to seek to generate low volatility returns by using arbitrage and other derivative strategies in equity markets and investments in short-term debt portfolio. Research Highlights for ICICI Prudential Equity Arbitrage Fund Below is the key information for ICICI Prudential Equity Arbitrage Fund Returns up to 1 year are on The investment objective of the scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market, and by investing the balance in debt and money market instruments. However, there is no assurance that the objective of the scheme will be realized Research Highlights for Kotak Equity Arbitrage Fund Below is the key information for Kotak Equity Arbitrage Fund Returns up to 1 year are on The primary investment objective of the scheme is to generate income through arbitrage opportunities emerging out of mis-pricing between the cash market and the derivatives market and through deployment of surplus cash in fixed income instruments. Research Highlights for Invesco India Arbitrage Fund Below is the key information for Invesco India Arbitrage Fund Returns up to 1 year are on (Erstwhile Aditya Birla Sun Life Enhanced Arbitrage Fund) An Open ended Equity Scheme with an investment objective to generate income by investing predominantly in equity and equity related instruments. Scheme intends to take advantage from the price differentials / mis-pricing prevailing for stock / index in various market segments (Cash & Futures). Research Highlights for Aditya Birla Sun Life Arbitrage Fund Below is the key information for Aditya Birla Sun Life Arbitrage Fund Returns up to 1 year are on The investment objective of the Scheme is to generate income by predominantly investing in arbitrage opportunities in the cash and the derivative segments of the equity markets and the arbitrage opportunities available within the derivative segment and by investing the balance in debt and money market instruments. However, there is no assurance that the investment objective of the scheme will be realized. Research Highlights for Edelweiss Arbitrage Fund Below is the key information for Edelweiss Arbitrage Fund Returns up to 1 year are on 1. UTI Arbitrage Fund
UTI Arbitrage Fund
Growth Launch Date 22 Jun 06 NAV (08 Aug 25) ₹35.2686 ↑ 0.03 (0.09 %) Net Assets (Cr) ₹7,863 on 30 Jun 25 Category Hybrid - Arbitrage AMC UTI Asset Management Company Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.85 Sharpe Ratio 1.41 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-30 Days (0.5%),30 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Jul 20 ₹10,000 31 Jul 21 ₹10,406 31 Jul 22 ₹10,732 31 Jul 23 ₹11,406 31 Jul 24 ₹12,303 31 Jul 25 ₹13,172 Returns for UTI Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 8 Aug 25 Duration Returns 1 Month 0.5% 3 Month 1.4% 6 Month 3.4% 1 Year 6.9% 3 Year 7.1% 5 Year 5.7% 10 Year 15 Year Since launch 6.8% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.7% 2023 7.2% 2022 4% 2021 3.9% 2020 4.4% 2019 6.2% 2018 6.2% 2017 5.7% 2016 6.5% 2015 7.6% Fund Manager information for UTI Arbitrage Fund
Name Since Tenure Amit Sharma 2 Jul 18 7.09 Yr. Sharwan Kumar Goyal 1 Jan 21 4.58 Yr. Data below for UTI Arbitrage Fund as on 30 Jun 25
Asset Allocation
Asset Class Value Cash 93.43% Equity 1.5% Debt 5.03% Other 0.04% Equity Sector Allocation
Sector Value Financial Services 23.91% Basic Materials 8.19% Consumer Cyclical 6.67% Energy 5.93% Technology 5.56% Health Care 4.94% Consumer Defensive 4.88% Industrials 4.78% Communication Services 3.11% Utility 1.64% Real Estate 0.88% Debt Sector Allocation
Sector Value Cash Equivalent 75.78% Corporate 16.56% Government 6.12% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity UTI Money Market Dir Gr
Investment Fund | -15% ₹1,168 Cr 3,733,851
↑ 159,320 Future on HDFC Bank Ltd
Derivatives | -4% -₹352 Cr 1,753,400
↑ 58,850 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK4% ₹351 Cr 1,753,400
↑ 58,850 Future on Reliance Industries Ltd
Derivatives | -4% -₹336 Cr 2,229,000
↓ -111,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 23 | RELIANCE4% ₹334 Cr 2,229,000
↓ -111,000 Future on State Bank of India
Derivatives | -3% -₹238 Cr 2,887,500
↑ 1,222,500 Future on ICICI Bank Ltd
Derivatives | -3% -₹237 Cr 1,635,900
↓ -729,400 State Bank of India (Financial Services)
Equity, Since 31 May 23 | SBIN3% ₹237 Cr 2,887,500
↑ 1,222,500 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Sep 24 | 5321743% ₹237 Cr 1,635,900
↓ -729,400 UTI Floater Dir Gr
Investment Fund | -3% ₹200 Cr 1,277,944
↑ 1,277,944 2. SBI Arbitrage Opportunities Fund
SBI Arbitrage Opportunities Fund
Growth Launch Date 3 Nov 06 NAV (08 Aug 25) ₹34.0399 ↑ 0.03 (0.10 %) Net Assets (Cr) ₹37,606 on 30 Jun 25 Category Hybrid - Arbitrage AMC SBI Funds Management Private Limited Rating ☆☆ Risk Moderately Low Expense Ratio 0.94 Sharpe Ratio 1.14 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Months (0.5%),1 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Jul 20 ₹10,000 31 Jul 21 ₹10,358 31 Jul 22 ₹10,742 31 Jul 23 ₹11,476 31 Jul 24 ₹12,369 31 Jul 25 ₹13,238 Returns for SBI Arbitrage Opportunities Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 8 Aug 25 Duration Returns 1 Month 0.5% 3 Month 1.5% 6 Month 3.4% 1 Year 6.9% 3 Year 7.2% 5 Year 5.8% 10 Year 15 Year Since launch 6.7% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.5% 2023 7.4% 2022 4.6% 2021 4% 2020 3.5% 2019 6% 2018 6.2% 2017 5.3% 2016 6.4% 2015 7.3% Fund Manager information for SBI Arbitrage Opportunities Fund
Name Since Tenure Neeraj Kumar 5 Oct 12 12.83 Yr. Ardhendu Bhattacharya 27 Dec 24 0.59 Yr. Data below for SBI Arbitrage Opportunities Fund as on 30 Jun 25
Asset Allocation
Asset Class Value Cash 87.66% Equity 2.05% Debt 10.26% Other 0.04% Equity Sector Allocation
Sector Value Financial Services 26.42% Basic Materials 7.59% Industrials 6.15% Technology 5.85% Consumer Defensive 4.89% Consumer Cyclical 4.83% Health Care 3.81% Energy 3.76% Utility 3.4% Communication Services 2.27% Real Estate 0.98% Debt Sector Allocation
Sector Value Cash Equivalent 82.27% Corporate 12.26% Government 3.39% Credit Quality
Rating Value AA 7.63% AAA 92.37% Top Securities Holdings / Portfolio
Name Holding Value Quantity SBI Savings Dir Gr
Investment Fund | -9% ₹3,239 Cr 726,722,883 Future on HDFC Bank Ltd
Derivatives | -7% -₹2,514 Cr 12,508,100
↑ 12,508,100 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK7% ₹2,503 Cr 12,508,100
↑ 2,387,550 Future on State Bank of India
Derivatives | -3% -₹1,177 Cr 14,274,000
↑ 14,274,000 State Bank of India (Financial Services)
Equity, Since 31 May 23 | SBIN3% ₹1,171 Cr 14,274,000
↑ 3,501,750 Future on ICICI Bank Ltd
Derivatives | -3% -₹1,116 Cr 7,697,900
↑ 7,697,900 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Jun 21 | 5321743% ₹1,113 Cr 7,697,900
↑ 2,749,600 SBI Magnum Low Duration Dir Gr
Investment Fund | -3% ₹1,057 Cr 2,904,125 Axis Bank Ltd (Financial Services)
Equity, Since 31 Jul 18 | 5322152% ₹893 Cr 7,446,250
↓ -486,250 Axis Bank Ltd.
Debentures | -2% -₹880 Cr 7,298,750
↑ 7,298,750 3. ICICI Prudential Equity Arbitrage Fund
ICICI Prudential Equity Arbitrage Fund
Growth Launch Date 30 Dec 06 NAV (08 Aug 25) ₹34.5306 ↑ 0.04 (0.11 %) Net Assets (Cr) ₹30,811 on 30 Jun 25 Category Hybrid - Arbitrage AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 0.97 Sharpe Ratio 1.24 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-1 Months (0.25%),1 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Jul 20 ₹10,000 31 Jul 21 ₹10,399 31 Jul 22 ₹10,730 31 Jul 23 ₹11,418 31 Jul 24 ₹12,302 31 Jul 25 ₹13,165 Returns for ICICI Prudential Equity Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 8 Aug 25 Duration Returns 1 Month 0.5% 3 Month 1.4% 6 Month 3.3% 1 Year 6.9% 3 Year 7.1% 5 Year 5.7% 10 Year 15 Year Since launch 6.9% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.6% 2023 7.1% 2022 4.2% 2021 3.9% 2020 4.3% 2019 5.9% 2018 6.2% 2017 5.5% 2016 6.8% 2015 7.6% Fund Manager information for ICICI Prudential Equity Arbitrage Fund
Name Since Tenure Nikhil Kabra 29 Dec 20 4.59 Yr. Sharmila D’mello 31 Jul 22 3 Yr. Darshil Dedhia 13 Sep 24 0.88 Yr. Ajaykumar Solanki 23 Aug 24 0.94 Yr. Archana Nair 1 Feb 24 1.5 Yr. Data below for ICICI Prudential Equity Arbitrage Fund as on 30 Jun 25
Asset Allocation
Asset Class Value Cash 92.45% Debt 7.8% Other 0.04% Equity Sector Allocation
Sector Value Financial Services 19.3% Consumer Cyclical 8.55% Energy 7.56% Basic Materials 6.67% Industrials 6.17% Technology 6.11% Health Care 5.46% Communication Services 5.37% Consumer Defensive 4.94% Utility 4.12% Real Estate 1.14% Debt Sector Allocation
Sector Value Cash Equivalent 80.21% Corporate 14.53% Government 5.52% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Pru Money Market Dir Gr
Investment Fund | -10% ₹3,083 Cr 80,068,582 ICICI Pru Savings Dir Gr
Investment Fund | -6% ₹1,790 Cr 32,418,220 Future on HDFC Bank Ltd
Derivatives | -5% -₹1,604 Cr 7,976,100
↓ -306,350 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Nov 21 | HDFCBANK5% ₹1,596 Cr 7,976,100
↓ -306,350 Future on Reliance Industries Ltd
Derivatives | -4% -₹1,228 Cr 8,126,000
↑ 1,026,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 18 | RELIANCE4% ₹1,219 Cr 8,126,000
↑ 1,026,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Dec 23 | BHARTIARTL4% ₹1,187 Cr 5,907,575
↑ 661,200 Future on Bharti Airtel Ltd
Derivatives | -4% -₹1,185 Cr 5,907,575
↑ 661,200 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Jul 14 | M&M3% ₹780 Cr 2,451,600
↑ 451,000 Future on Mahindra & Mahindra Ltd
Derivatives | -3% -₹778 Cr 2,451,600
↑ 451,000 4. Kotak Equity Arbitrage Fund
Kotak Equity Arbitrage Fund
Growth Launch Date 29 Sep 05 NAV (08 Aug 25) ₹37.7144 ↑ 0.04 (0.11 %) Net Assets (Cr) ₹69,924 on 30 Jun 25 Category Hybrid - Arbitrage AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.96 Sharpe Ratio 1.24 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-30 Days (0.25%),30 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Jul 20 ₹10,000 31 Jul 21 ₹10,414 31 Jul 22 ₹10,777 31 Jul 23 ₹11,491 31 Jul 24 ₹12,419 31 Jul 25 ₹13,289 Returns for Kotak Equity Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 8 Aug 25 Duration Returns 1 Month 0.5% 3 Month 1.4% 6 Month 3.3% 1 Year 6.8% 3 Year 7.2% 5 Year 5.9% 10 Year 15 Year Since launch 6.9% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.8% 2023 7.4% 2022 4.5% 2021 4% 2020 4.3% 2019 6.1% 2018 6.3% 2017 5.8% 2016 6.7% 2015 7.5% Fund Manager information for Kotak Equity Arbitrage Fund
Name Since Tenure Hiten Shah 3 Oct 19 5.83 Yr. Data below for Kotak Equity Arbitrage Fund as on 30 Jun 25
Asset Allocation
Asset Class Value Cash 94.58% Debt 5.72% Other 0.04% Equity Sector Allocation
Sector Value Financial Services 22.38% Consumer Cyclical 9.71% Basic Materials 8.19% Industrials 7.86% Health Care 5.73% Energy 5.29% Technology 4.99% Consumer Defensive 4.92% Utility 4.72% Communication Services 4.01% Real Estate 0.97% Debt Sector Allocation
Sector Value Cash Equivalent 84.76% Corporate 10.97% Government 4.56% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Kotak Money Market Dir Gr
Investment Fund | -11% ₹7,681 Cr 16,905,337
↑ 1,269,425 Kotak Savings Fund Dir Gr
Investment Fund | -5% ₹3,807 Cr 846,782,645
↑ 33,465,305 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK4% ₹2,671 Cr 13,347,400
↓ -1,468,500 HDFC Bank Ltd.-JUL2025
Derivatives | -3% -₹2,184 Cr 10,870,200
↑ 10,610,050 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 23 | BHARTIARTL2% ₹1,625 Cr 8,084,975
↓ -425,600 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Jan 24 | M&M2% ₹1,601 Cr 5,028,400
↑ 673,800 Reliance Industries Ltd (Energy)
Equity, Since 31 May 18 | RELIANCE2% ₹1,577 Cr 10,510,500
↓ -1,668,000 Axis Bank Ltd.-JUL2025
Derivatives | -2% -₹1,577 Cr 13,075,625
↑ 13,020,625 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 18 | 5322152% ₹1,568 Cr 13,075,625
↑ 4,137,500 Mahindra & Mahindra Ltd.-JUL2025
Derivatives | -2% -₹1,556 Cr 4,903,000
↑ 4,864,600 5. Invesco India Arbitrage Fund
Invesco India Arbitrage Fund
Growth Launch Date 30 Apr 07 NAV (08 Aug 25) ₹32.1233 ↑ 0.04 (0.13 %) Net Assets (Cr) ₹23,900 on 30 Jun 25 Category Hybrid - Arbitrage AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 1.05 Sharpe Ratio 0.96 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-15 Days (0.5%),15 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Jul 20 ₹10,000 31 Jul 21 ₹10,369 31 Jul 22 ₹10,751 31 Jul 23 ₹11,486 31 Jul 24 ₹12,386 31 Jul 25 ₹13,246 Returns for Invesco India Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 8 Aug 25 Duration Returns 1 Month 0.6% 3 Month 1.4% 6 Month 3.3% 1 Year 6.8% 3 Year 7.2% 5 Year 5.8% 10 Year 15 Year Since launch 6.6% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.6% 2023 7.4% 2022 5.1% 2021 3.5% 2020 4.3% 2019 5.9% 2018 5.9% 2017 5.5% 2016 6.5% 2015 7.6% Fund Manager information for Invesco India Arbitrage Fund
Name Since Tenure Deepak Gupta 11 Nov 21 3.72 Yr. Kuber Mannadi 1 Sep 22 2.92 Yr. Data below for Invesco India Arbitrage Fund as on 30 Jun 25
Asset Allocation
Asset Class Value Cash 95.2% Debt 5.12% Other 0.04% Equity Sector Allocation
Sector Value Financial Services 24.35% Consumer Defensive 7.69% Basic Materials 7.56% Industrials 7.01% Technology 6.92% Consumer Cyclical 6.48% Health Care 6.23% Utility 5.15% Energy 4.61% Communication Services 2.71% Real Estate 1.44% Debt Sector Allocation
Sector Value Cash Equivalent 91.07% Corporate 6.39% Government 2.85% Credit Quality
Rating Value AA 11.57% AAA 88.43% Top Securities Holdings / Portfolio
Name Holding Value Quantity Invesco India Money Market Dir Gr
Investment Fund | -6% ₹1,471 Cr 4,657,867
↑ 318,422 Invesco India Liquid Dir Gr
Investment Fund | -6% ₹1,439 Cr 3,975,670
↓ -2,731,000 Future on State Bank of India
Derivatives | -3% -₹746 Cr 9,046,500
↓ -343,500 State Bank of India (Financial Services)
Equity, Since 31 Jan 23 | SBIN3% ₹742 Cr 9,046,500
↓ -343,500 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 23 | HDFCBANK3% ₹718 Cr 3,587,100
↓ -1,433,300 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 24 | 5321743% ₹648 Cr 4,479,300
↑ 1,426,600 Hdfc Bank Limited July 2025 Future
Derivatives | -3% -₹643 Cr 3,198,800
↑ 3,198,800 Future on Tata Consultancy Services Ltd
Derivatives | -3% -₹642 Cr 1,850,800
↑ 1,248,625 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Jan 25 | TCS3% ₹641 Cr 1,850,800
↑ 1,248,625 Icici Bank Limited August 2025 Future
Derivatives | -2% -₹531 Cr 3,661,000
↑ 3,661,000 6. Aditya Birla Sun Life Arbitrage Fund
Aditya Birla Sun Life Arbitrage Fund
Growth Launch Date 24 Jul 09 NAV (08 Aug 25) ₹26.7332 ↑ 0.03 (0.10 %) Net Assets (Cr) ₹20,646 on 30 Jun 25 Category Hybrid - Arbitrage AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆ Risk Moderate Expense Ratio 1.01 Sharpe Ratio 0.91 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 1,000 Exit Load 0-30 Days (0.5%),30 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Jul 20 ₹10,000 31 Jul 21 ₹10,403 31 Jul 22 ₹10,724 31 Jul 23 ₹11,398 31 Jul 24 ₹12,279 31 Jul 25 ₹13,131 Returns for Aditya Birla Sun Life Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 8 Aug 25 Duration Returns 1 Month 0.5% 3 Month 1.4% 6 Month 3.3% 1 Year 6.8% 3 Year 7% 5 Year 5.6% 10 Year 15 Year Since launch 6.3% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.5% 2023 7.1% 2022 4.1% 2021 3.8% 2020 4.1% 2019 6.2% 2018 6% 2017 5.6% 2016 6.5% 2015 7.6% Fund Manager information for Aditya Birla Sun Life Arbitrage Fund
Name Since Tenure Lovelish Solanki 15 Dec 14 10.63 Yr. Mohit Sharma 3 Mar 25 0.41 Yr. Data below for Aditya Birla Sun Life Arbitrage Fund as on 30 Jun 25
Asset Allocation
Asset Class Value Cash 89.07% Debt 11.18% Other 0.05% Equity Sector Allocation
Sector Value Financial Services 20.99% Basic Materials 7.58% Energy 7.52% Industrials 6.77% Consumer Cyclical 5.9% Technology 4.53% Consumer Defensive 4.5% Health Care 3.92% Utility 3.81% Communication Services 3.44% Real Estate 0.94% Debt Sector Allocation
Sector Value Cash Equivalent 78.57% Corporate 17.73% Government 3.95% Credit Quality
Rating Value AA 7.43% AAA 92.57% Top Securities Holdings / Portfolio
Name Holding Value Quantity Aditya BSL Money Mgr Dir Gr
Investment Fund | -11% ₹2,286 Cr 60,833,961
↑ 8,020,574 Aditya BSL FRF Dir Gr
Investment Fund | -6% ₹1,331 Cr 37,135,768 Reliance Industries Ltd (Energy)
Equity, Since 30 Jun 18 | RELIANCE4% ₹792 Cr 5,276,500
↑ 47,500 Future on HDFC Bank Ltd
Derivatives | -3% -₹637 Cr 3,148,850
↑ 3,148,850 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 21 | HDFCBANK3% ₹627 Cr 3,134,450
↑ 649,550 Reliance_(31/07/2025)
Derivatives | -3% -₹548 Cr 3,630,500
↑ 2,715,000 Future on ICICI Bank Ltd
Derivatives | -3% -₹545 Cr 3,756,900
↑ 3,756,900 ICICI Bank Ltd (Financial Services)
Equity, Since 31 May 24 | 5321743% ₹543 Cr 3,756,900
↑ 58,800 Future on Axis Bank Ltd
Derivatives | -2% -₹364 Cr 3,021,875
↑ 3,021,875 Axis Bank Ltd (Financial Services)
Equity, Since 30 Sep 23 | 5322152% ₹362 Cr 3,021,875
↑ 153,125 7. Edelweiss Arbitrage Fund
Edelweiss Arbitrage Fund
Growth Launch Date 27 Jun 14 NAV (08 Aug 25) ₹19.5059 ↑ 0.02 (0.11 %) Net Assets (Cr) ₹15,045 on 30 Jun 25 Category Hybrid - Arbitrage AMC Edelweiss Asset Management Limited Rating ☆☆☆☆☆ Risk Moderately Low Expense Ratio 1.08 Sharpe Ratio 0.9 Information Ratio -0.98 Alpha Ratio 0.02 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-30 Days (0.25%),30 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Jul 20 ₹10,000 31 Jul 21 ₹10,391 31 Jul 22 ₹10,743 31 Jul 23 ₹11,433 31 Jul 24 ₹12,329 31 Jul 25 ₹13,182 Returns for Edelweiss Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 8 Aug 25 Duration Returns 1 Month 0.5% 3 Month 1.4% 6 Month 3.2% 1 Year 6.8% 3 Year 7.1% 5 Year 5.7% 10 Year 15 Year Since launch 6.2% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.7% 2023 7.1% 2022 4.4% 2021 3.8% 2020 4.5% 2019 6.2% 2018 6.1% 2017 5.8% 2016 6.7% 2015 8% Fund Manager information for Edelweiss Arbitrage Fund
Name Since Tenure Bhavesh Jain 27 Jun 14 11.1 Yr. Rahul Dedhia 1 Aug 24 1 Yr. Amit Vora 6 Nov 24 0.73 Yr. Pranavi Kulkarni 1 Jul 24 1.08 Yr. Data below for Edelweiss Arbitrage Fund as on 30 Jun 25
Asset Allocation
Asset Class Value Cash 94.71% Debt 5.59% Other 0.02% Equity Sector Allocation
Sector Value Financial Services 22.8% Basic Materials 9.48% Energy 6.53% Consumer Cyclical 6.35% Industrials 5.98% Technology 5.46% Utility 5.19% Health Care 4.82% Consumer Defensive 4.78% Communication Services 3.71% Real Estate 0.91% Debt Sector Allocation
Sector Value Cash Equivalent 87.62% Corporate 6.5% Government 6.18% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Edelweiss Liquid Dir Gr
Investment Fund | -7% ₹1,010 Cr 2,964,422 Future on HDFC Bank Ltd
Derivatives | -4% -₹554 Cr 2,758,800
↓ -940,500 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 21 | HDFCBANK4% ₹552 Cr 2,758,800
↓ -940,500 Future on Reliance Industries Ltd
Derivatives | -3% -₹468 Cr 3,102,500
↓ -526,000 Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 18 | RELIANCE3% ₹466 Cr 3,102,500
↓ -526,000 Edelweiss Money Market Dir Gr
Investment Fund | -2% ₹367 Cr 116,773,006
↑ 15,948,980 Future on State Bank of India
Derivatives | -2% -₹261 Cr 3,171,000
↓ -772,500 State Bank of India (Financial Services)
Equity, Since 31 Jan 23 | SBIN2% ₹260 Cr 3,171,000
↓ -772,500 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 23 | BHARTIARTL2% ₹250 Cr 1,244,025
↓ -208,525 Future on Bharti Airtel Ltd
Derivatives | -2% -₹250 Cr 1,244,025
↓ -208,525
Things to Consider as an Investor
1. Risk
As trades are carried out on the stock exchange, there’s no counter party risk involved in these funds. Even though the fund manager is buying and selling shares in cash and futures market, there is no risk exposure to equities as is the case with other diversified equity mutual funds. Though the ride looks smooth, do not get too comfortable with these funds. As more people start trading into arbitrage funds, there will be not many arbitrage opportunities available. The spread between cash and future market prices will erode, leaving little for the arbitrage focused investors.
2. Return
Arbitrage Funds may be a good opportunity to make reasonable returns for those who can understand it and then make the most of it. The fund manager tries to generate an Alpha using price differentials in markets. Historically, arbitrage funds have been found to give returns in the Range of 7%-8% over a period of 5-10 years. If you are looking to earn moderate returns via a Portfolio which has a perfect blend of debt and equity in a volatile market, arbitrage funds may be your thing. However, you need to keep one thing in mind that there are no guaranteed returns in arbitrage funds.
3. Cost
Cost becomes an important consideration while evaluating arbitrage funds. These funds charge an annual fee called expense ratio which is expressed as a percentage of the fund’s assets. It includes fund manager’s fee and fund management charges. Due to frequent trading, arbitrage funds would incur huge transaction costs and has a high turnover ratio. Additionally, the fund may levy exit loads for a period of 30 to 60 days to discourage investors from exiting early. All these costs may lead to increase in the expense ratio of the fund. A high expense ratio puts a downward pressure on your take-home returns.
4. Investment Horizon
Arbitrage funds may be suitable for investors having a short to medium term horizon of 3 to 5 years. As these funds charge exit loads, you may consider them only when you are ready to stay invested for a period of at least 3-6 months. At the same time, you need to understand that fund returns are highly dependent on the existence of high volatility. So, choosing a lump sum investment would make sense over Systematic investment plan (SIPs). In absence of volatility, liquid funds may give better returns than arbitrage funds over the same investment horizon. Hence, you need to keep the overall market scenario in mind while choosing arbitrage funds.
5. Financial Goals
If you have short to medium term Financial goals, then arbitrage funds are your thing. Instead of a regular savings bank account, you may use these funds to park excess funds in order to create an emergency fund and earn higher returns on them. In case you were already invested in riskier havens equity funds, then you may begin a Systematic Transfer Plan (STP) from the equity funds to a less risky haven like arbitrage funds as you approach completion of the financial goal. This would reduce your portfolio’s overall risk profile but at the same time reduce the returns also. You cannot expect to earn double-digit returns in arbitrage funds.
How to Invest in Arbitrage Funds Online?
Open Free Investment Account for Lifetime at Fincash.com.
Complete your Registration and KYC Process
Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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Research Highlights for UTI Arbitrage Fund