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7 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.
Talk to our investment specialist
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 (%) 2023 (%) Kotak Equity Arbitrage Fund Growth ₹37.1297
↑ 0.01 ₹60,373 1.8 3.7 7.5 7 5.7 7.8 UTI Arbitrage Fund Growth ₹34.7116
↑ 0.01 ₹6,614 1.9 3.7 7.4 6.8 5.5 7.7 ICICI Prudential Equity Arbitrage Fund Growth ₹33.9878
↑ 0.01 ₹25,727 1.8 3.7 7.4 6.8 5.5 7.6 Invesco India Arbitrage Fund Growth ₹31.6074
↑ 0.01 ₹19,675 1.8 3.6 7.4 7 5.6 7.6 HDFC Arbitrage Fund Growth ₹30.354
↑ 0.01 ₹18,350 1.8 3.6 7.3 6.8 5.4 7.7 Edelweiss Arbitrage Fund Growth ₹19.2051
↑ 0.01 ₹14,003 1.8 3.7 7.3 6.8 5.5 7.7 IDFC Arbitrage Fund Growth ₹32.1593
↑ 0.01 ₹7,955 1.8 3.6 7.3 6.7 5.4 7.5 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 30 Apr 25
*Below is the list of Arbitrage funds sorted on last 1 year return and having AUM > 100 Crore.
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 Kotak Equity Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 29 Sep 05. It is a fund with Moderately Low risk and has given a Below is the key information for Kotak Equity Arbitrage Fund Returns up to 1 year are on (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. UTI Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 22 Jun 06. It is a fund with Moderately Low risk and has given a Below is the key information for UTI Arbitrage 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. ICICI Prudential Equity Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 30 Dec 06. It is a fund with Moderate risk and has given a Below is the key information for ICICI Prudential 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. Invesco India Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 30 Apr 07. It is a fund with Moderately Low risk and has given a Below is the key information for Invesco India Arbitrage Fund Returns up to 1 year are on "To generate income through arbitrage opportunities between cash and derivative market and arbitrage opportunities within the derivative segment and by deployment of surplus cash in debt securities and money market instruments." HDFC Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 23 Oct 07. It is a fund with Moderately Low risk and has given a Below is the key information for HDFC 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. Edelweiss Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 27 Jun 14. It is a fund with Moderately Low risk and has given a Below is the key information for Edelweiss 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 opportunity in the cash and
the derivative segments of the equity markets and the arbitrage opportunity
available within the derivative segments 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. IDFC Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 21 Dec 06. It is a fund with Moderately Low risk and has given a Below is the key information for IDFC Arbitrage Fund Returns up to 1 year are on 1. Kotak Equity Arbitrage Fund
CAGR/Annualized return of 6.9% since its launch. Ranked 2 in Arbitrage category. Return for 2024 was 7.8% , 2023 was 7.4% and 2022 was 4.5% . Kotak Equity Arbitrage Fund
Growth Launch Date 29 Sep 05 NAV (30 Apr 25) ₹37.1297 ↑ 0.01 (0.03 %) Net Assets (Cr) ₹60,373 on 31 Mar 25 Category Hybrid - Arbitrage AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.96 Sharpe Ratio 1.98 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 30 Apr 20 ₹10,000 30 Apr 21 ₹10,353 30 Apr 22 ₹10,768 30 Apr 23 ₹11,358 30 Apr 24 ₹12,262 Returns for Kotak Equity Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 30 Apr 25 Duration Returns 1 Month 0.7% 3 Month 1.8% 6 Month 3.7% 1 Year 7.5% 3 Year 7% 5 Year 5.7% 10 Year 15 Year Since launch 6.9% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.8% 2022 7.4% 2021 4.5% 2020 4% 2019 4.3% 2018 6.1% 2017 6.3% 2016 5.8% 2015 6.7% 2014 7.5% Fund Manager information for Kotak Equity Arbitrage Fund
Name Since Tenure Hiten Shah 3 Oct 19 5.5 Yr. Data below for Kotak Equity Arbitrage Fund as on 31 Mar 25
Asset Allocation
Asset Class Value Cash 94.03% Debt 6.23% Other 0.05% Equity Sector Allocation
Sector Value Financial Services 18.21% Energy 8.45% Basic Materials 7.55% Consumer Cyclical 6.16% Technology 5.89% Consumer Defensive 5.63% Industrials 4.73% Health Care 3.32% Utility 3.26% Communication Services 2.58% Real Estate 0.59% Debt Sector Allocation
Sector Value Cash Equivalent 81.37% Corporate 14.27% Government 4.62% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Kotak Money Market Dir Gr
Investment Fund | -10% ₹6,002 Cr 13,502,657
↓ -567,091 Kotak Liquid Dir Gr
Investment Fund | -5% ₹2,856 Cr 5,451,848
↓ -8,518,620 RELIANCE INDUSTRIES LTD.-APR2025
Derivatives | -4% -₹2,711 Cr 21,155,000
↑ 21,155,000 Reliance Industries Ltd (Energy)
Equity, Since 31 May 18 | RELIANCE4% ₹2,697 Cr 21,155,000
↓ -2,708,500 ICICI Bank Ltd.-APR2025
Derivatives | -4% -₹2,152 Cr 15,875,300
↑ 15,875,300 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Dec 19 | ICICIBANK4% ₹2,141 Cr 15,875,300
↓ -9,205,000 Kotak Savings Fund Dir Gr
Investment Fund | -3% ₹1,979 Cr 449,226,479
↓ -261,769,341 HDFC Bank Ltd.-APR2025
Derivatives | -2% -₹1,388 Cr 7,559,750
↑ 7,559,750 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK2% ₹1,382 Cr 7,559,750
↓ -1,247,400 Infosys Ltd.-APR2025
Derivatives | -2% -₹1,077 Cr 6,824,800
↑ 6,824,800 2. UTI Arbitrage Fund
CAGR/Annualized return of 6.8% since its launch. Ranked 8 in Arbitrage category. Return for 2024 was 7.7% , 2023 was 7.2% and 2022 was 4% . UTI Arbitrage Fund
Growth Launch Date 22 Jun 06 NAV (30 Apr 25) ₹34.7116 ↑ 0.01 (0.03 %) Net Assets (Cr) ₹6,614 on 31 Mar 25 Category Hybrid - Arbitrage AMC UTI Asset Management Company Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.85 Sharpe Ratio 2.08 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 30 Apr 20 ₹10,000 30 Apr 21 ₹10,355 30 Apr 22 ₹10,742 30 Apr 23 ₹11,295 30 Apr 24 ₹12,167 Returns for UTI Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 30 Apr 25 Duration Returns 1 Month 0.7% 3 Month 1.9% 6 Month 3.7% 1 Year 7.4% 3 Year 6.8% 5 Year 5.5% 10 Year 15 Year Since launch 6.8% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.7% 2022 7.2% 2021 4% 2020 3.9% 2019 4.4% 2018 6.2% 2017 6.2% 2016 5.7% 2015 6.5% 2014 7.6% Fund Manager information for UTI Arbitrage Fund
Name Since Tenure Amit Sharma 2 Jul 18 6.75 Yr. Sharwan Kumar Goyal 1 Jan 21 4.25 Yr. Data below for UTI Arbitrage Fund as on 31 Mar 25
Asset Allocation
Asset Class Value Cash 97.67% Equity 0.06% Debt 2.23% Other 0.03% Equity Sector Allocation
Sector Value Financial Services 21.46% Basic Materials 7.29% Consumer Cyclical 6.94% Energy 6.16% Industrials 5.11% Technology 4.46% Consumer Defensive 3.66% Health Care 3.38% Communication Services 2.37% Utility 1.86% Real Estate 1.21% Debt Sector Allocation
Sector Value Cash Equivalent 76.72% Corporate 17.97% Government 5.21% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity UTI Money Market Dir Gr
Investment Fund | -14% ₹920 Cr 3,006,593 Future on Reliance Industries Ltd
Derivatives | -5% -₹334 Cr 2,609,000
↓ -102,500 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 23 | RELIANCE5% ₹333 Cr 2,609,000
↓ -102,500 Future on ICICI Bank Ltd
Derivatives | -4% -₹274 Cr 2,021,600
↑ 65,100 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Sep 24 | ICICIBANK4% ₹273 Cr 2,021,600
↑ 65,100 Future on Punjab National Bank
Derivatives | -3% -₹171 Cr 17,696,000
↓ -2,560,000 Punjab National Bank (Financial Services)
Equity, Since 31 Mar 24 | 5324613% ₹170 Cr 17,696,000
↓ -2,560,000 Future on HDFC Bank Ltd
Derivatives | -2% -₹162 Cr 882,200
↑ 303,050 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK2% ₹161 Cr 882,200
↑ 303,050 Future on Bank of Baroda
Derivatives | -2% -₹153 Cr 6,642,675
↓ -511,875 3. ICICI Prudential Equity Arbitrage Fund
CAGR/Annualized return of 6.9% since its launch. Ranked 4 in Arbitrage category. Return for 2024 was 7.6% , 2023 was 7.1% and 2022 was 4.2% . ICICI Prudential Equity Arbitrage Fund
Growth Launch Date 30 Dec 06 NAV (30 Apr 25) ₹33.9878 ↑ 0.01 (0.03 %) Net Assets (Cr) ₹25,727 on 31 Mar 25 Category Hybrid - Arbitrage AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 0.97 Sharpe Ratio 1.55 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 30 Apr 20 ₹10,000 30 Apr 21 ₹10,339 30 Apr 22 ₹10,729 30 Apr 23 ₹11,299 30 Apr 24 ₹12,159 Returns for ICICI Prudential Equity Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 30 Apr 25 Duration Returns 1 Month 0.7% 3 Month 1.8% 6 Month 3.7% 1 Year 7.4% 3 Year 6.8% 5 Year 5.5% 10 Year 15 Year Since launch 6.9% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.6% 2022 7.1% 2021 4.2% 2020 3.9% 2019 4.3% 2018 5.9% 2017 6.2% 2016 5.5% 2015 6.8% 2014 7.6% Fund Manager information for ICICI Prudential Equity Arbitrage Fund
Name Since Tenure Nikhil Kabra 29 Dec 20 4.26 Yr. Sharmila D’mello 31 Jul 22 2.67 Yr. Darshil Dedhia 13 Sep 24 0.55 Yr. Ajaykumar Solanki 23 Aug 24 0.61 Yr. Archana Nair 1 Feb 24 1.16 Yr. Data below for ICICI Prudential Equity Arbitrage Fund as on 31 Mar 25
Asset Allocation
Asset Class Value Cash 92.44% Debt 7.82% Other 0.05% Equity Sector Allocation
Sector Value Financial Services 16.83% Energy 9.06% Consumer Cyclical 8.33% Basic Materials 7.42% Technology 6.61% Industrials 5.47% Communication Services 4.8% Health Care 3.71% Consumer Defensive 3.71% Utility 2.82% Real Estate 1.62% Debt Sector Allocation
Sector Value Cash Equivalent 78.1% Corporate 16.23% Government 5.93% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Pru Money Market Dir Gr
Investment Fund | -12% ₹3,016 Cr 80,068,582
↑ 5,346,519 ICICI Pru Savings Dir Gr
Investment Fund | -7% ₹1,749 Cr 32,418,220
↑ 3,717,257 Future on Reliance Industries Ltd
Derivatives | -6% -₹1,542 Cr 12,034,000
↑ 1,642,500 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 18 | RELIANCE6% ₹1,534 Cr 12,034,000
↑ 1,642,500 Future on HDFC Bank Ltd
Derivatives | -4% -₹942 Cr 5,129,300
↓ -15,950 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Nov 21 | HDFCBANK4% ₹938 Cr 5,129,300
↓ -15,950 Future on Bharti Airtel Ltd
Derivatives | -3% -₹811 Cr 4,651,675
↑ 238,450 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Dec 23 | BHARTIARTL3% ₹806 Cr 4,651,675
↑ 238,450 Future on Infosys Ltd
Derivatives | -2% -₹573 Cr 3,633,600
↑ 767,200 Infosys Ltd (Technology)
Equity, Since 31 Oct 22 | INFY2% ₹571 Cr 3,633,600
↑ 767,200 4. Invesco India Arbitrage Fund
CAGR/Annualized return of 6.6% since its launch. Ranked 9 in Arbitrage category. Return for 2024 was 7.6% , 2023 was 7.4% and 2022 was 5.1% . Invesco India Arbitrage Fund
Growth Launch Date 30 Apr 07 NAV (30 Apr 25) ₹31.6074 ↑ 0.01 (0.04 %) Net Assets (Cr) ₹19,675 on 31 Mar 25 Category Hybrid - Arbitrage AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 1.05 Sharpe Ratio 1.71 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 30 Apr 20 ₹10,000 30 Apr 21 ₹10,331 30 Apr 22 ₹10,742 30 Apr 23 ₹11,372 30 Apr 24 ₹12,249 Returns for Invesco India Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 30 Apr 25 Duration Returns 1 Month 0.6% 3 Month 1.8% 6 Month 3.6% 1 Year 7.4% 3 Year 7% 5 Year 5.6% 10 Year 15 Year Since launch 6.6% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.6% 2022 7.4% 2021 5.1% 2020 3.5% 2019 4.3% 2018 5.9% 2017 5.9% 2016 5.5% 2015 6.5% 2014 7.6% Fund Manager information for Invesco India Arbitrage Fund
Name Since Tenure Deepak Gupta 11 Nov 21 3.39 Yr. Kuber Mannadi 1 Sep 22 2.58 Yr. Data below for Invesco India Arbitrage Fund as on 31 Mar 25
Asset Allocation
Asset Class Value Cash 97.4% Debt 2.85% Other 0.05% Equity Sector Allocation
Sector Value Financial Services 22.68% Energy 8.18% Technology 6.4% Industrials 6.14% Basic Materials 5.87% Consumer Defensive 5.83% Consumer Cyclical 5.63% Utility 3.62% Health Care 3.45% Communication Services 2.35% Real Estate 1.07% Debt Sector Allocation
Sector Value Cash Equivalent 91.94% Corporate 6.37% Government 1.95% Credit Quality
Rating Value AA 19.37% AAA 80.63% Top Securities Holdings / Portfolio
Name Holding Value Quantity Invesco India Liquid Dir Gr
Investment Fund | -15% ₹2,868 Cr 8,056,670
↓ -4,639 Invesco India Money Market Dir Gr
Investment Fund | -6% ₹1,143 Cr 3,698,366 Future on ICICI Bank Ltd
Derivatives | -5% -₹917 Cr 6,766,900
↑ 6,766,900 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 24 | ICICIBANK5% ₹912 Cr 6,766,900
↑ 935,900 Future on Reliance Industries Ltd
Derivatives | -3% -₹570 Cr 4,444,500
↓ -1,565,500 Reliance Industries Ltd (Energy)
Equity, Since 31 Dec 22 | RELIANCE3% ₹567 Cr 4,444,500
↓ -1,565,500 Hdfc Bank Limited April 2025 Future
Derivatives | -2% -₹487 Cr 2,652,100
↑ 2,652,100 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 23 | HDFCBANK2% ₹485 Cr 2,652,100
↑ 14,300 Future on Tata Consultancy Services Ltd
Derivatives | -2% -₹404 Cr 1,115,100
↑ 219,800 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Jan 25 | TCS2% ₹402 Cr 1,115,100
↑ 219,800 5. HDFC Arbitrage Fund
CAGR/Annualized return of 6.5% since its launch. Ranked 10 in Arbitrage category. Return for 2024 was 7.7% , 2023 was 7.2% and 2022 was 4.2% . HDFC Arbitrage Fund
Growth Launch Date 23 Oct 07 NAV (30 Apr 25) ₹30.354 ↑ 0.01 (0.02 %) Net Assets (Cr) ₹18,350 on 31 Mar 25 Category Hybrid - Arbitrage AMC HDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.86 Sharpe Ratio 1.73 Information Ratio 0 Alpha Ratio 0 Min Investment 100,000 Min SIP Investment 300 Exit Load 0-1 Months (0.25%),1 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Apr 20 ₹10,000 30 Apr 21 ₹10,319 30 Apr 22 ₹10,685 30 Apr 23 ₹11,256 30 Apr 24 ₹12,118 Returns for HDFC Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 30 Apr 25 Duration Returns 1 Month 0.6% 3 Month 1.8% 6 Month 3.6% 1 Year 7.3% 3 Year 6.8% 5 Year 5.4% 10 Year 15 Year Since launch 6.5% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.7% 2022 7.2% 2021 4.2% 2020 3.6% 2019 3.7% 2018 6% 2017 5.7% 2016 5.3% 2015 6.6% 2014 7.6% Fund Manager information for HDFC Arbitrage Fund
Name Since Tenure Anil Bamboli 1 Feb 22 3.16 Yr. Arun Agarwal 24 Aug 20 4.6 Yr. Dhruv Muchhal 22 Jun 23 1.78 Yr. Nandita Menezes 29 Mar 25 0.01 Yr. Data below for HDFC Arbitrage Fund as on 31 Mar 25
Asset Allocation
Asset Class Value Cash 96.52% Debt 3.76% Other 0.04% Equity Sector Allocation
Sector Value Financial Services 24.03% Energy 8.98% Basic Materials 8.54% Consumer Cyclical 8.41% Technology 6.26% Industrials 3.49% Consumer Defensive 3.25% Health Care 3.04% Utility 2.47% Communication Services 2.21% Real Estate 1.68% Debt Sector Allocation
Sector Value Cash Equivalent 87.08% Corporate 10.01% Government 3.18% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Money Market Dir Gr
Investment Fund | -13% ₹2,305 Cr 4,031,366 Future on Reliance Industries Ltd
Derivatives | -7% -₹1,228 Cr Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 21 | RELIANCE7% ₹1,220 Cr 9,570,500
↓ -1,444,500 Future on ICICI Bank Ltd
Derivatives | -6% -₹1,158 Cr ICICI Bank Ltd (Financial Services)
Equity, Since 30 Jun 24 | ICICIBANK6% ₹1,151 Cr 8,538,600
↑ 186,200 HDFC Liquid Dir Gr
Investment Fund | -5% ₹964 Cr 1,893,346 Future on Axis Bank Ltd
Derivatives | -5% -₹884 Cr Axis Bank Ltd (Financial Services)
Equity, Since 31 Jul 23 | 5322155% ₹882 Cr 8,001,875
↓ -1,160,625 Future on HDFC Bank Ltd
Derivatives | -3% -₹595 Cr HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 23 | HDFCBANK3% ₹592 Cr 3,240,600
↑ 597,850 6. Edelweiss Arbitrage Fund
CAGR/Annualized return of 6.2% since its launch. Ranked 1 in Arbitrage category. Return for 2024 was 7.7% , 2023 was 7.1% and 2022 was 4.4% . Edelweiss Arbitrage Fund
Growth Launch Date 27 Jun 14 NAV (30 Apr 25) ₹19.2051 ↑ 0.01 (0.04 %) Net Assets (Cr) ₹14,003 on 31 Mar 25 Category Hybrid - Arbitrage AMC Edelweiss Asset Management Limited Rating ☆☆☆☆☆ Risk Moderately Low Expense Ratio 1.08 Sharpe Ratio 1.56 Information Ratio -0.77 Alpha Ratio 0.21 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 30 Apr 20 ₹10,000 30 Apr 21 ₹10,326 30 Apr 22 ₹10,734 30 Apr 23 ₹11,302 30 Apr 24 ₹12,175 Returns for Edelweiss Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 30 Apr 25 Duration Returns 1 Month 0.6% 3 Month 1.8% 6 Month 3.7% 1 Year 7.3% 3 Year 6.8% 5 Year 5.5% 10 Year 15 Year Since launch 6.2% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.7% 2022 7.1% 2021 4.4% 2020 3.8% 2019 4.5% 2018 6.2% 2017 6.1% 2016 5.8% 2015 6.7% 2014 8% Fund Manager information for Edelweiss Arbitrage Fund
Name Since Tenure Bhavesh Jain 27 Jun 14 10.77 Yr. Rahul Dedhia 1 Aug 24 0.66 Yr. Amit Vora 6 Nov 24 0.4 Yr. Pranavi Kulkarni 1 Jul 24 0.75 Yr. Data below for Edelweiss Arbitrage Fund as on 31 Mar 25
Asset Allocation
Asset Class Value Cash 95.96% Debt 3.57% Other 0.74% Equity Sector Allocation
Sector Value Financial Services 16.45% Energy 9.53% Basic Materials 8.75% Consumer Cyclical 6.09% Consumer Defensive 5.47% Technology 5.16% Industrials 4.92% Utility 3.63% Health Care 3.23% Communication Services 2.79% Real Estate 0.44% Debt Sector Allocation
Sector Value Cash Equivalent 85.63% Corporate 8.19% Government 5.71% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Edelweiss Liquid Dir Gr
Investment Fund | -7% ₹993 Cr 2,964,422 Future on Reliance Industries Ltd
Derivatives | -6% -₹815 Cr 6,357,500
↑ 1,373,500 Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 18 | RELIANCE6% ₹811 Cr 6,357,500
↑ 1,373,500 Future on HDFC Bank Ltd
Derivatives | -2% -₹342 Cr 1,865,600
↑ 723,250 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 21 | HDFCBANK2% ₹341 Cr 1,865,600
↑ 723,250 Edelweiss Money Market Dir Gr
Investment Fund | -2% ₹310 Cr 100,824,026 Future on Vedanta Ltd
Derivatives | -2% -₹281 Cr 6,047,850
↑ 454,250 Vedanta Ltd (Basic Materials)
Equity, Since 31 Aug 23 | 5002952% ₹280 Cr 6,047,850
↑ 454,250 Future on JSW Steel Ltd
Derivatives | -2% -₹217 Cr 2,035,125
↓ -223,425 JSW Steel Ltd (Basic Materials)
Equity, Since 31 Dec 24 | JSWSTEEL2% ₹216 Cr 2,035,125
↓ -223,425 7. IDFC Arbitrage Fund
CAGR/Annualized return of 6.6% since its launch. Ranked 17 in Arbitrage category. Return for 2024 was 7.5% , 2023 was 7.1% and 2022 was 4.1% . IDFC Arbitrage Fund
Growth Launch Date 21 Dec 06 NAV (30 Apr 25) ₹32.1593 ↑ 0.01 (0.03 %) Net Assets (Cr) ₹7,955 on 31 Mar 25 Category Hybrid - Arbitrage AMC IDFC Asset Management Company Limited Rating ☆ Risk Moderately Low Expense Ratio 1.06 Sharpe Ratio 1.45 Information Ratio 0 Alpha Ratio 0 Min Investment 100 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 30 Apr 20 ₹10,000 30 Apr 21 ₹10,318 30 Apr 22 ₹10,684 30 Apr 23 ₹11,247 30 Apr 24 ₹12,094 Returns for IDFC Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 30 Apr 25 Duration Returns 1 Month 0.7% 3 Month 1.8% 6 Month 3.6% 1 Year 7.3% 3 Year 6.7% 5 Year 5.4% 10 Year 15 Year Since launch 6.6% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.5% 2022 7.1% 2021 4.1% 2020 3.5% 2019 3.8% 2018 6.2% 2017 6.3% 2016 5.5% 2015 6.3% 2014 7.4% Fund Manager information for IDFC Arbitrage Fund
Name Since Tenure Harshal Joshi 20 Oct 16 8.45 Yr. Brijesh Shah 10 Jun 24 0.81 Yr. Ritika Behera 7 Oct 23 1.48 Yr. Gaurav Satra 7 Jun 24 0.82 Yr. Abhishek Jain 8 Mar 25 0.06 Yr. Data below for IDFC Arbitrage Fund as on 31 Mar 25
Asset Allocation
Asset Class Value Cash 86.68% Debt 12.9% Other 0.69% Equity Sector Allocation
Sector Value Financial Services 16.41% Basic Materials 8.12% Energy 7.09% Consumer Cyclical 6.9% Industrials 5.63% Technology 5.22% Consumer Defensive 4.82% Utility 4.37% Health Care 3.4% Communication Services 1.65% Real Estate 0.77% Debt Sector Allocation
Sector Value Cash Equivalent 74.11% Corporate 17.48% Government 8% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Bandhan Money Manager Dir Gr
Investment Fund | -12% ₹992 Cr 231,688,763 Bandhan Low Duration Dir Gr
Investment Fund | -8% ₹636 Cr 164,356,884
↑ 25,870,656 Future on Reliance Industries Ltd
Derivatives | -4% -₹349 Cr 2,720,000
↓ -244,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 18 | RELIANCE4% ₹347 Cr 2,720,000
↓ -244,000 Hdfc Bank Limited April 2025 Future
Derivatives | -3% -₹232 Cr 1,261,700
↑ 894,300 Bandhan Bond S/T Dir Gr
Investment Fund | -3% ₹231 Cr 38,650,443 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 22 | HDFCBANK3% ₹231 Cr 1,261,700
↑ 326,150 Future on Tata Consultancy Services Ltd
Derivatives | -2% -₹162 Cr 448,175
↑ 78,575 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Oct 20 | TCS2% ₹162 Cr 448,175
↑ 78,575 Power Finance Corporation Limited April 2025 Future
Derivatives | -1% -₹112 Cr 2,676,700
↑ 2,635,100
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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