+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 ₹35.3824
↑ 0.02 ₹8,512 1.5 3.3 6.9 7.1 5.7 7.7 Kotak Equity Arbitrage Fund Growth ₹37.838
↑ 0.02 ₹71,608 1.5 3.3 6.9 7.2 5.9 7.8 ICICI Prudential Equity Arbitrage Fund Growth ₹34.6403
↑ 0.01 ₹31,526 1.5 3.3 6.8 7 5.7 7.6 Aditya Birla Sun Life Arbitrage Fund Growth ₹26.8174
↑ 0.01 ₹22,310 1.5 3.3 6.8 6.9 5.6 7.5 SBI Arbitrage Opportunities Fund Growth ₹34.1476
↑ 0.02 ₹39,824 1.5 3.4 6.7 7.2 5.8 7.5 Edelweiss Arbitrage Fund Growth ₹19.5663
↑ 0.01 ₹15,550 1.5 3.2 6.7 7 5.7 7.7 HDFC Arbitrage Fund Growth ₹30.928
↑ 0.01 ₹21,352 1.5 3.2 6.7 7 5.7 7.7 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 2 Sep 25 Research Highlights & Commentary of 7 Funds showcased
Commentary UTI Arbitrage Fund Kotak Equity Arbitrage Fund ICICI Prudential Equity Arbitrage Fund Aditya Birla Sun Life Arbitrage Fund SBI Arbitrage Opportunities Fund Edelweiss Arbitrage Fund HDFC Arbitrage Fund Point 1 Bottom quartile AUM (₹8,512 Cr). Highest AUM (₹71,608 Cr). Upper mid AUM (₹31,526 Cr). Lower mid AUM (₹22,310 Cr). Upper mid AUM (₹39,824 Cr). Bottom quartile AUM (₹15,550 Cr). Lower mid AUM (₹21,352 Cr). Point 2 Oldest track record among peers (19 yrs). Established history (19+ yrs). Established history (18+ yrs). Established history (16+ yrs). Established history (18+ yrs). Established history (11+ yrs). Established history (17+ yrs). Point 3 Rating: 3★ (lower mid). Rating: 4★ (upper mid). Rating: 4★ (upper mid). Rating: 3★ (lower mid). Rating: 2★ (bottom quartile). Top rated. Rating: 3★ (bottom quartile). Point 4 Risk profile: Moderately Low. Risk profile: Moderately Low. Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderately Low. Risk profile: Moderately Low. Risk profile: Moderately Low. Point 5 5Y return: 5.71% (lower mid). 5Y return: 5.89% (top quartile). 5Y return: 5.70% (lower mid). 5Y return: 5.64% (bottom quartile). 5Y return: 5.83% (upper mid). 5Y return: 5.72% (upper mid). 5Y return: 5.66% (bottom quartile). Point 6 3Y return: 7.06% (upper mid). 3Y return: 7.19% (top quartile). 3Y return: 7.02% (lower mid). 3Y return: 6.95% (bottom quartile). 3Y return: 7.16% (upper mid). 3Y return: 7.02% (bottom quartile). 3Y return: 7.03% (lower mid). Point 7 1Y return: 6.90% (top quartile). 1Y return: 6.86% (upper mid). 1Y return: 6.81% (upper mid). 1Y return: 6.80% (lower mid). 1Y return: 6.75% (lower mid). 1Y return: 6.74% (bottom quartile). 1Y return: 6.71% (bottom quartile). Point 8 1M return: 0.32% (upper mid). 1M return: 0.29% (lower mid). 1M return: 0.31% (lower mid). 1M return: 0.29% (bottom quartile). 1M return: 0.36% (top quartile). 1M return: 0.29% (bottom quartile). 1M return: 0.32% (upper mid). Point 9 Alpha: 0.00 (top quartile). 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). Point 10 Sharpe: 1.43 (top quartile). Sharpe: 1.19 (lower mid). Sharpe: 1.21 (upper mid). Sharpe: 0.96 (lower mid). Sharpe: 1.27 (upper mid). Sharpe: 0.90 (bottom quartile). Sharpe: 0.91 (bottom quartile). UTI Arbitrage Fund
Kotak Equity Arbitrage Fund
ICICI Prudential Equity Arbitrage Fund
Aditya Birla Sun Life Arbitrage Fund
SBI Arbitrage Opportunities Fund
Edelweiss Arbitrage Fund
HDFC 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 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 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 (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 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 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 "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." Research Highlights for HDFC Arbitrage Fund Below is the key information for HDFC Arbitrage Fund Returns up to 1 year are on 1. UTI Arbitrage Fund
UTI Arbitrage Fund
Growth Launch Date 22 Jun 06 NAV (02 Sep 25) ₹35.3824 ↑ 0.02 (0.04 %) Net Assets (Cr) ₹8,512 on 31 Jul 25 Category Hybrid - Arbitrage AMC UTI Asset Management Company Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.78 Sharpe Ratio 1.43 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 Aug 20 ₹10,000 31 Aug 21 ₹10,411 31 Aug 22 ₹10,745 31 Aug 23 ₹11,454 31 Aug 24 ₹12,334 31 Aug 25 ₹13,184 Returns for UTI Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 2 Sep 25 Duration Returns 1 Month 0.3% 3 Month 1.5% 6 Month 3.3% 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 7.17 Yr. Sharwan Kumar Goyal 1 Jan 21 4.67 Yr. Data below for UTI Arbitrage Fund as on 31 Jul 25
Asset Allocation
Asset Class Value Cash 95.2% Debt 4.96% Other 0.05% Equity Sector Allocation
Sector Value Financial Services 25% Basic Materials 6.6% Consumer Cyclical 6.55% Technology 4.83% Consumer Defensive 4.8% Energy 4.74% Health Care 4.28% Industrials 4.14% Communication Services 2.8% Utility 1.8% Real Estate 0.79% Debt Sector Allocation
Sector Value Cash Equivalent 77.59% Corporate 16.41% Government 6.16% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity UTI Money Market Dir Gr
Investment Fund | -16% ₹1,325 Cr 4,212,186
↑ 478,335 Future on HDFC Bank Ltd
Derivatives | -5% -₹393 Cr 1,936,000
↑ 182,600 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK5% ₹391 Cr 1,936,000
↑ 182,600 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Sep 24 | ICICIBANK4% ₹373 Cr 2,517,200
↑ 881,300 Future on ICICI Bank Ltd
Derivatives | -4% -₹371 Cr 2,514,400
↑ 878,500 Future on Reliance Industries Ltd
Derivatives | -4% -₹313 Cr 2,243,500
↑ 14,500 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 23 | RELIANCE4% ₹312 Cr 2,243,500
↑ 14,500 Future on State Bank of India
Derivatives | -3% -₹277 Cr 3,459,000
↑ 571,500 State Bank of India (Financial Services)
Equity, Since 31 May 23 | SBIN3% ₹276 Cr 3,459,000
↑ 571,500 Future on Axis Bank Ltd
Derivatives | -3% -₹245 Cr 2,282,500
↑ 2,233,750 2. Kotak Equity Arbitrage Fund
Kotak Equity Arbitrage Fund
Growth Launch Date 29 Sep 05 NAV (02 Sep 25) ₹37.838 ↑ 0.02 (0.05 %) Net Assets (Cr) ₹71,608 on 31 Jul 25 Category Hybrid - Arbitrage AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.97 Sharpe Ratio 1.19 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 Aug 20 ₹10,000 31 Aug 21 ₹10,418 31 Aug 22 ₹10,795 31 Aug 23 ₹11,540 31 Aug 24 ₹12,446 31 Aug 25 ₹13,298 Returns for Kotak Equity Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 2 Sep 25 Duration Returns 1 Month 0.3% 3 Month 1.5% 6 Month 3.3% 1 Year 6.9% 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 5.92 Yr. Data below for Kotak Equity Arbitrage Fund as on 31 Jul 25
Asset Allocation
Asset Class Value Cash 95.71% Debt 4.52% Other 0.04% Equity Sector Allocation
Sector Value Financial Services 23.08% Consumer Cyclical 9.15% Industrials 7.75% Basic Materials 6.94% Technology 6.48% Energy 5.44% Health Care 5.4% Consumer Defensive 4.72% Communication Services 2.97% Utility 2.88% Real Estate 1.44% Debt Sector Allocation
Sector Value Cash Equivalent 85.53% Corporate 10% Government 4.7% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Kotak Money Market Dir Gr
Investment Fund | -11% ₹8,091 Cr 17,707,388
↑ 802,051 Kotak Savings Fund Dir Gr
Investment Fund | -5% ₹3,840 Cr 849,228,098
↑ 2,445,453 Reliance Industries Ltd (Energy)
Equity, Since 31 May 18 | RELIANCE4% ₹2,631 Cr 18,926,000
↑ 8,415,500 HDFC Bank Ltd.-AUG2025
Derivatives | -4% -₹2,606 Cr 12,844,700
↑ 10,367,500 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK4% ₹2,593 Cr 12,846,350
↓ -501,050 RELIANCE INDUSTRIES LTD.-AUG2025
Derivatives | -4% -₹2,537 Cr 18,201,000
↑ 14,054,500 Axis Bank Ltd.-AUG2025
Derivatives | -3% -₹2,002 Cr 18,636,250
↑ 18,636,250 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 18 | 5322153% ₹1,999 Cr 18,706,875
↑ 5,631,250 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Dec 19 | ICICIBANK3% ₹1,847 Cr 12,470,500
↑ 2,944,200 ICICI Bank Ltd.-AUG2025
Derivatives | -3% -₹1,839 Cr 12,445,300
↑ 4,970,000 3. ICICI Prudential Equity Arbitrage Fund
ICICI Prudential Equity Arbitrage Fund
Growth Launch Date 30 Dec 06 NAV (02 Sep 25) ₹34.6403 ↑ 0.01 (0.04 %) Net Assets (Cr) ₹31,526 on 31 Jul 25 Category Hybrid - Arbitrage AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 0.9 Sharpe Ratio 1.21 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 Aug 20 ₹10,000 31 Aug 21 ₹10,412 31 Aug 22 ₹10,760 31 Aug 23 ₹11,480 31 Aug 24 ₹12,350 31 Aug 25 ₹13,188 Returns for ICICI Prudential Equity Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 2 Sep 25 Duration Returns 1 Month 0.3% 3 Month 1.5% 6 Month 3.3% 1 Year 6.8% 3 Year 7% 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 4.68 Yr. Sharmila D’mello 31 Jul 22 3.09 Yr. Darshil Dedhia 13 Sep 24 0.97 Yr. Ajaykumar Solanki 23 Aug 24 1.02 Yr. Archana Nair 1 Feb 24 1.58 Yr. Data below for ICICI Prudential Equity Arbitrage Fund as on 31 Jul 25
Asset Allocation
Asset Class Value Cash 97.46% Debt 2.75% Other 0.03% Equity Sector Allocation
Sector Value Financial Services 19.97% Energy 8.76% Consumer Cyclical 7.63% Industrials 6.25% Technology 5.65% Basic Materials 5.4% Health Care 5.3% Communication Services 4.72% Consumer Defensive 4.14% Utility 3.96% Real Estate 1.42% Debt Sector Allocation
Sector Value Cash Equivalent 83.73% Corporate 11.94% Government 4.53% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Pru Money Market Dir Gr
Investment Fund | -15% ₹4,855 Cr 125,374,734
↑ 45,306,153 Future on HDFC Bank Ltd
Derivatives | -5% -₹1,566 Cr 7,718,150
↓ -257,950 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Nov 21 | HDFCBANK5% ₹1,558 Cr 7,718,150
↓ -257,950 Future on Reliance Industries Ltd
Derivatives | -4% -₹1,366 Cr 9,792,000
↑ 1,666,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 18 | RELIANCE4% ₹1,361 Cr 9,792,000
↑ 1,666,000 Future on Bharti Airtel Ltd
Derivatives | -4% -₹1,113 Cr 5,791,675
↓ -115,900 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Dec 23 | BHARTIARTL4% ₹1,109 Cr 5,791,675
↓ -115,900 Future on Mahindra & Mahindra Ltd
Derivatives | -3% -₹910 Cr 2,829,000
↑ 377,400 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Jul 14 | M&M3% ₹906 Cr 2,829,000
↑ 377,400 Future on Tata Consultancy Services Ltd
Derivatives | -3% -₹884 Cr 2,892,575
↑ 991,900 4. Aditya Birla Sun Life Arbitrage Fund
Aditya Birla Sun Life Arbitrage Fund
Growth Launch Date 24 Jul 09 NAV (02 Sep 25) ₹26.8174 ↑ 0.01 (0.04 %) Net Assets (Cr) ₹22,310 on 31 Jul 25 Category Hybrid - Arbitrage AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆ Risk Moderate Expense Ratio 1.01 Sharpe Ratio 0.96 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 Aug 20 ₹10,000 31 Aug 21 ₹10,405 31 Aug 22 ₹10,740 31 Aug 23 ₹11,446 31 Aug 24 ₹12,303 31 Aug 25 ₹13,138 Returns for Aditya Birla Sun Life Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 2 Sep 25 Duration Returns 1 Month 0.3% 3 Month 1.5% 6 Month 3.3% 1 Year 6.8% 3 Year 6.9% 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 10.72 Yr. Mohit Sharma 3 Mar 25 0.5 Yr. Data below for Aditya Birla Sun Life Arbitrage Fund as on 31 Jul 25
Asset Allocation
Asset Class Value Cash 88.74% Debt 11.42% Other 0.04% Equity Sector Allocation
Sector Value Financial Services 21.72% Consumer Cyclical 6.69% Basic Materials 6.59% Industrials 6.33% Energy 5.88% Technology 5.18% Consumer Defensive 4.68% Health Care 4.34% Communication Services 3.34% Utility 2.94% Real Estate 1.44% Debt Sector Allocation
Sector Value Cash Equivalent 80.73% Corporate 13.95% Government 5.48% Credit Quality
Rating Value AA 7.93% AAA 92.07% Top Securities Holdings / Portfolio
Name Holding Value Quantity Aditya BSL Money Mgr Dir Gr
Investment Fund | -10% ₹2,299 Cr 60,833,961 Aditya BSL FRF Dir Gr
Investment Fund | -6% ₹1,339 Cr 37,135,768 Reliance Industries Ltd (Energy)
Equity, Since 30 Jun 18 | RELIANCE4% ₹839 Cr 6,037,000
↑ 760,500 Reliance_(28/08/2025)
Derivatives | -3% -₹759 Cr 5,443,000
↑ 3,797,000 ICICI Bank Ltd (Financial Services)
Equity, Since 31 May 24 | ICICIBANK3% ₹668 Cr 4,508,000
↑ 751,100 Future on ICICI Bank Ltd
Derivatives | -3% -₹666 Cr 4,508,000
↑ 751,100 Future on HDFC Bank Ltd
Derivatives | -3% -₹603 Cr 2,973,850
↓ -175,000 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 21 | HDFCBANK3% ₹600 Cr 2,973,850
↓ -160,600 Future on Axis Bank Ltd
Derivatives | -2% -₹480 Cr 4,463,750
↑ 1,441,875 Axis Bank Ltd (Financial Services)
Equity, Since 30 Sep 23 | 5322152% ₹477 Cr 4,463,750
↑ 1,441,875 5. SBI Arbitrage Opportunities Fund
SBI Arbitrage Opportunities Fund
Growth Launch Date 3 Nov 06 NAV (02 Sep 25) ₹34.1476 ↑ 0.02 (0.04 %) Net Assets (Cr) ₹39,824 on 31 Jul 25 Category Hybrid - Arbitrage AMC SBI Funds Management Private Limited Rating ☆☆ Risk Moderately Low Expense Ratio 0.95 Sharpe Ratio 1.27 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 Aug 20 ₹10,000 31 Aug 21 ₹10,374 31 Aug 22 ₹10,772 31 Aug 23 ₹11,540 31 Aug 24 ₹12,416 31 Aug 25 ₹13,262 Returns for SBI Arbitrage Opportunities Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 2 Sep 25 Duration Returns 1 Month 0.4% 3 Month 1.5% 6 Month 3.4% 1 Year 6.7% 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 12.92 Yr. Ardhendu Bhattacharya 27 Dec 24 0.68 Yr. Data below for SBI Arbitrage Opportunities Fund as on 31 Jul 25
Asset Allocation
Asset Class Value Cash 90.29% Debt 9.87% Other 0.04% Equity Sector Allocation
Sector Value Financial Services 26.08% Basic Materials 6.49% Technology 6.2% Industrials 5.61% Consumer Cyclical 5.05% Energy 4.69% Consumer Defensive 4.31% Health Care 4.2% Utility 3.11% Communication Services 2.13% Real Estate 1.28% Debt Sector Allocation
Sector Value Cash Equivalent 84.93% Corporate 12.32% Government 2.91% Credit Quality
Rating Value AA 0.66% AAA 99.34% Top Securities Holdings / Portfolio
Name Holding Value Quantity SBI Savings Dir Gr
Investment Fund | -8% ₹3,258 Cr 726,722,883 Future on HDFC Bank Ltd
Derivatives | -6% -₹2,454 Cr 12,096,150
↓ -411,950 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK6% ₹2,441 Cr 12,096,150
↓ -411,950 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Jun 21 | ICICIBANK4% ₹1,405 Cr 9,482,900
↑ 1,785,000 Future on ICICI Bank Ltd
Derivatives | -4% -₹1,401 Cr 9,482,200
↑ 1,784,300 Future on Axis Bank Ltd
Derivatives | -3% -₹1,201 Cr 11,180,000
↑ 11,032,500 Axis Bank Ltd (Financial Services)
Equity, Since 31 Jul 18 | 5322153% ₹1,194 Cr 11,180,000
↑ 3,733,750 Future on State Bank of India
Derivatives | -3% -₹1,110 Cr 13,858,500
↓ -415,500 SBI Liquid Dir Gr
Investment Fund | -3% ₹1,107 Cr 2,671,146
↑ 1,697,021 State Bank of India (Financial Services)
Equity, Since 31 May 23 | SBIN3% ₹1,104 Cr 13,858,500
↓ -415,500 6. Edelweiss Arbitrage Fund
Edelweiss Arbitrage Fund
Growth Launch Date 27 Jun 14 NAV (02 Sep 25) ₹19.5663 ↑ 0.01 (0.06 %) Net Assets (Cr) ₹15,550 on 31 Jul 25 Category Hybrid - Arbitrage AMC Edelweiss Asset Management Limited Rating ☆☆☆☆☆ Risk Moderately Low Expense Ratio 1.07 Sharpe Ratio 0.9 Information Ratio -0.95 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 Aug 20 ₹10,000 31 Aug 21 ₹10,395 31 Aug 22 ₹10,764 31 Aug 23 ₹11,487 31 Aug 24 ₹12,361 31 Aug 25 ₹13,194 Returns for Edelweiss Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 2 Sep 25 Duration Returns 1 Month 0.3% 3 Month 1.5% 6 Month 3.2% 1 Year 6.7% 3 Year 7% 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 11.19 Yr. Rahul Dedhia 1 Aug 24 1.08 Yr. Amit Vora 6 Nov 24 0.82 Yr. Pranavi Kulkarni 1 Jul 24 1.17 Yr. Data below for Edelweiss Arbitrage Fund as on 31 Jul 25
Asset Allocation
Asset Class Value Cash 95.84% Debt 4.34% Other 0.03% Equity Sector Allocation
Sector Value Financial Services 22.98% Basic Materials 7.71% Energy 6.62% Technology 6.32% Consumer Cyclical 5.98% Industrials 5.26% Health Care 4.69% Consumer Defensive 4.61% Utility 4.42% Communication Services 3.91% Real Estate 1.07% Debt Sector Allocation
Sector Value Cash Equivalent 87.1% Corporate 7.19% Government 5.89% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Edelweiss Liquid Dir Gr
Investment Fund | -7% ₹1,065 Cr 3,110,718
↑ 146,296 Future on HDFC Bank Ltd
Derivatives | -4% -₹594 Cr 2,924,900
↑ 166,100 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 21 | HDFCBANK4% ₹590 Cr 2,924,900
↑ 166,100 Future on Reliance Industries Ltd
Derivatives | -4% -₹569 Cr 4,083,000
↑ 980,500 Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 18 | RELIANCE4% ₹568 Cr 4,083,000
↑ 980,500 Edelweiss Money Market Dir Gr
Investment Fund | -3% ₹419 Cr 132,665,055
↑ 15,892,049 Future on Axis Bank Ltd
Derivatives | -2% -₹365 Cr 3,401,875
↑ 2,030,000 Axis Bank Ltd (Financial Services)
Equity, Since 31 Jul 21 | 5322152% ₹363 Cr 3,401,875
↑ 2,030,000 Future on Bharti Airtel Ltd
Derivatives | -2% -₹291 Cr 1,514,775
↑ 270,750 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 23 | BHARTIARTL2% ₹290 Cr 1,514,775
↑ 270,750 7. HDFC Arbitrage Fund
HDFC Arbitrage Fund
Growth Launch Date 23 Oct 07 NAV (02 Sep 25) ₹30.928 ↑ 0.01 (0.03 %) Net Assets (Cr) ₹21,352 on 31 Jul 25 Category Hybrid - Arbitrage AMC HDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.97 Sharpe Ratio 0.91 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 31 Aug 20 ₹10,000 31 Aug 21 ₹10,401 31 Aug 22 ₹10,728 31 Aug 23 ₹11,446 31 Aug 24 ₹12,327 31 Aug 25 ₹13,151 Returns for HDFC Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 2 Sep 25 Duration Returns 1 Month 0.3% 3 Month 1.5% 6 Month 3.2% 1 Year 6.7% 3 Year 7% 5 Year 5.7% 10 Year 15 Year Since launch 6.5% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.7% 2023 7.2% 2022 4.2% 2021 3.6% 2020 3.7% 2019 6% 2018 5.7% 2017 5.3% 2016 6.6% 2015 7.6% Fund Manager information for HDFC Arbitrage Fund
Name Since Tenure Anil Bamboli 1 Feb 22 3.58 Yr. Arun Agarwal 24 Aug 20 5.02 Yr. Dhruv Muchhal 22 Jun 23 2.2 Yr. Nandita Menezes 29 Mar 25 0.43 Yr. Data below for HDFC Arbitrage Fund as on 31 Jul 25
Asset Allocation
Asset Class Value Cash 22.44% Equity 72.67% Debt 4.85% Other 0.04% Equity Sector Allocation
Sector Value Financial Services 22.51% Basic Materials 8.01% Consumer Cyclical 7.68% Health Care 5.81% Energy 5.03% Consumer Defensive 4.98% Industrials 4.91% Technology 4.73% Communication Services 4.02% Utility 3.89% Real Estate 1.09% Debt Sector Allocation
Sector Value Cash Equivalent 15.62% Corporate 7.57% Government 4.1% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Money Market Dir Gr
Investment Fund | -11% ₹2,369 Cr 4,031,366 HDFC Liquid Dir Gr
Investment Fund | -6% ₹1,239 Cr 2,379,876 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 23 | HDFCBANK5% ₹1,158 Cr 5,738,150
↓ -777,150 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Jun 24 | ICICIBANK5% ₹1,068 Cr 7,212,100
↓ -282,100 Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 21 | RELIANCE3% ₹733 Cr 5,274,500
↑ 66,500 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 23 | BHARTIARTL3% ₹728 Cr 3,803,800
↓ -375,725 Axis Bank Ltd (Financial Services)
Equity, Since 31 Jul 23 | 5322153% ₹636 Cr 5,951,250
↑ 851,875 Grasim Industries Ltd (Basic Materials)
Equity, Since 31 Jul 24 | GRASIM3% ₹545 Cr 1,985,000
↑ 21,750 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Jan 24 | M&M2% ₹473 Cr 1,478,000
↑ 377,600 Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Oct 23 | LT2% ₹422 Cr 1,160,775
↑ 467,075
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