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7 Best Performing Arbitrage Mutual Funds 2023

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7 Best Arbitrage Mutual Funds 2023

Updated on September 27, 2023 , 33498 views

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.

Top 10 Arbitrage Funds

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).

Risk-in-Arbitrage-Funds

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 2023 - 2024

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2022 (%)
SBI Arbitrage Opportunities Fund Growth ₹29.6417
↑ 0.02
₹14,3131.93.774.854.6
Invesco India Arbitrage Fund Growth ₹27.9703
↑ 0.01
₹5,8941.83.674.95.15.1
Kotak Equity Arbitrage Fund Growth ₹32.7596
↑ 0.01
₹23,7371.93.66.84.95.24.5
HDFC Arbitrage Fund Growth ₹26.862
↑ 0.02
₹6,1831.83.56.64.64.84.2
Edelweiss Arbitrage Fund Growth ₹16.9916
↑ 0.01
₹5,8811.83.56.64.75.24.4
ICICI Prudential Equity Arbitrage Fund Growth ₹30.0747
↑ 0.02
₹11,8221.83.56.64.754.2
IDFC Arbitrage Fund Growth ₹28.4935
↑ 0.02
₹3,4941.83.56.64.54.94.1
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 22 Aug 23

*Below is the list of Arbitrage funds sorted on last 1 year return and having AUM > 100 Crore.

1. SBI Arbitrage Opportunities Fund

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.

SBI Arbitrage Opportunities Fund is a Hybrid - Arbitrage fund was launched on 3 Nov 06. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 6.7% since its launch.  Ranked 15 in Arbitrage category.  Return for 2022 was 4.6% , 2021 was 4% and 2020 was 3.5% .

Below is the key information for SBI Arbitrage Opportunities Fund

SBI Arbitrage Opportunities Fund
Growth
Launch Date 3 Nov 06
NAV (22 Aug 23) ₹29.6417 ↑ 0.02   (0.06 %)
Net Assets (Cr) ₹14,313 on 31 Jul 23
Category Hybrid - Arbitrage
AMC SBI Funds Management Private Limited
Rating
Risk Moderately Low
Expense Ratio 0.82
Sharpe Ratio 0.76
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.

DateValue
31 Aug 18₹10,000
31 Aug 19₹10,676
31 Aug 20₹11,094
31 Aug 21₹11,509
31 Aug 22₹11,951
31 Aug 23₹12,803

SBI Arbitrage Opportunities Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹349,120.
Net Profit of ₹49,120
Invest Now

Returns for SBI Arbitrage Opportunities Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Aug 23

DurationReturns
1 Month 0.7%
3 Month 1.9%
6 Month 3.7%
1 Year 7%
3 Year 4.8%
5 Year 5%
10 Year
15 Year
Since launch 6.7%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.6%
2021 4%
2020 3.5%
2019 6%
2018 6.2%
2017 5.3%
2016 6.4%
2015 7.3%
2014 8.6%
2013 9%
Fund Manager information for SBI Arbitrage Opportunities Fund
NameSinceTenure
Neeraj Kumar5 Oct 1210.91 Yr.
Arun R.30 Jun 212.17 Yr.

Data below for SBI Arbitrage Opportunities Fund as on 31 Jul 23

Asset Allocation
Asset ClassValue
Cash96.5%
Debt3.98%
Equity Sector Allocation
SectorValue
Financial Services26.71%
Basic Materials10.34%
Energy9.63%
Industrials7.25%
Technology4.45%
Health Care4.2%
Consumer Cyclical3.85%
Consumer Defensive3.43%
Utility2.89%
Communication Services2.7%
Real Estate0.4%
Debt Sector Allocation
SectorValue
Cash Equivalent92.3%
Government4.98%
Corporate3.19%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Future on HDFC Bank Ltd
Derivatives | -
8%-₹1,447 Cr9,149,250
↑ 1,471,800
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK
8%₹1,438 Cr9,149,250
↑ 1,471,800
SBI Savings Dir Gr
Investment Fund | -
7%₹1,242 Cr320,680,885
↑ 77,722,959
Future on Reliance Industries Ltd
Derivatives | -
6%-₹1,131 Cr4,670,500
↑ 2,404,000
Reliance Industries Ltd (Energy)
Equity, Since 30 Nov 21 | RELIANCE
6%₹1,124 Cr4,670,500
↑ 2,404,000
Future on ICICI Bank Ltd
Derivatives | -
4%-₹679 Cr7,032,200
↑ 7,032,200
ICICI Bank Ltd (Financial Services)
Equity, Since 30 Jun 21 | ICICIBANK
4%₹674 Cr7,032,200
↑ 1,131,900
Future on Kotak Mahindra Bank Ltd
Derivatives | -
2%-₹412 Cr2,326,400
↑ 1,806,400
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Aug 22 | KOTAKBANK
2%₹409 Cr2,326,400
↑ 1,806,400
Tata Consultancy Services Ltd. 28-Sep-23
Derivatives | -
2%-₹336 Cr992,950
↑ 992,950

2. Invesco India Arbitrage Fund

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 CAGR/Annualized return of 6.5% since its launch.  Ranked 9 in Arbitrage category.  Return for 2022 was 5.1% , 2021 was 3.5% and 2020 was 4.3% .

Below is the key information for Invesco India Arbitrage Fund

Invesco India Arbitrage Fund
Growth
Launch Date 30 Apr 07
NAV (22 Aug 23) ₹27.9703 ↑ 0.01   (0.04 %)
Net Assets (Cr) ₹5,894 on 31 Jul 23
Category Hybrid - Arbitrage
AMC Invesco Asset Management (India) Private Ltd
Rating
Risk Moderately Low
Expense Ratio 1.05
Sharpe Ratio 0.86
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.

DateValue
31 Aug 18₹10,000
31 Aug 19₹10,633
31 Aug 20₹11,141
31 Aug 21₹11,558
31 Aug 22₹12,004
31 Aug 23₹12,859

Invesco India Arbitrage Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹349,120.
Net Profit of ₹49,120
Invest Now

Returns for Invesco India Arbitrage Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Aug 23

DurationReturns
1 Month 0.7%
3 Month 1.8%
6 Month 3.6%
1 Year 7%
3 Year 4.9%
5 Year 5.1%
10 Year
15 Year
Since launch 6.5%
Historical performance (Yearly) on absolute basis
YearReturns
2022 5.1%
2021 3.5%
2020 4.3%
2019 5.9%
2018 5.9%
2017 5.5%
2016 6.5%
2015 7.6%
2014 8.3%
2013 7.9%
Fund Manager information for Invesco India Arbitrage Fund
NameSinceTenure
Deepak Gupta11 Nov 211.81 Yr.
Kuber Mannadi1 Sep 221 Yr.

Data below for Invesco India Arbitrage Fund as on 31 Jul 23

Asset Allocation
Asset ClassValue
Cash94.45%
Debt5.93%
Equity Sector Allocation
SectorValue
Financial Services20.15%
Basic Materials12.21%
Energy8.12%
Industrials6.71%
Communication Services4.79%
Technology1.83%
Health Care1.77%
Consumer Cyclical1.74%
Consumer Defensive1.31%
Utility1.24%
Real Estate0.49%
Debt Sector Allocation
SectorValue
Cash Equivalent85.37%
Corporate9.34%
Government5.67%
Credit Quality
RatingValue
AA41.89%
AAA58.11%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Invesco India Money Market Dir Gr
Investment Fund | -
9%₹631 Cr2,291,386
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 23 | HDFCBANK
7%₹487 Cr3,095,950
↑ 646,250
Invesco India Liquid Dir Gr
Investment Fund | -
7%₹479 Cr1,506,394
↑ 314,623
Hdfc Bank Limited September 2023 Future
Derivatives | -
7%-₹465 Cr2,939,200
↑ 2,927,100
Reliance Industries Limited September 2023 Future
Derivatives | -
5%-₹330 Cr1,362,500
↑ 1,362,500
Reliance Industries Ltd (Energy)
Equity, Since 31 Dec 22 | RELIANCE
5%₹328 Cr1,362,500
↑ 1,065,250
Future on Hindustan Aeronautics Ltd Ordinary Shares
Derivatives | -
3%-₹203 Cr517,500
↑ 305,100
Hindustan Aeronautics Ltd Ordinary Shares (Industrials)
Equity, Since 31 Jul 23 | HAL
3%₹202 Cr517,500
↑ 305,100
Invesco India Corp Bond Dir Gr
Investment Fund | -
2%₹163 Cr556,159
Future on Jindal Steel & Power Ltd Shs Dematerialised
Derivatives | -
2%-₹150 Cr2,172,500
↑ 2,172,500

3. Kotak Equity Arbitrage Fund

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 CAGR/Annualized return of 6.9% since its launch.  Ranked 2 in Arbitrage category.  Return for 2022 was 4.5% , 2021 was 4% and 2020 was 4.3% .

Below is the key information for Kotak Equity Arbitrage Fund

Kotak Equity Arbitrage Fund
Growth
Launch Date 29 Sep 05
NAV (22 Aug 23) ₹32.7596 ↑ 0.01   (0.04 %)
Net Assets (Cr) ₹23,737 on 31 Jul 23
Category Hybrid - Arbitrage
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.63
Sharpe Ratio 0.24
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.

DateValue
31 Aug 18₹10,000
31 Aug 19₹10,679
31 Aug 20₹11,179
31 Aug 21₹11,646
31 Aug 22₹12,068
31 Aug 23₹12,902

Kotak Equity Arbitrage Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹349,120.
Net Profit of ₹49,120
Invest Now

Returns for Kotak Equity Arbitrage Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Aug 23

DurationReturns
1 Month 0.7%
3 Month 1.9%
6 Month 3.6%
1 Year 6.8%
3 Year 4.9%
5 Year 5.2%
10 Year
15 Year
Since launch 6.9%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.5%
2021 4%
2020 4.3%
2019 6.1%
2018 6.3%
2017 5.8%
2016 6.7%
2015 7.5%
2014 9%
2013 9.2%
Fund Manager information for Kotak Equity Arbitrage Fund
NameSinceTenure
Hiten Shah3 Oct 193.91 Yr.

Data below for Kotak Equity Arbitrage Fund as on 31 Jul 23

Asset Allocation
Asset ClassValue
Cash97.1%
Debt3.35%
Equity Sector Allocation
SectorValue
Debt Sector Allocation
SectorValue
Cash Equivalent88.04%
Corporate7.91%
Government4.54%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Kotak Money Market Dir Gr
Investment Fund | -
12%₹2,982 Cr7,553,686
Kotak Savings Fund Dir Gr
Investment Fund | -
7%₹1,920 Cr489,335,859
↑ 274,908,785
HDFC Bank Ltd.-SEP2023
Derivatives | -
7%-₹1,861 Cr11,765,050
↑ 11,765,050
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK
7%₹1,849 Cr11,765,050
↑ 915,750
RELIANCE INDUSTRIES LTD.-SEP2023
Derivatives | -
5%-₹1,346 Cr5,557,750
↑ 5,557,750
Reliance Industries Ltd (Energy)
Equity, Since 31 May 18 | RELIANCE
5%₹1,338 Cr5,557,750
↑ 1,508,750
ICICI Bank Ltd.-SEP2023
Derivatives | -
3%-₹744 Cr7,698,600
↑ 7,698,600
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Dec 19 | ICICIBANK
3%₹738 Cr7,698,600
↑ 2,548,700
Kotak Liquid Dir Gr
Investment Fund | -
3%₹707 Cr1,510,222
Grasim Industries Ltd.-SEP2023
Derivatives | -
2%-₹536 Cr2,974,450
↑ 2,974,450

4. HDFC Arbitrage Fund

"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 CAGR/Annualized return of 6.4% since its launch.  Ranked 10 in Arbitrage category.  Return for 2022 was 4.2% , 2021 was 3.6% and 2020 was 3.7% .

Below is the key information for HDFC Arbitrage Fund

HDFC Arbitrage Fund
Growth
Launch Date 23 Oct 07
NAV (22 Aug 23) ₹26.862 ↑ 0.02   (0.07 %)
Net Assets (Cr) ₹6,183 on 31 Jul 23
Category Hybrid - Arbitrage
AMC HDFC Asset Management Company Limited
Rating
Risk Moderately Low
Expense Ratio 0.86
Sharpe Ratio -0.18
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.

DateValue
31 Aug 18₹10,000
31 Aug 19₹10,633
31 Aug 20₹11,077
31 Aug 21₹11,521
31 Aug 22₹11,883
31 Aug 23₹12,679

HDFC Arbitrage Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹340,450.
Net Profit of ₹40,450
Invest Now

Returns for HDFC Arbitrage Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Aug 23

DurationReturns
1 Month 0.7%
3 Month 1.8%
6 Month 3.5%
1 Year 6.6%
3 Year 4.6%
5 Year 4.8%
10 Year
15 Year
Since launch 6.4%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.2%
2021 3.6%
2020 3.7%
2019 6%
2018 5.7%
2017 5.3%
2016 6.6%
2015 7.6%
2014 7.9%
2013 8.3%
Fund Manager information for HDFC Arbitrage Fund
NameSinceTenure
Anil Bamboli1 Feb 221.58 Yr.
Arun Agarwal24 Aug 203.02 Yr.
Nirman Morakhia15 Feb 230.54 Yr.
Dhruv Muchhal22 Jun 230.19 Yr.

Data below for HDFC Arbitrage Fund as on 31 Jul 23

Asset Allocation
Asset ClassValue
Cash98.7%
Debt1.75%
Equity Sector Allocation
SectorValue
Financial Services23%
Basic Materials10.93%
Energy8.03%
Communication Services6.39%
Health Care6.31%
Utility5.32%
Consumer Defensive3.65%
Consumer Cyclical2.3%
Technology2.17%
Industrials1.77%
Real Estate1.44%
Debt Sector Allocation
SectorValue
Cash Equivalent90.55%
Government5.81%
Corporate4.1%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Money Market Dir Gr
Investment Fund | -
12%₹804 Cr1,584,542
↑ 128,182
Future on HDFC Bank Ltd
Derivatives | -
9%-₹566 Cr
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 23 | HDFCBANK
9%₹563 Cr3,579,950
↑ 1,085,700
HDFC Liquid Dir Gr
Investment Fund | -
6%₹392 Cr860,651
↑ 77,007
Future on Reliance Industries Ltd
Derivatives | -
4%-₹256 Cr
Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 21 | RELIANCE
4%₹254 Cr1,057,000
↑ 935,000
Future on Zee Entertainment Enterprises Ltd
Derivatives | -
3%-₹192 Cr
Zee Entertainment Enterprises Ltd (Communication Services)
Equity, Since 30 Sep 20 | ZEEL
3%₹191 Cr7,293,000
↑ 990,000
Future on ICICI Bank Ltd
Derivatives | -
3%-₹184 Cr
ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | ICICIBANK
3%₹183 Cr1,908,200
↓ -706,300

5. Edelweiss Arbitrage Fund

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 CAGR/Annualized return of 6% since its launch.  Ranked 1 in Arbitrage category.  Return for 2022 was 4.4% , 2021 was 3.8% and 2020 was 4.5% .

Below is the key information for Edelweiss Arbitrage Fund

Edelweiss Arbitrage Fund
Growth
Launch Date 27 Jun 14
NAV (22 Aug 23) ₹16.9916 ↑ 0.01   (0.04 %)
Net Assets (Cr) ₹5,881 on 31 Jul 23
Category Hybrid - Arbitrage
AMC Edelweiss Asset Management Limited
Rating
Risk Moderately Low
Expense Ratio 1.08
Sharpe Ratio -0.26
Information Ratio -0.42
Alpha Ratio -0.26
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.

DateValue
31 Aug 18₹10,000
31 Aug 19₹10,673
31 Aug 20₹11,202
31 Aug 21₹11,645
31 Aug 22₹12,057
31 Aug 23₹12,868

Edelweiss Arbitrage Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹349,120.
Net Profit of ₹49,120
Invest Now

Returns for Edelweiss Arbitrage Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Aug 23

DurationReturns
1 Month 0.7%
3 Month 1.8%
6 Month 3.5%
1 Year 6.6%
3 Year 4.7%
5 Year 5.2%
10 Year
15 Year
Since launch 6%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.4%
2021 3.8%
2020 4.5%
2019 6.2%
2018 6.1%
2017 5.8%
2016 6.7%
2015 8%
2014
2013
Fund Manager information for Edelweiss Arbitrage Fund
NameSinceTenure
Dhawal Dalal22 Dec 166.7 Yr.
Bhavesh Jain27 Jun 149.19 Yr.
Bhavin Patadia1 Mar 230.5 Yr.

Data below for Edelweiss Arbitrage Fund as on 31 Jul 23

Asset Allocation
Asset ClassValue
Cash91.95%
Debt8.48%
Equity Sector Allocation
SectorValue
Financial Services26.36%
Basic Materials12.32%
Energy8.14%
Communication Services5.08%
Health Care4.34%
Industrials4.11%
Technology3.56%
Consumer Cyclical3.46%
Utility2.28%
Consumer Defensive1.48%
Real Estate0.69%
Debt Sector Allocation
SectorValue
Cash Equivalent83.94%
Government9.95%
Corporate6.55%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Future on HDFC Bank Ltd
Derivatives | -
8%-₹513 Cr3,245,550
↑ 369,600
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 21 | HDFCBANK
8%₹510 Cr3,245,550
↑ 369,600
Future on Reliance Industries Ltd
Derivatives | -
4%-₹294 Cr1,215,750
↑ 451,500
Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 18 | RELIANCE
4%₹293 Cr1,215,750
↑ 451,500
Future on Adani Enterprises Ltd
Derivatives | -
2%-₹161 Cr662,700
↑ 60,000
Adani Enterprises Ltd (Energy)
Equity, Since 30 Apr 23 | 512599
2%₹160 Cr662,700
↑ 60,000
6.69% Govt Stock 2024
Sovereign Bonds | -
2%₹150 Cr15,000,000
Future on Bank of Baroda
Derivatives | -
2%-₹128 Cr6,803,550
↑ 2,767,050
Bank of Baroda (Financial Services)
Equity, Since 30 Apr 23 | 532134
2%₹127 Cr6,803,550
↑ 2,767,050
364 DTB 29022024
Sovereign Bonds | -
2%₹121 Cr12,500,000
↑ 7,500,000

6. ICICI Prudential Equity Arbitrage Fund

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 CAGR/Annualized return of 6.8% since its launch.  Ranked 4 in Arbitrage category.  Return for 2022 was 4.2% , 2021 was 3.9% and 2020 was 4.3% .

Below is the key information for ICICI Prudential Equity Arbitrage Fund

ICICI Prudential Equity Arbitrage Fund
Growth
Launch Date 30 Dec 06
NAV (22 Aug 23) ₹30.0747 ↑ 0.02   (0.06 %)
Net Assets (Cr) ₹11,822 on 31 Jul 23
Category Hybrid - Arbitrage
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 0.97
Sharpe Ratio -0.27
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.

DateValue
31 Aug 18₹10,000
31 Aug 19₹10,668
31 Aug 20₹11,153
31 Aug 21₹11,612
31 Aug 22₹12,000
31 Aug 23₹12,803

ICICI Prudential Equity Arbitrage Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹349,120.
Net Profit of ₹49,120
Invest Now

Returns for ICICI Prudential Equity Arbitrage Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Aug 23

DurationReturns
1 Month 0.7%
3 Month 1.8%
6 Month 3.5%
1 Year 6.6%
3 Year 4.7%
5 Year 5%
10 Year
15 Year
Since launch 6.8%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.2%
2021 3.9%
2020 4.3%
2019 5.9%
2018 6.2%
2017 5.5%
2016 6.8%
2015 7.6%
2014 8.6%
2013 9.8%
Fund Manager information for ICICI Prudential Equity Arbitrage Fund
NameSinceTenure
Kayzad Eghlim1 Feb 1112.59 Yr.
Rohan Maru29 Dec 202.67 Yr.
Nikhil Kabra29 Dec 202.67 Yr.
Sharmila D’mello31 Jul 221.09 Yr.

Data below for ICICI Prudential Equity Arbitrage Fund as on 31 Jul 23

Asset Allocation
Asset ClassValue
Cash96.93%
Debt3.52%
Equity Sector Allocation
SectorValue
Financial Services20.63%
Basic Materials12.2%
Health Care6.42%
Energy5.94%
Consumer Cyclical5.92%
Consumer Defensive4.92%
Industrials4.31%
Communication Services4.25%
Utility3.63%
Technology3.22%
Real Estate0.83%
Debt Sector Allocation
SectorValue
Cash Equivalent87.61%
Government7.2%
Corporate5.64%
Securitized0%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ICICI Pru Savings Dir Gr
Investment Fund | -
6%₹788 Cr16,474,508
Future on HDFC Bank Ltd
Derivatives | -
6%-₹693 Cr4,379,650
↑ 1,119,800
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Nov 21 | HDFCBANK
6%₹688 Cr4,379,650
↑ 1,119,800
Future on ICICI Bank Ltd
Derivatives | -
3%-₹386 Cr3,997,700
↑ 91,700
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 19 | ICICIBANK
3%₹383 Cr3,997,700
↑ 91,700
Future on Sun Pharmaceuticals Industries Ltd
Derivatives | -
3%-₹376 Cr3,368,400
↓ -439,600
Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 30 Apr 15 | SUNPHARMA
3%₹374 Cr3,368,400
↓ -439,600
Future on Reliance Industries Ltd
Derivatives | -
3%-₹342 Cr1,412,500
↑ 437,250
Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 18 | RELIANCE
3%₹340 Cr1,412,500
↑ 437,250
182 DTB 22092023
Sovereign Bonds | -
2%₹299 Cr30,000,000

7. IDFC Arbitrage Fund

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 CAGR/Annualized return of 6.5% since its launch.  Ranked 17 in Arbitrage category.  Return for 2022 was 4.1% , 2021 was 3.5% and 2020 was 3.8% .

Below is the key information for IDFC Arbitrage Fund

IDFC Arbitrage Fund
Growth
Launch Date 21 Dec 06
NAV (22 Aug 23) ₹28.4935 ↑ 0.02   (0.06 %)
Net Assets (Cr) ₹3,494 on 31 Jul 23
Category Hybrid - Arbitrage
AMC IDFC Asset Management Company Limited
Rating
Risk Moderately Low
Expense Ratio 1.05
Sharpe Ratio -0.16
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.

DateValue
31 Aug 18₹10,000
31 Aug 19₹10,695
31 Aug 20₹11,139
31 Aug 21₹11,565
31 Aug 22₹11,930
31 Aug 23₹12,725

IDFC Arbitrage Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹340,450.
Net Profit of ₹40,450
Invest Now

Returns for IDFC Arbitrage Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Aug 23

DurationReturns
1 Month 0.6%
3 Month 1.8%
6 Month 3.5%
1 Year 6.6%
3 Year 4.5%
5 Year 4.9%
10 Year
15 Year
Since launch 6.5%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.1%
2021 3.5%
2020 3.8%
2019 6.2%
2018 6.3%
2017 5.5%
2016 6.3%
2015 7.4%
2014 8.5%
2013 9.2%
Fund Manager information for IDFC Arbitrage Fund
NameSinceTenure
Harshal Joshi20 Oct 166.87 Yr.
Nemish Sheth26 Nov 211.76 Yr.
Nishita Shah31 Jul 230.09 Yr.

Data below for IDFC Arbitrage Fund as on 31 Jul 23

Asset Allocation
Asset ClassValue
Cash91.07%
Debt9.36%
Equity Sector Allocation
SectorValue
Financial Services21.27%
Basic Materials11.94%
Health Care7.66%
Energy6.02%
Communication Services4.26%
Consumer Defensive4.23%
Consumer Cyclical4.04%
Industrials4.02%
Technology2.9%
Utility2.47%
Real Estate1.65%
Debt Sector Allocation
SectorValue
Cash Equivalent87.1%
Government8.56%
Corporate4.33%
Securitized0.45%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Bandhan Liquid Dir Gr
Investment Fund | -
9%₹337 Cr1,204,888
↑ 287,276
Hdfc Bank Limited September 2023 Future
Derivatives | -
4%-₹141 Cr893,750
↑ 893,750
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 22 | HDFCBANK
4%₹140 Cr893,750
↑ 365,750
Reliance Industries Limited September 2023 Future
Derivatives | -
3%-₹126 Cr522,000
↑ 522,000
Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 18 | RELIANCE
3%₹126 Cr522,000
↑ 62,500
Future on Grasim Industries Ltd
Derivatives | -
3%-₹107 Cr592,325
↑ 197,125
Grasim Industries Ltd (Basic Materials)
Equity, Since 31 May 17 | GRASIM
3%₹106 Cr592,325
↑ 197,125
Future on Sun Pharmaceuticals Industries Ltd
Derivatives | -
3%-₹102 Cr915,600
↓ -62,300
Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 31 May 22 | SUNPHARMA
3%₹102 Cr915,600
↓ -62,300
7.68% Govt Stock 2023
Sovereign Bonds | -
2%₹75 Cr7,500,000

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?

  1. Open Free Investment Account for Lifetime at Fincash.com.

  2. Complete your Registration and KYC Process

  3. Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!

    Get Started

Disclaimer:
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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