+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.
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 (%) 2024 (%) UTI Arbitrage Fund Growth ₹35.5563
↑ 0.00 ₹9,149 1.2 2.9 6.6 7.1 5.7 7.7 SBI Arbitrage Opportunities Fund Growth ₹34.3063
↓ 0.00 ₹41,552 1.2 2.9 6.6 7.1 5.9 7.5 Kotak Equity Arbitrage Fund Growth ₹38.0071
↓ 0.00 ₹72,274 1.2 2.8 6.6 7.2 5.9 7.8 ICICI Prudential Equity Arbitrage Fund Growth ₹34.7957
↓ 0.00 ₹32,593 1.2 2.8 6.6 7 5.7 7.6 Invesco India Arbitrage Fund Growth ₹32.371
↑ 0.00 ₹25,150 1.3 2.8 6.5 7.1 5.9 7.6 Aditya Birla Sun Life Arbitrage Fund Growth ₹26.9397
↓ 0.00 ₹23,581 1.2 2.8 6.5 6.9 5.7 7.5 HDFC Arbitrage Fund Growth ₹31.074
↓ -0.01 ₹21,771 1.2 2.8 6.5 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 10 Oct 25 Research Highlights & Commentary of 7 Funds showcased
Commentary UTI Arbitrage Fund SBI Arbitrage Opportunities Fund Kotak Equity Arbitrage Fund ICICI Prudential Equity Arbitrage Fund Invesco India Arbitrage Fund Aditya Birla Sun Life Arbitrage Fund HDFC Arbitrage Fund Point 1 Bottom quartile AUM (₹9,149 Cr). Upper mid AUM (₹41,552 Cr). Highest AUM (₹72,274 Cr). Upper mid AUM (₹32,593 Cr). Lower mid AUM (₹25,150 Cr). Lower mid AUM (₹23,581 Cr). Bottom quartile AUM (₹21,771 Cr). Point 2 Established history (19+ yrs). Established history (18+ yrs). Oldest track record among peers (20 yrs). Established history (18+ yrs). Established history (18+ yrs). Established history (16+ yrs). Established history (17+ yrs). Point 3 Rating: 3★ (upper mid). Rating: 2★ (bottom quartile). Top rated. Rating: 4★ (upper mid). Rating: 3★ (lower mid). Rating: 3★ (lower mid). Rating: 3★ (bottom quartile). Point 4 Risk profile: Moderately Low. Risk profile: Moderately Low. Risk profile: Moderately Low. Risk profile: Moderate. Risk profile: Moderately Low. Risk profile: Moderate. Risk profile: Moderately Low. Point 5 5Y return: 5.73% (lower mid). 5Y return: 5.86% (upper mid). 5Y return: 5.90% (top quartile). 5Y return: 5.71% (lower mid). 5Y return: 5.86% (upper mid). 5Y return: 5.66% (bottom quartile). 5Y return: 5.68% (bottom quartile). Point 6 3Y return: 7.07% (lower mid). 3Y return: 7.15% (upper mid). 3Y return: 7.17% (top quartile). 3Y return: 7.00% (bottom quartile). 3Y return: 7.12% (upper mid). 3Y return: 6.95% (bottom quartile). 3Y return: 7.02% (lower mid). Point 7 1Y return: 6.65% (top quartile). 1Y return: 6.59% (upper mid). 1Y return: 6.57% (upper mid). 1Y return: 6.55% (lower mid). 1Y return: 6.51% (lower mid). 1Y return: 6.50% (bottom quartile). 1Y return: 6.47% (bottom quartile). Point 8 1M return: 0.46% (top quartile). 1M return: 0.42% (bottom quartile). 1M return: 0.42% (lower mid). 1M return: 0.42% (bottom quartile). 1M return: 0.44% (upper mid). 1M return: 0.42% (lower mid). 1M return: 0.43% (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: 1.12 (top quartile). Sharpe: 0.87 (lower mid). Sharpe: 1.09 (upper mid). Sharpe: 0.92 (upper mid). Sharpe: 0.77 (bottom quartile). Sharpe: 0.88 (lower mid). Sharpe: 0.64 (bottom quartile). UTI Arbitrage Fund
SBI Arbitrage Opportunities Fund
Kotak Equity Arbitrage Fund
ICICI Prudential Equity Arbitrage Fund
Invesco India Arbitrage Fund
Aditya Birla Sun Life 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 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 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 The primary investment objective of the scheme is to generate income through arbitrage opportunities emerging out of mis-pricing between the cash market and the derivatives market and through deployment of surplus cash in fixed income instruments. Research Highlights for Invesco India Arbitrage Fund Below is the key information for Invesco India Arbitrage Fund Returns up to 1 year are on (Erstwhile Aditya Birla Sun Life Enhanced Arbitrage Fund) An Open ended Equity Scheme with an investment objective to generate income by investing predominantly in equity and equity related instruments. Scheme intends to take advantage from the price differentials / mis-pricing prevailing for stock / index in various market segments (Cash & Futures). Research Highlights for Aditya Birla Sun Life Arbitrage Fund Below is the key information for Aditya Birla Sun Life Arbitrage Fund Returns up to 1 year are on "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 (10 Oct 25) ₹35.5563 ↑ 0.00 (0.00 %) Net Assets (Cr) ₹9,149 on 31 Aug 25 Category Hybrid - Arbitrage AMC UTI Asset Management Company Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.78 Sharpe Ratio 1.12 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 Returns for UTI Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 10 Oct 25 Duration Returns 1 Month 0.5% 3 Month 1.2% 6 Month 2.9% 1 Year 6.6% 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 Aug 25
Asset Allocation
Asset Class Value Cash 90.43% Equity 4.69% Debt 4.82% Other 0.05% Equity Sector Allocation
Sector Value Financial Services 25.39% Consumer Cyclical 7.19% Basic Materials 6.15% Energy 4.62% Consumer Defensive 4.46% Technology 4.43% Industrials 4.05% Health Care 3.76% Communication Services 2.98% Utility 1.6% Real Estate 1.03% Debt Sector Allocation
Sector Value Cash Equivalent 71.82% Corporate 16.99% Government 6.44% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity UTI Money Market Dir Gr
Investment Fund | -17% ₹1,583 Cr 5,006,634
↑ 794,448 ICICI Bank Ltd.
Debentures | -4% -₹405 Cr 2,878,400
↑ 2,875,600 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Sep 24 | ICICIBANK4% ₹403 Cr 2,883,300
↑ 366,100 Future on HDFC Bank Ltd
Derivatives | -4% -₹397 Cr 4,145,900
↑ 2,209,900 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK4% ₹395 Cr 4,145,900
↑ 273,900 Future on Reliance Industries Ltd
Derivatives | -4% -₹359 Cr 2,631,000
↑ 387,500 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 23 | RELIANCE4% ₹357 Cr 2,631,000
↑ 387,500 Future on State Bank of India
Derivatives | -3% -₹290 Cr 3,606,000
↑ 147,000 State Bank of India (Financial Services)
Equity, Since 31 May 23 | SBIN3% ₹289 Cr 3,606,000
↑ 147,000 Future on Axis Bank Ltd
Derivatives | -3% -₹289 Cr 2,748,125
↑ 465,625 2. SBI Arbitrage Opportunities Fund
SBI Arbitrage Opportunities Fund
Growth Launch Date 3 Nov 06 NAV (10 Oct 25) ₹34.3063 ↓ 0.00 (-0.01 %) Net Assets (Cr) ₹41,552 on 31 Aug 25 Category Hybrid - Arbitrage AMC SBI Funds Management Private Limited Rating ☆☆ Risk Moderately Low Expense Ratio 0.95 Sharpe Ratio 0.87 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 Returns for SBI Arbitrage Opportunities Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 10 Oct 25 Duration Returns 1 Month 0.4% 3 Month 1.2% 6 Month 2.9% 1 Year 6.6% 3 Year 7.1% 5 Year 5.9% 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 Aug 25
Asset Allocation
Asset Class Value Cash 83.35% Equity 5.53% Debt 11.08% Other 0.04% Equity Sector Allocation
Sector Value Financial Services 26.81% Consumer Cyclical 6.26% Technology 5.62% Industrials 5.61% Basic Materials 5.28% Energy 4.78% Consumer Defensive 4.13% Health Care 3.74% Utility 2.76% Communication Services 2.36% Real Estate 1.36% Debt Sector Allocation
Sector Value Cash Equivalent 76.96% Corporate 13.87% Government 3.6% Credit Quality
Rating Value AA 0.54% AAA 99.46% Top Securities Holdings / Portfolio
Name Holding Value Quantity SBI Savings Dir Gr
Investment Fund | -8% ₹3,273 Cr 726,722,883 Future on HDFC Bank Ltd
Derivatives | -6% -₹2,502 Cr 26,116,200
↑ 14,020,050 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK6% ₹2,485 Cr 26,116,200
↑ 1,923,900 ICICI Bank Ltd.
Debentures | -5% -₹1,904 Cr 13,541,500
↑ 13,540,800 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Jun 21 | ICICIBANK5% ₹1,900 Cr 13,592,600
↑ 4,109,700 Future on Axis Bank Ltd
Derivatives | -3% -₹1,341 Cr 12,742,500
↑ 1,562,500 Axis Bank Ltd (Financial Services)
Equity, Since 31 Jul 18 | AXISBANK3% ₹1,332 Cr 12,742,500
↑ 1,562,500 SBI Liquid Dir Gr
Investment Fund | -3% ₹1,112 Cr 2,671,146 Future on State Bank of India
Derivatives | -3% -₹1,097 Cr 13,614,750
↓ -243,750 State Bank of India (Financial Services)
Equity, Since 31 May 23 | SBIN3% ₹1,093 Cr 13,614,750
↓ -243,750 3. Kotak Equity Arbitrage Fund
Kotak Equity Arbitrage Fund
Growth Launch Date 29 Sep 05 NAV (10 Oct 25) ₹38.0071 ↓ 0.00 (0.00 %) Net Assets (Cr) ₹72,274 on 31 Aug 25 Category Hybrid - Arbitrage AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.97 Sharpe Ratio 1.09 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 Returns for Kotak Equity Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 10 Oct 25 Duration Returns 1 Month 0.4% 3 Month 1.2% 6 Month 2.8% 1 Year 6.6% 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 Aug 25
Asset Allocation
Asset Class Value Cash 95.34% Debt 5.01% Other 0.06% Equity Sector Allocation
Sector Value Financial Services 25.5% Consumer Cyclical 8.92% Basic Materials 7.73% Industrials 7.11% Energy 5.07% Technology 4.98% Health Care 4.28% Consumer Defensive 3.88% Utility 2.91% Communication Services 2.78% Real Estate 1.31% Debt Sector Allocation
Sector Value Cash Equivalent 84.07% Corporate 11.59% Government 4.7% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Kotak Money Market Dir Gr
Investment Fund | -12% ₹8,728 Cr 19,019,269
↑ 1,311,881 Kotak Savings Fund Dir Gr
Investment Fund | -5% ₹3,606 Cr 794,103,737
↓ -55,124,361 Kotak Liquid Dir Gr
Investment Fund | -5% ₹3,602 Cr 6,696,745
↑ 6,696,745 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK4% ₹2,971 Cr 31,224,600
↑ 5,531,900 Reliance Industries Ltd (Energy)
Equity, Since 31 May 18 | RELIANCE4% ₹2,595 Cr 19,122,500
↑ 196,500 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Dec 19 | ICICIBANK3% ₹2,410 Cr 17,243,100
↑ 4,772,600 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 18 | AXISBANK3% ₹2,340 Cr 22,388,750
↑ 3,681,875 RELIANCE INDUSTRIES LTD.-SEP2025
Derivatives | -3% -₹2,215 Cr 16,233,500
↑ 15,508,500 Axis Bank Ltd.-SEP2025
Derivatives | -3% -₹2,045 Cr 19,436,875
↑ 19,366,250 ICICI Bank Ltd.-SEP2025
Derivatives | -3% -₹1,825 Cr 12,974,500
↑ 12,949,300 4. ICICI Prudential Equity Arbitrage Fund
ICICI Prudential Equity Arbitrage Fund
Growth Launch Date 30 Dec 06 NAV (10 Oct 25) ₹34.7957 ↓ 0.00 (-0.01 %) Net Assets (Cr) ₹32,593 on 31 Aug 25 Category Hybrid - Arbitrage AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 0.9 Sharpe Ratio 0.92 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 Returns for ICICI Prudential Equity Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 10 Oct 25 Duration Returns 1 Month 0.4% 3 Month 1.2% 6 Month 2.8% 1 Year 6.6% 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 Aug 25
Asset Allocation
Asset Class Value Cash 97.9% Debt 2.45% Other 0.03% Equity Sector Allocation
Sector Value Financial Services 22.78% Consumer Cyclical 8.84% Energy 7.85% Industrials 6.16% Basic Materials 5.39% Technology 5.31% Communication Services 5.16% Health Care 4.53% Utility 3.61% Consumer Defensive 3.53% Real Estate 1.25% Debt Sector Allocation
Sector Value Cash Equivalent 84.42% Corporate 11.48% Government 4.45% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Pru Money Market Dir Gr
Investment Fund | -15% ₹4,877 Cr 125,374,734 Future on HDFC Bank Ltd
Derivatives | -5% -₹1,757 Cr 18,317,200
↑ 10,599,050 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Nov 21 | HDFCBANK5% ₹1,743 Cr 18,317,200
↑ 2,880,900 Future on Bharti Airtel Ltd
Derivatives | -4% -₹1,323 Cr 6,963,975
↑ 1,172,300 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Dec 23 | BHARTIARTL4% ₹1,315 Cr 6,963,975
↑ 1,172,300 Future on Reliance Industries Ltd
Derivatives | -4% -₹1,241 Cr 9,094,000
↓ -698,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 18 | RELIANCE4% ₹1,234 Cr 9,094,000
↓ -698,000 Future on Tata Consultancy Services Ltd
Derivatives | -3% -₹845 Cr 2,724,225
↓ -168,350 Future on Axis Bank Ltd
Derivatives | -3% -₹842 Cr 8,006,250
↑ 1,510,000 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Oct 20 | TCS3% ₹840 Cr 2,724,225
↓ -168,350 5. Invesco India Arbitrage Fund
Invesco India Arbitrage Fund
Growth Launch Date 30 Apr 07 NAV (10 Oct 25) ₹32.371 ↑ 0.00 (0.00 %) Net Assets (Cr) ₹25,150 on 31 Aug 25 Category Hybrid - Arbitrage AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 1.06 Sharpe Ratio 0.77 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 Returns for Invesco India Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 10 Oct 25 Duration Returns 1 Month 0.4% 3 Month 1.3% 6 Month 2.8% 1 Year 6.5% 3 Year 7.1% 5 Year 5.9% 10 Year 15 Year Since launch 6.6% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.6% 2023 7.4% 2022 5.1% 2021 3.5% 2020 4.3% 2019 5.9% 2018 5.9% 2017 5.5% 2016 6.5% 2015 7.6% Fund Manager information for Invesco India Arbitrage Fund
Name Since Tenure Deepak Gupta 11 Nov 21 3.81 Yr. Kuber Mannadi 1 Sep 22 3 Yr. Data below for Invesco India Arbitrage Fund as on 31 Aug 25
Asset Allocation
Asset Class Value Cash 96.83% Debt 3.55% Other 0.04% Equity Sector Allocation
Sector Value Financial Services 23.81% Consumer Cyclical 7.32% Energy 7.27% Industrials 6.55% Technology 6.19% Basic Materials 5.72% Health Care 4.46% Utility 3.28% Consumer Defensive 3.13% Real Estate 2.44% Communication Services 2.42% Debt Sector Allocation
Sector Value Cash Equivalent 92.7% Corporate 5.6% Government 2.09% Credit Quality
Rating Value AA 6.85% AAA 93.15% Top Securities Holdings / Portfolio
Name Holding Value Quantity Invesco India Liquid Dir Gr
Investment Fund | -8% ₹1,954 Cr 5,349,341
↑ 1,373,671 Invesco India Money Market Dir Gr
Investment Fund | -6% ₹1,607 Cr 5,036,904 Reliance Industries Ltd (Energy)
Equity, Since 31 Dec 22 | RELIANCE4% ₹1,036 Cr 7,631,500
↑ 464,500 Future on Reliance Chemotex Industries Ltd
Derivatives | -4% -₹950 Cr 6,963,500
↑ 6,685,500 Future on Axis Bank Ltd
Derivatives | -3% -₹867 Cr 8,239,375
↑ 2,385,625 Axis Bank Ltd (Financial Services)
Equity, Since 30 Sep 23 | AXISBANK3% ₹861 Cr 8,239,375
↑ 2,385,625 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 24 | ICICIBANK3% ₹746 Cr 5,335,400
↑ 1,533,000 Icici Bank Limited September 2025 Future
Derivatives | -3% -₹729 Cr 5,184,200
↑ 5,183,500 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 23 | HDFCBANK3% ₹711 Cr 7,467,900
↑ 1,882,100 Hdfc Bank Limited September 2025 Future
Derivatives | -3% -₹689 Cr 7,192,900
↑ 7,192,900 6. Aditya Birla Sun Life Arbitrage Fund
Aditya Birla Sun Life Arbitrage Fund
Growth Launch Date 24 Jul 09 NAV (10 Oct 25) ₹26.9397 ↓ 0.00 (-0.01 %) Net Assets (Cr) ₹23,581 on 31 Aug 25 Category Hybrid - Arbitrage AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆ Risk Moderate Expense Ratio 1.01 Sharpe Ratio 0.88 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 Returns for Aditya Birla Sun Life Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 10 Oct 25 Duration Returns 1 Month 0.4% 3 Month 1.2% 6 Month 2.8% 1 Year 6.5% 3 Year 6.9% 5 Year 5.7% 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 Aug 25
Asset Allocation
Asset Class Value Cash 90.19% Debt 10.13% Other 0.04% Equity Sector Allocation
Sector Value Financial Services 22.41% Consumer Cyclical 9.19% Basic Materials 6.44% Energy 6.31% Industrials 5.86% Consumer Defensive 4.61% Technology 4.46% Health Care 3.75% Communication Services 3.45% Utility 2.93% Real Estate 1.29% Debt Sector Allocation
Sector Value Cash Equivalent 81.74% Corporate 13.32% Government 5.26% Credit Quality
Rating Value AA 7.88% AAA 92.12% Top Securities Holdings / Portfolio
Name Holding Value Quantity Aditya BSL Money Mgr Dir Gr
Investment Fund | -10% ₹2,460 Cr 64,799,248
↑ 3,965,287 Aditya BSL FRF Dir Gr
Investment Fund | -6% ₹1,344 Cr 37,135,768 Reliance Industries Ltd (Energy)
Equity, Since 30 Jun 18 | RELIANCE4% ₹1,022 Cr 7,529,500
↑ 1,492,500 Reliance_(30/09/2025)
Derivatives | -4% -₹922 Cr 6,756,000
↑ 6,162,000 Future on ICICI Bank Ltd
Derivatives | -3% -₹806 Cr 5,705,525
↑ 1,197,525 ICICI Bank Ltd (Financial Services)
Equity, Since 31 May 24 | ICICIBANK3% ₹788 Cr 5,635,000
↑ 1,127,000 Future on HDFC Bank Ltd
Derivatives | -3% -₹753 Cr 7,841,900
↑ 4,868,050 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 21 | HDFCBANK3% ₹746 Cr 7,841,900
↑ 1,894,200 Future on Eternal Ltd
Derivatives | -3% -₹596 Cr 18,861,650
↑ 15,224,150 Eternal Ltd (Consumer Cyclical)
Equity, Since 30 Apr 25 | 5433203% ₹592 Cr 18,861,650
↑ 15,224,150 7. HDFC Arbitrage Fund
HDFC Arbitrage Fund
Growth Launch Date 23 Oct 07 NAV (10 Oct 25) ₹31.074 ↓ -0.01 (-0.03 %) Net Assets (Cr) ₹21,771 on 31 Aug 25 Category Hybrid - Arbitrage AMC HDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.97 Sharpe Ratio 0.64 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 Returns for HDFC Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 10 Oct 25 Duration Returns 1 Month 0.4% 3 Month 1.2% 6 Month 2.8% 1 Year 6.5% 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 Aug 25
Asset Allocation
Asset Class Value Cash 96.38% Debt 4% Other 0.05% Equity Sector Allocation
Sector Value Financial Services 23.38% Consumer Cyclical 8.16% Basic Materials 7.94% Energy 5.14% Consumer Defensive 4.9% Technology 4.85% Industrials 4.66% Health Care 4.6% Communication Services 4.01% Utility 3.24% Real Estate 1.23% Debt Sector Allocation
Sector Value Cash Equivalent 87.41% Corporate 9.5% Government 3.46% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Money Market Dir Gr
Investment Fund | -11% ₹2,380 Cr 4,031,366 HDFC Liquid Dir Gr
Investment Fund | -6% ₹1,244 Cr 2,379,876 Future on HDFC Bank Ltd
Derivatives | -6% -₹1,237 Cr 12,896,400
↑ 12,896,400 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 23 | HDFCBANK6% ₹1,227 Cr 12,896,400
↑ 1,420,100 Future on ICICI Bank Ltd
Derivatives | -5% -₹1,138 Cr 8,092,000
↑ 8,092,000 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Jun 24 | ICICIBANK5% ₹1,131 Cr 8,092,000
↑ 879,900 Future on Reliance Industries Ltd
Derivatives | -4% -₹839 Cr 6,144,000
↑ 6,144,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 21 | RELIANCE4% ₹834 Cr 6,144,000
↑ 869,500 Future on Bharti Airtel Ltd
Derivatives | -3% -₹719 Cr 3,784,800
↑ 3,784,800 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 23 | BHARTIARTL3% ₹715 Cr 3,784,800
↓ -19,000
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?
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.
You Might Also Like
AMFI Registration No. 112358 | CIN: U74999MH2016PTC282153
Shepard Technologies Pvt. Ltd. (with ARN code 112358) makes no warranties or representations, express or implied, on products offered through the platform. It accepts no liability for any damages or losses, however caused, in connection with the use of, or on the reliance of its product or related services. Terms and conditions of the website are applicable.
©2025 Shepard Technologies Private Limited. All Rights Reserved
Research Highlights for UTI Arbitrage Fund