+91-22-489139097 Best Arbitrage Mutual Funds 2026
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.
Fund Selection Methodology used to find 7 funds
Top 7 Arbitrage Mutual Funds 2026 - 2027
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2025 (%) ICICI Prudential Equity Arbitrage Fund Growth ₹36.8577
↑ 0.04 ₹34,850 1.5 3 6.2 6.8 6.1 6.5 Invesco India Arbitrage Fund Growth ₹34.2898
↑ 0.01 ₹30,618 1.5 3 6.2 6.8 6.4 6.5 HDFC Arbitrage Fund Growth ₹32.906
↑ 0.03 ₹25,509 1.4 3 6.2 6.8 6.1 6.3 Kotak Equity Arbitrage Fund Growth ₹40.252
↑ 0.02 ₹75,712 1.4 3 6.2 6.9 6.3 6.4 UTI Arbitrage Fund Growth ₹37.6484
↑ 0.04 ₹11,132 1.4 2.9 6.2 6.8 6.1 6.5 SBI Arbitrage Opportunities Fund Growth ₹36.3117
↑ 0.04 ₹47,283 1.4 2.9 6.1 6.8 6.3 6.5 Nippon India Arbitrage Fund Growth ₹28.4765
↑ 0.03 ₹17,533 1.4 2.9 6.1 6.6 6 6.2 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 25 Sep 26 Research Highlights & Commentary of 7 Funds showcased
Commentary ICICI Prudential Equity Arbitrage Fund Invesco India Arbitrage Fund HDFC Arbitrage Fund Kotak Equity Arbitrage Fund UTI Arbitrage Fund SBI Arbitrage Opportunities Fund Nippon India Arbitrage Fund Point 1 Upper mid AUM (₹34,850 Cr). Lower mid AUM (₹30,618 Cr). Lower mid AUM (₹25,509 Cr). Highest AUM (₹75,712 Cr). Bottom quartile AUM (₹11,132 Cr). Upper mid AUM (₹47,283 Cr). Bottom quartile AUM (₹17,533 Cr). Point 2 Established history (19+ yrs). Established history (19+ yrs). Established history (18+ yrs). Oldest track record among peers (21 yrs). Established history (20+ yrs). Established history (19+ yrs). Established history (15+ yrs). Point 3 Top rated. Rating: 3★ (lower mid). Rating: 3★ (lower mid). Rating: 4★ (upper mid). Rating: 3★ (bottom quartile). Rating: 2★ (bottom quartile). Rating: 4★ (upper mid). Point 4 Risk profile: Moderate. Risk profile: Moderately Low. Risk profile: Moderately Low. Risk profile: Moderately Low. Risk profile: Moderately Low. Risk profile: Moderately Low. Risk profile: Moderately Low. Point 5 5Y return: 6.14% (lower mid). 5Y return: 6.35% (top quartile). 5Y return: 6.10% (bottom quartile). 5Y return: 6.30% (upper mid). 5Y return: 6.13% (lower mid). 5Y return: 6.32% (upper mid). 5Y return: 6.03% (bottom quartile). Point 6 3Y return: 6.78% (lower mid). 3Y return: 6.80% (upper mid). 3Y return: 6.78% (lower mid). 3Y return: 6.88% (top quartile). 3Y return: 6.84% (upper mid). 3Y return: 6.78% (bottom quartile). 3Y return: 6.63% (bottom quartile). Point 7 1Y return: 6.22% (top quartile). 1Y return: 6.21% (upper mid). 1Y return: 6.19% (upper mid). 1Y return: 6.19% (lower mid). 1Y return: 6.18% (lower mid). 1Y return: 6.12% (bottom quartile). 1Y return: 6.10% (bottom quartile). Point 8 1M return: 0.46% (upper mid). 1M return: 0.45% (upper mid). 1M return: 0.43% (lower mid). 1M return: 0.43% (bottom quartile). 1M return: 0.46% (top quartile). 1M return: 0.43% (lower mid). 1M return: 0.42% (bottom quartile). 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: 0.43 (bottom quartile). Sharpe: 0.80 (top quartile). Sharpe: 0.65 (upper mid). Sharpe: 0.69 (upper mid). Sharpe: 0.60 (lower mid). Sharpe: 0.48 (lower mid). Sharpe: 0.44 (bottom quartile). ICICI Prudential Equity Arbitrage Fund
Invesco India Arbitrage Fund
HDFC Arbitrage Fund
Kotak Equity Arbitrage Fund
UTI Arbitrage Fund
SBI Arbitrage Opportunities Fund
Nippon India Arbitrage Fund
*Below is the list of Arbitrage funds sorted on last 1 year return and having AUM > 100 Crore.
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. 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 "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 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 (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. Research Highlights for UTI Arbitrage Fund 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 (Erstwhile Reliance Arbitrage Advantage Fund) The investment objective of the scheme is to generate income by taking advantage of the arbitrage opportunities that potentially exists between cash and derivative market and within the derivative segment along with investments in debt securities & money market instruments. Research Highlights for Nippon India Arbitrage Fund Below is the key information for Nippon India Arbitrage Fund Returns up to 1 year are on 1. ICICI Prudential Equity Arbitrage Fund
ICICI Prudential Equity Arbitrage Fund
Growth Launch Date 30 Dec 06 NAV (25 Sep 26) ₹36.8577 ↑ 0.04 (0.10 %) Net Assets (Cr) ₹34,850 on 31 Aug 26 Category Hybrid - Arbitrage AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 0.9 Sharpe Ratio 0.43 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 21 ₹10,000 31 Aug 22 ₹10,334 31 Aug 23 ₹11,026 31 Aug 24 ₹11,861 31 Aug 25 ₹12,667 31 Aug 26 ₹13,416 Returns for ICICI Prudential Equity Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 26 Duration Returns 1 Month 0.5% 3 Month 1.5% 6 Month 3% 1 Year 6.2% 3 Year 6.8% 5 Year 6.1% 10 Year 15 Year Since launch 6.8% Historical performance (Yearly) on absolute basis
Year Returns 2025 6.5% 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% Fund Manager information for ICICI Prudential Equity Arbitrage Fund
Name Since Tenure Nikhil Kabra 29 Dec 20 5.67 Yr. Sharmila D'Silva 31 Jul 22 4.09 Yr. Darshil Dedhia 13 Sep 24 1.96 Yr. Ajaykumar Solanki 23 Aug 24 2.02 Yr. Archana Nair 1 Feb 24 2.58 Yr. Data below for ICICI Prudential Equity Arbitrage Fund as on 31 Aug 26
Asset Allocation
Asset Class Value Cash 94.6% Debt 5.66% Other 0.04% Equity Sector Allocation
Sector Value Consumer Defensive 1% Consumer Cyclical 0.8% Basic Materials 0.76% Communication Services 0.61% Financial Services 0.26% Real Estate 0.09% Debt Sector Allocation
Sector Value Cash Equivalent 77.77% Corporate 17.5% Government 4.99% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Pru Money Market Dir Gr
Investment Fund | -15% ₹5,268 Cr 127,933,512 Future on Bharti Airtel Ltd
Derivatives | -4% -₹1,476 Cr 7,465,575
↑ 313,500 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Dec 23 | BHARTIARTL4% ₹1,472 Cr 7,465,575
↑ 313,500 Future on Reliance Industries Ltd
Derivatives | -4% -₹1,241 Cr 9,438,000
↓ -849,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 18 | RELIANCE4% ₹1,234 Cr 9,438,000
↓ -849,000 Future on Vodafone Idea Ltd
Derivatives | -3% -₹1,127 Cr 861,917,025
↓ -26,088,375 Vodafone Idea Ltd (Communication Services)
Equity, Since 30 Sep 23 | 5328223% ₹1,121 Cr 861,917,025
↓ -26,088,375 Future on Axis Bank Ltd
Derivatives | -3% -₹1,051 Cr 8,491,875
↑ 5,392,500 Axis Bank Ltd (Financial Services)
Equity, Since 31 Jul 23 | 5322153% ₹1,044 Cr 8,491,875
↑ 5,392,500 Future on HDFC Bank Ltd
Derivatives | -2% -₹812 Cr 10,754,900
↓ -5,304,000 2. Invesco India Arbitrage Fund
Invesco India Arbitrage Fund
Growth Launch Date 30 Apr 07 NAV (25 Sep 26) ₹34.2898 ↑ 0.01 (0.04 %) Net Assets (Cr) ₹30,618 on 31 Aug 26 Category Hybrid - Arbitrage AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 1.03 Sharpe Ratio 0.8 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-15 Days (0.5%),15 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Aug 21 ₹10,000 31 Aug 22 ₹10,386 31 Aug 23 ₹11,125 31 Aug 24 ₹11,981 31 Aug 25 ₹12,785 31 Aug 26 ₹13,569 Returns for Invesco India Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 26 Duration Returns 1 Month 0.4% 3 Month 1.5% 6 Month 3% 1 Year 6.2% 3 Year 6.8% 5 Year 6.4% 10 Year 15 Year Since launch 6.6% Historical performance (Yearly) on absolute basis
Year Returns 2025 6.5% 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% Fund Manager information for Invesco India Arbitrage Fund
Name Since Tenure Deepak Gupta 11 Nov 21 4.81 Yr. Pradeep Sukte 25 Jun 26 0.18 Yr. Data below for Invesco India Arbitrage Fund as on 31 Aug 26
Asset Allocation
Asset Class Value Cash 98.58% Equity 0.19% Debt 1.57% Equity Sector Allocation
Sector Value Financial Services 28.28% Basic Materials 6.35% Communication Services 6% Industrials 5.43% Energy 4.65% Consumer Cyclical 4.4% Health Care 3.04% Consumer Defensive 2.86% Utility 2.4% Technology 2.06% Real Estate 0.92% Debt Sector Allocation
Sector Value Cash Equivalent 84.6% Corporate 11.96% Government 3.61% Credit Quality
Rating Value AA 1.79% AAA 98.21% Top Securities Holdings / Portfolio
Name Holding Value Quantity Future on BANK Index
- | -18% -₹5,323 Cr 389,058,100
↓ -22,865,700 Invesco India Liquid Dir Gr
Investment Fund | -14% ₹4,213 Cr 10,887,643
↑ 5,733,648 Invesco India Money Market Dir Gr
Investment Fund | -5% ₹1,491 Cr 4,415,910 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 23 | HDFCBANK3% ₹1,032 Cr 13,794,300
↑ 8,671,650 Future on Bharti Airtel Ltd
Derivatives | -3% -₹952 Cr 4,814,125
↓ -91,675 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Jan 24 | BHARTIARTL3% ₹949 Cr 4,814,125
↓ -91,675 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 24 | ICICIBANK3% ₹853 Cr 5,944,400
↓ -724,500 Reliance Industries Ltd (Energy)
Equity, Since 31 Dec 22 | RELIANCE3% ₹830 Cr 6,350,000
↓ -1,929,000 Future on Reliance Industries Ltd
Derivatives | -3% -₹815 Cr 6,216,000
↓ -2,063,000 Future on Jio Financial Services Ltd
Derivatives | -3% -₹784 Cr 30,458,350
↑ 18,341,750 3. HDFC Arbitrage Fund
HDFC Arbitrage Fund
Growth Launch Date 23 Oct 07 NAV (25 Sep 26) ₹32.906 ↑ 0.03 (0.10 %) Net Assets (Cr) ₹25,509 on 31 Aug 26 Category Hybrid - Arbitrage AMC HDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.86 Sharpe Ratio 0.65 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 21 ₹10,000 31 Aug 22 ₹10,314 31 Aug 23 ₹11,005 31 Aug 24 ₹11,852 31 Aug 25 ₹12,645 31 Aug 26 ₹13,411 Returns for HDFC Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 26 Duration Returns 1 Month 0.4% 3 Month 1.4% 6 Month 3% 1 Year 6.2% 3 Year 6.8% 5 Year 6.1% 10 Year 15 Year Since launch 6.5% Historical performance (Yearly) on absolute basis
Year Returns 2025 6.3% 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% Fund Manager information for HDFC Arbitrage Fund
Name Since Tenure Anil Bamboli 1 Feb 22 4.58 Yr. Arun Agarwal 24 Aug 20 6.02 Yr. Dhruv Muchhal 22 Jun 23 3.19 Yr. Nandita Menezes 29 Mar 25 1.42 Yr. Data below for HDFC Arbitrage Fund as on 31 Aug 26
Asset Allocation
Asset Class Value Cash 90.04% Debt 10.16% Other 0.05% Equity Sector Allocation
Sector Value Basic Materials 1.3% Consumer Defensive 1.2% Communication Services 0.56% Debt Sector Allocation
Sector Value Cash Equivalent 77.48% Corporate 18.83% Government 3.89% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Money Market Dir Gr
Investment Fund | -8% ₹2,097 Cr 3,354,179 Future on HDFC Bank Ltd
Derivatives | -4% -₹1,087 Cr 14,450,150
↓ -651,950 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 23 | HDFCBANK4% ₹1,081 Cr 14,450,150
↓ -651,950 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Jun 24 | ICICIBANK4% ₹1,034 Cr 7,202,300
↑ 512,400 Future on ICICI Bank Ltd
Derivatives | -4% -₹1,031 Cr 7,202,300
↑ 512,400 Future on Reliance Industries Ltd
Derivatives | -4% -₹995 Cr 7,588,000
↓ -247,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 21 | RELIANCE4% ₹992 Cr 7,588,000
↓ -247,000 HDFC Liquid Dir Gr
Investment Fund | -4% ₹944 Cr 1,704,922 HDFC Ultra S/T Fund Dir Gr
Investment Fund | -2% ₹618 Cr 373,115,103 Future on JSW Steel Ltd
Derivatives | -2% -₹603 Cr 4,714,200
↑ 115,425 4. Kotak Equity Arbitrage Fund
Kotak Equity Arbitrage Fund
Growth Launch Date 29 Sep 05 NAV (25 Sep 26) ₹40.252 ↑ 0.02 (0.04 %) Net Assets (Cr) ₹75,712 on 31 Aug 26 Category Hybrid - Arbitrage AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.97 Sharpe Ratio 0.69 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 21 ₹10,000 31 Aug 22 ₹10,363 31 Aug 23 ₹11,078 31 Aug 24 ₹11,947 31 Aug 25 ₹12,765 31 Aug 26 ₹13,544 Returns for Kotak Equity Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 26 Duration Returns 1 Month 0.4% 3 Month 1.4% 6 Month 3% 1 Year 6.2% 3 Year 6.9% 5 Year 6.3% 10 Year 15 Year Since launch 6.9% Historical performance (Yearly) on absolute basis
Year Returns 2025 6.4% 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% Fund Manager information for Kotak Equity Arbitrage Fund
Name Since Tenure Hiten Shah 3 Oct 19 6.92 Yr. Data below for Kotak Equity Arbitrage Fund as on 31 Aug 26
Asset Allocation
Asset Class Value Cash 93.35% Debt 6.88% Other 0.06% Equity Sector Allocation
Sector Value Debt Sector Allocation
Sector Value Cash Equivalent 79.8% Corporate 15.56% Government 4.87% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Kotak Money Market Dir Gr
Investment Fund | -10% ₹7,282 Cr 14,979,603 Kotak Savings Fund Dir Gr
Investment Fund | -5% ₹3,415 Cr 709,655,522 Kotak Liquid Dir Gr
Investment Fund | -4% ₹3,344 Cr 5,869,140
↑ 2,359,486 Kotak Low Duration Dir Gr
Investment Fund | -3% ₹2,087 Cr 5,338,100 Axis Bank Ltd. - August 2026 - Future
Derivatives | -3% -₹2,040 Cr 16,516,250
↑ 16,516,250 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 18 | 5322153% ₹2,031 Cr 16,516,250
↑ 7,580,000 Reliance Industries Ltd (Energy)
Equity, Since 31 May 18 | RELIANCE2% ₹1,599 Cr 12,226,500
↓ -2,904,500 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK2% ₹1,545 Cr 20,644,650
↓ -3,965,650 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Jan 24 | KOTAKBANK2% ₹1,521 Cr 38,982,000
↑ 12,010,000 HDFC Bank Ltd.
Debentures | -2% ₹1,446 Cr 150,000 5. UTI Arbitrage Fund
UTI Arbitrage Fund
Growth Launch Date 22 Jun 06 NAV (25 Sep 26) ₹37.6484 ↑ 0.04 (0.10 %) Net Assets (Cr) ₹11,132 on 31 Aug 26 Category Hybrid - Arbitrage AMC UTI Asset Management Company Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.78 Sharpe Ratio 0.6 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 21 ₹10,000 31 Aug 22 ₹10,320 31 Aug 23 ₹11,001 31 Aug 24 ₹11,847 31 Aug 25 ₹12,663 31 Aug 26 ₹13,426 Returns for UTI Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 26 Duration Returns 1 Month 0.5% 3 Month 1.4% 6 Month 2.9% 1 Year 6.2% 3 Year 6.8% 5 Year 6.1% 10 Year 15 Year Since launch 6.8% Historical performance (Yearly) on absolute basis
Year Returns 2025 6.5% 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% Fund Manager information for UTI Arbitrage Fund
Name Since Tenure Amit Sharma 2 Jul 18 8.17 Yr. Sharwan Kumar Goyal 1 Jan 21 5.67 Yr. Data below for UTI Arbitrage Fund as on 31 Aug 26
Asset Allocation
Asset Class Value Cash 94.13% Equity 0.33% Debt 4.59% Other 0.96% Equity Sector Allocation
Sector Value Consumer Cyclical 2.44% Communication Services 1.47% Consumer Defensive 1.38% Financial Services 0.46% Basic Materials 0.32% Utility 0.32% Energy 0.12% Technology 0% Debt Sector Allocation
Sector Value Cash Equivalent 73.82% Corporate 20.61% Government 4.28% Credit Quality
Rating Value AAA 99.97% Top Securities Holdings / Portfolio
Name Holding Value Quantity UTI Money Market Dir Gr
Investment Fund | -17% ₹1,862 Cr 5,565,906
↑ 149,501 Future on HDFC Bank Ltd
Derivatives | -4% -₹460 Cr 6,117,150
↑ 6,117,150 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK4% ₹458 Cr 6,117,150
↓ -861,250 Future on Reliance Industries Ltd
Derivatives | -4% -₹392 Cr 2,988,000
↑ 2,988,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 23 | RELIANCE4% ₹391 Cr 2,988,000
↑ 52,000 Future on State Bank of India
Derivatives | -3% -₹363 Cr 3,513,750
↑ 3,513,750 State Bank of India (Financial Services)
Equity, Since 31 May 23 | SBIN3% ₹361 Cr 3,513,750
↑ 565,500 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Sep 24 | ICICIBANK3% ₹352 Cr 2,452,800
↓ -216,300 Future on ICICI Bank Ltd
Derivatives | -3% -₹351 Cr 2,452,800
↑ 2,452,800 Future on Bharti Airtel Ltd
Derivatives | -3% -₹299 Cr 1,514,775
↑ 1,514,775 6. SBI Arbitrage Opportunities Fund
SBI Arbitrage Opportunities Fund
Growth Launch Date 3 Nov 06 NAV (25 Sep 26) ₹36.3117 ↑ 0.04 (0.10 %) Net Assets (Cr) ₹47,283 on 31 Aug 26 Category Hybrid - Arbitrage AMC SBI Funds Management Private Limited Rating ☆☆ Risk Moderately Low Expense Ratio 0.95 Sharpe Ratio 0.48 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 21 ₹10,000 31 Aug 22 ₹10,384 31 Aug 23 ₹11,124 31 Aug 24 ₹11,969 31 Aug 25 ₹12,784 31 Aug 26 ₹13,540 Returns for SBI Arbitrage Opportunities Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 26 Duration Returns 1 Month 0.4% 3 Month 1.4% 6 Month 2.9% 1 Year 6.1% 3 Year 6.8% 5 Year 6.3% 10 Year 15 Year Since launch 6.7% Historical performance (Yearly) on absolute basis
Year Returns 2025 6.5% 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% Fund Manager information for SBI Arbitrage Opportunities Fund
Name Since Tenure Neeraj Kumar 5 Oct 12 13.91 Yr. Ardhendu Bhattacharya 27 Dec 24 1.68 Yr. Data below for SBI Arbitrage Opportunities Fund as on 31 Aug 26
Asset Allocation
Asset Class Value Cash 90.16% Equity 2.05% Debt 7.79% Other 0.05% Equity Sector Allocation
Sector Value Financial Services 2.22% Consumer Defensive 0.99% Communication Services 0.64% Consumer Cyclical 0.61% Energy 0.45% Basic Materials 0.45% Real Estate 0.1% Debt Sector Allocation
Sector Value Cash Equivalent 78.77% Corporate 15.23% Government 3.9% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity SBI Savings Dir Gr
Investment Fund | -13% ₹5,879 Cr 1,234,606,835 Future on HDFC Bank Ltd
Derivatives | -5% -₹2,140 Cr 28,407,600
↓ -3,430,050 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK5% ₹2,125 Cr 28,407,600
↓ -3,430,050 Future on Reliance Industries Ltd
Derivatives | -4% -₹1,707 Cr 13,007,000
↑ 1,129,500 Reliance Industries Ltd (Energy)
Equity, Since 30 Nov 21 | RELIANCE4% ₹1,701 Cr 13,007,000
↑ 1,129,500 Future on State Bank of India
Derivatives | -3% -₹1,552 Cr 15,012,000
↑ 1,034,250 State Bank of India (Financial Services)
Equity, Since 31 May 23 | SBIN3% ₹1,542 Cr 15,012,000
↑ 1,034,250 SBI Low Duration Dir Gr
Investment Fund | -3% ₹1,292 Cr 3,329,932 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Jun 21 | ICICIBANK3% ₹1,284 Cr 8,946,000
↓ -5,166,700 SBI Liquid Dir Gr
Investment Fund | -3% ₹1,282 Cr 2,908,677
↓ -2,505,630 7. Nippon India Arbitrage Fund
Nippon India Arbitrage Fund
Growth Launch Date 14 Oct 10 NAV (25 Sep 26) ₹28.4765 ↑ 0.03 (0.10 %) Net Assets (Cr) ₹17,533 on 31 Aug 26 Category Hybrid - Arbitrage AMC Nippon Life Asset Management Ltd. Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 1.07 Sharpe Ratio 0.44 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-1 Months (0.25%),1 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Aug 21 ₹10,000 31 Aug 22 ₹10,339 31 Aug 23 ₹11,015 31 Aug 24 ₹11,839 31 Aug 25 ₹12,610 31 Aug 26 ₹13,354 Returns for Nippon India Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 25 Sep 26 Duration Returns 1 Month 0.4% 3 Month 1.4% 6 Month 2.9% 1 Year 6.1% 3 Year 6.6% 5 Year 6% 10 Year 15 Year Since launch 6.8% Historical performance (Yearly) on absolute basis
Year Returns 2025 6.2% 2024 7.5% 2023 7% 2022 4.2% 2021 3.8% 2020 4.3% 2019 6.2% 2018 6.8% 2017 5.5% 2016 6.6% Fund Manager information for Nippon India Arbitrage Fund
Name Since Tenure Kinjal Desai 25 May 18 8.27 Yr. Vikash Agarwal 14 Sep 24 1.96 Yr. Nemish Sheth 21 Mar 25 1.45 Yr. Rohit Shah 8 Apr 24 2.4 Yr. Amber Singhania 11 Mar 26 0.47 Yr. Data below for Nippon India Arbitrage Fund as on 31 Aug 26
Asset Allocation
Asset Class Value Cash 91.58% Debt 8.6% Other 0.06% Equity Sector Allocation
Sector Value Financial Services 4.39% Consumer Cyclical 1.71% Consumer Defensive 0.89% Energy 0.89% Basic Materials 0.64% Communication Services 0.49% Health Care 0.38% Technology 0.1% Real Estate 0.09% Debt Sector Allocation
Sector Value Cash Equivalent 79.42% Corporate 17.59% Government 3.17% Credit Quality
Rating Value AA 12.75% AAA 87.25% Top Securities Holdings / Portfolio
Name Holding Value Quantity Nippon India Money Market Dir Gr
Investment Fund | -16% ₹2,632 Cr 5,837,038
↑ 333,924 Nippon India U/ST Duration Dir Gr
Investment Fund | -8% ₹1,287 Cr 2,692,072 Future on Reliance Industries Ltd
Derivatives | -5% -₹779 Cr 5,919,000
↑ 5,919,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Dec 17 | RELIANCE5% ₹774 Cr 5,919,000
↓ -293,500 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 23 | HDFCBANK4% ₹739 Cr 9,873,500
↓ -1,696,500 Hdfc Bank Limited_25/08/2026
Derivatives | -3% -₹521 Cr 6,925,100
↑ 6,925,100 Future on Axis Bank Ltd
Derivatives | -3% -₹489 Cr 3,951,875
↑ 3,951,875 Axis Bank Ltd (Financial Services)
Equity, Since 31 Jul 23 | 5322153% ₹486 Cr 3,951,875
↑ 708,125 Future on JSW Steel Ltd
Derivatives | -2% -₹345 Cr 2,704,725
↑ 2,704,725 JSW Steel Ltd (Basic Materials)
Equity, Since 31 Dec 24 | JSWSTEEL2% ₹344 Cr 2,704,725
↑ 70,875
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?
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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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