+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 (%) Invesco India Arbitrage Fund Growth ₹34.5524
↑ 0.05 ₹30,396 1.6 3.3 6.2 6.8 6.4 6.5 Kotak Equity Arbitrage Fund Growth ₹40.5471
↑ 0.05 ₹75,275 1.5 3.2 6.2 6.8 6.4 6.4 HDFC Arbitrage Fund Growth ₹33.143
↑ 0.05 ₹25,407 1.6 3.2 6.1 6.7 6.2 6.3 ICICI Prudential Equity Arbitrage Fund Growth ₹37.1111
↑ 0.05 ₹35,576 1.5 3.2 6.1 6.7 6.2 6.5 SBI Arbitrage Opportunities Fund Growth ₹36.5816
↑ 0.05 ₹46,309 1.6 3.2 6.1 6.7 6.3 6.5 UTI Arbitrage Fund Growth ₹37.8957
↑ 0.04 ₹10,900 1.5 3.1 6.1 6.8 6.2 6.5 Nippon India Arbitrage Fund Growth ₹28.6733
↑ 0.03 ₹17,216 1.5 3.2 6 6.6 6.1 6.2 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 6 Nov 26 Research Highlights & Commentary of 7 Funds showcased
Commentary Invesco India Arbitrage Fund Kotak Equity Arbitrage Fund HDFC Arbitrage Fund ICICI Prudential Equity Arbitrage Fund SBI Arbitrage Opportunities Fund UTI Arbitrage Fund Nippon India Arbitrage Fund Point 1 Lower mid AUM (₹30,396 Cr). Highest AUM (₹75,275 Cr). Lower mid AUM (₹25,407 Cr). Upper mid AUM (₹35,576 Cr). Upper mid AUM (₹46,309 Cr). Bottom quartile AUM (₹10,900 Cr). Bottom quartile AUM (₹17,216 Cr). Point 2 Established history (19+ yrs). Oldest track record among peers (21 yrs). Established history (19+ yrs). Established history (19+ yrs). Established history (20+ yrs). Established history (20+ yrs). Established history (16+ yrs). Point 3 Rating: 3★ (lower mid). Top rated. Rating: 3★ (lower mid). Rating: 4★ (upper mid). Rating: 2★ (bottom quartile). Rating: 3★ (bottom quartile). Rating: 4★ (upper mid). Point 4 Risk profile: Moderately Low. Risk profile: Moderately Low. Risk profile: Moderately Low. Risk profile: Moderate. Risk profile: Moderately Low. Risk profile: Moderately Low. Risk profile: Moderately Low. Point 5 5Y return: 6.45% (top quartile). 5Y return: 6.37% (upper mid). 5Y return: 6.20% (lower mid). 5Y return: 6.20% (lower mid). 5Y return: 6.33% (upper mid). 5Y return: 6.20% (bottom quartile). 5Y return: 6.09% (bottom quartile). Point 6 3Y return: 6.76% (upper mid). 3Y return: 6.81% (top quartile). 3Y return: 6.72% (lower mid). 3Y return: 6.72% (bottom quartile). 3Y return: 6.72% (lower mid). 3Y return: 6.76% (upper mid). 3Y return: 6.56% (bottom quartile). Point 7 1Y return: 6.20% (top quartile). 1Y return: 6.16% (upper mid). 1Y return: 6.14% (upper mid). 1Y return: 6.13% (lower mid). 1Y return: 6.12% (lower mid). 1Y return: 6.05% (bottom quartile). 1Y return: 6.02% (bottom quartile). Point 8 1M return: 0.51% (upper mid). 1M return: 0.50% (upper mid). 1M return: 0.48% (lower mid). 1M return: 0.49% (lower mid). 1M return: 0.52% (top quartile). 1M return: 0.45% (bottom quartile). 1M return: 0.48% (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: 0.85 (top quartile). Sharpe: 0.77 (upper mid). Sharpe: 0.72 (lower mid). Sharpe: 0.76 (upper mid). Sharpe: 0.73 (lower mid). Sharpe: 0.71 (bottom quartile). Sharpe: 0.68 (bottom quartile). Invesco India Arbitrage Fund
Kotak Equity Arbitrage Fund
HDFC Arbitrage Fund
ICICI Prudential Equity Arbitrage Fund
SBI Arbitrage Opportunities Fund
UTI Arbitrage Fund
Nippon India Arbitrage Fund
*Below is the list of Arbitrage funds sorted on last 1 year return and having AUM > 100 Crore.
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. Below is the key information for Invesco India 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 "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 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 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 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 (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. Invesco India Arbitrage Fund
Invesco India Arbitrage Fund
Growth Launch Date 30 Apr 07 NAV (06 Nov 26) ₹34.5524 ↑ 0.05 (0.13 %) Net Assets (Cr) ₹30,396 on 30 Sep 26 Category Hybrid - Arbitrage AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 1.03 Sharpe Ratio 0.85 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 Oct 21 ₹10,000 31 Oct 22 ₹10,452 31 Oct 23 ₹11,227 31 Oct 24 ₹12,077 31 Oct 25 ₹12,858 31 Oct 26 ₹13,655 Returns for Invesco India Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Nov 26 Duration Returns 1 Month 0.5% 3 Month 1.6% 6 Month 3.3% 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 4.89 Yr. Pradeep Sukte 25 Jun 26 0.27 Yr. Data below for Invesco India Arbitrage Fund as on 30 Sep 26
Asset Allocation
Asset Class Value Cash 99% Equity 0.03% Debt 1.38% Equity Sector Allocation
Sector Value Financial Services 2.44% Consumer Cyclical 0.78% Communication Services 0.74% Utility 0.5% Basic Materials 0.41% Real Estate 0.13% Debt Sector Allocation
Sector Value Cash Equivalent 89.96% Corporate 8.87% Government 1.55% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Future on HDFC Bank Ltd
Derivatives | -6% -₹1,711 Cr 23,915,450
↑ 23,915,450 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 23 | HDFCBANK6% ₹1,695 Cr 23,915,450
↓ -1,992,250 Invesco India Money Market Dir Gr
Investment Fund | -6% ₹1,678 Cr 4,916,303
↑ 500,393 Invesco India Liquid Dir Gr
Investment Fund | -5% ₹1,587 Cr 4,058,659
↓ -4,387,047 Future on ICICI Bank Ltd
Derivatives | -5% -₹1,391 Cr 10,468,500
↑ 10,468,500 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 24 | ICICIBANK5% ₹1,384 Cr 10,468,500
↑ 3,264,100 Future on Reliance Industries Ltd
Derivatives | -3% -₹1,063 Cr 8,913,000
↑ 2,782,500 Reliance Industries Ltd (Energy)
Equity, Since 31 Dec 22 | RELIANCE3% ₹1,058 Cr 8,913,000
↑ 2,782,500 Future on Axis Bank Ltd
Derivatives | -2% -₹670 Cr 5,457,500
↑ 5,457,500 Future on Vodafone Idea Ltd
Derivatives | -2% -₹669 Cr 515,477,700
↑ 1,572,450 2. Kotak Equity Arbitrage Fund
Kotak Equity Arbitrage Fund
Growth Launch Date 29 Sep 05 NAV (06 Nov 26) ₹40.5471 ↑ 0.05 (0.13 %) Net Assets (Cr) ₹75,275 on 30 Sep 26 Category Hybrid - Arbitrage AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.99 Sharpe Ratio 0.77 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 Oct 21 ₹10,000 31 Oct 22 ₹10,397 31 Oct 23 ₹11,169 31 Oct 24 ₹12,030 31 Oct 25 ₹12,813 31 Oct 26 ₹13,600 Returns for Kotak Equity Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Nov 26 Duration Returns 1 Month 0.5% 3 Month 1.5% 6 Month 3.2% 1 Year 6.2% 3 Year 6.8% 5 Year 6.4% 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 7 Yr. Data below for Kotak Equity Arbitrage Fund as on 30 Sep 26
Asset Allocation
Asset Class Value Cash 91.26% Debt 9.01% Other 0.07% Equity Sector Allocation
Sector Value Debt Sector Allocation
Sector Value Cash Equivalent 79.68% Corporate 14.6% Government 5.99% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Kotak Money Market Dir Gr
Investment Fund | -10% ₹7,364 Cr 14,979,603 Kotak Ultra Short Term Dir Gr
Investment Fund | -5% ₹3,751 Cr 771,352,394
↑ 61,696,872 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Dec 19 | ICICIBANK4% ₹3,139 Cr 23,751,000
↑ 10,873,800 ICICI Bank Ltd.-OCT2026
Derivatives | -4% -₹2,993 Cr 22,519,700
↑ 22,285,200 Kotak Ultra Shrt to S/T Dir Gr
Investment Fund | -4% ₹2,905 Cr 7,367,484
↑ 2,029,384 Kotak Liquid Dir Gr
Investment Fund | -3% ₹2,353 Cr 4,088,850
↑ 2,522,035 Reliance Industries Ltd (Energy)
Equity, Since 31 May 18 | RELIANCE3% ₹2,305 Cr 19,422,000
↑ 7,615,500 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 18 | 5322153% ₹2,216 Cr 18,072,500
↓ -2,375,000 RELIANCE INDUSTRIES LTD.-OCT2026
Derivatives | -3% -₹2,177 Cr 18,264,000
↑ 17,719,500 Axis Bank Ltd.-OCT2026
Derivatives | -3% -₹2,080 Cr 16,939,375
↑ 16,938,125 3. HDFC Arbitrage Fund
HDFC Arbitrage Fund
Growth Launch Date 23 Oct 07 NAV (06 Nov 26) ₹33.143 ↑ 0.05 (0.14 %) Net Assets (Cr) ₹25,407 on 30 Sep 26 Category Hybrid - Arbitrage AMC HDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.86 Sharpe Ratio 0.72 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 Oct 21 ₹10,000 31 Oct 22 ₹10,357 31 Oct 23 ₹11,103 31 Oct 24 ₹11,944 31 Oct 25 ₹12,707 31 Oct 26 ₹13,485 Returns for HDFC Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Nov 26 Duration Returns 1 Month 0.5% 3 Month 1.6% 6 Month 3.2% 1 Year 6.1% 3 Year 6.7% 5 Year 6.2% 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 4.67 Yr. Arun Agarwal 24 Aug 20 6.11 Yr. Dhruv Muchhal 22 Jun 23 3.28 Yr. Nandita Menezes 29 Mar 25 1.51 Yr. Data below for HDFC Arbitrage Fund as on 30 Sep 26
Asset Allocation
Asset Class Value Cash 90.44% Debt 9.83% Other 0.06% Equity Sector Allocation
Sector Value Basic Materials 1.53% Communication Services 0.79% Consumer Defensive 0.58% Consumer Cyclical 0.01% Utility 0% Debt Sector Allocation
Sector Value Cash Equivalent 83.04% Corporate 13.03% Government 4.2% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Money Market Dir Gr
Investment Fund | -9% ₹2,321 Cr 3,671,341
↑ 317,162 Future on HDFC Bank Ltd
Derivatives | -5% -₹1,293 Cr 18,073,250
↓ -113,750 Future on ICICI Bank Ltd
Derivatives | -5% -₹1,287 Cr 9,684,500
↑ 1,157,100 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 23 | HDFCBANK5% ₹1,281 Cr 18,073,250
↓ -113,750 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Jun 24 | ICICIBANK5% ₹1,280 Cr 9,684,500
↑ 1,157,100 HDFC Liquid Dir Gr
Investment Fund | -4% ₹954 Cr 1,704,922 Future on Reliance Industries Ltd
Derivatives | -3% -₹865 Cr 7,256,000
↑ 243,500 Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 21 | RELIANCE3% ₹861 Cr 7,256,000
↑ 243,500 Future on Bharti Airtel Ltd
Derivatives | -3% -₹844 Cr 4,779,450
↑ 159,600 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 23 | BHARTIARTL3% ₹840 Cr 4,779,450
↑ 159,600 4. ICICI Prudential Equity Arbitrage Fund
ICICI Prudential Equity Arbitrage Fund
Growth Launch Date 30 Dec 06 NAV (06 Nov 26) ₹37.1111 ↑ 0.05 (0.13 %) Net Assets (Cr) ₹35,576 on 30 Sep 26 Category Hybrid - Arbitrage AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 0.93 Sharpe Ratio 0.76 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 Oct 21 ₹10,000 31 Oct 22 ₹10,371 31 Oct 23 ₹11,114 31 Oct 24 ₹11,943 31 Oct 25 ₹12,718 31 Oct 26 ₹13,494 Returns for ICICI Prudential Equity Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Nov 26 Duration Returns 1 Month 0.5% 3 Month 1.5% 6 Month 3.2% 1 Year 6.1% 3 Year 6.7% 5 Year 6.2% 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 5.76 Yr. Sharmila D'Silva 31 Jul 22 4.17 Yr. Darshil Dedhia 13 Sep 24 2.05 Yr. Ajaykumar Solanki 23 Aug 24 2.11 Yr. Archana Nair 1 Feb 24 2.67 Yr. Data below for ICICI Prudential Equity Arbitrage Fund as on 30 Sep 26
Asset Allocation
Asset Class Value Cash 95.89% Debt 4.39% Other 0.04% Equity Sector Allocation
Sector Value Basic Materials 1.46% Consumer Cyclical 0.96% Consumer Defensive 0.75% Communication Services 0.31% Real Estate 0.08% Debt Sector Allocation
Sector Value Cash Equivalent 78.91% Corporate 16.27% Government 5.11% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Pru Money Market Dir Gr
Investment Fund | -15% ₹5,327 Cr 127,933,512 Future on Reliance Industries Ltd
Derivatives | -4% -₹1,588 Cr 13,316,500
↑ 2,347,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 18 | RELIANCE4% ₹1,581 Cr 13,316,500
↑ 2,347,000 Future on HDFC Bank Ltd
Derivatives | -3% -₹1,208 Cr 16,875,950
↑ 824,200 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Nov 21 | HDFCBANK3% ₹1,196 Cr 16,875,950
↑ 824,200 Future on Vodafone Idea Ltd
Derivatives | -3% -₹1,066 Cr 821,104,800
↓ -27,803,775 Vodafone Idea Ltd (Communication Services)
Equity, Since 30 Sep 23 | 5328223% ₹1,063 Cr 821,104,800
↓ -27,803,775 Future on Axis Bank Ltd
Derivatives | -3% -₹1,049 Cr 8,541,250
↓ -1,046,250 Axis Bank Ltd (Financial Services)
Equity, Since 31 Jul 23 | 5322153% ₹1,047 Cr 8,541,250
↓ -1,046,250 Future on State Bank of India
Derivatives | -2% -₹841 Cr 8,696,250
↑ 2,265,000 5. SBI Arbitrage Opportunities Fund
SBI Arbitrage Opportunities Fund
Growth Launch Date 3 Nov 06 NAV (06 Nov 26) ₹36.5816 ↑ 0.05 (0.14 %) Net Assets (Cr) ₹46,309 on 30 Sep 26 Category Hybrid - Arbitrage AMC SBI Funds Management Private Limited Rating ☆☆ Risk Moderately Low Expense Ratio 0.91 Sharpe Ratio 0.73 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 Oct 21 ₹10,000 31 Oct 22 ₹10,392 31 Oct 23 ₹11,175 31 Oct 24 ₹12,007 31 Oct 25 ₹12,795 31 Oct 26 ₹13,574 Returns for SBI Arbitrage Opportunities Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Nov 26 Duration Returns 1 Month 0.5% 3 Month 1.6% 6 Month 3.2% 1 Year 6.1% 3 Year 6.7% 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 14 Yr. Ardhendu Bhattacharya 27 Dec 24 1.76 Yr. Data below for SBI Arbitrage Opportunities Fund as on 30 Sep 26
Asset Allocation
Asset Class Value Cash 99.17% Equity 0.12% Debt 0.66% Other 0.04% Equity Sector Allocation
Sector Value Basic Materials 1.57% Consumer Defensive 0.91% Consumer Cyclical 0.67% Communication Services 0.59% Energy 0.53% Financial Services 0.33% Real Estate 0.09% Debt Sector Allocation
Sector Value Cash Equivalent 91.89% Corporate 5.85% Government 2.1% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity SBI Liquid Dir Gr
Investment Fund | -7% ₹3,357 Cr 7,538,173
↑ 1,691,823 SBI Money Market Dir Gr
Investment Fund | -7% ₹3,271 Cr 679,406,835
↓ -344,800,000 Future on Reliance Industries Ltd
Derivatives | -6% -₹2,597 Cr 21,771,000
↑ 5,833,500 Reliance Industries Ltd (Energy)
Equity, Since 30 Nov 21 | RELIANCE6% ₹2,584 Cr 21,771,000
↑ 5,833,500 Future on HDFC Bank Ltd
Derivatives | -5% -₹2,299 Cr 32,117,150
↓ -2,148,900 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK5% ₹2,276 Cr 32,117,150
↓ -2,148,900 Future on State Bank of India
Derivatives | -4% -₹1,720 Cr 17,772,000
↑ 1,050,000 State Bank of India (Financial Services)
Equity, Since 31 May 23 | SBIN4% ₹1,705 Cr 17,772,000
↑ 1,050,000 Future on ICICI Bank Ltd
Derivatives | -3% -₹1,284 Cr 9,648,100
↑ 1,636,600 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Jun 21 | ICICIBANK3% ₹1,275 Cr 9,648,100
↑ 1,636,600 6. UTI Arbitrage Fund
UTI Arbitrage Fund
Growth Launch Date 22 Jun 06 NAV (06 Nov 26) ₹37.8957 ↑ 0.04 (0.11 %) Net Assets (Cr) ₹10,900 on 30 Sep 26 Category Hybrid - Arbitrage AMC UTI Asset Management Company Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.78 Sharpe Ratio 0.71 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 Oct 21 ₹10,000 31 Oct 22 ₹10,349 31 Oct 23 ₹11,090 31 Oct 24 ₹11,930 31 Oct 25 ₹12,718 31 Oct 26 ₹13,486 Returns for UTI Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Nov 26 Duration Returns 1 Month 0.4% 3 Month 1.5% 6 Month 3.1% 1 Year 6.1% 3 Year 6.8% 5 Year 6.2% 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 8.25 Yr. Sharwan Goyal 1 Jan 21 5.75 Yr. Monish Lotia 1 Sep 26 0.08 Yr. Data below for UTI Arbitrage Fund as on 30 Sep 26
Asset Allocation
Asset Class Value Cash 94.06% Debt 6.19% Other 0.09% Equity Sector Allocation
Sector Value Communication Services 1.54% Consumer Defensive 1.3% Financial Services 0.83% Basic Materials 0.72% Health Care 0.44% Consumer Cyclical 0.36% Utility 0.31% Energy 0.16% Industrials 0.08% Debt Sector Allocation
Sector Value Cash Equivalent 74.66% Corporate 20.68% Government 4.91% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity UTI Money Market Dir Gr
Investment Fund | -20% ₹2,134 Cr 6,305,789
↑ 739,883 Future on HDFC Bank Ltd
Derivatives | -5% -₹552 Cr 7,713,550
↑ 7,713,550 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK5% ₹547 Cr 7,713,550
↑ 483,600 Future on Reliance Industries Ltd
Derivatives | -5% -₹523 Cr 4,389,500
↑ 4,389,500 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 23 | RELIANCE5% ₹521 Cr 4,389,500
↑ 1,309,000 Future on ICICI Bank Ltd
Derivatives | -4% -₹481 Cr 3,618,300
↑ 3,618,300 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Sep 24 | ICICIBANK4% ₹478 Cr 3,618,300
↑ 1,290,100 Future on State Bank of India
Derivatives | -3% -₹357 Cr 3,692,250
↑ 3,692,250 State Bank of India (Financial Services)
Equity, Since 31 May 23 | SBIN3% ₹354 Cr 3,692,250
↑ 81,000 UTI Floating Intst Rts Dir Gr
Investment Fund | -2% ₹252 Cr 1,492,702
↑ 594,689 7. Nippon India Arbitrage Fund
Nippon India Arbitrage Fund
Growth Launch Date 14 Oct 10 NAV (06 Nov 26) ₹28.6733 ↑ 0.03 (0.11 %) Net Assets (Cr) ₹17,216 on 30 Sep 26 Category Hybrid - Arbitrage AMC Nippon Life Asset Management Ltd. Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 1.06 Sharpe Ratio 0.68 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 Oct 21 ₹10,000 31 Oct 22 ₹10,368 31 Oct 23 ₹11,098 31 Oct 24 ₹11,917 31 Oct 25 ₹12,661 31 Oct 26 ₹13,421 Returns for Nippon India Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Nov 26 Duration Returns 1 Month 0.5% 3 Month 1.5% 6 Month 3.2% 1 Year 6% 3 Year 6.6% 5 Year 6.1% 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 8.36 Yr. Vikash Agarwal 14 Sep 24 2.05 Yr. Nemish Sheth 21 Mar 25 1.53 Yr. Rohit Shah 8 Apr 24 2.48 Yr. Amber Singhania 11 Mar 26 0.56 Yr. Data below for Nippon India Arbitrage Fund as on 30 Sep 26
Asset Allocation
Asset Class Value Cash 90.76% Debt 9.53% Other 0.07% Equity Sector Allocation
Sector Value Financial Services 4.86% Consumer Defensive 0.9% Technology 0.67% Communication Services 0.59% Basic Materials 0.55% Energy 0.29% Consumer Cyclical 0.18% Real Estate 0.09% Debt Sector Allocation
Sector Value Cash Equivalent 78.5% Corporate 16.3% Government 5.37% Securitized 0.1% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Nippon India Money Market Dir Gr
Investment Fund | -15% ₹2,661 Cr 5,837,038 Nippon India U/ST Term Dir Gr
Investment Fund | -8% ₹1,402 Cr 2,899,872
↑ 207,800 Future on Reliance Industries Ltd
Derivatives | -5% -₹837 Cr 7,009,000
↑ 1,229,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Dec 17 | RELIANCE5% ₹832 Cr 7,009,000
↑ 1,229,000 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 23 | HDFCBANK5% ₹796 Cr 11,229,400
↑ 191,750 Future on ICICI Bank Ltd
Derivatives | -4% -₹730 Cr 5,489,400
↑ 3,684,800 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 24 | ICICIBANK4% ₹726 Cr 5,489,400
↑ 3,684,800 Hdfc Bank Limited_27/10/2026
Derivatives | -4% -₹648 Cr 9,053,850
↑ 9,053,850 Future on Axis Bank Ltd
Derivatives | -2% -₹423 Cr 3,444,375
↓ -637,500 Axis Bank Ltd (Financial Services)
Equity, Since 31 Jul 23 | 5322152% ₹422 Cr 3,444,375
↓ -637,500
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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