+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 (%) 2024 (%) UTI Arbitrage Fund Growth ₹36.2298
↑ 0.03 ₹10,465 1.6 3 6.5 7.2 5.9 6.5 SBI Arbitrage Opportunities Fund Growth ₹34.9511
↑ 0.04 ₹41,714 1.6 3 6.5 7.2 6.1 6.5 Invesco India Arbitrage Fund Growth ₹32.9888
↑ 0.03 ₹27,400 1.6 3.1 6.5 7.1 6.1 6.5 ICICI Prudential Equity Arbitrage Fund Growth ₹35.4497
↑ 0.04 ₹32,297 1.6 3 6.4 7.1 5.9 6.5 Aditya Birla Sun Life Arbitrage Fund Growth ₹27.441
↑ 0.03 ₹25,396 1.6 2.9 6.4 7 5.8 6.4 Kotak Equity Arbitrage Fund Growth ₹38.7155
↑ 0.04 ₹72,153 1.6 3 6.4 7.2 6.1 6.4 Axis Arbitrage Fund Growth ₹19.3063
↑ 0.02 ₹8,400 1.6 2.9 6.3 6.9 5.8 6.3 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 23 Jan 26 Research Highlights & Commentary of 7 Funds showcased
Commentary UTI Arbitrage Fund SBI Arbitrage Opportunities Fund Invesco India Arbitrage Fund ICICI Prudential Equity Arbitrage Fund Aditya Birla Sun Life Arbitrage Fund Kotak Equity Arbitrage Fund Axis Arbitrage Fund Point 1 Bottom quartile AUM (₹10,465 Cr). Upper mid AUM (₹41,714 Cr). Lower mid AUM (₹27,400 Cr). Upper mid AUM (₹32,297 Cr). Lower mid AUM (₹25,396 Cr). Highest AUM (₹72,153 Cr). Bottom quartile AUM (₹8,400 Cr). Point 2 Established history (19+ yrs). Established history (19+ yrs). Established history (18+ yrs). Established history (19+ yrs). Established history (16+ yrs). Oldest track record among peers (20 yrs). Established history (11+ yrs). Point 3 Rating: 3★ (upper mid). Rating: 2★ (bottom quartile). Rating: 3★ (lower mid). Top rated. Rating: 3★ (lower mid). Rating: 4★ (upper mid). Rating: 2★ (bottom quartile). Point 4 Risk profile: Moderately Low. Risk profile: Moderately Low. Risk profile: Moderately Low. Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderately Low. Risk profile: Moderate. Point 5 5Y return: 5.91% (lower mid). 5Y return: 6.07% (top quartile). 5Y return: 6.07% (upper mid). 5Y return: 5.90% (lower mid). 5Y return: 5.84% (bottom quartile). 5Y return: 6.07% (upper mid). 5Y return: 5.81% (bottom quartile). Point 6 3Y return: 7.15% (upper mid). 3Y return: 7.16% (upper mid). 3Y return: 7.14% (lower mid). 3Y return: 7.07% (lower mid). 3Y return: 7.02% (bottom quartile). 3Y return: 7.21% (top quartile). 3Y return: 6.94% (bottom quartile). Point 7 1Y return: 6.54% (top quartile). 1Y return: 6.53% (upper mid). 1Y return: 6.46% (upper mid). 1Y return: 6.44% (lower mid). 1Y return: 6.43% (lower mid). 1Y return: 6.42% (bottom quartile). 1Y return: 6.35% (bottom quartile). Point 8 1M return: 0.61% (top quartile). 1M return: 0.59% (lower mid). 1M return: 0.60% (upper mid). 1M return: 0.60% (lower mid). 1M return: 0.57% (bottom quartile). 1M return: 0.61% (upper mid). 1M return: 0.59% (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: 1.25 (upper mid). Sharpe: 1.31 (top quartile). Sharpe: 1.20 (upper mid). Sharpe: 1.05 (lower mid). Sharpe: 0.93 (bottom quartile). Sharpe: 0.94 (lower mid). Sharpe: 0.71 (bottom quartile). UTI Arbitrage Fund
SBI Arbitrage Opportunities Fund
Invesco India Arbitrage Fund
ICICI Prudential Equity Arbitrage Fund
Aditya Birla Sun Life Arbitrage Fund
Kotak Equity Arbitrage Fund
Axis 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 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 The investment objective of Income Optimiser Plan under the scheme is to seek to generate low volatility returns by using arbitrage and other derivative strategies in equity markets and investments in short-term debt portfolio. Research Highlights for ICICI Prudential Equity Arbitrage Fund Below is the key information for ICICI Prudential Equity Arbitrage Fund Returns up to 1 year are on (Erstwhile Aditya Birla Sun Life Enhanced Arbitrage Fund) An Open ended Equity Scheme with an investment objective to generate income by investing predominantly in equity and equity related instruments. Scheme intends to take advantage from the price differentials / mis-pricing prevailing for stock / index in various market segments (Cash & Futures). Research Highlights for Aditya Birla Sun Life Arbitrage Fund Below is the key information for Aditya Birla Sun Life Arbitrage Fund Returns up to 1 year are on 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 Axis Enhanced Arbitrage Fund) To generate income through low volatility absolute return strategies that take advantage of opportunities in the cash and the derivative segments of the equity markets including the arbitrage opportunities available within the derivative segment, by using other derivative based strategies and by investing the balance in debt and money market instruments. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved. The Scheme does not assure or guarantee any returns. Research Highlights for Axis Arbitrage Fund Below is the key information for Axis Arbitrage Fund Returns up to 1 year are on 1. UTI Arbitrage Fund
UTI Arbitrage Fund
Growth Launch Date 22 Jun 06 NAV (23 Jan 26) ₹36.2298 ↑ 0.03 (0.10 %) Net Assets (Cr) ₹10,465 on 31 Dec 25 Category Hybrid - Arbitrage AMC UTI Asset Management Company Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.78 Sharpe Ratio 1.25 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 Dec 20 ₹10,000 31 Dec 21 ₹10,386 31 Dec 22 ₹10,805 31 Dec 23 ₹11,578 31 Dec 24 ₹12,473 31 Dec 25 ₹13,289 Returns for UTI Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 23 Jan 26 Duration Returns 1 Month 0.6% 3 Month 1.6% 6 Month 3% 1 Year 6.5% 3 Year 7.2% 5 Year 5.9% 10 Year 15 Year Since launch 6.8% Historical performance (Yearly) on absolute basis
Year Returns 2024 6.5% 2023 7.7% 2022 7.2% 2021 4% 2020 3.9% 2019 4.4% 2018 6.2% 2017 6.2% 2016 5.7% 2015 6.5% Fund Manager information for UTI Arbitrage Fund
Name Since Tenure Amit Sharma 2 Jul 18 7.5 Yr. Sharwan Kumar Goyal 1 Jan 21 5 Yr. Data below for UTI Arbitrage Fund as on 31 Dec 25
Asset Allocation
Asset Class Value Cash 95.39% Debt 4.98% Other 0.04% Equity Sector Allocation
Sector Value Financial Services 30.13% Consumer Cyclical 9.49% Basic Materials 8.66% Industrials 5.8% Consumer Defensive 5.68% Health Care 4.76% Energy 3.82% Communication Services 3.54% Technology 3.08% Real Estate 1.91% Utility 1.51% Debt Sector Allocation
Sector Value Cash Equivalent 87.34% Corporate 10.93% Government 2.1% Credit Quality
Rating Value AA 1.63% AAA 98.37% Top Securities Holdings / Portfolio
Name Holding Value Quantity UTI Money Market Dir Gr
Investment Fund | -13% ₹1,356 Cr 4,201,929 Icici Bank Ltd-27-Jan-2026
Derivatives | SHORT5% -₹504 Cr 3,735,200
↑ 3,735,200 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Sep 24 | 5321745% ₹502 Cr 3,735,200
↑ 445,200 Hdfc Bank Ltd.-27-Jan-2026
Derivatives | SHORT5% -₹489 Cr 4,898,300
↑ 4,898,300 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK5% ₹486 Cr 4,898,300
↑ 455,400 Axis Bank Ltd.-27-Jan-2026
Derivatives | SHORT3% -₹356 Cr 2,797,500
↑ 2,797,500 Axis Bank Ltd (Financial Services)
Equity, Since 31 Oct 23 | 5322153% ₹355 Cr 2,797,500
↑ 375,625 Reliance Industries Ltd.-27-Jan-2026
Derivatives | SHORT3% -₹353 Cr 2,234,500
↑ 2,234,500 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 23 | RELIANCE3% ₹351 Cr 2,234,500
↓ -26,000 Eternal Limited-27-Jan-2026
Derivatives | SHORT3% -₹323 Cr 11,533,300
↑ 11,533,300 2. SBI Arbitrage Opportunities Fund
SBI Arbitrage Opportunities Fund
Growth Launch Date 3 Nov 06 NAV (23 Jan 26) ₹34.9511 ↑ 0.04 (0.10 %) Net Assets (Cr) ₹41,714 on 31 Dec 25 Category Hybrid - Arbitrage AMC SBI Funds Management Private Limited Rating ☆☆ Risk Moderately Low Expense Ratio 0.95 Sharpe Ratio 1.31 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 Dec 20 ₹10,000 31 Dec 21 ₹10,396 31 Dec 22 ₹10,875 31 Dec 23 ₹11,683 31 Dec 24 ₹12,563 31 Dec 25 ₹13,382 Returns for SBI Arbitrage Opportunities Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 23 Jan 26 Duration Returns 1 Month 0.6% 3 Month 1.6% 6 Month 3% 1 Year 6.5% 3 Year 7.2% 5 Year 6.1% 10 Year 15 Year Since launch 6.7% Historical performance (Yearly) on absolute basis
Year Returns 2024 6.5% 2023 7.5% 2022 7.4% 2021 4.6% 2020 4% 2019 3.5% 2018 6% 2017 6.2% 2016 5.3% 2015 6.4% Fund Manager information for SBI Arbitrage Opportunities Fund
Name Since Tenure Neeraj Kumar 5 Oct 12 13.25 Yr. Ardhendu Bhattacharya 27 Dec 24 1.01 Yr. Data below for SBI Arbitrage Opportunities Fund as on 31 Dec 25
Asset Allocation
Asset Class Value Cash 94.68% Debt 6.31% Other 0.04% Equity Sector Allocation
Sector Value Financial Services 26.13% Basic Materials 8.86% Consumer Cyclical 7.12% Industrials 6.77% Energy 4.93% Technology 4.72% Consumer Defensive 4.41% Health Care 4.29% Communication Services 4.01% Utility 2.67% Real Estate 1.75% Debt Sector Allocation
Sector Value Cash Equivalent 88.81% Corporate 9.35% Government 2.84% Credit Quality
Rating Value AA 2.06% AAA 97.94% Top Securities Holdings / Portfolio
Name Holding Value Quantity SBI Savings Dir Gr
Investment Fund | -8% ₹3,339 Cr 726,722,883 Hdfc Bank Ltd. 27-Jan-26
Derivatives | -6% -₹2,507 Cr 25,131,150
↑ 25,131,150 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK6% ₹2,492 Cr 25,139,400
↓ -11,000 Icici Bank Ltd. 27-Jan-26
Derivatives | -5% -₹2,017 Cr 14,933,800
↑ 14,933,800 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Jun 21 | 5321745% ₹2,005 Cr 14,933,800
↓ -854,700 SBI Liquid Dir Gr
Investment Fund | -4% ₹1,637 Cr 3,857,094
↑ 473,575 SBI Low Duration Dir Gr
Investment Fund | -3% ₹1,089 Cr 2,904,125 Reliance Industries Ltd. 27-Jan-26
Derivatives | -2% -₹810 Cr 5,135,500
↑ 5,135,500 Reliance Industries Ltd (Energy)
Equity, Since 30 Nov 21 | RELIANCE2% ₹809 Cr 5,154,000
↓ -484,500 ITC Ltd (Consumer Defensive)
Equity, Since 30 Sep 18 | ITC2% ₹776 Cr 19,248,000
↑ 16,000 3. Invesco India Arbitrage Fund
Invesco India Arbitrage Fund
Growth Launch Date 30 Apr 07 NAV (23 Jan 26) ₹32.9888 ↑ 0.03 (0.09 %) Net Assets (Cr) ₹27,400 on 31 Dec 25 Category Hybrid - Arbitrage AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 1.06 Sharpe Ratio 1.2 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 Dec 20 ₹10,000 31 Dec 21 ₹10,348 31 Dec 22 ₹10,880 31 Dec 23 ₹11,679 31 Dec 24 ₹12,566 31 Dec 25 ₹13,378 Returns for Invesco India Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 23 Jan 26 Duration Returns 1 Month 0.6% 3 Month 1.6% 6 Month 3.1% 1 Year 6.5% 3 Year 7.1% 5 Year 6.1% 10 Year 15 Year Since launch 6.6% Historical performance (Yearly) on absolute basis
Year Returns 2024 6.5% 2023 7.6% 2022 7.4% 2021 5.1% 2020 3.5% 2019 4.3% 2018 5.9% 2017 5.9% 2016 5.5% 2015 6.5% Fund Manager information for Invesco India Arbitrage Fund
Name Since Tenure Deepak Gupta 11 Nov 21 4.14 Yr. Kuber Mannadi 1 Sep 22 3.34 Yr. Data below for Invesco India Arbitrage Fund as on 31 Dec 25
Asset Allocation
Asset Class Value Cash 98.05% Equity 0.08% Debt 2.36% Equity Sector Allocation
Sector Value Financial Services 24.16% Consumer Cyclical 11.52% Basic Materials 9.28% Industrials 8.87% Health Care 5.78% Consumer Defensive 5.27% Technology 5.17% Communication Services 4.21% Energy 3.75% Utility 2.05% Real Estate 1.67% Debt Sector Allocation
Sector Value Cash Equivalent 93.3% Corporate 5.46% Government 1.67% Credit Quality
Rating Value AA 43.47% AAA 56.53% Top Securities Holdings / Portfolio
Name Holding Value Quantity Invesco India Liquid Dir Gr
Investment Fund | -7% ₹1,966 Cr 5,276,169
↓ -1,745,000 Invesco India Money Market Dir Gr
Investment Fund | -5% ₹1,332 Cr 4,091,423
↑ 308,587 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 23 | HDFCBANK4% ₹1,215 Cr 12,257,300
↑ 1,994,850 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 24 | 5321744% ₹1,209 Cr 9,001,300
↑ 3,217,200 Future on BANK Index
- | -4% -₹1,199 Cr 93,621,550
↑ 93,621,550 Hdfc Bank Limited January 2026 Future
Derivatives | -4% -₹1,198 Cr 12,007,050
↑ 11,495,000 Icici Bank Limited January 2026 Future
Derivatives | -4% -₹1,146 Cr 8,483,300
↑ 7,997,500 Eternal Ltd (Consumer Cyclical)
Equity, Since 31 May 25 | 5433203% ₹774 Cr 27,836,575
↓ -6,193,450 Eternal Limited January 2026 Future
Derivatives | -3% -₹749 Cr 26,752,600
↑ 25,591,025 Future on Vodafone Idea Ltd
Derivatives | -2% -₹647 Cr 597,459,525
↑ 167,037,075 4. ICICI Prudential Equity Arbitrage Fund
ICICI Prudential Equity Arbitrage Fund
Growth Launch Date 30 Dec 06 NAV (23 Jan 26) ₹35.4497 ↑ 0.04 (0.11 %) Net Assets (Cr) ₹32,297 on 31 Dec 25 Category Hybrid - Arbitrage AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 0.9 Sharpe Ratio 1.05 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 Dec 20 ₹10,000 31 Dec 21 ₹10,385 31 Dec 22 ₹10,820 31 Dec 23 ₹11,592 31 Dec 24 ₹12,471 31 Dec 25 ₹13,276 Returns for ICICI Prudential Equity Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 23 Jan 26 Duration Returns 1 Month 0.6% 3 Month 1.6% 6 Month 3% 1 Year 6.4% 3 Year 7.1% 5 Year 5.9% 10 Year 15 Year Since launch 6.9% Historical performance (Yearly) on absolute basis
Year Returns 2024 6.5% 2023 7.6% 2022 7.1% 2021 4.2% 2020 3.9% 2019 4.3% 2018 5.9% 2017 6.2% 2016 5.5% 2015 6.8% Fund Manager information for ICICI Prudential Equity Arbitrage Fund
Name Since Tenure Nikhil Kabra 29 Dec 20 5.01 Yr. Sharmila D'Silva 31 Jul 22 3.42 Yr. Darshil Dedhia 13 Sep 24 1.3 Yr. Ajaykumar Solanki 23 Aug 24 1.36 Yr. Archana Nair 1 Feb 24 1.92 Yr. Data below for ICICI Prudential Equity Arbitrage Fund as on 31 Dec 25
Asset Allocation
Asset Class Value Cash 100.26% Debt 0.24% Other 0.04% Equity Sector Allocation
Sector Value Financial Services 25.12% Consumer Cyclical 10.14% Basic Materials 8.71% Industrials 6.36% Consumer Defensive 5.6% Health Care 4.91% Communication Services 4.87% Energy 4.51% Utility 3.9% Technology 2.34% Real Estate 1.62% Debt Sector Allocation
Sector Value Cash Equivalent 88.15% Corporate 9.02% Government 3.33% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Pru Money Market Dir Gr
Investment Fund | -16% ₹5,078 Cr 127,933,512 Future on HDFC Bank Ltd
Derivatives | -5% -₹1,688 Cr 16,920,200
↑ 2,595,450 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Nov 21 | HDFCBANK5% ₹1,677 Cr 16,920,200
↑ 2,595,450 Future on Axis Bank Ltd
Derivatives | -3% -₹962 Cr 7,546,250
↑ 1,106,875 Axis Bank Ltd (Financial Services)
Equity, Since 31 Jul 23 | 5322153% ₹958 Cr 7,546,250
↑ 1,106,875 Future on Eternal Ltd
Derivatives | -3% -₹950 Cr 33,945,150
↑ 4,369,850 Eternal Ltd (Consumer Cyclical)
Equity, Since 31 May 25 | 5433203% ₹944 Cr 33,945,150
↑ 4,369,850 Future on ITC Ltd
Derivatives | -3% -₹927 Cr 22,868,800
↑ 1,332,800 ITC Ltd (Consumer Defensive)
Equity, Since 31 May 23 | ITC3% ₹922 Cr 22,868,800
↑ 1,332,800 Future on Bharti Airtel Ltd
Derivatives | -2% -₹755 Cr 3,559,650
↑ 375,725 5. Aditya Birla Sun Life Arbitrage Fund
Aditya Birla Sun Life Arbitrage Fund
Growth Launch Date 24 Jul 09 NAV (23 Jan 26) ₹27.441 ↑ 0.03 (0.09 %) Net Assets (Cr) ₹25,396 on 31 Dec 25 Category Hybrid - Arbitrage AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆ Risk Moderate Expense Ratio 1.01 Sharpe Ratio 0.93 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 1,000 Exit Load 0-30 Days (0.5%),30 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Dec 20 ₹10,000 31 Dec 21 ₹10,384 31 Dec 22 ₹10,806 31 Dec 23 ₹11,577 31 Dec 24 ₹12,448 31 Dec 25 ₹13,248 Returns for Aditya Birla Sun Life Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 23 Jan 26 Duration Returns 1 Month 0.6% 3 Month 1.6% 6 Month 2.9% 1 Year 6.4% 3 Year 7% 5 Year 5.8% 10 Year 15 Year Since launch 6.3% Historical performance (Yearly) on absolute basis
Year Returns 2024 6.4% 2023 7.5% 2022 7.1% 2021 4.1% 2020 3.8% 2019 4.1% 2018 6.2% 2017 6% 2016 5.6% 2015 6.5% Fund Manager information for Aditya Birla Sun Life Arbitrage Fund
Name Since Tenure Lovelish Solanki 15 Dec 14 11.05 Yr. Mohit Sharma 3 Mar 25 0.83 Yr. Krina Mehta 2 Oct 25 0.25 Yr. Data below for Aditya Birla Sun Life Arbitrage Fund as on 31 Dec 25
Asset Allocation
Asset Class Value Cash 94% Debt 6.59% Other 0.04% Equity Sector Allocation
Sector Value Financial Services 27.29% Basic Materials 10.09% Consumer Cyclical 8.4% Energy 6.94% Industrials 6.47% Consumer Defensive 4.24% Communication Services 4.05% Health Care 3.72% Utility 3.03% Technology 2.61% Real Estate 1.24% Debt Sector Allocation
Sector Value Cash Equivalent 87.25% Corporate 10.45% Government 2.89% Credit Quality
Rating Value AA 14.16% AAA 85.84% Top Securities Holdings / Portfolio
Name Holding Value Quantity Aditya BSL Money Mgr Dir Gr
Investment Fund | -10% ₹2,611 Cr 67,406,765 Reliance_(27/01/2026)
Derivatives | -5% -₹1,190 Cr 7,538,500
↑ 7,352,500 Reliance Industries Ltd (Energy)
Equity, Since 30 Jun 18 | RELIANCE5% ₹1,188 Cr 7,565,500
↓ -288,500 Future on HDFC Bank Ltd
Derivatives | -4% -₹1,048 Cr 10,505,000
↑ 10,505,000 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 21 | HDFCBANK4% ₹1,041 Cr 10,505,000
↓ -99,550 Aditya BSL FRF Dir Gr
Investment Fund | -4% ₹1,040 Cr 28,135,768 Future on ICICI Bank Ltd
Derivatives | -3% -₹844 Cr 6,246,100 ICICI Bank Ltd (Financial Services)
Equity, Since 31 May 24 | 5321743% ₹839 Cr 6,246,100 Future on Axis Bank Ltd
Derivatives | -3% -₹724 Cr 5,678,125
↓ -16,250 Axis Bank Ltd (Financial Services)
Equity, Since 30 Sep 23 | 5322153% ₹721 Cr 5,678,125
↓ -16,250 6. Kotak Equity Arbitrage Fund
Kotak Equity Arbitrage Fund
Growth Launch Date 29 Sep 05 NAV (23 Jan 26) ₹38.7155 ↑ 0.04 (0.10 %) Net Assets (Cr) ₹72,153 on 31 Dec 25 Category Hybrid - Arbitrage AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.97 Sharpe Ratio 0.94 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 Dec 20 ₹10,000 31 Dec 21 ₹10,396 31 Dec 22 ₹10,867 31 Dec 23 ₹11,668 31 Dec 24 ₹12,582 31 Dec 25 ₹13,390 Returns for Kotak Equity Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 23 Jan 26 Duration Returns 1 Month 0.6% 3 Month 1.6% 6 Month 3% 1 Year 6.4% 3 Year 7.2% 5 Year 6.1% 10 Year 15 Year Since launch 6.9% Historical performance (Yearly) on absolute basis
Year Returns 2024 6.4% 2023 7.8% 2022 7.4% 2021 4.5% 2020 4% 2019 4.3% 2018 6.1% 2017 6.3% 2016 5.8% 2015 6.7% Fund Manager information for Kotak Equity Arbitrage Fund
Name Since Tenure Hiten Shah 3 Oct 19 6.25 Yr. Data below for Kotak Equity Arbitrage Fund as on 31 Dec 25
Asset Allocation
Asset Class Value Cash 97.09% Debt 3.6% Other 0.04% Equity Sector Allocation
Sector Value Financial Services 26.22% Basic Materials 11.46% Industrials 9.13% Consumer Cyclical 8.96% Health Care 5.52% Consumer Defensive 4.76% Energy 4.15% Technology 3.72% Utility 3.62% Communication Services 2.87% Real Estate 1.16% Debt Sector Allocation
Sector Value Cash Equivalent 89.68% Corporate 8.38% Government 2.64% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Kotak Money Market Dir Gr
Investment Fund | -12% ₹8,695 Cr 18,565,334
↑ 857,962 HDFC Bank Ltd.-JAN2026
Derivatives | -4% -₹3,009 Cr 30,172,450
↑ 29,509,700 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK4% ₹2,998 Cr 30,243,950
↑ 13,343,000 Kotak Savings Fund Dir Gr
Investment Fund | -4% ₹2,531 Cr 545,744,605
↓ -215,569,022 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Dec 19 | 5321743% ₹1,867 Cr 13,902,000
↑ 5,897,500 ICICI Bank Ltd.-JAN2026
Derivatives | -3% -₹1,859 Cr 13,766,900
↑ 13,766,900 Kotak Mahindra Bank Ltd.-JAN2026
Derivatives | -2% -₹1,555 Cr 7,040,000
↑ 6,987,600 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Jan 24 | KOTAKBANK2% ₹1,550 Cr 7,040,000
↑ 81,200 Axis Bank Ltd.-JAN2026
Derivatives | -2% -₹1,308 Cr 10,268,125
↑ 10,135,000 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 18 | 5322152% ₹1,303 Cr 10,268,125
↑ 1,080,000 7. Axis Arbitrage Fund
Axis Arbitrage Fund
Growth Launch Date 14 Aug 14 NAV (23 Jan 26) ₹19.3063 ↑ 0.02 (0.10 %) Net Assets (Cr) ₹8,400 on 31 Dec 25 Category Hybrid - Arbitrage AMC Axis Asset Management Company Limited Rating ☆☆ Risk Moderate Expense Ratio 1 Sharpe Ratio 0.71 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-7 Days (0.25%),7 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Dec 20 ₹10,000 31 Dec 21 ₹10,384 31 Dec 22 ₹10,818 31 Dec 23 ₹11,564 31 Dec 24 ₹12,440 31 Dec 25 ₹13,228 Returns for Axis Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 23 Jan 26 Duration Returns 1 Month 0.6% 3 Month 1.6% 6 Month 2.9% 1 Year 6.3% 3 Year 6.9% 5 Year 5.8% 10 Year 15 Year Since launch 5.9% Historical performance (Yearly) on absolute basis
Year Returns 2024 6.3% 2023 7.6% 2022 6.9% 2021 4.2% 2020 3.8% 2019 4.1% 2018 5.8% 2017 6.1% 2016 5.2% 2015 6.9% Fund Manager information for Axis Arbitrage Fund
Name Since Tenure Devang Shah 14 Aug 14 11.39 Yr. Sachin Jain 9 Nov 21 4.15 Yr. Karthik Kumar 3 Jul 23 2.5 Yr. Data below for Axis Arbitrage Fund as on 31 Dec 25
Asset Allocation
Asset Class Value Cash 95.74% Debt 4.71% Equity Sector Allocation
Sector Value Financial Services 26.75% Consumer Cyclical 11.15% Basic Materials 9.69% Industrials 6.15% Communication Services 4.99% Health Care 4.07% Consumer Defensive 3.79% Technology 3.37% Energy 3.26% Real Estate 2.6% Utility 2.36% Debt Sector Allocation
Sector Value Cash Equivalent 89.96% Corporate 7.85% Government 2.63% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Axis Money Market Dir Gr
Investment Fund | -11% ₹917 Cr 6,141,814
↑ 604,593 Future on BANK Index
- | -9% -₹742 Cr 36,709,625
↑ 36,709,625 Hdfc Bank Limited January 2026 Future
Derivatives | -4% -₹303 Cr 3,040,400
↑ 2,989,250 HDFC Bank Ltd (Financial Services)
Equity, Since 28 Feb 23 | HDFCBANK4% ₹301 Cr 3,040,400
↑ 20,350 Reliance Industries Limited January 2026 Future
Derivatives | -3% -₹235 Cr 1,487,500
↑ 1,487,500 Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 20 | RELIANCE3% ₹234 Cr 1,487,500
↑ 73,500 Vodafone Idea Limited January 2026 Future
Derivatives | -3% -₹219 Cr 202,631,625
↑ 202,631,625 Vodafone Idea Ltd (Communication Services)
Equity, Since 30 Sep 23 | 5328223% ₹218 Cr 202,631,625
↓ -89,915,550 Eternal Limited January 2026 Future
Derivatives | -3% -₹211 Cr 7,541,750
↑ 7,532,050 Eternal Ltd (Consumer Cyclical)
Equity, Since 30 Jun 25 | 5433202% ₹210 Cr 7,541,750
↓ -12,125
Things to Consider as an Investor
1. Risk
As trades are carried out on the stock exchange, there’s no counter party risk involved in these funds. Even though the fund manager is buying and selling shares in cash and futures market, there is no risk exposure to equities as is the case with other diversified equity mutual funds. Though the ride looks smooth, do not get too comfortable with these funds. As more people start trading into arbitrage funds, there will be not many arbitrage opportunities available. The spread between cash and future market prices will erode, leaving little for the arbitrage focused investors.
2. Return
Arbitrage Funds may be a good opportunity to make reasonable returns for those who can understand it and then make the most of it. The fund manager tries to generate an Alpha using price differentials in markets. Historically, arbitrage funds have been found to give returns in the range of 7%-8% over a period of 5-10 years. If you are looking to earn moderate returns via a Portfolio which has a perfect blend of debt and equity in a volatile market, arbitrage funds may be your thing. However, you need to keep one thing in mind that there are no guaranteed returns in arbitrage funds.
3. Cost
Cost becomes an important consideration while evaluating arbitrage funds. These funds charge an annual fee called expense ratio which is expressed as a percentage of the fund’s assets. It includes fund manager’s fee and fund management charges. Due to frequent trading, arbitrage funds would incur huge transaction costs and has a high turnover ratio. Additionally, the fund may levy exit loads for a period of 30 to 60 days to discourage investors from exiting early. All these costs may lead to increase in the expense ratio of the fund. A high expense ratio puts a downward pressure on your take-home returns.
4. Investment Horizon
Arbitrage funds may be suitable for investors having a short to medium term horizon of 3 to 5 years. As these funds charge exit loads, you may consider them only when you are ready to stay invested for a period of at least 3-6 months. At the same time, you need to understand that fund returns are highly dependent on the existence of high volatility. So, choosing a lump sum investment would make sense over Systematic investment plan (SIPs). In absence of volatility, liquid funds may give better returns than arbitrage funds over the same investment horizon. Hence, you need to keep the overall market scenario in mind while choosing arbitrage funds.
5. Financial Goals
If you have short to medium term Financial goals, then arbitrage funds are your thing. Instead of a regular savings bank account, you may use these funds to park excess funds in order to create an emergency fund and earn higher returns on them. In case you were already invested in riskier havens equity funds, then you may begin a Systematic Transfer Plan (STP) from the equity funds to a less risky haven like arbitrage funds as you approach completion of the financial goal. This would reduce your portfolio’s overall risk profile but at the same time reduce the returns also. You cannot expect to earn double-digit returns in arbitrage funds.
How to Invest in Arbitrage Funds Online?
Open Free Investment Account for Lifetime at Fincash.com.
Complete your Registration and KYC Process
Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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Research Highlights for UTI Arbitrage Fund