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7 Best Performing Arbitrage Mutual Funds 2023

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7 Best Arbitrage Mutual Funds 2023

Updated on March 22, 2023 , 31670 views

Generally, people willing to invest in arbitrage funds look for the best arbitrage funds. But what are Arbitrage funds?

An arbitrage fund is a popular short-term financial investment in India. Arbitrage funds are Mutual Funds that leverage the differential price between the cash Market and derivative market to generate mutual fund returns.

Top 10 Arbitrage Funds

The returns generated by arbitrage funds are dependent on the Volatility of the stock market. Arbitrage mutual funds are hybrid in nature and in times of high or persistent volatility, these funds offer relatively risk-free returns to investors. Before Investing in these funds it is important to understand arbitrage funds taxation and know the best arbitrage funds.

Why Invest in Arbitrage Funds?

Here are some of the benefits of investing in arbitrage funds:

1. Negligible Risk

Arbitrage funds are not 100% risk-free but they do carry negligible risk. They Bank on the mispricing happening in the markets. This gives the investor a safer option compared to other short-term funds since these funds offer better returns during market volatility.

2. Returns

These funds generally give a return of about 7-9% of the amount invested. This is higher compared to Liquid Funds or short-term debt funds in low rate enviornment (When RBI is reducing rate).

Risk-in-Arbitrage-Funds

Thus, making arbitrage funds a lucrative investment option.

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3. Favourable Taxation

One of the biggest benefits of investing in these funds is the tax treatment. Equity Funds attract long term Capital gains. If the gains are made up to INR 1 lakh then it counts under tax-free. Tax at 10% applies to gains above INR 1 lakh.

Arbitrage Funds Taxation

As mentioned above, these funds are taxed favourably. They are said to be a combination of good Debt fund returns and the tax treatment of equity mutual funds. Arbitrage schemes are taxed similar to equity funds making it an attractive investment for people in higher tax brackets. For example, if you belong to a 30% tax bracket, investing in equity arbitrage funds can lower your tax rates to 10% for LTCG and 15% for STCG.

Top 7 Arbitrage Mutual Funds 2023 - 2024

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2022 (%)
Invesco India Arbitrage Fund Growth ₹27.1422
↑ 0.02
₹3,1851.73.35.84.555.1
SBI Arbitrage Opportunities Fund Growth ₹28.7326
↑ 0.02
₹8,8011.83.25.44.24.94.6
Kotak Equity Arbitrage Fund Growth ₹31.7805
↑ 0.02
₹21,9181.83.25.34.45.14.5
Edelweiss Arbitrage Fund Growth ₹16.4968
↑ 0.01
₹5,3931.735.14.354.4
HDFC Arbitrage Fund Growth ₹26.084
↑ 0.01
₹5,8861.73.154.14.74.2
ICICI Prudential Equity Arbitrage Fund Growth ₹29.2033
↑ 0.01
₹11,2731.7354.34.94.2
IDFC Arbitrage Fund Growth ₹27.6615
↑ 0.02
₹3,6301.734.944.84.1
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 24 Mar 23

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

1. Invesco India Arbitrage Fund

The primary investment objective of the scheme is to generate income through arbitrage opportunities emerging out of mis-pricing between the cash market and the derivatives market and through deployment of surplus cash in fixed income instruments.

Invesco India Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 30 Apr 07. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 6.5% since its launch.  Ranked 9 in Arbitrage category.  Return for 2022 was 5.1% , 2021 was 3.5% and 2020 was 4.3% .

Below is the key information for Invesco India Arbitrage Fund

Invesco India Arbitrage Fund
Growth
Launch Date 30 Apr 07
NAV (24 Mar 23) ₹27.1422 ↑ 0.02   (0.06 %)
Net Assets (Cr) ₹3,185 on 28 Feb 23
Category Hybrid - Arbitrage
AMC Invesco Asset Management (India) Private Ltd
Rating
Risk Moderately Low
Expense Ratio 1.02
Sharpe Ratio -0.13
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-15 Days (0.5%),15 Days and above(NIL)

Growth of 10,000 investment over the years.

DateValue
28 Feb 18₹10,000
28 Feb 19₹10,557
29 Feb 20₹11,240
28 Feb 21₹11,617
28 Feb 22₹12,083
28 Feb 23₹12,731

Invesco India Arbitrage Fund SIP Returns

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

Returns for Invesco India Arbitrage Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Mar 23

DurationReturns
1 Month 0.5%
3 Month 1.7%
6 Month 3.3%
1 Year 5.8%
3 Year 4.5%
5 Year 5%
10 Year
15 Year
Since launch 6.5%
Historical performance (Yearly) on absolute basis
YearReturns
2022 5.1%
2021 3.5%
2020 4.3%
2019 5.9%
2018 5.9%
2017 5.5%
2016 6.5%
2015 7.6%
2014 8.3%
2013 7.9%
Fund Manager information for Invesco India Arbitrage Fund
NameSinceTenure
Deepak Gupta11 Nov 211.22 Yr.
Kuber Mannadi1 Sep 220.42 Yr.

Data below for Invesco India Arbitrage Fund as on 28 Feb 23

Asset Allocation
Asset ClassValue
Cash97.83%
Debt2.69%
Equity Sector Allocation
SectorValue
Financial Services30.28%
Basic Materials15.03%
Industrials7.24%
Consumer Cyclical5.39%
Energy3.98%
Technology2.91%
Health Care2.83%
Utility1.91%
Communication Services1.84%
Consumer Defensive0.93%
Real Estate0.67%
Debt Sector Allocation
SectorValue
Cash Equivalent90.96%
Corporate5.7%
Government3.86%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Invesco India Liquid Dir Gr
Investment Fund | -
17%₹513 Cr1,679,811
↑ 147,464
Future on Kotak Mahindra Bank Ltd
Derivatives | -
6%-₹191 Cr1,099,600
↑ 102,400
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Aug 22 | KOTAKBANK
6%₹190 Cr1,099,600
↑ 102,400
Icici Bank Limited February 2023 Future
Derivatives | -
6%-₹179 Cr2,132,900
↑ 2,132,900
ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | ICICIBANK
6%₹177 Cr2,132,900
↑ 1,644,300
Invesco India US/T Dir Gr
Investment Fund | -
5%₹161 Cr668,086
↑ 542,563
Future on Bajaj Finserv Ltd
Derivatives | -
4%-₹116 Cr854,000
↑ 559,500
Bajaj Finserv Ltd (Financial Services)
Equity, Since 31 Oct 22 | 532978
4%₹115 Cr854,000
↑ 559,500
Future on Reliance Industries Ltd
Derivatives | -
4%-₹109 Cr460,000
↑ 409,000
Reliance Industries Ltd (Energy)
Equity, Since 31 Dec 22 | RELIANCE
4%₹108 Cr460,000
↑ 409,000

2. SBI Arbitrage Opportunities Fund

To provide capital appreciation and regular income for unitholders by identifying profitable arbitrage opportunities between the spot and derivative market segments as also through investment of surplus cash in debt and money market instruments.

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

Below is the key information for SBI Arbitrage Opportunities Fund

SBI Arbitrage Opportunities Fund
Growth
Launch Date 3 Nov 06
NAV (24 Mar 23) ₹28.7326 ↑ 0.02   (0.06 %)
Net Assets (Cr) ₹8,801 on 28 Feb 23
Category Hybrid - Arbitrage
AMC SBI Funds Management Private Limited
Rating
Risk Moderately Low
Expense Ratio 0.85
Sharpe Ratio -0.82
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-1 Months (0.5%),1 Months and above(NIL)

Growth of 10,000 investment over the years.

DateValue
28 Feb 18₹10,000
28 Feb 19₹10,580
29 Feb 20₹11,283
28 Feb 21₹11,559
28 Feb 22₹12,078
28 Feb 23₹12,668

SBI Arbitrage Opportunities Fund SIP Returns

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

Returns for SBI Arbitrage Opportunities Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Mar 23

DurationReturns
1 Month 0.5%
3 Month 1.8%
6 Month 3.2%
1 Year 5.4%
3 Year 4.2%
5 Year 4.9%
10 Year
15 Year
Since launch 6.7%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.6%
2021 4%
2020 3.5%
2019 6%
2018 6.2%
2017 5.3%
2016 6.4%
2015 7.3%
2014 8.6%
2013 9%
Fund Manager information for SBI Arbitrage Opportunities Fund
NameSinceTenure
Neeraj Kumar5 Oct 1210.33 Yr.
Arun R.30 Jun 211.59 Yr.

Data below for SBI Arbitrage Opportunities Fund as on 28 Feb 23

Asset Allocation
Asset ClassValue
Cash99.95%
Debt0.37%
Equity Sector Allocation
SectorValue
Financial Services31.64%
Basic Materials9.05%
Energy7.85%
Industrials7.55%
Consumer Cyclical4.24%
Utility2.81%
Consumer Defensive2.34%
Health Care2.15%
Technology2%
Communication Services1.61%
Real Estate1.13%
Debt Sector Allocation
SectorValue
Cash Equivalent93.44%
Corporate3.5%
Government3.38%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
SBI Savings Dir Gr
Investment Fund | -
10%₹808 Cr217,923,843
Future on Kotak Mahindra Bank Ltd
Derivatives | -
5%-₹451 Cr2,589,200
↑ 1,361,600
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Aug 22 | KOTAKBANK
5%₹448 Cr2,589,200
↑ 1,361,600
Future on ICICI Bank Ltd
Derivatives | -
5%-₹436 Cr5,190,500
↑ 5,190,500
ICICI Bank Ltd (Financial Services)
Equity, Since 30 Jun 21 | ICICIBANK
5%₹432 Cr5,190,500
↑ 2,919,000
Future on Reliance Industries Ltd
Derivatives | -
5%-₹420 Cr1,769,000
↑ 1,254,750
Reliance Industries Ltd (Energy)
Equity, Since 30 Nov 21 | RELIANCE
5%₹416 Cr1,769,000
↑ 1,254,750
Future on HDFC Bank Ltd
Derivatives | -
5%-₹382 Cr2,362,800
↑ 671,550
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK
5%₹379 Cr2,362,800
↑ 671,550
Future on Adani Ports & Special Economic Zone Ltd
Derivatives | -
3%-₹249 Cr4,036,250
↑ 695,000

3. Kotak Equity Arbitrage Fund

The investment objective of the scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market, and by investing the balance in debt and money market instruments. However, there is no assurance that the objective of the scheme will be realized

Kotak Equity Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 29 Sep 05. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 6.8% since its launch.  Ranked 2 in Arbitrage category.  Return for 2022 was 4.5% , 2021 was 4% and 2020 was 4.3% .

Below is the key information for Kotak Equity Arbitrage Fund

Kotak Equity Arbitrage Fund
Growth
Launch Date 29 Sep 05
NAV (24 Mar 23) ₹31.7805 ↑ 0.02   (0.06 %)
Net Assets (Cr) ₹21,918 on 28 Feb 23
Category Hybrid - Arbitrage
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.63
Sharpe Ratio -0.97
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-30 Days (0.25%),30 Days and above(NIL)

Growth of 10,000 investment over the years.

DateValue
28 Feb 18₹10,000
28 Feb 19₹10,613
29 Feb 20₹11,305
28 Feb 21₹11,703
28 Feb 22₹12,208
28 Feb 23₹12,790

Kotak Equity Arbitrage Fund SIP Returns

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

Returns for Kotak Equity Arbitrage Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Mar 23

DurationReturns
1 Month 0.5%
3 Month 1.8%
6 Month 3.2%
1 Year 5.3%
3 Year 4.4%
5 Year 5.1%
10 Year
15 Year
Since launch 6.8%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.5%
2021 4%
2020 4.3%
2019 6.1%
2018 6.3%
2017 5.8%
2016 6.7%
2015 7.5%
2014 9%
2013 9.2%
Fund Manager information for Kotak Equity Arbitrage Fund
NameSinceTenure
Hiten Shah3 Oct 193.33 Yr.

Data below for Kotak Equity Arbitrage Fund as on 28 Feb 23

Asset Allocation
Asset ClassValue
Cash97.6%
Debt2.97%
Equity Sector Allocation
SectorValue
Financial Services25.79%
Basic Materials9.76%
Industrials8.34%
Energy6.91%
Consumer Cyclical6.6%
Technology4.13%
Health Care3.42%
Consumer Defensive2.94%
Communication Services2.69%
Utility2.27%
Real Estate1.15%
Debt Sector Allocation
SectorValue
Cash Equivalent89.68%
Corporate5.94%
Government4.95%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Kotak Money Market Dir Gr
Investment Fund | -
13%₹2,856 Cr7,553,686
ICICI Bank Ltd.-FEB2023
Derivatives | -
5%-₹1,196 Cr14,239,400
↑ 14,239,400
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Dec 19 | ICICIBANK
5%₹1,185 Cr14,239,400
↑ 7,420,700
RELIANCE INDUSTRIES LTD.-FEB2023
Derivatives | -
5%-₹1,079 Cr4,549,750
↑ 4,549,750
Reliance Industries Ltd (Energy)
Equity, Since 31 May 18 | RELIANCE
5%₹1,071 Cr4,549,750
↑ 1,472,750
Kotak Savings Fund Dir Gr
Investment Fund | -
5%₹1,045 Cr277,915,116
HDFC Bank Ltd.-FEB2023
Derivatives | -
4%-₹836 Cr5,172,750
↑ 5,172,750
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK
4%₹829 Cr5,172,750
↑ 4,135,450
Kotak Liquid Dir Gr
Investment Fund | -
3%₹679 Cr1,510,222
State Bank Of India-FEB2023
Derivatives | -
2%-₹488 Cr8,743,500
↑ 8,743,500

4. Edelweiss Arbitrage Fund

The investment objective of the Scheme is to generate income by predominantly investing in arbitrage opportunities in the cash and the derivative segments of the equity markets and the arbitrage opportunities available within the derivative segment and by investing the balance in debt and money market instruments. However, there is no assurance that the investment objective of the scheme will be realized.

Edelweiss Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 27 Jun 14. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 5.9% since its launch.  Ranked 1 in Arbitrage category.  Return for 2022 was 4.4% , 2021 was 3.8% and 2020 was 4.5% .

Below is the key information for Edelweiss Arbitrage Fund

Edelweiss Arbitrage Fund
Growth
Launch Date 27 Jun 14
NAV (24 Mar 23) ₹16.4968 ↑ 0.01   (0.05 %)
Net Assets (Cr) ₹5,393 on 28 Feb 23
Category Hybrid - Arbitrage
AMC Edelweiss Asset Management Limited
Rating
Risk Moderately Low
Expense Ratio 1.09
Sharpe Ratio -1.31
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-30 Days (0.25%),30 Days and above(NIL)

Growth of 10,000 investment over the years.

DateValue
28 Feb 18₹10,000
28 Feb 19₹10,601
29 Feb 20₹11,297
28 Feb 21₹11,708
28 Feb 22₹12,200
28 Feb 23₹12,761

Edelweiss Arbitrage Fund SIP Returns

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

Returns for Edelweiss Arbitrage Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Mar 23

DurationReturns
1 Month 0.5%
3 Month 1.7%
6 Month 3%
1 Year 5.1%
3 Year 4.3%
5 Year 5%
10 Year
15 Year
Since launch 5.9%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.4%
2021 3.8%
2020 4.5%
2019 6.2%
2018 6.1%
2017 5.8%
2016 6.7%
2015 8%
2014
2013
Fund Manager information for Edelweiss Arbitrage Fund
NameSinceTenure
Dhawal Dalal22 Dec 166.11 Yr.
Bhavesh Jain27 Jun 148.61 Yr.

Data below for Edelweiss Arbitrage Fund as on 28 Feb 23

Asset Allocation
Asset ClassValue
Cash87.43%
Debt12.6%
Equity Sector Allocation
SectorValue
Financial Services27.54%
Basic Materials11.14%
Industrials8.86%
Consumer Cyclical8.47%
Energy4.34%
Health Care3.86%
Communication Services3.61%
Technology2.93%
Utility2.67%
Consumer Defensive1.7%
Real Estate0.76%
Debt Sector Allocation
SectorValue
Cash Equivalent84.65%
Government15.38%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Future on Kotak Mahindra Bank Ltd
Derivatives | -
4%-₹207 Cr1,186,400
↑ 128,400
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Mar 21 | KOTAKBANK
4%₹205 Cr1,186,400
↑ 128,400
Icici Bank Ltd.23/02/2023
Derivatives | -
3%-₹180 Cr2,144,100
↑ 2,144,100
ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 20 | ICICIBANK
3%₹178 Cr2,144,100
↑ 1,172,500
Future on Reliance Industries Ltd
Derivatives | -
3%-₹159 Cr670,250
↑ 122,500
Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 18 | RELIANCE
3%₹158 Cr670,250
↑ 122,500
6.69 6/27/2024 12:00:00 Am
Sovereign Bonds | -
3%₹149 Cr15,000,000
7.16 5/20/2023 12:00:00 Am
Sovereign Bonds | -
2%₹125 Cr12,500,000
Future on Ashok Leyland Ltd
Derivatives | -
2%-₹117 Cr7,760,000
↑ 105,000
Ashok Leyland Ltd (Industrials)
Equity, Since 31 May 21 | 500477
2%₹116 Cr7,760,000
↑ 105,000

5. HDFC Arbitrage Fund

"To generate income through arbitrage opportunities between cash and derivative market and arbitrage opportunities within the derivative segment and by deployment of surplus cash in debt securities and money market instruments."

HDFC Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 23 Oct 07. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 6.4% since its launch.  Ranked 10 in Arbitrage category.  Return for 2022 was 4.2% , 2021 was 3.6% and 2020 was 3.7% .

Below is the key information for HDFC Arbitrage Fund

HDFC Arbitrage Fund
Growth
Launch Date 23 Oct 07
NAV (24 Mar 23) ₹26.084 ↑ 0.01   (0.05 %)
Net Assets (Cr) ₹5,886 on 28 Feb 23
Category Hybrid - Arbitrage
AMC HDFC Asset Management Company Limited
Rating
Risk Moderately Low
Expense Ratio 0.92
Sharpe Ratio -1.39
Information Ratio 0
Alpha Ratio 0
Min Investment 100,000
Min SIP Investment 300
Exit Load 0-1 Months (0.25%),1 Months and above(NIL)

Growth of 10,000 investment over the years.

DateValue
28 Feb 18₹10,000
28 Feb 19₹10,557
29 Feb 20₹11,242
28 Feb 21₹11,560
28 Feb 22₹12,017
28 Feb 23₹12,566

HDFC Arbitrage Fund SIP Returns

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

Returns for HDFC Arbitrage Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Mar 23

DurationReturns
1 Month 0.5%
3 Month 1.7%
6 Month 3.1%
1 Year 5%
3 Year 4.1%
5 Year 4.7%
10 Year
15 Year
Since launch 6.4%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.2%
2021 3.6%
2020 3.7%
2019 6%
2018 5.7%
2017 5.3%
2016 6.6%
2015 7.6%
2014 7.9%
2013 8.3%
Fund Manager information for HDFC Arbitrage Fund
NameSinceTenure
Anil Bamboli1 Feb 221 Yr.
Arun Agarwal24 Aug 202.44 Yr.
Priya Ranjan1 May 220.75 Yr.
Nirman Morakhia15 Feb 230 Yr.

Data below for HDFC Arbitrage Fund as on 28 Feb 23

Asset Allocation
Asset ClassValue
Cash97.36%
Debt3.17%
Equity Sector Allocation
SectorValue
Financial Services31.85%
Basic Materials8.87%
Energy6.61%
Industrials6.46%
Consumer Cyclical5.84%
Utility4.71%
Consumer Defensive2.73%
Health Care2.45%
Communication Services2.31%
Real Estate2.21%
Technology0.63%
Debt Sector Allocation
SectorValue
Cash Equivalent90.21%
Corporate5.62%
Government4.7%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Money Market Dir Gr
Investment Fund | -
12%₹675 Cr1,389,191
Future on Kotak Mahindra Bank Ltd
Derivatives | -
8%-₹481 Cr
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Mar 22 | KOTAKBANK
8%₹478 Cr2,762,000
↑ 1,421,600
HDFC Liquid Dir Gr
Investment Fund | -
8%₹472 Cr1,079,998
Icici Bank Ltd.
Derivatives | -
7%-₹402 Cr
ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | ICICIBANK
7%₹398 Cr4,788,000
↑ 3,201,100
Future on Reliance Industries Ltd
Derivatives | -
6%-₹361 Cr
Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 21 | RELIANCE
6%₹358 Cr1,519,250
↑ 931,750
Future on Adani Ports & Special Economic Zone Ltd
Derivatives | -
4%-₹251 Cr
Adani Ports & Special Economic Zone Ltd (Industrials)
Equity, Since 28 Feb 18 | ADANIPORTS
4%₹249 Cr4,067,500
↓ -23,125

6. ICICI Prudential Equity Arbitrage Fund

The investment objective of Income Optimiser Plan under the scheme is to seek to generate low volatility returns by using arbitrage and other derivative strategies in equity markets and investments in short-term debt portfolio.

ICICI Prudential Equity Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 30 Dec 06. It is a fund with Moderate risk and has given a CAGR/Annualized return of 6.8% since its launch.  Ranked 4 in Arbitrage category.  Return for 2022 was 4.2% , 2021 was 3.9% and 2020 was 4.3% .

Below is the key information for ICICI Prudential Equity Arbitrage Fund

ICICI Prudential Equity Arbitrage Fund
Growth
Launch Date 30 Dec 06
NAV (24 Mar 23) ₹29.2033 ↑ 0.01   (0.05 %)
Net Assets (Cr) ₹11,273 on 28 Feb 23
Category Hybrid - Arbitrage
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 0.95
Sharpe Ratio -1.53
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load 0-1 Months (0.25%),1 Months and above(NIL)

Growth of 10,000 investment over the years.

DateValue
28 Feb 18₹10,000
28 Feb 19₹10,607
29 Feb 20₹11,285
28 Feb 21₹11,667
28 Feb 22₹12,160
28 Feb 23₹12,707

ICICI Prudential Equity Arbitrage Fund SIP Returns

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

Returns for ICICI Prudential Equity Arbitrage Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Mar 23

DurationReturns
1 Month 0.5%
3 Month 1.7%
6 Month 3%
1 Year 5%
3 Year 4.3%
5 Year 4.9%
10 Year
15 Year
Since launch 6.8%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.2%
2021 3.9%
2020 4.3%
2019 5.9%
2018 6.2%
2017 5.5%
2016 6.8%
2015 7.6%
2014 8.6%
2013 9.8%
Fund Manager information for ICICI Prudential Equity Arbitrage Fund
NameSinceTenure
Kayzad Eghlim1 Feb 1112.01 Yr.
Rohan Maru29 Dec 202.09 Yr.
Nikhil Kabra29 Dec 202.09 Yr.
Sharmila D’mello31 Jul 220.5 Yr.

Data below for ICICI Prudential Equity Arbitrage Fund as on 28 Feb 23

Asset Allocation
Asset ClassValue
Cash93.79%
Debt6.71%
Equity Sector Allocation
SectorValue
Financial Services21.47%
Basic Materials11.07%
Industrials6.85%
Consumer Cyclical5.95%
Technology5.58%
Energy5.03%
Health Care5.02%
Consumer Defensive3.16%
Communication Services2.99%
Utility1.86%
Real Estate1.43%
Debt Sector Allocation
SectorValue
Cash Equivalent91.9%
Government6.86%
Corporate1.73%
Securitized0.01%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ICICI Pru Savings Dir Gr
Investment Fund | -
7%₹751 Cr16,474,508
Future on Reliance Industries Ltd
Derivatives | -
4%-₹449 Cr1,892,500
Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 18 | RELIANCE
4%₹445 Cr1,892,500
Icici Bank Ltd.
Derivatives | -
4%-₹410 Cr4,886,000
↑ 387,800
Future on HDFC Bank Ltd
Derivatives | -
4%-₹407 Cr1,870,300
↓ -287,750
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 19 | ICICIBANK
4%₹406 Cr4,886,000
↑ 387,800
Future on Kotak Mahindra Bank Ltd
Derivatives | -
3%-₹331 Cr1,899,600
↑ 1,132,400
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Oct 21 | KOTAKBANK
3%₹329 Cr1,899,600
↑ 1,132,400
Future on Adani Ports & Special Economic Zone Ltd
Derivatives | -
3%-₹318 Cr5,153,750
↓ -3,750
Adani Ports & Special Economic Zone Ltd (Industrials)
Equity, Since 31 Aug 19 | ADANIPORTS
3%₹316 Cr5,153,750
↓ -3,750

7. IDFC Arbitrage Fund

The investment objective of the Scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunity in the cash and the derivative segments of the equity markets and the arbitrage opportunity available within the derivative segments and by investing the balance in debt and money market instruments. However there is no assurance that the investment objective of the scheme will be realized.

IDFC Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 21 Dec 06. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 6.5% since its launch.  Ranked 17 in Arbitrage category.  Return for 2022 was 4.1% , 2021 was 3.5% and 2020 was 3.8% .

Below is the key information for IDFC Arbitrage Fund

IDFC Arbitrage Fund
Growth
Launch Date 21 Dec 06
NAV (24 Mar 23) ₹27.6615 ↑ 0.02   (0.05 %)
Net Assets (Cr) ₹3,630 on 28 Feb 23
Category Hybrid - Arbitrage
AMC IDFC Asset Management Company Limited
Rating
Risk Moderately Low
Expense Ratio 1.06
Sharpe Ratio -1.63
Information Ratio 0
Alpha Ratio 0
Min Investment 100
Min SIP Investment 1,000
Exit Load 0-1 Months (0.25%),1 Months and above(NIL)

Growth of 10,000 investment over the years.

DateValue
28 Feb 18₹10,000
28 Feb 19₹10,610
29 Feb 20₹11,303
28 Feb 21₹11,629
28 Feb 22₹12,083
28 Feb 23₹12,619

IDFC Arbitrage Fund SIP Returns

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

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Mar 23

DurationReturns
1 Month 0.5%
3 Month 1.7%
6 Month 3%
1 Year 4.9%
3 Year 4%
5 Year 4.8%
10 Year
15 Year
Since launch 6.5%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.1%
2021 3.5%
2020 3.8%
2019 6.2%
2018 6.3%
2017 5.5%
2016 6.3%
2015 7.4%
2014 8.5%
2013 9.2%
Fund Manager information for IDFC Arbitrage Fund
NameSinceTenure
Harshal Joshi20 Oct 166.29 Yr.
Nemish Sheth26 Nov 211.18 Yr.

Data below for IDFC Arbitrage Fund as on 28 Feb 23

Asset Allocation
Asset ClassValue
Cash93.63%
Debt6.89%
Equity Sector Allocation
SectorValue
Financial Services26.49%
Consumer Cyclical7.96%
Industrials7.55%
Basic Materials6.85%
Real Estate4.66%
Energy4.31%
Health Care4.29%
Technology3.34%
Consumer Defensive3.21%
Communication Services2.24%
Utility1.54%
Debt Sector Allocation
SectorValue
Cash Equivalent88%
Government7.05%
Corporate4.86%
Securitized0.61%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
IDFC Cash Dir Gr
Investment Fund | -
7%₹256 Cr953,178
Future on Kotak Mahindra Bank Ltd
Derivatives | -
4%-₹148 Cr852,000
↓ -170,800
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Oct 21 | KOTAKBANK
4%₹147 Cr852,000
↓ -170,800
Future on Reliance Industries Ltd
Derivatives | -
4%-₹145 Cr612,500
↑ 508,500
Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 18 | RELIANCE
4%₹144 Cr612,500
↑ 508,500
Future on DLF Ltd
Derivatives | -
3%-₹120 Cr3,331,350
↑ 504,900
DLF Ltd (Real Estate)
Equity, Since 31 Aug 21 | 532868
3%₹119 Cr3,331,350
↑ 504,900
Icici Bank Limited February 2023 Future
Derivatives | -
3%-₹116 Cr1,382,500
↑ 1,382,500
ICICI Bank Ltd (Financial Services)
Equity, Since 30 Jun 19 | ICICIBANK
3%₹115 Cr1,382,500
↑ 324,100
Future on Adani Ports & Special Economic Zone Ltd
Derivatives | -
3%-₹108 Cr1,751,875
↑ 297,500

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?

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

  2. Complete your Registration and KYC Process

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

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Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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