+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 (%) SBI Arbitrage Opportunities Fund Growth ₹35.5482
↓ -0.03 ₹42,847 1.3 2.8 5.9 6.9 6.2 6.5 Invesco India Arbitrage Fund Growth ₹33.5465
↓ -0.02 ₹27,321 1.2 2.8 5.9 6.9 6.2 6.5 UTI Arbitrage Fund Growth ₹36.8262
↓ -0.03 ₹10,858 1.2 2.7 5.8 6.9 6 6.5 Kotak Equity Arbitrage Fund Growth ₹39.3791
↓ -0.03 ₹69,951 1.3 2.8 5.8 7 6.2 6.4 ICICI Prudential Equity Arbitrage Fund Growth ₹36.0392
↓ -0.03 ₹32,299 1.2 2.7 5.8 6.8 6 6.5 HDFC Arbitrage Fund Growth ₹32.181
↓ -0.03 ₹24,439 1.2 2.7 5.8 6.8 5.9 6.3 Edelweiss Arbitrage Fund Growth ₹20.3473
↓ -0.01 ₹14,717 1.2 2.7 5.7 6.8 6 6.3 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 22 May 26 Research Highlights & Commentary of 7 Funds showcased
Commentary SBI Arbitrage Opportunities Fund Invesco India Arbitrage Fund UTI Arbitrage Fund Kotak Equity Arbitrage Fund ICICI Prudential Equity Arbitrage Fund HDFC Arbitrage Fund Edelweiss Arbitrage Fund Point 1 Upper mid AUM (₹42,847 Cr). Lower mid AUM (₹27,321 Cr). Bottom quartile AUM (₹10,858 Cr). Highest AUM (₹69,951 Cr). Upper mid AUM (₹32,299 Cr). Lower mid AUM (₹24,439 Cr). Bottom quartile AUM (₹14,717 Cr). Point 2 Established history (19+ yrs). Established history (19+ yrs). Established history (19+ yrs). Oldest track record among peers (20 yrs). Established history (19+ yrs). Established history (18+ yrs). Established history (11+ yrs). Point 3 Rating: 2★ (bottom quartile). Rating: 3★ (lower mid). Rating: 3★ (lower mid). Rating: 4★ (upper mid). Rating: 4★ (upper mid). Rating: 3★ (bottom quartile). Top rated. Point 4 Risk profile: Moderately Low. Risk profile: Moderately Low. Risk profile: Moderately Low. Risk profile: Moderately Low. Risk profile: Moderate. Risk profile: Moderately Low. Risk profile: Moderately Low. Point 5 5Y return: 6.18% (top quartile). 5Y return: 6.17% (upper mid). 5Y return: 5.99% (lower mid). 5Y return: 6.16% (upper mid). 5Y return: 5.98% (bottom quartile). 5Y return: 5.94% (bottom quartile). 5Y return: 6.01% (lower mid). Point 6 3Y return: 6.93% (upper mid). 3Y return: 6.89% (lower mid). 3Y return: 6.92% (upper mid). 3Y return: 6.99% (top quartile). 3Y return: 6.85% (lower mid). 3Y return: 6.85% (bottom quartile). 3Y return: 6.84% (bottom quartile). Point 7 1Y return: 5.94% (top quartile). 1Y return: 5.90% (upper mid). 1Y return: 5.85% (upper mid). 1Y return: 5.83% (lower mid). 1Y return: 5.81% (lower mid). 1Y return: 5.80% (bottom quartile). 1Y return: 5.75% (bottom quartile). Point 8 1M return: 0.26% (top quartile). 1M return: 0.25% (upper mid). 1M return: 0.17% (bottom quartile). 1M return: 0.23% (upper mid). 1M return: 0.18% (lower mid). 1M return: 0.19% (lower mid). 1M return: 0.18% (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: -0.46 (bottom quartile). Point 10 Sharpe: 0.87 (top quartile). Sharpe: 0.72 (upper mid). Sharpe: 0.71 (upper mid). Sharpe: 0.52 (lower mid). Sharpe: 0.49 (bottom quartile). Sharpe: 0.50 (lower mid). Sharpe: 0.17 (bottom quartile). SBI Arbitrage Opportunities Fund
Invesco India Arbitrage Fund
UTI Arbitrage Fund
Kotak Equity Arbitrage Fund
ICICI Prudential Equity Arbitrage Fund
HDFC Arbitrage Fund
Edelweiss Arbitrage Fund
*Below is the list of Arbitrage funds sorted on last 1 year return and having AUM > 100 Crore.
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. 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 (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 The investment objective of the scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market, and by investing the balance in debt and money market instruments. However, there is no assurance that the objective of the scheme will be realized Research Highlights for Kotak Equity Arbitrage Fund Below is the key information for Kotak Equity Arbitrage Fund Returns up to 1 year are on The investment objective of Income Optimiser Plan under the scheme is to seek to generate low volatility returns by using arbitrage and other derivative strategies in equity markets and investments in short-term debt portfolio. Research Highlights for ICICI Prudential Equity Arbitrage Fund Below is the key information for ICICI Prudential Equity Arbitrage Fund Returns up to 1 year are on "To generate income through arbitrage opportunities between cash and derivative market and arbitrage opportunities within the derivative segment and by deployment of surplus cash in debt securities and money market instruments." Research Highlights for HDFC Arbitrage Fund Below is the key information for HDFC Arbitrage Fund Returns up to 1 year are on The investment objective of the Scheme is to generate 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. Research Highlights for Edelweiss Arbitrage Fund Below is the key information for Edelweiss Arbitrage Fund Returns up to 1 year are on 1. SBI Arbitrage Opportunities Fund
SBI Arbitrage Opportunities Fund
Growth Launch Date 3 Nov 06 NAV (22 May 26) ₹35.5482 ↓ -0.03 (-0.08 %) Net Assets (Cr) ₹42,847 on 30 Apr 26 Category Hybrid - Arbitrage AMC SBI Funds Management Private Limited Rating ☆☆ Risk Moderately Low Expense Ratio 0.95 Sharpe Ratio 0.87 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Months (0.5%),1 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Apr 21 ₹10,000 30 Apr 22 ₹10,417 30 Apr 23 ₹11,001 30 Apr 24 ₹11,860 30 Apr 25 ₹12,724 30 Apr 26 ₹13,481 Returns for SBI Arbitrage Opportunities Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 May 26 Duration Returns 1 Month 0.3% 3 Month 1.3% 6 Month 2.8% 1 Year 5.9% 3 Year 6.9% 5 Year 6.2% 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 13.58 Yr. Ardhendu Bhattacharya 27 Dec 24 1.34 Yr. Data below for SBI Arbitrage Opportunities Fund as on 30 Apr 26
Asset Allocation
Asset Class Value Cash 94.86% Debt 5.81% Other 0.06% Equity Sector Allocation
Sector Value Financial Services 24.94% Basic Materials 8.45% Industrials 7.64% Consumer Cyclical 5.08% Energy 4.32% Communication Services 4.03% Health Care 3.84% Consumer Defensive 3.41% Utility 2.47% Technology 2.03% Real Estate 1.68% Debt Sector Allocation
Sector Value Cash Equivalent 86.49% Corporate 11.94% Government 1.82% Credit Quality
Rating Value AA 1.53% AAA 98.47% Top Securities Holdings / Portfolio
Name Holding Value Quantity SBI Savings Dir Gr
Investment Fund | -8% ₹3,380 Cr 726,722,883 SBI Liquid Dir Gr
Investment Fund | -7% ₹2,939 Cr 6,824,454 Future on HDFC Bank Ltd
Derivatives | -6% -₹2,259 Cr 30,699,900
↑ 697,400 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK5% ₹2,246 Cr 30,699,900
↑ 697,400 Future on ICICI Bank Ltd
Derivatives | -4% -₹1,478 Cr 12,154,100
↓ -983,500 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Jun 21 | ICICIBANK4% ₹1,466 Cr 12,154,100
↓ -983,500 SBI Low Duration Dir Gr
Investment Fund | -3% ₹1,102 Cr 2,904,125 Future on Bharti Airtel Ltd
Derivatives | -2% -₹953 Cr 5,312,400
↑ 1,389,375 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 23 | BHARTIARTL2% ₹947 Cr 5,312,400
↑ 2,494,854 Future on Axis Bank Ltd
Derivatives | -2% -₹749 Cr 6,408,750
↑ 924,375 2. Invesco India Arbitrage Fund
Invesco India Arbitrage Fund
Growth Launch Date 30 Apr 07 NAV (22 May 26) ₹33.5465 ↓ -0.02 (-0.07 %) Net Assets (Cr) ₹27,321 on 30 Apr 26 Category Hybrid - Arbitrage AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 1.06 Sharpe Ratio 0.72 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 30 Apr 21 ₹10,000 30 Apr 22 ₹10,398 30 Apr 23 ₹11,008 30 Apr 24 ₹11,857 30 Apr 25 ₹12,729 30 Apr 26 ₹13,479 Returns for Invesco India Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 May 26 Duration Returns 1 Month 0.3% 3 Month 1.2% 6 Month 2.8% 1 Year 5.9% 3 Year 6.9% 5 Year 6.2% 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 4.47 Yr. Manish Kalani 1 Jul 25 0.83 Yr. Data below for Invesco India Arbitrage Fund as on 30 Apr 26
Asset Allocation
Asset Class Value Cash 95.6% Equity 0.34% Debt 4.56% Equity Sector Allocation
Sector Value Financial Services 24.45% Basic Materials 5.77% Consumer Cyclical 4.38% Industrials 4.14% Communication Services 3.44% Consumer Defensive 3.43% Health Care 3.29% Technology 1.87% Utility 1.49% Energy 1.49% Real Estate 1.41% Debt Sector Allocation
Sector Value Cash Equivalent 91.1% Corporate 7.8% Government 1.28% Credit Quality
Rating Value AA 1.89% AAA 98.11% Top Securities Holdings / Portfolio
Name Holding Value Quantity Future on BANK Index
- | -11% -₹2,965 Cr 104,222,975
↑ 45,687,600 Invesco India Liquid Dir Gr
Investment Fund | -8% ₹2,022 Cr 5,347,875
↓ -1,000,000 Invesco India Money Market Dir Gr
Investment Fund | -7% ₹1,953 Cr 5,925,910 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 23 | HDFCBANK5% ₹1,305 Cr 17,834,850
↓ -33,550 State Bank of India (Financial Services)
Equity, Since 31 Jan 23 | SBIN4% ₹934 Cr 9,537,000
↑ 9,315,000 State Bank of India Future Apr 26
Derivatives | -3% -₹855 Cr 8,682,750
↑ 8,682,750 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 24 | ICICIBANK3% ₹690 Cr 5,726,000
↑ 249,200 Future on Cholamandalam Investment and Finance Co Ltd
Derivatives | -2% -₹618 Cr 4,552,500
↑ 819,375 Cholamandalam Investment and Finance Co Ltd (Financial Services)
Equity, Since 31 Dec 25 | CHOLAFIN2% ₹617 Cr 4,552,500
↑ 819,375 Punjab National Bank
Domestic Bonds | -2% ₹484 Cr 50,000,000
↑ 50,000,000 3. UTI Arbitrage Fund
UTI Arbitrage Fund
Growth Launch Date 22 Jun 06 NAV (22 May 26) ₹36.8262 ↓ -0.03 (-0.08 %) Net Assets (Cr) ₹10,858 on 30 Apr 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 30 Apr 21 ₹10,000 30 Apr 22 ₹10,374 30 Apr 23 ₹10,908 30 Apr 24 ₹11,750 30 Apr 25 ₹12,625 30 Apr 26 ₹13,369 Returns for UTI Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 May 26 Duration Returns 1 Month 0.2% 3 Month 1.2% 6 Month 2.7% 1 Year 5.8% 3 Year 6.9% 5 Year 6% 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 7.83 Yr. Sharwan Kumar Goyal 1 Jan 21 5.33 Yr. Data below for UTI Arbitrage Fund as on 30 Apr 26
Asset Allocation
Asset Class Value Cash 94.56% Debt 5.7% Other 0.05% Equity Sector Allocation
Sector Value Financial Services 28.78% Basic Materials 7.57% Consumer Cyclical 6.4% Industrials 4.78% Health Care 4.53% Communication Services 4.02% Consumer Defensive 3.72% Energy 3.12% Real Estate 1.61% Technology 1.01% Utility 0.74% Debt Sector Allocation
Sector Value Cash Equivalent 74.39% Corporate 20.8% Government 5.08% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity UTI Money Market Dir Gr
Investment Fund | -13% ₹1,456 Cr 4,430,086
↑ 228,157 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK5% ₹589 Cr 7,631,800
↓ -451,550 HDFC BANK LTD.-26-May-2026
Derivatives | -4% -₹420 Cr 5,414,200
↑ 5,149,100 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Sep 24 | ICICIBANK4% ₹392 Cr 3,105,200
↓ -38,500 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 30 Jun 23 | KOTAKBANK4% ₹392 Cr 10,224,000
↑ 1,904,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 23 | RELIANCE3% ₹312 Cr 2,179,000
↓ -55,000 KOTAK MAHINDRA BANK LTD.-26-May-2026
Derivatives | -3% -₹304 Cr 7,884,000
↑ 7,818,000 State Bank of India (Financial Services)
Equity, Since 31 May 23 | SBIN3% ₹298 Cr 2,788,500
↑ 56,250 STATE BANK OF INDIA-26-May-2026
Derivatives | -3% -₹297 Cr 2,788,500
↑ 2,788,500 RELIANCE INDUSTRIES LTD.-26-May-2026
Derivatives | -2% -₹253 Cr 1,763,500
↑ 1,413,500 4. Kotak Equity Arbitrage Fund
Kotak Equity Arbitrage Fund
Growth Launch Date 29 Sep 05 NAV (22 May 26) ₹39.3791 ↓ -0.03 (-0.08 %) Net Assets (Cr) ₹69,951 on 30 Apr 26 Category Hybrid - Arbitrage AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.97 Sharpe Ratio 0.52 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 30 Apr 21 ₹10,000 30 Apr 22 ₹10,400 30 Apr 23 ₹10,970 30 Apr 24 ₹11,843 30 Apr 25 ₹12,727 30 Apr 26 ₹13,471 Returns for Kotak Equity Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 May 26 Duration Returns 1 Month 0.2% 3 Month 1.3% 6 Month 2.8% 1 Year 5.8% 3 Year 7% 5 Year 6.2% 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 6.58 Yr. Data below for Kotak Equity Arbitrage Fund as on 30 Apr 26
Asset Allocation
Asset Class Value Cash 91.16% Debt 9.03% Other 0.08% Equity Sector Allocation
Sector Value Financial Services 24.13% Basic Materials 8.11% Consumer Cyclical 6.72% Consumer Defensive 4.55% Industrials 3.84% Energy 3.67% Health Care 3.22% Communication Services 3.16% Utility 2.85% Technology 1.18% Real Estate 1.17% Debt Sector Allocation
Sector Value Cash Equivalent 77.64% Corporate 17.46% Government 5.09% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Kotak Money Market Dir Gr
Investment Fund | -12% ₹8,095 Cr 17,061,028 Kotak Liquid Dir Gr
Investment Fund | -8% ₹5,214 Cr 9,369,003 Kotak Savings Fund Dir Gr
Investment Fund | -6% ₹4,038 Cr 858,004,118 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK6% ₹3,789 Cr 51,794,600
↓ -3,810,400 HDFC Bank Ltd.-APR2026
Derivatives | -6% -₹3,775 Cr 51,294,650
↑ 51,277,600 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Dec 19 | ICICIBANK3% ₹1,876 Cr 15,557,500
↑ 570,500 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 18 | 5322152% ₹1,519 Cr 13,083,750
↑ 5,509,375 HDFC Bank Ltd.
Debentures | -2% ₹1,409 Cr 150,000
↑ 150,000 Kotak Low Duration Dir Gr
Investment Fund | -2% ₹1,296 Cr 3,393,816 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Jan 24 | KOTAKBANK2% ₹1,234 Cr 34,910,000
↑ 7,868,000 5. ICICI Prudential Equity Arbitrage Fund
ICICI Prudential Equity Arbitrage Fund
Growth Launch Date 30 Dec 06 NAV (22 May 26) ₹36.0392 ↓ -0.03 (-0.08 %) Net Assets (Cr) ₹32,299 on 30 Apr 26 Category Hybrid - Arbitrage AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 0.9 Sharpe Ratio 0.49 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 30 Apr 21 ₹10,000 30 Apr 22 ₹10,378 30 Apr 23 ₹10,928 30 Apr 24 ₹11,761 30 Apr 25 ₹12,627 30 Apr 26 ₹13,365 Returns for ICICI Prudential Equity Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 May 26 Duration Returns 1 Month 0.2% 3 Month 1.2% 6 Month 2.7% 1 Year 5.8% 3 Year 6.8% 5 Year 6% 10 Year 15 Year Since launch 6.8% 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 5.34 Yr. Sharmila D'Silva 31 Jul 22 3.75 Yr. Darshil Dedhia 13 Sep 24 1.63 Yr. Ajaykumar Solanki 23 Aug 24 1.69 Yr. Archana Nair 1 Feb 24 2.25 Yr. Data below for ICICI Prudential Equity Arbitrage Fund as on 30 Apr 26
Asset Allocation
Asset Class Value Cash 95.43% Debt 4.81% Other 0.05% Equity Sector Allocation
Sector Value Financial Services 24.44% Communication Services 7.92% Basic Materials 6.31% Consumer Cyclical 5.74% Health Care 5.64% Industrials 5.11% Consumer Defensive 3.62% Energy 2.14% Utility 1.95% Real Estate 1.25% Technology 0.94% Debt Sector Allocation
Sector Value Cash Equivalent 78.9% Corporate 19.27% Government 2.08% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Pru Money Market Dir Gr
Investment Fund | -16% ₹5,143 Cr 127,933,512 Future on HDFC Bank Ltd
Derivatives | -5% -₹1,712 Cr 23,261,700
↑ 3,463,350 Future on Bharti Airtel Ltd
Derivatives | -5% -₹1,703 Cr 9,498,575
↑ 1,444,475 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Nov 21 | HDFCBANK5% ₹1,702 Cr 23,261,700
↑ 3,463,350 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Dec 23 | BHARTIARTL5% ₹1,693 Cr 9,498,575
↑ 4,009,475 Future on Vodafone Idea Ltd
Derivatives | -2% -₹747 Cr 870,922,875
↓ -123,008,475 Vodafone Idea Ltd (Communication Services)
Equity, Since 30 Sep 23 | 5328222% ₹743 Cr 870,922,875
↓ -123,008,475 Union Bank of India
Domestic Bonds | -2% ₹658 Cr 14,000
↑ 14,000 Future on State Bank of India
Derivatives | -2% -₹637 Cr 6,469,500
↑ 5,487,750 State Bank of India (Financial Services)
Equity, Since 31 Jan 23 | SBIN2% ₹634 Cr 6,469,500
↑ 5,487,750 6. HDFC Arbitrage Fund
HDFC Arbitrage Fund
Growth Launch Date 23 Oct 07 NAV (22 May 26) ₹32.181 ↓ -0.03 (-0.08 %) Net Assets (Cr) ₹24,439 on 30 Apr 26 Category Hybrid - Arbitrage AMC HDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.97 Sharpe Ratio 0.5 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 30 Apr 21 ₹10,000 30 Apr 22 ₹10,355 30 Apr 23 ₹10,908 30 Apr 24 ₹11,744 30 Apr 25 ₹12,605 30 Apr 26 ₹13,341 Returns for HDFC Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 May 26 Duration Returns 1 Month 0.2% 3 Month 1.2% 6 Month 2.7% 1 Year 5.8% 3 Year 6.8% 5 Year 5.9% 10 Year 15 Year Since launch 6.5% Historical performance (Yearly) on absolute basis
Year Returns 2024 6.3% 2023 7.7% 2022 7.2% 2021 4.2% 2020 3.6% 2019 3.7% 2018 6% 2017 5.7% 2016 5.3% 2015 6.6% Fund Manager information for HDFC Arbitrage Fund
Name Since Tenure Anil Bamboli 1 Feb 22 4.25 Yr. Arun Agarwal 24 Aug 20 5.69 Yr. Dhruv Muchhal 22 Jun 23 2.86 Yr. Nandita Menezes 29 Mar 25 1.09 Yr. Data below for HDFC Arbitrage Fund as on 30 Apr 26
Asset Allocation
Asset Class Value Cash 91.98% Debt 8.2% Other 0.06% Equity Sector Allocation
Sector Value Financial Services 21.53% Basic Materials 8.62% Consumer Cyclical 6.29% Energy 5.47% Consumer Defensive 3.57% Industrials 3.29% Communication Services 2.78% Health Care 2.74% Utility 1.34% Technology 1.07% Real Estate 0.52% Debt Sector Allocation
Sector Value Cash Equivalent 75.02% Corporate 20.99% Government 4.16% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Money Market Dir Gr
Investment Fund | -9% ₹2,070 Cr 3,392,377 Future on HDFC Bank Ltd
Derivatives | -7% -₹1,618 Cr 21,980,200
↑ 3,775,750 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 23 | HDFCBANK7% ₹1,608 Cr 21,980,200
↑ 3,775,750 HDFC Liquid Dir Gr
Investment Fund | -4% ₹922 Cr 1,704,922 Future on ICICI Bank Ltd
Derivatives | -4% -₹869 Cr 7,173,600
↑ 492,100 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Jun 24 | ICICIBANK4% ₹865 Cr 7,173,600
↑ 492,100 Future on Reliance Industries Ltd
Derivatives | -3% -₹773 Cr 5,730,000
↓ -1,683,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 21 | RELIANCE3% ₹770 Cr 5,730,000
↓ -1,683,000 HDFC Ultra S/T Fund Dir Gr
Investment Fund | -3% ₹604 Cr 373,115,103 HDFC Low Duration Dir Gr
Investment Fund | -2% ₹552 Cr 84,275,693 7. Edelweiss Arbitrage Fund
Edelweiss Arbitrage Fund
Growth Launch Date 27 Jun 14 NAV (22 May 26) ₹20.3473 ↓ -0.01 (-0.07 %) Net Assets (Cr) ₹14,717 on 30 Apr 26 Category Hybrid - Arbitrage AMC Edelweiss Asset Management Limited Rating ☆☆☆☆☆ Risk Moderately Low Expense Ratio 1.07 Sharpe Ratio 0.17 Information Ratio -1.7 Alpha Ratio -0.46 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 30 Apr 21 ₹10,000 30 Apr 22 ₹10,395 30 Apr 23 ₹10,944 30 Apr 24 ₹11,791 30 Apr 25 ₹12,652 30 Apr 26 ₹13,378 Returns for Edelweiss Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 May 26 Duration Returns 1 Month 0.2% 3 Month 1.2% 6 Month 2.7% 1 Year 5.7% 3 Year 6.8% 5 Year 6% 10 Year 15 Year Since launch 6.2% Historical performance (Yearly) on absolute basis
Year Returns 2024 6.3% 2023 7.7% 2022 7.1% 2021 4.4% 2020 3.8% 2019 4.5% 2018 6.2% 2017 6.1% 2016 5.8% 2015 6.7% Fund Manager information for Edelweiss Arbitrage Fund
Name Since Tenure Bhavesh Jain 27 Jun 14 11.85 Yr. Rahul Dedhia 15 Jan 26 0.29 Yr. Amit Vora 6 Nov 24 1.48 Yr. Hetul Raval 22 Sep 25 0.61 Yr. Data below for Edelweiss Arbitrage Fund as on 30 Apr 26
Asset Allocation
Asset Class Value Cash 94.1% Debt 6.14% Other 0.06% Equity Sector Allocation
Sector Value Financial Services 25.45% Basic Materials 9.31% Consumer Cyclical 5.86% Industrials 4.83% Health Care 4.09% Consumer Defensive 3.61% Communication Services 3.46% Energy 3% Utility 2.83% Real Estate 1.91% Technology 0.69% Debt Sector Allocation
Sector Value Cash Equivalent 82.32% Corporate 13.72% Government 4.2% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Edelweiss Liquid Dir Gr
Investment Fund | -14% ₹2,011 Cr 5,648,096
↑ 1,686,100 Future on HDFC Bank Ltd
Derivatives | -7% -₹1,062 Cr 14,435,300
↑ 3,655,850 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 21 | HDFCBANK7% ₹1,056 Cr 14,435,300
↑ 3,655,850 Edelweiss Money Market Dir Gr
Investment Fund | -4% ₹561 Cr 171,039,989 Future on ICICI Bank Ltd
Derivatives | -3% -₹442 Cr 3,642,100
↑ 198,100 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 20 | ICICIBANK3% ₹439 Cr 3,642,100
↑ 198,100 Future on NMDC Ltd
Derivatives | -2% -₹318 Cr 41,593,500
↑ 3,921,750 NMDC Ltd (Basic Materials)
Equity, Since 30 Nov 22 | 5263712% ₹317 Cr 41,593,500
↑ 3,921,750 Future on JSW Steel Ltd
Derivatives | -2% -₹312 Cr 2,772,900
↓ -19,575 JSW Steel Ltd (Basic Materials)
Equity, Since 31 Dec 24 | JSWSTEEL2% ₹311 Cr 2,772,900
↓ -19,575
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 SBI Arbitrage Opportunities Fund