7 Best Performing Arbitrage Mutual Funds 2025

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7 Best Arbitrage Mutual Funds 2025

Updated on June 5, 2025 , 36259 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.

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.

Top 7 Arbitrage Mutual Funds 2025 - 2026

Fund	NAV	Net Assets (Cr)	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	5 YR (%)	2024 (%)
UTI Arbitrage Fund Growth	₹34.9104 ↑ 0.02	₹6,899	1.8	3.6	7.2	6.9	5.6	7.7
ICICI Prudential Equity Arbitrage Fund Growth	₹34.179 ↑ 0.02	₹26,918	1.8	3.6	7.1	6.9	5.5	7.6
Kotak Equity Arbitrage Fund Growth	₹37.3308 ↑ 0.02	₹63,310	1.8	3.6	7.1	7.1	5.7	7.8
SBI Arbitrage Opportunities Fund Growth	₹33.6757 ↑ 0.02	₹31,895	1.8	3.6	7.1	7	5.6	7.5
Aditya Birla Sun Life Arbitrage Fund Growth	₹26.4643 ↑ 0.02	₹15,896	1.8	3.5	7	6.8	5.5	7.5
IDFC Arbitrage Fund Growth	₹32.3333 ↑ 0.02	₹8,656	1.8	3.5	7	6.8	5.4	7.5
HDFC Arbitrage Fund Growth	₹30.514 ↑ 0.02	₹19,627	1.7	3.4	7	6.9	5.5	7.7
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 6 Jun 25

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

1. UTI Arbitrage Fund

(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.

UTI Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 22 Jun 06. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 6.8% since its launch. Ranked 8 in Arbitrage category. Return for 2024 was 7.7% , 2023 was 7.2% and 2022 was 4% .

Below is the key information for UTI Arbitrage Fund

UTI Arbitrage Fund Growth
Launch Date	22 Jun 06
NAV (06 Jun 25)	₹34.9104 ↑ 0.02 (0.06 %)
Net Assets (Cr)	₹6,899 on 30 Apr 25
Category	Hybrid - Arbitrage
AMC	UTI Asset Management Company Ltd
Rating	☆☆☆
Risk	Moderately Low
Expense Ratio	0.85
Sharpe Ratio	2.06
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 May 20	₹10,000
31 May 21	₹10,314
31 May 22	₹10,695
31 May 23	₹11,265
31 May 24	₹12,139
31 May 25	₹13,017

UTI Arbitrage Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹349,120.
Net Profit of ₹49,120 Invest Now

Returns for UTI 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 6 Jun 25

Duration	Returns
1 Month	0.5%
3 Month	1.8%
6 Month	3.6%
1 Year	7.2%
3 Year	6.9%
5 Year	5.6%
10 Year
15 Year
Since launch	6.8%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	7.7%
2023	7.2%
2022	4%
2021	3.9%
2020	4.4%
2019	6.2%
2018	6.2%
2017	5.7%
2016	6.5%
2015	7.6%

Fund Manager information for UTI Arbitrage Fund

Name	Since	Tenure
Amit Sharma	2 Jul 18	6.92 Yr.
Sharwan Kumar Goyal	1 Jan 21	4.41 Yr.

Data below for UTI Arbitrage Fund as on 30 Apr 25

Asset Allocation

Asset Class	Value
Cash	98.51%
Debt	1.65%
Other	0.03%

Equity Sector Allocation

Sector	Value
Financial Services	21.72%
Basic Materials	7.72%
Consumer Cyclical	7.03%
Technology	5.56%
Energy	5.19%
Industrials	4.17%
Health Care	3.77%
Consumer Defensive	2.99%
Communication Services	2.47%
Utility	1.86%
Real Estate	1.23%

Debt Sector Allocation

Sector	Value
Cash Equivalent	74.04%
Corporate	20.56%
Government	5.57%

Credit Quality

Rating	Value
AAA	100%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
UTI Money Market Dir Gr Investment Fund \| -	15%	₹1,004 Cr	3,250,830 ↑ 244,237
Future on ICICI Bank Ltd Derivatives \| -	4%	-₹307 Cr	2,138,500 ↑ 116,900
ICICI Bank Ltd (Financial Services) Equity, Since 30 Sep 24 \| ICICIBANK	4%	₹305 Cr	2,138,500 ↑ 116,900
Future on Reliance Industries Ltd Derivatives \| -	4%	-₹290 Cr	2,058,500 ↓ -550,500
Reliance Industries Ltd (Energy) Equity, Since 31 Aug 23 \| RELIANCE	4%	₹289 Cr	2,058,500 ↓ -550,500
Future on HDFC Bank Ltd Derivatives \| -	4%	-₹250 Cr	1,292,500 ↑ 410,300
HDFC Bank Ltd (Financial Services) Equity, Since 30 Apr 22 \| HDFCBANK	4%	₹249 Cr	1,292,500 ↑ 410,300
Future on Bank of Baroda Derivatives \| -	2%	-₹161 Cr	6,435,000 ↓ -207,675
Bank of Baroda (Financial Services) Equity, Since 31 May 23 \| 532134	2%	₹161 Cr	6,435,000 ↓ -207,675
Future on Infosys Ltd Derivatives \| -	2%	-₹160 Cr	1,063,200 ↑ 401,600

2. 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 6.9% since its launch. Ranked 4 in Arbitrage category. Return for 2024 was 7.6% , 2023 was 7.1% and 2022 was 4.2% .

Below is the key information for ICICI Prudential Equity Arbitrage Fund

ICICI Prudential Equity Arbitrage Fund Growth
Launch Date	30 Dec 06
NAV (06 Jun 25)	₹34.179 ↑ 0.02 (0.05 %)
Net Assets (Cr)	₹26,918 on 30 Apr 25
Category	Hybrid - Arbitrage
AMC	ICICI Prudential Asset Management Company Limited
Rating	☆☆☆☆
Risk	Moderate
Expense Ratio	0.97
Sharpe Ratio	1.62
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 May 20	₹10,000
31 May 21	₹10,288
31 May 22	₹10,665
31 May 23	₹11,259
31 May 24	₹12,116
31 May 25	₹12,988

ICICI Prudential Equity Arbitrage Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹349,120.
Net Profit of ₹49,120 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 6 Jun 25

Duration	Returns
1 Month	0.5%
3 Month	1.8%
6 Month	3.6%
1 Year	7.1%
3 Year	6.9%
5 Year	5.5%
10 Year
15 Year
Since launch	6.9%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	7.6%
2023	7.1%
2022	4.2%
2021	3.9%
2020	4.3%
2019	5.9%
2018	6.2%
2017	5.5%
2016	6.8%
2015	7.6%

Fund Manager information for ICICI Prudential Equity Arbitrage Fund

Name	Since	Tenure
Nikhil Kabra	29 Dec 20	4.42 Yr.
Sharmila D’mello	31 Jul 22	2.84 Yr.
Darshil Dedhia	13 Sep 24	0.71 Yr.
Ajaykumar Solanki	23 Aug 24	0.77 Yr.
Archana Nair	1 Feb 24	1.33 Yr.

Data below for ICICI Prudential Equity Arbitrage Fund as on 30 Apr 25

Asset Allocation

Asset Class	Value
Cash	92.13%
Debt	8.04%
Other	0.05%

Equity Sector Allocation

Sector	Value
Financial Services	16.75%
Technology	8.51%
Consumer Cyclical	7.62%
Energy	7.28%
Basic Materials	7.17%
Industrials	5.63%
Communication Services	5%
Health Care	3.75%
Consumer Defensive	3.51%
Utility	2.08%
Real Estate	1.58%

Debt Sector Allocation

Sector	Value
Cash Equivalent	76.59%
Corporate	17.7%
Government	5.88%

Credit Quality

Rating	Value
AAA	100%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
ICICI Pru Money Market Dir Gr Investment Fund \| -	11%	₹3,043 Cr	80,068,582
ICICI Pru Savings Dir Gr Investment Fund \| -	7%	₹1,766 Cr	32,418,220
Future on Reliance Industries Ltd Derivatives \| -	5%	-₹1,229 Cr	8,722,500 ↓ -3,311,500
Reliance Industries Ltd (Energy) Equity, Since 31 Aug 18 \| RELIANCE	5%	₹1,226 Cr	8,722,500 ↓ -3,311,500
Future on HDFC Bank Ltd Derivatives \| -	4%	-₹1,107 Cr	5,724,400 ↑ 595,100
HDFC Bank Ltd (Financial Services) Equity, Since 30 Nov 21 \| HDFCBANK	4%	₹1,102 Cr	5,724,400 ↑ 595,100
Future on Infosys Ltd Derivatives \| -	3%	-₹840 Cr	5,584,800 ↑ 1,951,200
Infosys Ltd (Technology) Equity, Since 31 Oct 22 \| INFY	3%	₹838 Cr	5,584,800 ↑ 1,951,200
Future on Bharti Airtel Ltd Derivatives \| -	3%	-₹817 Cr	4,370,475 ↓ -281,200
Bharti Airtel Ltd (Communication Services) Equity, Since 31 Dec 23 \| BHARTIARTL	3%	₹815 Cr	4,370,475 ↓ -281,200

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 6.9% since its launch. Ranked 2 in Arbitrage category. Return for 2024 was 7.8% , 2023 was 7.4% and 2022 was 4.5% .

Below is the key information for Kotak Equity Arbitrage Fund

Kotak Equity Arbitrage Fund Growth
Launch Date	29 Sep 05
NAV (06 Jun 25)	₹37.3308 ↑ 0.02 (0.06 %)
Net Assets (Cr)	₹63,310 on 30 Apr 25
Category	Hybrid - Arbitrage
AMC	Kotak Mahindra Asset Management Co Ltd
Rating	☆☆☆☆
Risk	Moderately Low
Expense Ratio	0.96
Sharpe Ratio	1.98
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 May 20	₹10,000
31 May 21	₹10,304
31 May 22	₹10,712
31 May 23	₹11,323
31 May 24	₹12,227
31 May 25	₹13,111

Kotak Equity Arbitrage Fund SIP 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 6 Jun 25

Duration	Returns
1 Month	0.4%
3 Month	1.8%
6 Month	3.6%
1 Year	7.1%
3 Year	7.1%
5 Year	5.7%
10 Year
15 Year
Since launch	6.9%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	7.8%
2023	7.4%
2022	4.5%
2021	4%
2020	4.3%
2019	6.1%
2018	6.3%
2017	5.8%
2016	6.7%
2015	7.5%

Fund Manager information for Kotak Equity Arbitrage Fund

Name	Since	Tenure
Hiten Shah	3 Oct 19	5.66 Yr.

Data below for Kotak Equity Arbitrage Fund as on 30 Apr 25

Asset Allocation

Asset Class	Value
Cash	93.98%
Debt	6.19%
Other	0.06%

Equity Sector Allocation

Sector	Value
Financial Services	16.77%
Basic Materials	8.36%
Industrials	7.09%
Technology	6.05%
Consumer Defensive	5.53%
Consumer Cyclical	5.46%
Health Care	4.67%
Energy	4.62%
Utility	3.32%
Communication Services	2.83%
Real Estate	0.97%

Debt Sector Allocation

Sector	Value
Cash Equivalent	78.97%
Corporate	16.05%
Government	5.15%

Credit Quality

Rating	Value
AAA	100%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Kotak Money Market Dir Gr Investment Fund \| -	11%	₹6,784 Cr	15,127,493 ↑ 1,624,836
Kotak Liquid Dir Gr Investment Fund \| -	8%	₹4,879 Cr	9,256,350 ↑ 3,804,502
Kotak Savings Fund Dir Gr Investment Fund \| -	5%	₹3,444 Cr	775,746,531 ↑ 326,520,052
Future on Infosys Ltd Derivatives \| -	3%	-₹2,061 Cr	13,718,800 ↑ 13,718,800
Infosys Ltd (Technology) Equity, Since 31 Oct 22 \| INFY	3%	₹2,058 Cr	13,718,800 ↑ 6,894,000
Future on ICICI Bank Ltd Derivatives \| -	3%	-₹1,859 Cr	12,971,700 ↑ 12,971,700
ICICI Bank Ltd (Financial Services) Equity, Since 31 Dec 19 \| ICICIBANK	3%	₹1,851 Cr	12,971,700 ↓ -2,903,600
Future on HDFC Bank Ltd Derivatives \| -	3%	-₹1,597 Cr	8,256,600 ↑ 8,256,600
HDFC Bank Ltd (Financial Services) Equity, Since 30 Apr 22 \| HDFCBANK	3%	₹1,589 Cr	8,256,600 ↑ 696,850
Future on Reliance Industries Ltd Derivatives \| -	2%	-₹1,122 Cr	7,957,500 ↑ 7,957,500

4. 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 2024 was 7.5% , 2023 was 7.4% and 2022 was 4.6% .

Below is the key information for SBI Arbitrage Opportunities Fund

SBI Arbitrage Opportunities Fund Growth
Launch Date	3 Nov 06
NAV (06 Jun 25)	₹33.6757 ↑ 0.02 (0.07 %)
Net Assets (Cr)	₹31,895 on 30 Apr 25
Category	Hybrid - Arbitrage
AMC	SBI Funds Management Private Limited
Rating	☆☆
Risk	Moderately Low
Expense Ratio	0.94
Sharpe Ratio	1.35
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 May 20	₹10,000
31 May 21	₹10,243
31 May 22	₹10,666
31 May 23	₹11,307
31 May 24	₹12,173
31 May 25	₹13,040

SBI Arbitrage Opportunities Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹349,120.
Net Profit of ₹49,120 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 6 Jun 25

Duration	Returns
1 Month	0.5%
3 Month	1.8%
6 Month	3.6%
1 Year	7.1%
3 Year	7%
5 Year	5.6%
10 Year
15 Year
Since launch	6.7%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	7.5%
2023	7.4%
2022	4.6%
2021	4%
2020	3.5%
2019	6%
2018	6.2%
2017	5.3%
2016	6.4%
2015	7.3%

Fund Manager information for SBI Arbitrage Opportunities Fund

Name	Since	Tenure
Neeraj Kumar	5 Oct 12	12.66 Yr.
Ardhendu Bhattacharya	27 Dec 24	0.43 Yr.

Data below for SBI Arbitrage Opportunities Fund as on 30 Apr 25

Asset Allocation

Asset Class	Value
Cash	85.55%
Debt	14.6%
Other	0.04%

Equity Sector Allocation

Sector	Value
Financial Services	24.75%
Industrials	6.04%
Consumer Cyclical	6.02%
Basic Materials	5.93%
Technology	5.38%
Consumer Defensive	4.76%
Energy	4.46%
Health Care	3.07%
Utility	2.96%
Communication Services	2.02%
Real Estate	1.2%

Debt Sector Allocation

Sector	Value
Cash Equivalent	76.78%
Corporate	16.54%
Government	6.83%

Credit Quality

Rating	Value
AA	9.3%
AAA	90.7%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
SBI Savings Dir Gr Investment Fund \| -	10%	₹3,196 Cr	726,722,883
Future on HDFC Bank Ltd Derivatives \| -	4%	-₹1,406 Cr	7,268,250 ↑ 2,649,900
HDFC Bank Ltd (Financial Services) Equity, Since 30 Apr 22 \| HDFCBANK	4%	₹1,399 Cr	7,268,250 ↑ 2,649,900
Future on ICICI Bank Ltd Derivatives \| -	4%	-₹1,154 Cr	8,054,200 ↑ 1,714,300
ICICI Bank Ltd (Financial Services) Equity, Since 30 Jun 21 \| ICICIBANK	4%	₹1,149 Cr	8,054,200 ↑ 1,714,300
SBI Magnum Low Duration Dir Gr Investment Fund \| -	3%	₹1,043 Cr	2,904,125
Future on Axis Bank Ltd Derivatives \| -	3%	-₹1,006 Cr	8,448,125 ↓ -470,000
Axis Bank Ltd (Financial Services) Equity, Since 31 Jul 18 \| 532215	3%	₹1,002 Cr	8,455,000 ↓ -463,125
National Bank For Agriculture And Rural Development Debentures \| -	3%	₹897 Cr	9,000
State Bank of India (Financial Services) Equity, Since 31 May 23 \| SBIN	2%	₹779 Cr	9,876,750 ↑ 1,361,250

5. Aditya Birla Sun Life Arbitrage Fund

(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).

Aditya Birla Sun Life Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 24 Jul 09. It is a fund with Moderate risk and has given a CAGR/Annualized return of 6.3% since its launch. Ranked 7 in Arbitrage category. Return for 2024 was 7.5% , 2023 was 7.1% and 2022 was 4.1% .

Below is the key information for Aditya Birla Sun Life Arbitrage Fund

Aditya Birla Sun Life Arbitrage Fund Growth
Launch Date	24 Jul 09
NAV (06 Jun 25)	₹26.4643 ↑ 0.02 (0.06 %)
Net Assets (Cr)	₹15,896 on 30 Apr 25
Category	Hybrid - Arbitrage
AMC	Birla Sun Life Asset Management Co Ltd
Rating	☆☆☆
Risk	Moderate
Expense Ratio	1.01
Sharpe Ratio	1.26
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 May 20	₹10,000
31 May 21	₹10,295
31 May 22	₹10,664
31 May 23	₹11,243
31 May 24	₹12,097
31 May 25	₹12,958

Aditya Birla Sun Life Arbitrage Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹349,120.
Net Profit of ₹49,120 Invest Now

Returns for Aditya Birla Sun Life 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 6 Jun 25

Duration	Returns
1 Month	0.5%
3 Month	1.8%
6 Month	3.5%
1 Year	7%
3 Year	6.8%
5 Year	5.5%
10 Year
15 Year
Since launch	6.3%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	7.5%
2023	7.1%
2022	4.1%
2021	3.8%
2020	4.1%
2019	6.2%
2018	6%
2017	5.6%
2016	6.5%
2015	7.6%

Fund Manager information for Aditya Birla Sun Life Arbitrage Fund

Name	Since	Tenure
Lovelish Solanki	15 Dec 14	10.47 Yr.
Mohit Sharma	3 Mar 25	0.24 Yr.

Data below for Aditya Birla Sun Life Arbitrage Fund as on 30 Apr 25

Asset Allocation

Asset Class	Value
Cash	20.75%
Equity	64.39%
Debt	14.82%
Other	0.05%

Equity Sector Allocation

Sector	Value
Financial Services	17.76%
Basic Materials	8.13%
Energy	7.04%
Industrials	6.3%
Consumer Cyclical	6.03%
Technology	4.84%
Consumer Defensive	3.9%
Communication Services	3.42%
Health Care	3.23%
Utility	2.58%
Real Estate	1.18%

Debt Sector Allocation

Sector	Value
Corporate	19.5%
Cash Equivalent	11.19%
Government	4.87%

Credit Quality

Rating	Value
AA	4.58%
AAA	95.42%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Aditya BSL Money Mgr Dir Gr Investment Fund \| -	10%	₹1,660 Cr	44,758,197
Aditya BSL FRF Dir Gr Investment Fund \| -	8%	₹1,312 Cr	37,135,768
Reliance Industries Ltd (Energy) Equity, Since 30 Jun 18 \| RELIANCE	4%	₹625 Cr	4,450,500 ↓ -457,000
ICICI Bank Ltd (Financial Services) Equity, Since 31 May 24 \| ICICIBANK	2%	₹389 Cr	2,723,700 ↑ 21,000
Vedanta Ltd (Basic Materials) Equity, Since 31 Aug 23 \| 500295	2%	₹330 Cr	7,862,550 ↑ 18,400
Axis Bank Ltd (Financial Services) Equity, Since 30 Sep 23 \| 532215	2%	₹316 Cr	2,669,375 ↑ 442,500
Infosys Ltd (Technology) Equity, Since 31 Oct 23 \| INFY	2%	₹307 Cr	2,047,600 ↑ 116,800
HDFC Bank Ltd (Financial Services) Equity, Since 31 Dec 21 \| HDFCBANK	2%	₹291 Cr	1,509,750 ↓ -46,750
Britannia Industries Ltd (Consumer Defensive) Equity, Since 31 Mar 25 \| 500825	1%	₹210 Cr	386,300 ↑ 24,100
Mahindra & Mahindra Ltd (Consumer Cyclical) Equity, Since 31 Mar 24 \| M&M	1%	₹209 Cr	714,525 ↓ -87,500

6. 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 6.6% since its launch. Ranked 17 in Arbitrage category. Return for 2024 was 7.5% , 2023 was 7.1% and 2022 was 4.1% .

Below is the key information for IDFC Arbitrage Fund

IDFC Arbitrage Fund Growth
Launch Date	21 Dec 06
NAV (06 Jun 25)	₹32.3333 ↑ 0.02 (0.06 %)
Net Assets (Cr)	₹8,656 on 30 Apr 25
Category	Hybrid - Arbitrage
AMC	IDFC Asset Management Company Limited
Rating	☆
Risk	Moderately Low
Expense Ratio	1.06
Sharpe Ratio	1.52
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.

Date	Value
31 May 20	₹10,000
31 May 21	₹10,273
31 May 22	₹10,630
31 May 23	₹11,218
31 May 24	₹12,066
31 May 25	₹12,921

IDFC Arbitrage Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹349,120.
Net Profit of ₹49,120 Invest Now

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 6 Jun 25

Duration	Returns
1 Month	0.5%
3 Month	1.8%
6 Month	3.5%
1 Year	7%
3 Year	6.8%
5 Year	5.4%
10 Year
15 Year
Since launch	6.6%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	7.5%
2023	7.1%
2022	4.1%
2021	3.5%
2020	3.8%
2019	6.2%
2018	6.3%
2017	5.5%
2016	6.3%
2015	7.4%

Fund Manager information for IDFC Arbitrage Fund

Name	Since	Tenure
Harshal Joshi	20 Oct 16	8.62 Yr.
Brijesh Shah	10 Jun 24	0.97 Yr.
Ritika Behera	7 Oct 23	1.65 Yr.
Gaurav Satra	7 Jun 24	0.98 Yr.
Abhishek Jain	8 Mar 25	0.23 Yr.

Data below for IDFC Arbitrage Fund as on 30 Apr 25

Asset Allocation

Asset Class	Value
Cash	87.02%
Debt	13.13%
Other	0.06%

Equity Sector Allocation

Sector	Value
Financial Services	19.32%
Basic Materials	7.65%
Technology	7.41%
Energy	6.36%
Industrials	6.15%
Consumer Cyclical	5.97%
Consumer Defensive	4.97%
Utility	3.2%
Health Care	3.12%
Communication Services	1.66%
Real Estate	0.75%

Debt Sector Allocation

Sector	Value
Cash Equivalent	76.46%
Corporate	16.53%
Government	7.17%

Credit Quality

Rating	Value
AAA	100%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Bandhan Money Manager Dir Gr Investment Fund \| -	12%	₹1,000 Cr	231,688,763
Bandhan Low Duration Dir Gr Investment Fund \| -	7%	₹642 Cr	164,309,770 ↓ -47,115
Bandhan Ultra Short Term Dir Gr Investment Fund \| -	5%	₹427 Cr	280,558,839 ↑ 280,558,839
Future on Reliance Industries Ltd Derivatives \| -	4%	-₹348 Cr	2,471,000 ↓ -249,000
Reliance Industries Ltd (Energy) Equity, Since 31 Mar 18 \| RELIANCE	4%	₹347 Cr	2,471,000 ↓ -249,000
HDFC Bank Ltd (Financial Services) Equity, Since 31 Mar 22 \| HDFCBANK	3%	₹265 Cr	1,377,200 ↑ 115,500
Hdfc Bank Limited May 2025 Future Derivatives \| -	3%	-₹225 Cr	1,162,700 ↑ 1,162,700
Future on ICICI Bank Ltd Derivatives \| -	2%	-₹208 Cr	1,451,800 ↑ 635,600
ICICI Bank Ltd (Financial Services) Equity, Since 31 Oct 24 \| ICICIBANK	2%	₹207 Cr	1,451,800 ↑ 635,600
Future on IDFC First Bank Ltd Derivatives \| -	2%	-₹203 Cr	31,237,500 ↑ 22,282,500

7. 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 6.5% since its launch. Ranked 10 in Arbitrage category. Return for 2024 was 7.7% , 2023 was 7.2% and 2022 was 4.2% .

Below is the key information for HDFC Arbitrage Fund

HDFC Arbitrage Fund Growth
Launch Date	23 Oct 07
NAV (06 Jun 25)	₹30.514 ↑ 0.02 (0.05 %)
Net Assets (Cr)	₹19,627 on 30 Apr 25
Category	Hybrid - Arbitrage
AMC	HDFC Asset Management Company Limited
Rating	☆☆☆
Risk	Moderately Low
Expense Ratio	0.86
Sharpe Ratio	1.74
Information Ratio	0
Alpha Ratio	0
Min Investment	100,000
Min SIP Investment	300
Exit Load	0-1 Months (0.25%),1 Months and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
31 May 20	₹10,000
31 May 21	₹10,290
31 May 22	₹10,645
31 May 23	₹11,233
31 May 24	₹12,104
31 May 25	₹12,962

HDFC Arbitrage Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹349,120.
Net Profit of ₹49,120 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 6 Jun 25

Duration	Returns
1 Month	0.4%
3 Month	1.7%
6 Month	3.4%
1 Year	7%
3 Year	6.9%
5 Year	5.5%
10 Year
15 Year
Since launch	6.5%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	7.7%
2023	7.2%
2022	4.2%
2021	3.6%
2020	3.7%
2019	6%
2018	5.7%
2017	5.3%
2016	6.6%
2015	7.6%

Fund Manager information for HDFC Arbitrage Fund

Name	Since	Tenure
Anil Bamboli	1 Feb 22	3.33 Yr.
Arun Agarwal	24 Aug 20	4.77 Yr.
Dhruv Muchhal	22 Jun 23	1.94 Yr.
Nandita Menezes	29 Mar 25	0.17 Yr.

Data below for HDFC Arbitrage Fund as on 30 Apr 25

Asset Allocation

Asset Class	Value
Cash	95.71%
Debt	4.52%
Other	0.04%

Equity Sector Allocation

Sector	Value
Financial Services	22.4%
Basic Materials	8.26%
Technology	6.73%
Consumer Cyclical	5.81%
Health Care	4.48%
Energy	4.46%
Utility	4.07%
Communication Services	3.92%
Industrials	3.59%
Consumer Defensive	2.75%
Real Estate	1.49%

Debt Sector Allocation

Sector	Value
Cash Equivalent	86.83%
Corporate	8.95%
Government	4.44%

Credit Quality

Rating	Value
AA	5.36%
AAA	94.64%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
HDFC Money Market Dir Gr Investment Fund \| -	12%	₹2,325 Cr	4,031,366
Future on ICICI Bank Ltd Derivatives \| -	7%	-₹1,276 Cr
ICICI Bank Ltd (Financial Services) Equity, Since 30 Jun 24 \| ICICIBANK	6%	₹1,270 Cr	8,901,900 ↑ 363,300
HDFC Liquid Dir Gr Investment Fund \| -	5%	₹1,070 Cr	2,088,729 ↑ 195,382
Future on HDFC Bank Ltd Derivatives \| -	5%	-₹934 Cr
HDFC Bank Ltd (Financial Services) Equity, Since 31 Jan 23 \| HDFCBANK	5%	₹929 Cr	4,823,500 ↑ 1,582,900
Infosys Limited Derivatives \| -	3%	-₹685 Cr
Infosys Ltd (Technology) Equity, Since 31 Oct 23 \| INFY	3%	₹683 Cr	4,553,600 ↑ 1,905,200
Future on Axis Bank Ltd Derivatives \| -	3%	-₹675 Cr
Axis Bank Ltd (Financial Services) Equity, Since 31 Jul 23 \| 532215	3%	₹671 Cr	5,660,625 ↓ -2,341,250

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.

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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.