7 Best Performing Arbitrage Mutual Funds 2025

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7 Best Arbitrage Mutual Funds 2025

Updated on June 28, 2025 , 36358 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	₹35.0437 ↑ 0.01	₹7,308	1.6	3.5	7.2	6.9	5.5	7.7
ICICI Prudential Equity Arbitrage Fund Growth	₹34.3112 ↑ 0.01	₹28,444	1.6	3.5	7.1	6.9	5.5	7.6
Kotak Equity Arbitrage Fund Growth	₹37.4817 ↑ 0.02	₹67,362	1.6	3.5	7.1	7	5.7	7.8
SBI Arbitrage Opportunities Fund Growth	₹33.8147 ↑ 0.01	₹33,759	1.7	3.5	7.1	7	5.6	7.5
Aditya Birla Sun Life Arbitrage Fund Growth	₹26.5675 ↑ 0.01	₹18,204	1.7	3.5	7	6.8	5.5	7.5
Edelweiss Arbitrage Fund Growth	₹19.3846 ↑ 0.01	₹15,137	1.6	3.4	7	6.9	5.6	7.7
HDFC Arbitrage Fund Growth	₹30.632 ↑ 0.01	₹20,685	1.6	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 30 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 (30 Jun 25)	₹35.0437 ↑ 0.01 (0.04 %)
Net Assets (Cr)	₹7,308 on 31 May 25
Category	Hybrid - Arbitrage
AMC	UTI Asset Management Company Ltd
Rating	☆☆☆
Risk	Moderately Low
Expense Ratio	0.85
Sharpe Ratio	1.32
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 Jun 20	₹10,000
30 Jun 21	₹10,364
30 Jun 22	₹10,732
30 Jun 23	₹11,340
30 Jun 24	₹12,223

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 30 Jun 25

Duration	Returns
1 Month	0.6%
3 Month	1.6%
6 Month	3.5%
1 Year	7.2%
3 Year	6.9%
5 Year	5.5%
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	7 Yr.
Sharwan Kumar Goyal	1 Jan 21	4.5 Yr.

Data below for UTI Arbitrage Fund as on 31 May 25

Asset Allocation

Asset Class	Value
Cash	96.38%
Equity	0.87%
Debt	2.72%
Other	0.04%

Equity Sector Allocation

Sector	Value
Financial Services	24.99%
Basic Materials	7.17%
Technology	6.68%
Consumer Cyclical	6.67%
Energy	6.13%
Industrials	5.23%
Health Care	4.26%
Consumer Defensive	4.07%
Communication Services	2.75%
Utility	1.61%
Real Estate	1%

Debt Sector Allocation

Sector	Value
Cash Equivalent	77.36%
Corporate	15.55%
Government	6.18%

Credit Quality

Rating	Value
AAA	100%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
UTI Money Market Dir Gr Investment Fund \| -	15%	₹1,111 Cr	3,574,531 ↑ 323,701
Future on ICICI Bank Ltd Derivatives \| -	5%	-₹344 Cr	2,365,300 ↑ 226,800
ICICI Bank Ltd (Financial Services) Equity, Since 30 Sep 24 \| ICICIBANK	5%	₹342 Cr	2,365,300 ↑ 226,800
Future on Reliance Industries Ltd Derivatives \| -	5%	-₹335 Cr	2,340,000 ↑ 281,500
Reliance Industries Ltd (Energy) Equity, Since 31 Aug 23 \| RELIANCE	5%	₹332 Cr	2,340,000 ↑ 281,500
Future on HDFC Bank Ltd Derivatives \| -	5%	-₹331 Cr	1,694,550 ↑ 402,050
HDFC Bank Ltd (Financial Services) Equity, Since 30 Apr 22 \| HDFCBANK	5%	₹330 Cr	1,694,550 ↑ 402,050
Future on Infosys Ltd Derivatives \| -	3%	-₹190 Cr	1,208,800 ↑ 145,600
Infosys Ltd (Technology) Equity, Since 31 Aug 24 \| INFY	3%	₹189 Cr	1,208,800 ↑ 145,600
Future on State Bank of India Derivatives \| -	2%	-₹136 Cr	1,665,000 ↑ 1,605,000

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 (30 Jun 25)	₹34.3112 ↑ 0.01 (0.04 %)
Net Assets (Cr)	₹28,444 on 31 May 25
Category	Hybrid - Arbitrage
AMC	ICICI Prudential Asset Management Company Limited
Rating	☆☆☆☆
Risk	Moderate
Expense Ratio	0.97
Sharpe Ratio	1.16
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 Jun 20	₹10,000
30 Jun 21	₹10,353
30 Jun 22	₹10,722
30 Jun 23	₹11,350
30 Jun 24	₹12,217

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 30 Jun 25

Duration	Returns
1 Month	0.6%
3 Month	1.6%
6 Month	3.5%
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	0.72 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 31 May 25

Asset Allocation

Asset Class	Value
Cash	92.18%
Debt	8.17%
Other	0.04%

Equity Sector Allocation

Sector	Value
Financial Services	18.22%
Consumer Cyclical	7.73%
Technology	7.06%
Industrials	6.8%
Energy	6.47%
Basic Materials	5.92%
Communication Services	5.23%
Consumer Defensive	4.36%
Health Care	3.79%
Utility	2.27%
Real Estate	1.45%

Debt Sector Allocation

Sector	Value
Cash Equivalent	76.62%
Corporate	17.87%
Government	5.86%

Credit Quality

Rating	Value
AAA	100%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
ICICI Pru Money Market Dir Gr Investment Fund \| -	11%	₹3,063 Cr	80,068,582
ICICI Pru Savings Dir Gr Investment Fund \| -	6%	₹1,780 Cr	32,418,220
Future on HDFC Bank Ltd Derivatives \| -	6%	-₹1,618 Cr	8,282,450 ↑ 2,558,050
HDFC Bank Ltd (Financial Services) Equity, Since 30 Nov 21 \| HDFCBANK	6%	₹1,611 Cr	8,282,450 ↑ 2,558,050
Future on Reliance Industries Ltd Derivatives \| -	4%	-₹1,015 Cr	7,100,000 ↓ -1,622,500
Reliance Industries Ltd (Energy) Equity, Since 31 Aug 18 \| RELIANCE	4%	₹1,009 Cr	7,100,000 ↓ -1,622,500
Future on Bharti Airtel Ltd Derivatives \| -	3%	-₹980 Cr	5,246,375 ↑ 875,900
Bharti Airtel Ltd (Communication Services) Equity, Since 31 Dec 23 \| BHARTIARTL	3%	₹974 Cr	5,246,375 ↑ 875,900
Future on Infosys Ltd Derivatives \| -	3%	-₹767 Cr	4,883,200 ↓ -701,600
Infosys Ltd (Technology) Equity, Since 31 Oct 22 \| INFY	3%	₹763 Cr	4,883,200 ↓ -701,600

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 (30 Jun 25)	₹37.4817 ↑ 0.02 (0.04 %)
Net Assets (Cr)	₹67,362 on 31 May 25
Category	Hybrid - Arbitrage
AMC	Kotak Mahindra Asset Management Co Ltd
Rating	☆☆☆☆
Risk	Moderately Low
Expense Ratio	0.96
Sharpe Ratio	1.32
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 Jun 20	₹10,000
30 Jun 21	₹10,365
30 Jun 22	₹10,768
30 Jun 23	₹11,419
30 Jun 24	₹12,330

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 30 Jun 25

Duration	Returns
1 Month	0.6%
3 Month	1.6%
6 Month	3.5%
1 Year	7.1%
3 Year	7%
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	5.67 Yr.

Data below for Kotak Equity Arbitrage Fund as on 31 May 25

Asset Allocation

Asset Class	Value
Cash	94.31%
Debt	6.05%
Other	0.04%

Equity Sector Allocation

Sector	Value
Financial Services	22.98%
Industrials	8.24%
Consumer Cyclical	7.66%
Basic Materials	7.58%
Energy	5.6%
Technology	5.33%
Health Care	5.08%
Consumer Defensive	4.44%
Utility	4.33%
Communication Services	3.87%
Real Estate	0.99%

Debt Sector Allocation

Sector	Value
Cash Equivalent	83.06%
Corporate	12.38%
Government	4.92%

Credit Quality

Rating	Value
AAA	100%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Kotak Money Market Dir Gr Investment Fund \| -	10%	₹7,059 Cr	15,635,912 ↑ 508,419
Kotak Savings Fund Dir Gr Investment Fund \| -	5%	₹3,635 Cr	813,317,340 ↑ 37,570,809
HDFC Bank Ltd (Financial Services) Equity, Since 30 Apr 22 \| HDFCBANK	4%	₹2,882 Cr	14,815,900 ↑ 6,559,300
HDFC Bank Ltd.-JUN2025 Derivatives \| -	4%	-₹2,844 Cr	14,555,750 ↑ 14,555,750
ICICI Bank Ltd.-JUN2025 Derivatives \| -	3%	-₹2,241 Cr	15,400,700 ↑ 15,400,700
ICICI Bank Ltd (Financial Services) Equity, Since 31 Dec 19 \| ICICIBANK	3%	₹2,227 Cr	15,400,700 ↑ 2,429,000
RELIANCE INDUSTRIES LTD.-JUN2025 Derivatives \| -	3%	-₹1,741 Cr	12,178,500 ↑ 12,178,500
Reliance Industries Ltd (Energy) Equity, Since 31 May 18 \| RELIANCE	3%	₹1,730 Cr	12,178,500 ↑ 4,221,000
Bharti Airtel Ltd-JUN2025 Derivatives \| -	2%	-₹1,590 Cr	8,510,575 ↑ 8,510,575
Bharti Airtel Ltd (Communication Services) Equity, Since 31 Oct 23 \| BHARTIARTL	2%	₹1,580 Cr	8,510,575 ↑ 3,308,375

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 (30 Jun 25)	₹33.8147 ↑ 0.01 (0.04 %)
Net Assets (Cr)	₹33,759 on 31 May 25
Category	Hybrid - Arbitrage
AMC	SBI Funds Management Private Limited
Rating	☆☆
Risk	Moderately Low
Expense Ratio	0.94
Sharpe Ratio	1.06
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 Jun 20	₹10,000
30 Jun 21	₹10,312
30 Jun 22	₹10,732
30 Jun 23	₹11,408
30 Jun 24	₹12,282

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 30 Jun 25

Duration	Returns
1 Month	0.6%
3 Month	1.7%
6 Month	3.5%
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 31 May 25

Asset Allocation

Asset Class	Value
Cash	85.09%
Equity	2.38%
Debt	12.5%
Other	0.04%

Equity Sector Allocation

Sector	Value
Financial Services	24.38%
Industrials	6.44%
Consumer Cyclical	5.61%
Basic Materials	5.44%
Technology	5.18%
Consumer Defensive	5.17%
Energy	3.81%
Utility	3.46%
Health Care	3.2%
Communication Services	1.95%
Real Estate	1.12%

Debt Sector Allocation

Sector	Value
Cash Equivalent	76.49%
Corporate	16.83%
Government	4.27%

Credit Quality

Rating	Value
AA	8.38%
AAA	91.62%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
SBI Savings Dir Gr Investment Fund \| -	10%	₹3,219 Cr	726,722,883
HDFC Bank Ltd (Financial Services) Equity, Since 30 Apr 22 \| HDFCBANK	6%	₹1,968 Cr	10,120,550 ↑ 2,852,300
Hdfc Bank Ltd. 26-Jun-25 Derivatives \| -	6%	-₹1,952 Cr	9,990,200 ↑ 9,990,200
SBI Magnum Low Duration Dir Gr Investment Fund \| -	3%	₹1,051 Cr	2,904,125
Axis Bank Ltd. Debentures \| -	3%	-₹952 Cr	7,932,500 ↑ 7,925,625
Axis Bank Ltd (Financial Services) Equity, Since 31 Jul 18 \| AXISBANK	3%	₹946 Cr	7,932,500 ↓ -522,500
State Bank Of India 26-Jun-25 Derivatives \| -	3%	-₹878 Cr	10,731,000 ↑ 10,731,000
State Bank of India (Financial Services) Equity, Since 31 May 23 \| SBIN	3%	₹875 Cr	10,772,250 ↑ 895,500
ICICI Bank Ltd (Financial Services) Equity, Since 30 Jun 21 \| ICICIBANK	2%	₹715 Cr	4,948,300 ↓ -3,105,900
Icici Bank Ltd. 26-Jun-25 Derivatives \| -	2%	-₹711 Cr	4,885,300 ↑ 4,885,300

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 (30 Jun 25)	₹26.5675 ↑ 0.01 (0.04 %)
Net Assets (Cr)	₹18,204 on 31 May 25
Category	Hybrid - Arbitrage
AMC	Birla Sun Life Asset Management Co Ltd
Rating	☆☆☆
Risk	Moderate
Expense Ratio	1.01
Sharpe Ratio	0.93
Information Ratio	0
Alpha Ratio	0
Min Investment	1,000
Min SIP Investment	1,000
Exit Load	0-30 Days (0.5%),30 Days and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
30 Jun 20	₹10,000
30 Jun 21	₹10,352
30 Jun 22	₹10,713
30 Jun 23	₹11,325
30 Jun 24	₹12,192

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 30 Jun 25

Duration	Returns
1 Month	0.6%
3 Month	1.7%
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	10.55 Yr.
Mohit Sharma	3 Mar 25	0.33 Yr.

Data below for Aditya Birla Sun Life Arbitrage Fund as on 31 May 25

Asset Allocation

Asset Class	Value
Cash	89.43%
Debt	10.86%
Other	0.05%

Equity Sector Allocation

Sector	Value
Financial Services	21.18%
Basic Materials	8.38%
Energy	7.63%
Industrials	7.35%
Consumer Cyclical	6.37%
Technology	5.47%
Consumer Defensive	4.19%
Health Care	3.61%
Communication Services	2.93%
Utility	2.85%
Real Estate	1.28%

Debt Sector Allocation

Sector	Value
Cash Equivalent	82.97%
Corporate	13.49%
Government	3.83%

Credit Quality

Rating	Value
AA	9.09%
AAA	90.91%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Aditya BSL Money Mgr Dir Gr Investment Fund \| -	11%	₹1,971 Cr	52,813,387 ↑ 8,055,189
Aditya BSL FRF Dir Gr Investment Fund \| -	7%	₹1,324 Cr	37,135,768
Reliance Industries Ltd (Energy) Equity, Since 30 Jun 18 \| RELIANCE	4%	₹743 Cr	5,229,000 ↑ 778,500
Reliance_(26/06/2025) Derivatives \| -	3%	-₹617 Cr	4,313,500 ↑ 3,726,500
Icicibank_(26/06/2025) Derivatives \| -	3%	-₹538 Cr	3,698,100 ↑ 3,698,100
ICICI Bank Ltd (Financial Services) Equity, Since 31 May 24 \| ICICIBANK	3%	₹535 Cr	3,698,100 ↑ 974,400
HDFC Bank Ltd (Financial Services) Equity, Since 31 Dec 21 \| HDFCBANK	3%	₹483 Cr	2,484,900 ↑ 975,150
Hdfcbank_(26/06/2025) Derivatives \| -	3%	-₹476 Cr	2,435,400 ↑ 2,435,400
Infy_(26/06/2025) Derivatives \| -	2%	-₹358 Cr	2,284,800 ↑ 2,152,400
Infosys Ltd (Technology) Equity, Since 31 Oct 23 \| INFY	2%	₹357 Cr	2,284,800 ↑ 237,200

6. 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 6.2% since its launch. Ranked 1 in Arbitrage category. Return for 2024 was 7.7% , 2023 was 7.1% and 2022 was 4.4% .

Below is the key information for Edelweiss Arbitrage Fund

Edelweiss Arbitrage Fund Growth
Launch Date	27 Jun 14
NAV (30 Jun 25)	₹19.3846 ↑ 0.01 (0.04 %)
Net Assets (Cr)	₹15,137 on 31 May 25
Category	Hybrid - Arbitrage
AMC	Edelweiss Asset Management Limited
Rating	☆☆☆☆☆
Risk	Moderately Low
Expense Ratio	1.08
Sharpe Ratio	0.78
Information Ratio	-0.78
Alpha Ratio	0.01
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 Jun 20	₹10,000
30 Jun 21	₹10,344
30 Jun 22	₹10,737
30 Jun 23	₹11,365
30 Jun 24	₹12,245

Edelweiss 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 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 30 Jun 25

Duration	Returns
1 Month	0.6%
3 Month	1.6%
6 Month	3.4%
1 Year	7%
3 Year	6.9%
5 Year	5.6%
10 Year
15 Year
Since launch	6.2%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	7.7%
2023	7.1%
2022	4.4%
2021	3.8%
2020	4.5%
2019	6.2%
2018	6.1%
2017	5.8%
2016	6.7%
2015	8%

Fund Manager information for Edelweiss Arbitrage Fund

Name	Since	Tenure
Bhavesh Jain	27 Jun 14	10.94 Yr.
Rahul Dedhia	1 Aug 24	0.83 Yr.
Amit Vora	6 Nov 24	0.57 Yr.
Pranavi Kulkarni	1 Jul 24	0.92 Yr.

Data below for Edelweiss Arbitrage Fund as on 31 May 25

Asset Allocation

Asset Class	Value
Cash	95.75%
Debt	4.6%
Other	0.02%

Equity Sector Allocation

Sector	Value
Financial Services	23.38%
Basic Materials	8.2%
Energy	6.91%
Industrials	6.3%
Consumer Cyclical	6.14%
Technology	5.55%
Consumer Defensive	5.48%
Health Care	4.15%
Utility	3.78%
Communication Services	3.63%
Real Estate	0.8%

Debt Sector Allocation

Sector	Value
Cash Equivalent	87.68%
Government	6.92%
Corporate	5.75%

Credit Quality

Rating	Value
AAA	100%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Edelweiss Liquid Dir Gr Investment Fund \| -	7%	₹1,005 Cr	2,964,422
Future on HDFC Bank Ltd Derivatives \| -	5%	-₹723 Cr	3,699,300 ↑ 1,329,900
HDFC Bank Ltd (Financial Services) Equity, Since 31 Mar 21 \| HDFCBANK	5%	₹719 Cr	3,699,300 ↑ 1,329,900
Future on Reliance Industries Ltd Derivatives \| -	3%	-₹519 Cr	3,628,500 ↑ 93,000
Reliance Industries Ltd (Energy) Equity, Since 30 Apr 18 \| RELIANCE	3%	₹516 Cr	3,628,500 ↑ 93,000
Future on ICICI Bank Ltd Derivatives \| -	3%	-₹393 Cr	2,700,600 ↑ 422,100
ICICI Bank Ltd (Financial Services) Equity, Since 30 Apr 20 \| ICICIBANK	3%	₹390 Cr	2,700,600 ↑ 422,100
Future on State Bank of India Derivatives \| -	2%	-₹323 Cr	3,943,500 ↑ 2,675,250
State Bank of India (Financial Services) Equity, Since 31 Jan 23 \| SBIN	2%	₹320 Cr	3,943,500 ↑ 2,675,250
Edelweiss Money Market Dir Gr Investment Fund \| -	2%	₹315 Cr	100,824,026

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 (30 Jun 25)	₹30.632 ↑ 0.01 (0.02 %)
Net Assets (Cr)	₹20,685 on 31 May 25
Category	Hybrid - Arbitrage
AMC	HDFC Asset Management Company Limited
Rating	☆☆☆
Risk	Moderately Low
Expense Ratio	0.86
Sharpe Ratio	0.93
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 Jun 20	₹10,000
30 Jun 21	₹10,343
30 Jun 22	₹10,698
30 Jun 23	₹11,324
30 Jun 24	₹12,198

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 30 Jun 25

Duration	Returns
1 Month	0.6%
3 Month	1.6%
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	1.95 Yr.
Nandita Menezes	29 Mar 25	0.18 Yr.

Data below for HDFC Arbitrage Fund as on 31 May 25

Asset Allocation

Asset Class	Value
Cash	95.7%
Debt	4.64%
Other	0.04%

Equity Sector Allocation

Sector	Value
Financial Services	23.91%
Basic Materials	8.62%
Technology	7.64%
Consumer Cyclical	7.62%
Energy	5.84%
Industrials	5.34%
Health Care	4.93%
Utility	4.75%
Consumer Defensive	3.81%
Communication Services	3.64%
Real Estate	1.18%

Debt Sector Allocation

Sector	Value
Cash Equivalent	88.84%
Corporate	7.99%
Government	3.52%

Credit Quality

Rating	Value
AA	8%
AAA	92%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
HDFC Money Market Dir Gr Investment Fund \| -	11%	₹2,341 Cr	4,031,366
Future on ICICI Bank Ltd Derivatives \| -	6%	-₹1,202 Cr
ICICI Bank Ltd (Financial Services) Equity, Since 30 Jun 24 \| ICICIBANK	6%	₹1,194 Cr	8,259,300 ↓ -642,600
Future on HDFC Bank Ltd Derivatives \| -	6%	-₹1,148 Cr
HDFC Bank Ltd (Financial Services) Equity, Since 31 Jan 23 \| HDFCBANK	6%	₹1,142 Cr	5,870,150 ↑ 1,046,650
HDFC Liquid Dir Gr Investment Fund \| -	5%	₹1,126 Cr	2,185,844 ↑ 97,116
Infosys Limited Derivatives \| -	4%	-₹825 Cr
Infosys Ltd (Technology) Equity, Since 31 Oct 23 \| INFY	4%	₹821 Cr	5,255,200 ↑ 701,600
Future on Reliance Industries Ltd Derivatives \| -	4%	-₹753 Cr
Reliance Industries Ltd (Energy) Equity, Since 31 Oct 21 \| RELIANCE	4%	₹748 Cr	5,261,500 ↑ 1,827,000

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.