Kotak Equity Arbitrage Fund Vs Nippon India Arbitrage Fund

Updated on October 15, 2026 , 2006 views

Kotak Equity Arbitrage Fund and Nippon India Arbitrage Fund (Formerly Reliance Arbitrage Fund) both belong to the arbitrage category of Hybrid Fund. Arbitrage funds are a type of Mutual Funds that leverage on the price differences of different markets to earn profits. Arbitrage Funds are named after the arbitrage strategy that they use. The returns of these funds are dependent on the Volatility of the invested asset on the Market. They make use of the market inefficiencies to generate returns for their investors. Though both Kotak Equity Arbitrage Fund Vs Nippon India Arbitrage Fund belong to the same category there differ in some parameters like AUM, NAV, performances, etc. So, to make a better investment decision, let's have a look at both the schemes in a detailed manner.

Kotak Equity Arbitrage Fund

Kotak Equity Arbitrage Fund was launched in the year 2005 with an aim to generate Capital appreciation by Investing in a derivative segment of the equity market and seek Income by investing in arbitrage opportunities in the cash. A portion of the Portfolio is invested in debt and money market instruments. Some of the top holdings of the fund (as on 30th June 2018) are Net Current Assets, Kotak Liquid Dir Gr, HDFC Bank Ltd, Axis Bank Ltd, Tata Steel Ltd, etc. Kotak Equity Arbitrage Fund is been currently managed by Deepak Gupta.

Nippon India Arbitrage Fund (Formerly Reliance Arbitrage Fund)

Important Information

From October 2019, Reliance Mutual Fund has been renamed as Nippon India Mutual Fund. Nippon Life has acquired majority (75%) stakes in Reliance Nippon Asset Management (RNAM). The company will continue to run its operations without any change in structure and management.

Nippon India Arbitrage Fund, earlier known as Reliance Arbitrage Fund was launched in the year 2010. The fund seeks to generate income by taking advantage of the arbitrage opportunities that potentially exists between cash and derivative market. As the fund also invests in debt and money market securities, it profits from regular income. Some of the top holdings of Reliance/Nippon India Arbitrage Fund as on 30th June 2018 are Cash Offset For Derivatives, HDFC Bank Ltd, Housing Development Finance Corp Ltd, Axis Bank Ltd, ICICI Bank Ltd. etc. The fund is currently managed jointly by Payal Kaipunjal and Kinjal Desai.

Kotak Equity Arbitrage Fund Vs Nippon India Arbitrage Fund

Though both Kotak Equity Arbitrage Fund Vs Reliance/Nippon India Arbitrage Fund belong to the arbitrage category of hybrid funds, nevertheless; they differ on account of various parameters. So, let us understand the differences between both the schemes based on these parameters that are divided into four sections, namely, basics section, performance section, yearly performance section, and other details section.

Basics Section

Current NAV, Fincash Rating, and Scheme Category are some of the comparable elements that form part of the basics section. It is the first section in the comparison of both the schemes. The comparison of current NAV reveals that there is a drastic difference between the NAV of both the schemes. As on 31st Jul, 2018, the NAV of Kotak Equity Arbitrage Fund was INR 25.3528, while the NAV of Nippon India Arbitrage Fund was INR 18.1855. With respect to the Fincash Rating, it can be said that both the funds are rated as 4-Star. The summary comparison of the basics section is as shown in the table given below.

Parameters
Basics	NAV
	Net Assets (Cr)
	Launch Date
	Rating
	Category
	Sub Cat.
	Category Rank
	Risk
	Expense Ratio
	Sharpe Ratio
	Information Ratio
	Alpha Ratio
	Benchmark
	Exit Load

Kotak Equity Arbitrage Fund Growth Fund Details
₹40.3983 ↑ 0.03 (0.08 %)
₹75,712 on 31 Aug 26
29 Sep 05
☆☆☆☆
Hybrid
Arbitrage
2
Moderately Low
0.97
0.69
0
0
Not Available
0-30 Days (0.25%),30 Days and above(NIL)

Nippon India Arbitrage Fund Growth Fund Details
₹28.5736 ↑ 0.02 (0.07 %)
₹17,533 on 31 Aug 26
14 Oct 10
☆☆☆☆
Hybrid
Arbitrage
3
Moderately Low
1.07
0.44
0
0
Not Available
0-1 Months (0.25%),1 Months and above(NIL)

Performance Section

This section compares the Compounded Annual Growth Rate or CAGR returns of both the schemes at various intervals. Some of the time intervals include 3 Month Return, 6 Month Return, 1 Year Return, and Return since Inception. The comparison of CAGR returns shows that both Kotak Equity Arbitrage Fund and Nippon India Arbitrage Fund has performed closely in many instance. The table given below shows the summary of performance section.

Parameters
Performance	1 Month
	3 Month
	6 Month
	1 Year
	3 Year
	5 Year
	Since launch

Kotak Equity Arbitrage Fund Growth Fund Details
0.6%
1.5%
2.9%
6.1%
6.8%
6.4%
6.9%

Nippon India Arbitrage Fund Growth Fund Details
0.6%
1.5%
2.9%
6%
6.6%
6.1%
6.8%

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Yearly Performance Section

The comparison of absolute returns generated by both the schemes for a particular year is compared in the yearly performance section. It is the third section in the comparison of both the schemes.

Parameters
Yearly Performance	2025
	2024
	2023
	2022
	2021

Kotak Equity Arbitrage Fund Growth Fund Details
6.4%
7.8%
7.4%
4.5%
4%

Nippon India Arbitrage Fund Growth Fund Details
6.2%
7.5%
7%
4.2%
3.8%

Other Details Section

It is the last section on the comparison of both the schemes that compares the elements like AUM, minimum SIP and lump sum investment and others. The comparison of AUM reveals that there is a significant difference in the AUM of both the schemes. As on 30th June 2018, the AUM of Kotak Equity Arbitrage Fund was INR 11,764 crore, while of Reliance Arbitrage Fund was INR 8,123 crores. Similarly, the minimum SIP investment for both the schemes is also different. The SIP amount for Nippon India Mutual Fund’s scheme is INR 100 and for Kotak Mutual Fund’s scheme is INR 500. However, the minimum lumpsum amount for both the schemes is the same, that is, INR 5,000. The table given below shows the comparison of other details section.

Parameters
Other Details	Min SIP Investment
Other Details	Min Investment
Fund Manager

Kotak Equity Arbitrage Fund Growth Fund Details
₹500
₹5,000
Hiten Shah - 6.92 Yr.

Nippon India Arbitrage Fund Growth Fund Details
₹100
₹5,000
Kinjal Desai - 8.28 Yr.

Growth of 10k Investments over the years

Growth of 10,000 investment over the years.

Kotak Equity Arbitrage Fund Growth Fund Details

Date	Value
30 Sep 21	₹10,000
30 Sep 22	₹10,398
30 Sep 23	₹11,142
30 Sep 24	₹11,993
30 Sep 25	₹12,796
30 Sep 26	₹13,580

Growth of 10,000 investment over the years.

Nippon India Arbitrage Fund Growth Fund Details

Date	Value
30 Sep 21	₹10,000
30 Sep 22	₹10,369
30 Sep 23	₹11,072
30 Sep 24	₹11,884
30 Sep 25	₹12,640
30 Sep 26	₹13,404

Detailed Portfolio Comparison

Asset Allocation

Kotak Equity Arbitrage Fund Growth Fund Details

Asset Class	Value
Cash	92.35%
Debt	7.87%
Other	0.06%

Equity Sector Allocation

Sector	Value
Health Care	0.03%
Technology	0.01%
Real Estate	0.01%
Financial Services	0%

Debt Sector Allocation

Sector	Value
Cash Equivalent	80.54%
Corporate	14.54%
Government	5.14%

Credit Quality

Rating	Value
AAA	100%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Kotak Money Market Dir Gr Investment Fund \| -	10%	₹7,326 Cr	14,979,603
Kotak Ultra Short Term Dir Gr Investment Fund \| -	5%	₹3,433 Cr	709,655,522
Axis Bank Ltd (Financial Services) Equity, Since 30 Jun 18 \| 532215	4%	₹2,658 Cr	20,447,500 ↑ 3,931,250
Axis Bank Ltd.-SEP2026 Derivatives \| -	3%	-₹2,599 Cr	20,446,250 ↑ 20,446,250
HDFC Bank Ltd (Financial Services) Equity, Since 30 Apr 22 \| HDFCBANK	3%	₹2,158 Cr	30,438,850 ↑ 9,794,200
HDFC Bank Ltd.-SEP2026 Derivatives \| -	3%	-₹2,109 Cr	29,482,050 ↑ 23,759,450
Kotak Ultra Shrt to S/T Dir Gr Investment Fund \| -	3%	₹2,097 Cr	5,338,100
ICICI Bank Ltd (Financial Services) Equity, Since 31 Dec 19 \| ICICIBANK	2%	₹1,872 Cr	12,877,200 ↑ 5,058,200
ICICI Bank Ltd.-SEP2026 Derivatives \| -	2%	-₹1,840 Cr	12,642,700 ↑ 11,951,100
Reliance Industries Ltd (Energy) Equity, Since 31 May 18 \| RELIANCE	2%	₹1,508 Cr	11,806,500 ↓ -420,000

Asset Allocation

Nippon India Arbitrage Fund Growth Fund Details

Asset Class	Value
Cash	92.23%
Debt	8.12%
Other	0.06%

Equity Sector Allocation

Sector	Value
Consumer Defensive	0.41%
Energy	0.2%
Real Estate	0.11%
Technology	0.02%
Health Care	0.01%

Debt Sector Allocation

Sector	Value
Cash Equivalent	79.63%
Corporate	16.27%
Government	4.37%
Securitized	0.09%

Credit Quality

Rating	Value
AA	12.75%
AAA	87.25%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Nippon India Money Market Dir Gr Investment Fund \| -	15%	₹2,648 Cr	5,837,038
Nippon India U/ST Term Dir Gr Investment Fund \| -	7%	₹1,294 Cr	2,692,072
Future on HDFC Bank Ltd Cedear Derivatives \| -	5%	-₹792 Cr	11,037,650 ↑ 11,037,650
HDFC Bank Ltd (Financial Services) Equity, Since 31 Jan 23 \| HDFCBANK	4%	₹783 Cr	11,037,650 ↑ 1,164,150
Future on Reliance Industries Ltd Derivatives \| -	4%	-₹753 Cr	5,780,000 ↓ -139,000
Reliance Industries Ltd (Energy) Equity, Since 31 Dec 17 \| RELIANCE	4%	₹738 Cr	5,780,000 ↓ -139,000
Axis Bank Ltd (Financial Services) Equity, Since 31 Jul 23 \| 532215	3%	₹531 Cr	4,081,875 ↑ 130,000
Future on Axis Bank Ltd Derivatives \| -	3%	-₹519 Cr	4,081,875 ↑ 130,000
State Bank of India (Financial Services) Equity, Since 31 Jan 23 \| SBIN	2%	₹375 Cr	3,538,500 ↑ 243,750
Future on State Bank of India Derivatives \| -	2%	-₹373 Cr	3,538,500 ↑ 243,750

Thus, based on the above pointers, it can be said that both the schemes differ on account of various parameters. Consequently, investors should be very cautious before investing in any of the Mutual Fund schemes. They should understand the modalities of the scheme completely. Also, if required, they can consult a financial advisor for an opinion. This will help the individuals to attain their goals on time in a hassle-free manner.