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7 Best Arbitrage Mutual Funds 2025
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.
Talk to our investment specialist
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 (%) Kotak Equity Arbitrage Fund Growth ₹36.586
↓ 0.00 ₹57,567 1.7 3.5 7.5 6.7 5.6 7.8 UTI Arbitrage Fund Growth ₹34.1919
↑ 0.00 ₹6,518 1.7 3.5 7.5 6.4 5.4 7.7 HDFC Arbitrage Fund Growth ₹29.924
↓ 0.00 ₹17,654 1.6 3.5 7.4 6.5 5.3 7.7 Invesco India Arbitrage Fund Growth ₹31.1623
↓ 0.00 ₹18,674 1.7 3.5 7.4 6.7 5.6 7.6 Edelweiss Arbitrage Fund Growth ₹18.9295
↓ 0.00 ₹12,906 1.7 3.5 7.4 6.5 5.5 7.7 ICICI Prudential Equity Arbitrage Fund Growth ₹33.4806
↓ -0.01 ₹25,324 1.6 3.5 7.4 6.4 5.4 7.6 SBI Arbitrage Opportunities Fund Growth ₹32.9878
↓ 0.00 ₹32,169 1.6 3.5 7.3 6.6 5.4 7.5 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 19 Feb 25
*Below is the list of Arbitrage funds sorted on last 1 year return and having AUM > 100 Crore.
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 Below is the key information for Kotak Equity 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. 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 Below is the key information for UTI 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." 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 Below is the key information for HDFC Arbitrage 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. Invesco India Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 30 Apr 07. It is a fund with Moderately Low risk and has given a Below is the key information for Invesco India 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. 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 Below is the key information for Edelweiss 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. 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 Below is the key information for ICICI Prudential Equity Arbitrage Fund Returns up to 1 year are on 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 Below is the key information for SBI Arbitrage Opportunities Fund Returns up to 1 year are on 1. Kotak Equity Arbitrage Fund
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% . Kotak Equity Arbitrage Fund
Growth Launch Date 29 Sep 05 NAV (19 Feb 25) ₹36.586 ↓ 0.00 (-0.01 %) Net Assets (Cr) ₹57,567 on 31 Jan 25 Category Hybrid - Arbitrage AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.96 Sharpe Ratio 2.39 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 Jan 20 ₹10,000 31 Jan 21 ₹10,394 31 Jan 22 ₹10,831 31 Jan 23 ₹11,315 31 Jan 24 ₹12,211 31 Jan 25 ₹13,141 Returns for Kotak Equity Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Feb 25 Duration Returns 1 Month 0.6% 3 Month 1.7% 6 Month 3.5% 1 Year 7.5% 3 Year 6.7% 5 Year 5.6% 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 5.34 Yr. Data below for Kotak Equity Arbitrage Fund as on 31 Jan 25
Asset Allocation
Asset Class Value Cash 95.71% Debt 4.72% Other 0.05% Equity Sector Allocation
Sector Value Financial Services 21.05% Energy 10.11% Consumer Cyclical 9.33% Basic Materials 7.62% Industrials 6.82% Technology 4.33% Utility 4.1% Communication Services 3.12% Health Care 2.54% Consumer Defensive 1.96% Real Estate 1.16% Debt Sector Allocation
Sector Value Cash Equivalent 87.74% Corporate 10.55% Government 2.14% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Kotak Money Market Dir Gr
Investment Fund | -13% ₹7,366 Cr 16,911,568
↑ 66,807 Reliance Industries Ltd (Energy)
Equity, Since 31 May 18 | RELIANCE7% ₹3,817 Cr 31,402,500
↑ 6,738,500 RELIANCE INDUSTRIES LTD.-JAN2025
Derivatives | -7% -₹3,789 Cr 30,968,000
↑ 30,968,000 Kotak Savings Fund Dir Gr
Investment Fund | -6% ₹3,428 Cr 793,328,748
↑ 92,988,577 Axis Bank Ltd.-JAN2025
Derivatives | -4% -₹2,257 Cr 21,039,375
↑ 21,039,375 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 18 | 5322154% ₹2,244 Cr 21,071,875
↑ 6,721,875 Kotak Liquid Dir Gr
Investment Fund | -4% ₹2,088 Cr 4,057,974
↑ 593,606 State Bank of India (Financial Services)
Equity, Since 31 May 23 | SBIN2% ₹1,249 Cr 15,713,250
↑ 5,542,500 State Bank Of India-JAN2025
Derivatives | -2% -₹1,238 Cr 15,459,750
↑ 15,459,750 Tata Motors Ltd.-JAN2025
Derivatives | -2% -₹1,136 Cr 15,235,000
↑ 15,235,000 2. UTI Arbitrage Fund
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% . UTI Arbitrage Fund
Growth Launch Date 22 Jun 06 NAV (19 Feb 25) ₹34.1919 ↑ 0.00 (0.01 %) Net Assets (Cr) ₹6,518 on 31 Jan 25 Category Hybrid - Arbitrage AMC UTI Asset Management Company Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.85 Sharpe Ratio 2.71 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 31 Jan 20 ₹10,000 31 Jan 21 ₹10,393 31 Jan 22 ₹10,821 31 Jan 23 ₹11,260 31 Jan 24 ₹12,119 31 Jan 25 ₹13,030 Returns for UTI Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Feb 25 Duration Returns 1 Month 0.6% 3 Month 1.7% 6 Month 3.5% 1 Year 7.5% 3 Year 6.4% 5 Year 5.4% 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 6.59 Yr. Sharwan Kumar Goyal 1 Jan 21 4.09 Yr. Data below for UTI Arbitrage Fund as on 31 Jan 25
Asset Allocation
Asset Class Value Cash 95.8% Equity 1.45% Debt 2.71% Other 0.03% Equity Sector Allocation
Sector Value Financial Services 22.38% Consumer Cyclical 9.85% Basic Materials 8.13% Industrials 6.66% Energy 6.46% Health Care 3.07% Consumer Defensive 3.03% Technology 2.67% Communication Services 2.28% Utility 2.15% Real Estate 1.79% Debt Sector Allocation
Sector Value Cash Equivalent 88.23% Corporate 9.92% Government 0.36% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity UTI Money Market Dir Gr
Investment Fund | -13% ₹902 Cr 3,006,593
↓ -167,337 Future on Reliance Industries Ltd
Derivatives | -5% -₹366 Cr 2,987,500
↑ 2,987,500 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 23 | RELIANCE5% ₹363 Cr 2,987,500
↑ 687,500 Future on Punjab National Bank
Derivatives | -3% -₹205 Cr 19,864,000
↑ 19,864,000 Punjab National Bank (Financial Services)
Equity, Since 31 Mar 24 | 5324613% ₹204 Cr 19,864,000
↑ 896,000 Future on IndusInd Bank Ltd
Derivatives | -3% -₹197 Cr 2,039,000
↑ 2,039,000 IndusInd Bank Ltd (Financial Services)
Equity, Since 31 Dec 23 | INDUSINDBK3% ₹196 Cr 2,039,000
↑ 526,000 Future on Bank of Baroda
Derivatives | -3% -₹183 Cr 7,549,425
↑ 7,549,425 Bank of Baroda (Financial Services)
Equity, Since 31 May 23 | 5321343% ₹182 Cr 7,549,425
↑ 114,075 Future on Tata Motors Ltd
Derivatives | -3% -₹168 Cr 2,253,350
↑ 2,253,350 3. HDFC Arbitrage Fund
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% . HDFC Arbitrage Fund
Growth Launch Date 23 Oct 07 NAV (19 Feb 25) ₹29.924 ↓ 0.00 (-0.01 %) Net Assets (Cr) ₹17,654 on 31 Jan 25 Category Hybrid - Arbitrage AMC HDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.86 Sharpe Ratio 2.14 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 Jan 20 ₹10,000 31 Jan 21 ₹10,328 31 Jan 22 ₹10,725 31 Jan 23 ₹11,180 31 Jan 24 ₹12,036 31 Jan 25 ₹12,933 Returns for HDFC Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Feb 25 Duration Returns 1 Month 0.6% 3 Month 1.6% 6 Month 3.5% 1 Year 7.4% 3 Year 6.5% 5 Year 5.3% 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 Yr. Arun Agarwal 24 Aug 20 4.44 Yr. Nirman Morakhia 15 Feb 23 1.96 Yr. Dhruv Muchhal 22 Jun 23 1.61 Yr. Data below for HDFC Arbitrage Fund as on 31 Jan 25
Asset Allocation
Asset Class Value Cash 97.4% Debt 3.02% Other 0.05% Equity Sector Allocation
Sector Value Financial Services 21.63% Consumer Cyclical 10.5% Energy 9.44% Basic Materials 8.73% Industrials 7.52% Technology 5.39% Utility 4.74% Health Care 3.44% Consumer Defensive 2.37% Real Estate 2.15% Communication Services 2.07% Debt Sector Allocation
Sector Value Cash Equivalent 92.13% Corporate 7.06% Government 1.22% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Money Market Dir Gr
Investment Fund | -13% ₹2,258 Cr 4,031,366 Future on Reliance Industries Ltd
Derivatives | -8% -₹1,373 Cr Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 21 | RELIANCE8% ₹1,364 Cr 11,222,500
↑ 874,000 HDFC Liquid Dir Gr
Investment Fund | -5% ₹798 Cr 1,595,363 Infosys Limited
Derivatives | -4% -₹756 Cr Infosys Ltd (Technology)
Equity, Since 31 Oct 23 | INFY4% ₹752 Cr 4,001,200
↓ -19,600 Future on NTPC Ltd
Derivatives | -2% -₹376 Cr NTPC Ltd (Utilities)
Equity, Since 31 Dec 22 | 5325552% ₹375 Cr 11,251,500
↓ -255,000 Future on State Bank of India
Derivatives | -2% -₹371 Cr Future on Bank of Baroda
Derivatives | -2% -₹369 Cr 4. Invesco India Arbitrage Fund
CAGR/Annualized return of 6.6% since its launch. Ranked 9 in Arbitrage category. Return for 2024 was 7.6% , 2023 was 7.4% and 2022 was 5.1% . Invesco India Arbitrage Fund
Growth Launch Date 30 Apr 07 NAV (19 Feb 25) ₹31.1623 ↓ 0.00 (0.00 %) Net Assets (Cr) ₹18,674 on 31 Jan 25 Category Hybrid - Arbitrage AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 1.05 Sharpe Ratio 1.9 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 31 Jan 20 ₹10,000 31 Jan 21 ₹10,384 31 Jan 22 ₹10,784 31 Jan 23 ₹11,333 31 Jan 24 ₹12,214 31 Jan 25 ₹13,120 Returns for Invesco India Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Feb 25 Duration Returns 1 Month 0.6% 3 Month 1.7% 6 Month 3.5% 1 Year 7.4% 3 Year 6.7% 5 Year 5.6% 10 Year 15 Year Since launch 6.6% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.6% 2023 7.4% 2022 5.1% 2021 3.5% 2020 4.3% 2019 5.9% 2018 5.9% 2017 5.5% 2016 6.5% 2015 7.6% Fund Manager information for Invesco India Arbitrage Fund
Name Since Tenure Deepak Gupta 11 Nov 21 3.23 Yr. Kuber Mannadi 1 Sep 22 2.42 Yr. Data below for Invesco India Arbitrage Fund as on 31 Jan 25
Asset Allocation
Asset Class Value Cash 96.78% Debt 3.7% Other 0.04% Equity Sector Allocation
Sector Value Financial Services 23.09% Energy 11.17% Consumer Cyclical 10.89% Industrials 9.14% Basic Materials 8.08% Communication Services 3.01% Utility 2.78% Health Care 2.78% Technology 2.28% Consumer Defensive 1.73% Real Estate 0.94% Debt Sector Allocation
Sector Value Cash Equivalent 92.03% Corporate 6.67% Government 1.78% Credit Quality
Rating Value AA 6.06% AAA 93.94% Top Securities Holdings / Portfolio
Name Holding Value Quantity Invesco India Liquid Dir Gr
Investment Fund | -12% ₹2,201 Cr 6,295,546
↓ -171,093 Reliance Industries Ltd (Energy)
Equity, Since 31 Dec 22 | RELIANCE8% ₹1,454 Cr 11,959,500
↑ 613,000 Reliance Industries Limited January 2025 Future
Derivatives | -7% -₹1,238 Cr 10,115,000
↑ 10,115,000 Invesco India Money Market Dir Gr
Investment Fund | -6% ₹1,120 Cr 3,698,366 Tata Motors Ltd (Consumer Cyclical)
Equity, Since 31 Aug 24 | TATAMOTORS4% ₹740 Cr 10,000,100
↑ 397,100 Tata Motors Limited January 2025 Future
Derivatives | -3% -₹614 Cr 8,236,800
↑ 8,236,800 IndusInd Bank Ltd (Financial Services)
Equity, Since 30 Nov 21 | INDUSINDBK3% ₹495 Cr 5,155,500
↓ -162,500 Indusind Bank Limited January 2025 Future
Derivatives | -2% -₹466 Cr 4,826,000
↑ 4,826,000 Power Finance Corporation Limited January 2025 Future
Derivatives | -2% -₹371 Cr 8,222,500
↑ 8,222,500 Power Finance Corp Ltd (Financial Services)
Equity, Since 30 Sep 23 | 5328102% ₹370 Cr 8,256,300
↑ 2,598,700 5. Edelweiss Arbitrage Fund
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% . Edelweiss Arbitrage Fund
Growth Launch Date 27 Jun 14 NAV (19 Feb 25) ₹18.9295 ↓ 0.00 (-0.01 %) Net Assets (Cr) ₹12,906 on 31 Jan 25 Category Hybrid - Arbitrage AMC Edelweiss Asset Management Limited Rating ☆☆☆☆☆ Risk Moderately Low Expense Ratio 1.08 Sharpe Ratio 2.18 Information Ratio -0.58 Alpha Ratio 0.34 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 Jan 20 ₹10,000 31 Jan 21 ₹10,408 31 Jan 22 ₹10,830 31 Jan 23 ₹11,304 31 Jan 24 ₹12,167 31 Jan 25 ₹13,077 Returns for Edelweiss Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Feb 25 Duration Returns 1 Month 0.6% 3 Month 1.7% 6 Month 3.5% 1 Year 7.4% 3 Year 6.5% 5 Year 5.5% 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 10.61 Yr. Rahul Dedhia 1 Aug 24 0.5 Yr. Amit Vora 6 Nov 24 0.24 Yr. Pranavi Kulkarni 1 Jul 24 0.59 Yr. Data below for Edelweiss Arbitrage Fund as on 31 Jan 25
Asset Allocation
Asset Class Value Cash 94.54% Debt 5.89% Other 0.02% Equity Sector Allocation
Sector Value Financial Services 17.86% Basic Materials 10.87% Energy 9.63% Industrials 8.54% Consumer Cyclical 7.82% Technology 4.35% Health Care 3.88% Communication Services 3.5% Consumer Defensive 3.08% Utility 3.03% Real Estate 0.92% Debt Sector Allocation
Sector Value Cash Equivalent 90.28% Government 5.08% Corporate 5.08% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Edelweiss Liquid Dir Gr
Investment Fund | -8% ₹926 Cr 2,812,837 Future on Reliance Industries Ltd
Derivatives | -6% -₹732 Cr 5,978,500
↑ 1,199,000 Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 18 | RELIANCE6% ₹727 Cr 5,978,500
↑ 1,199,000 EdelweissNifty PSU BPSDLA2650:50IdxDrGr
Investment Fund | -3% ₹306 Cr 243,599,114 Future on Bharti Airtel Ltd
Derivatives | -2% -₹267 Cr 1,672,475
↓ -3,325 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 23 | BHARTIARTL2% ₹266 Cr 1,672,475
↓ -3,325 Future on Vedanta Ltd
Derivatives | -2% -₹250 Cr 5,584,400
↓ -2,333,350 Vedanta Ltd (Basic Materials)
Equity, Since 31 Aug 23 | 5002952% ₹248 Cr 5,584,400
↓ -2,333,350 Future on IndusInd Bank Ltd
Derivatives | -2% -₹245 Cr 2,536,500
↑ 1,091,500 IndusInd Bank Ltd (Financial Services)
Equity, Since 30 Jun 20 | INDUSINDBK2% ₹244 Cr 2,536,500
↑ 1,091,500 6. ICICI Prudential Equity Arbitrage Fund
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% . ICICI Prudential Equity Arbitrage Fund
Growth Launch Date 30 Dec 06 NAV (19 Feb 25) ₹33.4806 ↓ -0.01 (-0.03 %) Net Assets (Cr) ₹25,324 on 31 Jan 25 Category Hybrid - Arbitrage AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 0.97 Sharpe Ratio 1.79 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 Jan 20 ₹10,000 31 Jan 21 ₹10,383 31 Jan 22 ₹10,812 31 Jan 23 ₹11,264 31 Jan 24 ₹12,121 31 Jan 25 ₹13,019 Returns for ICICI Prudential Equity Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Feb 25 Duration Returns 1 Month 0.6% 3 Month 1.6% 6 Month 3.5% 1 Year 7.4% 3 Year 6.4% 5 Year 5.4% 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 4.09 Yr. Sharmila D’mello 31 Jul 22 2.51 Yr. Darshil Dedhia 13 Sep 24 0.38 Yr. Ajaykumar Solanki 23 Aug 24 0.44 Yr. Archana Nair 1 Feb 24 1 Yr. Data below for ICICI Prudential Equity Arbitrage Fund as on 31 Jan 25
Asset Allocation
Asset Class Value Cash 98.15% Debt 2.27% Other 0.03% Equity Sector Allocation
Sector Value Financial Services 18.67% Industrials 9.61% Consumer Cyclical 8.99% Energy 8.35% Basic Materials 7.22% Technology 5.09% Communication Services 4.1% Health Care 4.06% Consumer Defensive 3.82% Utility 2.67% Real Estate 1.29% Debt Sector Allocation
Sector Value Cash Equivalent 89.13% Corporate 10.48% Government 0.81% Credit Quality
Rating Value AA 0.96% AAA 99.04% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Pru Money Market Dir Gr
Investment Fund | -11% ₹2,758 Cr 74,722,063 Future on Reliance Industries Ltd
Derivatives | -5% -₹1,196 Cr 9,776,500
↑ 3,547,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 18 | RELIANCE5% ₹1,188 Cr 9,776,500
↑ 3,547,000 ICICI Pru Savings Dir Gr
Investment Fund | -4% ₹871 Cr 16,474,508 Future on Bharti Airtel Ltd
Derivatives | -2% -₹592 Cr 3,705,475
↑ 484,500 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Dec 23 | BHARTIARTL2% ₹588 Cr 3,705,475
↑ 484,500 Future on Larsen & Toubro Ltd
Derivatives | -2% -₹505 Cr 1,391,700
↑ 133,650 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Sep 23 | LT2% ₹502 Cr 1,391,700
↑ 133,650 Future on Mahindra & Mahindra Ltd
Derivatives | -2% -₹494 Cr 1,630,125
↑ 114,450 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Jul 14 | M&M2% ₹490 Cr 1,630,125
↑ 114,450 7. SBI Arbitrage Opportunities Fund
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% . SBI Arbitrage Opportunities Fund
Growth Launch Date 3 Nov 06 NAV (19 Feb 25) ₹32.9878 ↓ 0.00 (0.00 %) Net Assets (Cr) ₹32,169 on 31 Jan 25 Category Hybrid - Arbitrage AMC SBI Funds Management Private Limited Rating ☆☆ Risk Moderately Low Expense Ratio 0.94 Sharpe Ratio 1.55 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 Jan 20 ₹10,000 31 Jan 21 ₹10,300 31 Jan 22 ₹10,741 31 Jan 23 ₹11,240 31 Jan 24 ₹12,121 31 Jan 25 ₹13,014 Returns for SBI Arbitrage Opportunities Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Feb 25 Duration Returns 1 Month 0.6% 3 Month 1.6% 6 Month 3.5% 1 Year 7.3% 3 Year 6.6% 5 Year 5.4% 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 12.33 Yr. Ardhendu Bhattacharya 27 Dec 24 0.1 Yr. Data below for SBI Arbitrage Opportunities Fund as on 31 Jan 25
Asset Allocation
Asset Class Value Cash 86.09% Equity 1.37% Debt 12.5% Other 0.04% Equity Sector Allocation
Sector Value Financial Services 19.38% Energy 9.57% Consumer Cyclical 8.14% Basic Materials 7.64% Industrials 7.23% Technology 5.18% Communication Services 4.01% Health Care 3.18% Utility 2.82% Consumer Defensive 2.65% Real Estate 1.85% Debt Sector Allocation
Sector Value Cash Equivalent 82.19% Corporate 11.23% Government 5.16% Securitized 0.01% Credit Quality
Rating Value AA 7.92% AAA 92.08% Top Securities Holdings / Portfolio
Name Holding Value Quantity SBI Savings Dir Gr
Investment Fund | -10% ₹3,106 Cr 726,722,883 Future on Reliance Industries Ltd
Derivatives | -7% -₹2,035 Cr 16,627,000
↑ 2,573,500 Reliance Industries Ltd (Energy)
Equity, Since 30 Nov 21 | RELIANCE6% ₹2,021 Cr 16,627,000
↑ 2,573,500 SBI Magnum Low Duration Dir Gr
Investment Fund | -3% ₹1,013 Cr 2,904,125 National Bank For Agriculture And Rural Development
Debentures | -3% ₹889 Cr 9,000 Future on Tata Motors Ltd
Derivatives | -2% -₹772 Cr 10,345,500
↑ 824,450 Tata Motors Ltd (Consumer Cyclical)
Equity, Since 31 Mar 22 | TATAMOTORS2% ₹766 Cr 10,345,500
↑ 824,450 Future on Bharti Airtel Ltd
Derivatives | -2% -₹723 Cr 4,520,575
↑ 1,133,825 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 23 | BHARTIARTL2% ₹718 Cr 4,520,575
↑ 1,133,825 Future on State Bank of India
Derivatives | -2% -₹692 Cr 8,643,750
↑ 2,117,250
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.
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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