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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 (%) 2023 (%) Kotak Equity Arbitrage Fund Growth ₹36.9751
↑ 0.00 ₹58,923 1.8 3.6 7.3 6.9 5.7 7.8 UTI Arbitrage Fund Growth ₹34.5705
↑ 0.00 ₹6,415 1.8 3.7 7.3 6.7 5.5 7.7 ICICI Prudential Equity Arbitrage Fund Growth ₹33.8477
↓ 0.00 ₹25,880 1.8 3.6 7.2 6.7 5.5 7.6 Invesco India Arbitrage Fund Growth ₹31.4822
↑ 0.00 ₹19,341 1.7 3.5 7.2 7 5.6 7.6 HDFC Arbitrage Fund Growth ₹30.23
↓ 0.00 ₹18,054 1.7 3.5 7.2 6.7 5.4 7.7 Edelweiss Arbitrage Fund Growth ₹19.1286
↑ 0.00 ₹13,644 1.8 3.6 7.2 6.7 5.5 7.7 IDFC Arbitrage Fund Growth ₹32.0304
↑ 0.00 ₹7,877 1.8 3.5 7.2 6.6 5.3 7.5 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 11 Apr 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 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 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 "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 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 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 Below is the key information for IDFC Arbitrage 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 (11 Apr 25) ₹36.9751 ↑ 0.00 (0.00 %) Net Assets (Cr) ₹58,923 on 28 Feb 25 Category Hybrid - Arbitrage AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.96 Sharpe Ratio 1.75 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 Mar 20 ₹10,000 31 Mar 21 ₹10,358 31 Mar 22 ₹10,771 31 Mar 23 ₹11,343 31 Mar 24 ₹12,231 31 Mar 25 ₹13,150 Returns for Kotak Equity Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 11 Apr 25 Duration Returns 1 Month 0.7% 3 Month 1.8% 6 Month 3.6% 1 Year 7.3% 3 Year 6.9% 5 Year 5.7% 10 Year 15 Year Since launch 6.9% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.8% 2022 7.4% 2021 4.5% 2020 4% 2019 4.3% 2018 6.1% 2017 6.3% 2016 5.8% 2015 6.7% 2014 7.5% Fund Manager information for Kotak Equity Arbitrage Fund
Name Since Tenure Hiten Shah 3 Oct 19 5.41 Yr. Data below for Kotak Equity Arbitrage Fund as on 28 Feb 25
Asset Allocation
Asset Class Value Cash 97.08% Debt 3.22% Other 0.07% Equity Sector Allocation
Sector Value Financial Services 21.52% Consumer Cyclical 7.37% Energy 7.26% Basic Materials 6.29% Technology 5.93% Consumer Defensive 5.43% Industrials 4.69% Health Care 3.33% Communication Services 3.24% Utility 2.74% Real Estate 1.03% Debt Sector Allocation
Sector Value Cash Equivalent 86.51% Corporate 11.3% Government 2.48% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Kotak Liquid Dir Gr
Investment Fund | -12% ₹7,270 Cr 13,970,467
↑ 6,466,205 Kotak Money Market Dir Gr
Investment Fund | -11% ₹6,200 Cr 14,069,748
↑ 22,737 Kotak Savings Fund Dir Gr
Investment Fund | -5% ₹3,107 Cr 710,995,820
↓ -45,981,557 ICICI Bank Ltd.-MAR2025
Derivatives | -5% -₹3,038 Cr 25,080,300
↑ 25,080,300 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Dec 19 | ICICIBANK5% ₹3,020 Cr 25,080,300
↑ 9,256,100 RELIANCE INDUSTRIES LTD.-MAR2025
Derivatives | -5% -₹2,879 Cr 23,863,500
↑ 23,659,000 Reliance Industries Ltd (Energy)
Equity, Since 31 May 18 | RELIANCE5% ₹2,864 Cr 23,863,500
↓ -2,513,500 Axis Bank Ltd.-MAR2025
Derivatives | -3% -₹1,825 Cr 17,871,250
↑ 17,598,125 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 18 | 5322153% ₹1,815 Cr 17,871,250
↓ -5,720,625 HDFC Bank Ltd.-MAR2025
Derivatives | -3% -₹1,531 Cr 8,807,150
↑ 8,776,900 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 (11 Apr 25) ₹34.5705 ↑ 0.00 (0.01 %) Net Assets (Cr) ₹6,415 on 28 Feb 25 Category Hybrid - Arbitrage AMC UTI Asset Management Company Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.85 Sharpe Ratio 1.91 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 Mar 20 ₹10,000 31 Mar 21 ₹10,355 31 Mar 22 ₹10,752 31 Mar 23 ₹11,281 31 Mar 24 ₹12,137 31 Mar 25 ₹13,043 Returns for UTI Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 11 Apr 25 Duration Returns 1 Month 0.8% 3 Month 1.8% 6 Month 3.7% 1 Year 7.3% 3 Year 6.7% 5 Year 5.5% 10 Year 15 Year Since launch 6.8% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.7% 2022 7.2% 2021 4% 2020 3.9% 2019 4.4% 2018 6.2% 2017 6.2% 2016 5.7% 2015 6.5% 2014 7.6% Fund Manager information for UTI Arbitrage Fund
Name Since Tenure Amit Sharma 2 Jul 18 6.75 Yr. Sharwan Kumar Goyal 1 Jan 21 4.25 Yr. Data below for UTI Arbitrage Fund as on 28 Feb 25
Asset Allocation
Asset Class Value Cash 94.61% Debt 5.37% Other 0.03% Equity Sector Allocation
Sector Value Financial Services 22.63% Basic Materials 5.9% Consumer Cyclical 5.77% Energy 5.75% Industrials 5.13% Technology 3.79% Health Care 2.43% Utility 2.2% Communication Services 2.02% Consumer Defensive 1.49% Real Estate 1.43% Debt Sector Allocation
Sector Value Cash Equivalent 81.88% Corporate 17.04% Government 1.06% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity UTI Money Market Dir Gr
Investment Fund | -14% ₹912 Cr 3,006,593 Future on Reliance Industries Ltd
Derivatives | -5% -₹327 Cr 2,711,500
↓ -18,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 23 | RELIANCE5% ₹325 Cr 2,711,500
↓ -18,000 Future on ICICI Bank Ltd
Derivatives | -4% -₹237 Cr 1,956,500
↑ 431,200 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Sep 24 | ICICIBANK4% ₹236 Cr 1,956,500
↑ 431,200 Future on Punjab National Bank
Derivatives | -3% -₹178 Cr 20,256,000
↓ -568,000 Punjab National Bank (Financial Services)
Equity, Since 31 Mar 24 | 5324613% ₹177 Cr 20,256,000
↓ -568,000 Future on State Bank of India
Derivatives | -2% -₹142 Cr 2,055,000
↑ 176,250 Future on Bank of Baroda
Derivatives | -2% -₹142 Cr 7,154,550
↓ -201,825 State Bank of India (Financial Services)
Equity, Since 31 May 23 | SBIN2% ₹142 Cr 2,055,000
↑ 176,250 3. 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 (11 Apr 25) ₹33.8477 ↓ 0.00 (-0.01 %) Net Assets (Cr) ₹25,880 on 28 Feb 25 Category Hybrid - Arbitrage AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 0.97 Sharpe Ratio 1.41 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 Mar 20 ₹10,000 31 Mar 21 ₹10,343 31 Mar 22 ₹10,741 31 Mar 23 ₹11,285 31 Mar 24 ₹12,135 31 Mar 25 ₹13,028 Returns for ICICI Prudential Equity Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 11 Apr 25 Duration Returns 1 Month 0.8% 3 Month 1.8% 6 Month 3.6% 1 Year 7.2% 3 Year 6.7% 5 Year 5.5% 10 Year 15 Year Since launch 6.9% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.6% 2022 7.1% 2021 4.2% 2020 3.9% 2019 4.3% 2018 5.9% 2017 6.2% 2016 5.5% 2015 6.8% 2014 7.6% Fund Manager information for ICICI Prudential Equity Arbitrage Fund
Name Since Tenure Nikhil Kabra 29 Dec 20 4.17 Yr. Sharmila D’mello 31 Jul 22 2.59 Yr. Darshil Dedhia 13 Sep 24 0.46 Yr. Ajaykumar Solanki 23 Aug 24 0.52 Yr. Archana Nair 1 Feb 24 1.08 Yr. Data below for ICICI Prudential Equity Arbitrage Fund as on 28 Feb 25
Asset Allocation
Asset Class Value Cash 96.1% Debt 4.18% Other 0.05% Equity Sector Allocation
Sector Value Financial Services 17.47% Consumer Cyclical 8.13% Energy 7.77% Basic Materials 6.81% Industrials 6.23% Technology 5.36% Communication Services 4.22% Health Care 3.39% Utility 3.01% Consumer Defensive 2.73% Real Estate 1.56% Debt Sector Allocation
Sector Value Cash Equivalent 83.47% Corporate 13.73% Government 3.08% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Pru Money Market Dir Gr
Investment Fund | -11% ₹2,790 Cr 74,722,063 ICICI Pru Savings Dir Gr
Investment Fund | -6% ₹1,536 Cr 28,700,963 Future on Reliance Industries Ltd
Derivatives | -5% -₹1,254 Cr 10,391,500
↑ 688,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 18 | RELIANCE5% ₹1,247 Cr 10,391,500
↑ 688,000 Future on HDFC Bank Ltd
Derivatives | -3% -₹894 Cr 5,145,250
↑ 1,296,350 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Nov 21 | HDFCBANK3% ₹891 Cr 5,145,250
↑ 1,296,350 Future on Bharti Airtel Ltd
Derivatives | -3% -₹697 Cr 4,413,225
↑ 573,800 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Dec 23 | BHARTIARTL3% ₹693 Cr 4,413,225
↑ 573,800 Future on Kotak Mahindra Bank Ltd
Derivatives | -3% -₹664 Cr 3,468,000
↑ 327,200 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 30 Jun 23 | KOTAKBANK3% ₹660 Cr 3,468,000
↑ 327,200 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 (11 Apr 25) ₹31.4822 ↑ 0.00 (0.01 %) Net Assets (Cr) ₹19,341 on 28 Feb 25 Category Hybrid - Arbitrage AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 1.05 Sharpe Ratio 1.42 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 Mar 20 ₹10,000 31 Mar 21 ₹10,332 31 Mar 22 ₹10,724 31 Mar 23 ₹11,353 31 Mar 24 ₹12,217 31 Mar 25 ₹13,119 Returns for Invesco India Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 11 Apr 25 Duration Returns 1 Month 0.7% 3 Month 1.7% 6 Month 3.5% 1 Year 7.2% 3 Year 7% 5 Year 5.6% 10 Year 15 Year Since launch 6.6% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.6% 2022 7.4% 2021 5.1% 2020 3.5% 2019 4.3% 2018 5.9% 2017 5.9% 2016 5.5% 2015 6.5% 2014 7.6% Fund Manager information for Invesco India Arbitrage Fund
Name Since Tenure Deepak Gupta 11 Nov 21 3.39 Yr. Kuber Mannadi 1 Sep 22 2.58 Yr. Data below for Invesco India Arbitrage Fund as on 28 Feb 25
Asset Allocation
Asset Class Value Cash 98.05% Debt 2.24% Other 0.05% Equity Sector Allocation
Sector Value Financial Services 23.84% Industrials 7.67% Energy 6.42% Consumer Cyclical 6.27% Basic Materials 5.51% Technology 5.32% Consumer Defensive 3.39% Health Care 3.33% Utility 3.29% Communication Services 1.42% Real Estate 1.36% Debt Sector Allocation
Sector Value Cash Equivalent 92.58% Corporate 6.5% Government 1.21% Credit Quality
Rating Value AA 13.12% AAA 86.88% Top Securities Holdings / Portfolio
Name Holding Value Quantity Invesco India Liquid Dir Gr
Investment Fund | -15% ₹2,851 Cr 8,061,309
↑ 2,835,763 Invesco India Money Market Dir Gr
Investment Fund | -6% ₹1,133 Cr 3,698,366 Future on Reliance Industries Ltd
Derivatives | -4% -₹725 Cr 6,010,000
↓ -1,009,500 Reliance Industries Ltd (Energy)
Equity, Since 31 Dec 22 | RELIANCE4% ₹721 Cr 6,010,000
↓ -1,009,500 Icici Bank Limited March 2025 Future
Derivatives | -4% -₹706 Cr 5,831,000
↑ 5,713,400 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 24 | ICICIBANK4% ₹702 Cr 5,831,000
↓ -186,900 Hdfc Bank Limited March 2025 Future
Derivatives | -2% -₹458 Cr 2,637,800
↑ 2,605,350 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 23 | HDFCBANK2% ₹457 Cr 2,637,800
↑ 1,574,650 Future on Jio Financial Services Ltd
Derivatives | -2% -₹436 Cr 20,893,950
↓ -2,037,750 Jio Financial Services Ltd (Financial Services)
Equity, Since 30 Nov 24 | JIOFIN2% ₹434 Cr 20,893,950
↓ -2,037,750 5. 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 (11 Apr 25) ₹30.23 ↓ 0.00 (0.00 %) Net Assets (Cr) ₹18,054 on 28 Feb 25 Category Hybrid - Arbitrage AMC HDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.86 Sharpe Ratio 1.53 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 Mar 20 ₹10,000 31 Mar 21 ₹10,310 31 Mar 22 ₹10,686 31 Mar 23 ₹11,229 31 Mar 24 ₹12,077 31 Mar 25 ₹12,969 Returns for HDFC Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 11 Apr 25 Duration Returns 1 Month 0.7% 3 Month 1.7% 6 Month 3.5% 1 Year 7.2% 3 Year 6.7% 5 Year 5.4% 10 Year 15 Year Since launch 6.5% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.7% 2022 7.2% 2021 4.2% 2020 3.6% 2019 3.7% 2018 6% 2017 5.7% 2016 5.3% 2015 6.6% 2014 7.6% Fund Manager information for HDFC Arbitrage Fund
Name Since Tenure Anil Bamboli 1 Feb 22 3.08 Yr. Arun Agarwal 24 Aug 20 4.52 Yr. Nirman Morakhia 15 Feb 23 2.04 Yr. Dhruv Muchhal 22 Jun 23 1.69 Yr. Data below for HDFC Arbitrage Fund as on 28 Feb 25
Asset Allocation
Asset Class Value Cash 97.08% Debt 3.25% Other 0.04% Equity Sector Allocation
Sector Value Financial Services 26.75% Basic Materials 8.08% Energy 8.08% Consumer Cyclical 7.34% Technology 6.43% Industrials 4.43% Health Care 3.09% Utility 2.6% Consumer Defensive 2.46% Communication Services 2.13% Real Estate 2.09% Debt Sector Allocation
Sector Value Cash Equivalent 89.08% Corporate 8.83% Government 2.42% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Money Market Dir Gr
Investment Fund | -13% ₹2,284 Cr 4,031,366 Future on Reliance Industries Ltd
Derivatives | -7% -₹1,329 Cr Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 21 | RELIANCE7% ₹1,322 Cr 11,015,000
↓ -160,500 Future on ICICI Bank Ltd
Derivatives | -6% -₹1,011 Cr ICICI Bank Ltd (Financial Services)
Equity, Since 30 Jun 24 | ICICIBANK6% ₹1,006 Cr 8,352,400
↑ 3,082,100 HDFC Liquid Dir Gr
Investment Fund | -5% ₹958 Cr 1,893,346
↑ 99,037 Future on Axis Bank Ltd
Derivatives | -5% -₹935 Cr Axis Bank Ltd (Financial Services)
Equity, Since 31 Jul 23 | 5322155% ₹930 Cr 9,162,500
↑ 1,415,625 Infosys Limited
Derivatives | -3% -₹527 Cr Infosys Ltd (Technology)
Equity, Since 31 Oct 23 | INFY3% ₹525 Cr 3,108,400
↑ 1,306,800 6. 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 (11 Apr 25) ₹19.1286 ↑ 0.00 (0.01 %) Net Assets (Cr) ₹13,644 on 28 Feb 25 Category Hybrid - Arbitrage AMC Edelweiss Asset Management Limited Rating ☆☆☆☆☆ Risk Moderately Low Expense Ratio 1.08 Sharpe Ratio 1.39 Information Ratio -0.68 Alpha Ratio 0.19 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 Mar 20 ₹10,000 31 Mar 21 ₹10,341 31 Mar 22 ₹10,745 31 Mar 23 ₹11,295 31 Mar 24 ₹12,158 31 Mar 25 ₹13,051 Returns for Edelweiss Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 11 Apr 25 Duration Returns 1 Month 0.7% 3 Month 1.8% 6 Month 3.6% 1 Year 7.2% 3 Year 6.7% 5 Year 5.5% 10 Year 15 Year Since launch 6.2% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.7% 2022 7.1% 2021 4.4% 2020 3.8% 2019 4.5% 2018 6.2% 2017 6.1% 2016 5.8% 2015 6.7% 2014 8% Fund Manager information for Edelweiss Arbitrage Fund
Name Since Tenure Bhavesh Jain 27 Jun 14 10.68 Yr. Rahul Dedhia 1 Aug 24 0.58 Yr. Amit Vora 6 Nov 24 0.31 Yr. Pranavi Kulkarni 1 Jul 24 0.67 Yr. Data below for Edelweiss Arbitrage Fund as on 28 Feb 25
Asset Allocation
Asset Class Value Cash 96.86% Debt 3.45% Other 0.02% Equity Sector Allocation
Sector Value Financial Services 20.85% Energy 8% Basic Materials 7.94% Consumer Cyclical 7.23% Industrials 6.05% Technology 5.55% Utility 3.9% Health Care 3.7% Consumer Defensive 3.24% Communication Services 2.58% Real Estate 0.57% Debt Sector Allocation
Sector Value Cash Equivalent 87.2% Corporate 7.88% Government 5.24% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Edelweiss Liquid Dir Gr
Investment Fund | -7% ₹987 Cr 2,964,422 Future on Reliance Industries Ltd
Derivatives | -4% -₹601 Cr 4,984,000
↑ 1,305,500 Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 18 | RELIANCE4% ₹598 Cr 4,984,000
↑ 1,305,500 Future on Axis Bank Ltd
Derivatives | -4% -₹578 Cr 5,660,000
↓ -1,696,250 Axis Bank Ltd (Financial Services)
Equity, Since 31 Jul 21 | 5322154% ₹575 Cr 5,660,000
↓ -1,696,250 Future on ICICI Bank Ltd
Derivatives | -3% -₹454 Cr 3,745,000
↑ 1,307,600 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 20 | ICICIBANK3% ₹451 Cr 3,745,000
↑ 1,307,600 Edelweiss Money Market Dir Gr
Investment Fund | -2% ₹307 Cr 100,824,026
↑ 16,502,350 Future on Vedanta Ltd
Derivatives | -2% -₹222 Cr 5,593,600
↑ 243,800 Vedanta Ltd (Basic Materials)
Equity, Since 31 Aug 23 | 5002952% ₹221 Cr 5,593,600
↑ 243,800 7. IDFC Arbitrage Fund
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% . IDFC Arbitrage Fund
Growth Launch Date 21 Dec 06 NAV (11 Apr 25) ₹32.0304 ↑ 0.00 (0.00 %) Net Assets (Cr) ₹7,877 on 28 Feb 25 Category Hybrid - Arbitrage AMC IDFC Asset Management Company Limited Rating ☆ Risk Moderately Low Expense Ratio 1.06 Sharpe Ratio 1.16 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 Mar 20 ₹10,000 31 Mar 21 ₹10,324 31 Mar 22 ₹10,694 31 Mar 23 ₹11,225 31 Mar 24 ₹12,065 31 Mar 25 ₹12,946 Returns for IDFC Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 11 Apr 25 Duration Returns 1 Month 0.8% 3 Month 1.8% 6 Month 3.5% 1 Year 7.2% 3 Year 6.6% 5 Year 5.3% 10 Year 15 Year Since launch 6.6% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.5% 2022 7.1% 2021 4.1% 2020 3.5% 2019 3.8% 2018 6.2% 2017 6.3% 2016 5.5% 2015 6.3% 2014 7.4% Fund Manager information for IDFC Arbitrage Fund
Name Since Tenure Harshal Joshi 20 Oct 16 8.45 Yr. Brijesh Shah 10 Jun 24 0.81 Yr. Ritika Behera 7 Oct 23 1.48 Yr. Gaurav Satra 7 Jun 24 0.81 Yr. Abhishek Jain 8 Mar 25 0.06 Yr. Data below for IDFC Arbitrage Fund as on 28 Feb 25
Asset Allocation
Asset Class Value Cash 85.31% Debt 14.97% Other 0.05% Equity Sector Allocation
Sector Value Financial Services 17.64% Basic Materials 8.07% Consumer Cyclical 7.63% Energy 6.59% Industrials 6.04% Technology 5.14% Health Care 3.56% Utility 3.32% Consumer Defensive 3.31% Communication Services 2.43% Real Estate 1.26% Debt Sector Allocation
Sector Value Cash Equivalent 74.44% Corporate 19.03% Government 6.81% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Bandhan Money Manager Dir Gr
Investment Fund | -12% ₹983 Cr 231,688,763
↑ 5,922,485 Bandhan Low Duration Dir Gr
Investment Fund | -7% ₹532 Cr 138,486,229
↑ 6,543,148 Future on Reliance Industries Ltd
Derivatives | -5% -₹358 Cr 2,964,000
↑ 227,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 18 | RELIANCE5% ₹356 Cr 2,964,000
↑ 227,000 Bandhan Bond S/T Dir Gr
Investment Fund | -3% ₹228 Cr 38,650,443
↑ 4,249,147 HDFC Bank Limited
Debentures | -2% ₹165 Cr 16,500,000
↑ 5,000,000 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 24 | ICICIBANK2% ₹163 Cr 1,357,300
↑ 183,400 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 22 | HDFCBANK2% ₹162 Cr 935,550
↑ 458,700 Icici Bank Limited March 2025 Future
Derivatives | -2% -₹158 Cr 1,308,300
↑ 1,292,200 Future on Axis Bank Ltd
Derivatives | -2% -₹140 Cr 1,366,250
↑ 2,500
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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