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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 ₹36.3624
↑ 0.01 ₹54,915 1.9 3.5 7.6 6.7 5.6 7.8 Edelweiss Arbitrage Fund Growth ₹18.8139
↑ 0.01 ₹12,199 1.8 3.5 7.5 6.5 5.5 7.7 UTI Arbitrage Fund Growth ₹33.9836
↑ 0.01 ₹6,462 1.8 3.5 7.5 6.4 5.4 7.7 HDFC Arbitrage Fund Growth ₹29.755
↑ 0.01 ₹16,791 1.8 3.5 7.5 6.4 5.3 7.7 Invesco India Arbitrage Fund Growth ₹30.9718
↑ 0.01 ₹18,252 1.8 3.5 7.4 6.8 5.6 7.6 ICICI Prudential Equity Arbitrage Fund Growth ₹33.2846
↑ 0.01 ₹24,760 1.8 3.5 7.4 6.4 5.4 7.6 SBI Arbitrage Opportunities Fund Growth ₹32.7904
↑ 0.01 ₹31,422 1.8 3.5 7.4 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 17 Jan 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 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 (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 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 (17 Jan 25) ₹36.3624 ↑ 0.01 (0.04 %) Net Assets (Cr) ₹54,915 on 30 Nov 24 Category Hybrid - Arbitrage AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.96 Sharpe Ratio 2.28 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 Dec 19 ₹10,000 31 Dec 20 ₹10,433 31 Dec 21 ₹10,846 31 Dec 22 ₹11,337 31 Dec 23 ₹12,174 31 Dec 24 ₹13,128 Returns for Kotak Equity Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Jan 25 Duration Returns 1 Month 0.7% 3 Month 1.9% 6 Month 3.5% 1 Year 7.6% 3 Year 6.7% 5 Year 5.6% 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 5.25 Yr. Data below for Kotak Equity Arbitrage Fund as on 30 Nov 24
Asset Allocation
Asset Class Value Cash 96.89% Debt 3.55% Other 0.05% Equity Sector Allocation
Sector Value Financial Services 20.26% Consumer Cyclical 9.76% Energy 8.78% Basic Materials 7.64% Industrials 6.92% Technology 4.83% Communication Services 4.66% Consumer Defensive 4.47% Health Care 3.49% Utility 3.17% Real Estate 1% Debt Sector Allocation
Sector Value Cash Equivalent 91.47% Corporate 6.81% Government 2.16% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Kotak Money Market Dir Gr
Investment Fund | -13% ₹7,293 Cr 16,844,761
↑ 231,434 RELIANCE INDUSTRIES LTD.-DEC2024
Derivatives | -6% -₹3,208 Cr 24,664,000
↑ 24,362,500 Reliance Industries Ltd (Energy)
Equity, Since 31 May 18 | RELIANCE6% ₹3,187 Cr 24,664,000
↑ 2,769,500 Kotak Savings Fund Dir Gr
Investment Fund | -5% ₹3,008 Cr 700,340,171
↑ 196,344,971 Kotak Liquid Dir Gr
Investment Fund | -3% ₹1,772 Cr 3,464,367
↑ 843,499 Axis Bank Ltd.-DEC2024
Derivatives | -3% -₹1,641 Cr 14,350,000
↑ 14,338,125 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 18 | AXISBANK3% ₹1,631 Cr 14,350,000
↑ 6,380,000 Bharti Airtel Ltd-DEC2024
Derivatives | -3% -₹1,523 Cr 9,300,025
↑ 9,300,025 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 23 | BHARTIARTL3% ₹1,513 Cr 9,300,025
↑ 2,070,050 ICICI Bank Ltd.-DEC2024
Derivatives | -3% -₹1,491 Cr 11,407,200
↑ 11,407,200 2. 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 (17 Jan 25) ₹18.8139 ↑ 0.01 (0.04 %) Net Assets (Cr) ₹12,199 on 30 Nov 24 Category Hybrid - Arbitrage AMC Edelweiss Asset Management Limited Rating ☆☆☆☆☆ Risk Moderately Low Expense Ratio 1.08 Sharpe Ratio 1.73 Information Ratio -0.58 Alpha Ratio 0.39 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 Dec 19 ₹10,000 31 Dec 20 ₹10,449 31 Dec 21 ₹10,849 31 Dec 22 ₹11,323 31 Dec 23 ₹12,131 31 Dec 24 ₹13,064 Returns for Edelweiss Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Jan 25 Duration Returns 1 Month 0.7% 3 Month 1.8% 6 Month 3.5% 1 Year 7.5% 3 Year 6.5% 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 10.52 Yr. Rahul Dedhia 1 Aug 24 0.42 Yr. Amit Vora 6 Nov 24 0.15 Yr. Pranavi Kulkarni 1 Jul 24 0.5 Yr. Data below for Edelweiss Arbitrage Fund as on 30 Nov 24
Asset Allocation
Asset Class Value Cash 93.7% Debt 6.71% Other 0.02% Equity Sector Allocation
Sector Value Financial Services 17.82% Basic Materials 9.4% Industrials 8.19% Energy 7.9% Technology 7.6% Consumer Cyclical 6.62% Health Care 4.69% Consumer Defensive 3.99% Communication Services 3.82% Utility 2.34% Real Estate 0.73% Debt Sector Allocation
Sector Value Cash Equivalent 93.32% Government 5.11% Corporate 1.99% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Edelweiss Liquid Dir Gr
Investment Fund | -8% ₹920 Cr 2,812,837 Future on Reliance Industries Ltd
Derivatives | -5% -₹622 Cr 4,779,500
↓ -610,000 Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 18 | RELIANCE5% ₹618 Cr 4,779,500
↓ -610,000 Future on Vedanta Ltd
Derivatives | -3% -₹361 Cr 7,917,750
↑ 2,268,950 Vedanta Ltd (Basic Materials)
Equity, Since 31 Aug 23 | 5002953% ₹359 Cr 7,917,750
↑ 2,268,950 EdelweissNifty PSU BPSDLA2650:50IdxDrGr
Investment Fund | -2% ₹304 Cr 243,599,114 Future on Bharti Airtel Ltd
Derivatives | -2% -₹275 Cr 1,675,800
↓ -137,750 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 23 | BHARTIARTL2% ₹273 Cr 1,675,800
↓ -137,750 Future on ICICI Bank Ltd
Derivatives | -2% -₹264 Cr 2,022,300
↑ 1,110,900 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 20 | ICICIBANK2% ₹263 Cr 2,022,300
↑ 1,110,900 3. 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 (17 Jan 25) ₹33.9836 ↑ 0.01 (0.03 %) Net Assets (Cr) ₹6,462 on 30 Nov 24 Category Hybrid - Arbitrage AMC UTI Asset Management Company Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.85 Sharpe Ratio 2.17 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 Dec 19 ₹10,000 31 Dec 20 ₹10,438 31 Dec 21 ₹10,840 31 Dec 22 ₹11,278 31 Dec 23 ₹12,085 31 Dec 24 ₹13,019 Returns for UTI Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Jan 25 Duration Returns 1 Month 0.7% 3 Month 1.8% 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 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 6.5 Yr. Sharwan Kumar Goyal 1 Jan 21 4 Yr. Data below for UTI Arbitrage Fund as on 30 Nov 24
Asset Allocation
Asset Class Value Cash 28.5% Equity 68.64% Debt 2.83% Other 0.03% Equity Sector Allocation
Sector Value Financial Services 21.4% Consumer Cyclical 7.66% Industrials 7.52% Basic Materials 7.28% Energy 5.63% Technology 4.24% Health Care 3.83% Consumer Defensive 3.62% Communication Services 3.59% Utility 2.18% Real Estate 1.69% Debt Sector Allocation
Sector Value Cash Equivalent 23.17% Corporate 7.16% Government 1% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity UTI Money Market Dir Gr
Investment Fund | -15% ₹946 Cr 3,173,930 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 23 | RELIANCE5% ₹297 Cr 2,300,000
↑ 590,500 Punjab National Bank (Financial Services)
Equity, Since 31 Mar 24 | PNB3% ₹199 Cr 18,968,000
↑ 9,760,000 Bank of Baroda (Financial Services)
Equity, Since 31 May 23 | BANKBARODA3% ₹183 Cr 7,435,350
↑ 318,825 IndusInd Bank Ltd (Financial Services)
Equity, Since 31 Dec 23 | INDUSINDBK2% ₹151 Cr 1,513,000
↑ 437,000 Vedanta Ltd (Basic Materials)
Equity, Since 30 Sep 23 | 5002952% ₹149 Cr 3,284,400
↓ -326,600 Hindustan Aeronautics Ltd Ordinary Shares (Industrials)
Equity, Since 31 Dec 23 | HAL2% ₹128 Cr 285,300
↓ -8,100 Tata Motors Ltd (Consumer Cyclical)
Equity, Since 31 Aug 24 | TATAMOTORS2% ₹126 Cr 1,597,750
↑ 552,750 ITC Ltd (Consumer Defensive)
Equity, Since 30 Nov 23 | ITC2% ₹121 Cr 2,540,800
↑ 558,400 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Sep 24 | ICICIBANK2% ₹117 Cr 899,500
↑ 729,400 4. 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 (17 Jan 25) ₹29.755 ↑ 0.01 (0.04 %) Net Assets (Cr) ₹16,791 on 30 Nov 24 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 Dec 19 ₹10,000 31 Dec 20 ₹10,374 31 Dec 21 ₹10,747 31 Dec 22 ₹11,194 31 Dec 23 ₹12,004 31 Dec 24 ₹12,923 Returns for HDFC Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Jan 25 Duration Returns 1 Month 0.7% 3 Month 1.8% 6 Month 3.5% 1 Year 7.5% 3 Year 6.4% 5 Year 5.3% 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 2.92 Yr. Arun Agarwal 24 Aug 20 4.36 Yr. Nirman Morakhia 15 Feb 23 1.88 Yr. Dhruv Muchhal 22 Jun 23 1.53 Yr. Data below for HDFC Arbitrage Fund as on 30 Nov 24
Asset Allocation
Asset Class Value Cash 97.27% Debt 3.19% Other 0.04% Equity Sector Allocation
Sector Value Financial Services 17.2% Energy 9.98% Consumer Cyclical 9.29% Basic Materials 9.07% Technology 7.6% Industrials 7.55% Health Care 4.29% Utility 4.13% Consumer Defensive 3.31% Communication Services 2.9% Real Estate 1.92% Debt Sector Allocation
Sector Value Cash Equivalent 92.93% Corporate 6.27% Government 1.27% Credit Quality
Rating Value AA 8.96% AAA 91.04% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Money Market Dir Gr
Investment Fund | -13% ₹2,244 Cr 4,031,366 Future on Reliance Industries Ltd
Derivatives | -8% -₹1,347 Cr Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 21 | RELIANCE8% ₹1,337 Cr 10,348,500
↑ 451,500 HDFC Liquid Dir Gr
Investment Fund | -5% ₹793 Cr 1,595,363 Infosys Limited
Derivatives | -4% -₹752 Cr Infosys Ltd (Technology)
Equity, Since 31 Oct 23 | INFY4% ₹747 Cr 4,020,800
↑ 2,594,800 Future on Vedanta Ltd
Derivatives | -3% -₹432 Cr Vedanta Ltd (Basic Materials)
Equity, Since 30 Sep 23 | 5002953% ₹430 Cr 9,473,700
↓ -170,200 Future on NTPC Ltd
Derivatives | -3% -₹421 Cr NTPC Ltd (Utilities)
Equity, Since 31 Dec 22 | NTPC2% ₹418 Cr 11,506,500
↑ 2,149,500 5. 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 (17 Jan 25) ₹30.9718 ↑ 0.01 (0.04 %) Net Assets (Cr) ₹18,252 on 30 Nov 24 Category Hybrid - Arbitrage AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 1.05 Sharpe Ratio 2.11 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 Dec 19 ₹10,000 31 Dec 20 ₹10,429 31 Dec 21 ₹10,792 31 Dec 22 ₹11,346 31 Dec 23 ₹12,180 31 Dec 24 ₹13,105 Returns for Invesco India Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Jan 25 Duration Returns 1 Month 0.7% 3 Month 1.8% 6 Month 3.5% 1 Year 7.4% 3 Year 6.8% 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 3.14 Yr. Kuber Mannadi 1 Sep 22 2.33 Yr. Data below for Invesco India Arbitrage Fund as on 30 Nov 24
Asset Allocation
Asset Class Value Cash 96.84% Debt 3.58% Other 0.03% Equity Sector Allocation
Sector Value Financial Services 22.42% Energy 11.35% Consumer Cyclical 9.44% Industrials 9.11% Basic Materials 6.35% Consumer Defensive 3.65% Technology 3.3% Communication Services 3.16% Health Care 2.4% Utility 1.49% Real Estate 0.94% Debt Sector Allocation
Sector Value Cash Equivalent 96.79% Government 2.15% Corporate 1.48% Credit Quality
Rating Value AA 9.01% AAA 90.99% Top Securities Holdings / Portfolio
Name Holding Value Quantity Invesco India Liquid Dir Gr
Investment Fund | -12% ₹2,247 Cr 6,466,638
↑ 1,161,407 Future on Reliance Industries Ltd
Derivatives | -8% -₹1,476 Cr 11,346,500
↑ 1,093,500 Reliance Industries Ltd (Energy)
Equity, Since 31 Dec 22 | RELIANCE8% ₹1,466 Cr 11,346,500
↑ 1,093,500 Invesco India Money Market Dir Gr
Investment Fund | -6% ₹1,114 Cr 3,698,366 Tata Motors Limited December 2024 Future
Derivatives | -4% -₹760 Cr 9,597,500
↑ 7,714,300 Tata Motors Ltd (Consumer Cyclical)
Equity, Since 31 Aug 24 | TATAMOTORS4% ₹755 Cr 9,603,000
↑ 645,150 Future on IndusInd Bank Ltd
Derivatives | -3% -₹533 Cr 5,318,000
↑ 3,544,500 IndusInd Bank Ltd (Financial Services)
Equity, Since 30 Nov 21 | INDUSINDBK3% ₹530 Cr 5,318,000
↑ 3,544,500 Icici Bank Limited December 2024 Future
Derivatives | -2% -₹432 Cr 3,300,500
↑ 3,300,500 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 24 | ICICIBANK2% ₹429 Cr 3,300,500
↑ 2,846,900 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 (17 Jan 25) ₹33.2846 ↑ 0.01 (0.03 %) Net Assets (Cr) ₹24,760 on 30 Nov 24 Category Hybrid - Arbitrage AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 0.97 Sharpe Ratio 1.87 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 Dec 19 ₹10,000 31 Dec 20 ₹10,430 31 Dec 21 ₹10,832 31 Dec 22 ₹11,285 31 Dec 23 ₹12,090 31 Dec 24 ₹13,007 Returns for ICICI Prudential Equity Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Jan 25 Duration Returns 1 Month 0.7% 3 Month 1.8% 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 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 4.01 Yr. Sharmila D’mello 31 Jul 22 2.42 Yr. Darshil Dedhia 13 Sep 24 0.3 Yr. Ajaykumar Solanki 23 Aug 24 0.36 Yr. Archana Nair 1 Feb 24 0.92 Yr. Data below for ICICI Prudential Equity Arbitrage Fund as on 30 Nov 24
Asset Allocation
Asset Class Value Cash 97.48% Debt 2.89% Other 0.03% Equity Sector Allocation
Sector Value Financial Services 17.81% Industrials 10.16% Consumer Cyclical 7.83% Energy 7.12% Basic Materials 6.94% Technology 5.1% Consumer Defensive 4.1% Communication Services 3.91% Health Care 3.58% Utility 2.53% Real Estate 1.24% Debt Sector Allocation
Sector Value Cash Equivalent 90.91% Corporate 7.99% Government 1.47% Credit Quality
Rating Value AA 0.94% AAA 99.06% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Pru Money Market Dir Gr
Investment Fund | -11% ₹2,741 Cr 74,722,063 ICICI Pru Savings Dir Gr
Investment Fund | -3% ₹866 Cr 16,474,508 Future on Reliance Industries Ltd
Derivatives | -3% -₹810 Cr 6,229,500
↑ 838,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 18 | RELIANCE3% ₹805 Cr 6,229,500
↑ 838,000 Future on HDFC Bank Ltd
Derivatives | -2% -₹584 Cr 3,239,500
↓ -4,443,450 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Nov 21 | HDFCBANK2% ₹582 Cr 3,239,500
↓ -4,443,450 Future on Tata Consultancy Services Ltd
Derivatives | -2% -₹564 Cr 1,314,950
↓ -47,775 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Oct 20 | TCS2% ₹562 Cr 1,314,950
↓ -47,775 Future on Bharti Airtel Ltd
Derivatives | -2% -₹528 Cr 3,220,975
↑ 712,975 Future on Tata Motors Ltd
Derivatives | -2% -₹526 Cr 6,640,700
↓ -997,150 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 (17 Jan 25) ₹32.7904 ↑ 0.01 (0.03 %) Net Assets (Cr) ₹31,422 on 30 Nov 24 Category Hybrid - Arbitrage AMC SBI Funds Management Private Limited Rating ☆☆ Risk Moderately Low Expense Ratio 0.94 Sharpe Ratio 1.63 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 Dec 19 ₹10,000 31 Dec 20 ₹10,351 31 Dec 21 ₹10,761 31 Dec 22 ₹11,257 31 Dec 23 ₹12,093 31 Dec 24 ₹13,005 Returns for SBI Arbitrage Opportunities Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Jan 25 Duration Returns 1 Month 0.7% 3 Month 1.8% 6 Month 3.5% 1 Year 7.4% 3 Year 6.6% 5 Year 5.4% 10 Year 15 Year Since launch 6.7% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.5% 2022 7.4% 2021 4.6% 2020 4% 2019 3.5% 2018 6% 2017 6.2% 2016 5.3% 2015 6.4% 2014 7.3% Fund Manager information for SBI Arbitrage Opportunities Fund
Name Since Tenure Neeraj Kumar 5 Oct 12 12.25 Yr. Arun R. 30 Jun 21 3.51 Yr. Data below for SBI Arbitrage Opportunities Fund as on 30 Nov 24
Asset Allocation
Asset Class Value Cash 86.79% Debt 13.34% Other 0.03% Equity Sector Allocation
Sector Value Financial Services 20.62% Energy 8.74% Industrials 7.95% Consumer Cyclical 7.58% Basic Materials 7.02% Technology 6.05% Health Care 3.59% Consumer Defensive 3.51% Communication Services 3.31% Utility 2.16% Real Estate 1.64% Debt Sector Allocation
Sector Value Cash Equivalent 86.79% Corporate 8.23% Government 5.1% Securitized 0.01% Credit Quality
Rating Value AA 7.83% AAA 92.17% Top Securities Holdings / Portfolio
Name Holding Value Quantity SBI Savings Dir Gr
Investment Fund | -10% ₹3,087 Cr 726,722,883 Future on Reliance Industries Ltd
Derivatives | -6% -₹1,828 Cr 14,053,500
↑ 1,105,000 Reliance Industries Ltd (Energy)
Equity, Since 30 Nov 21 | RELIANCE6% ₹1,816 Cr 14,053,500
↑ 1,105,000 SBI Magnum Low Duration Dir Gr
Investment Fund | -3% ₹1,007 Cr 2,904,125 National Bank For Agriculture And Rural Development
Debentures | -3% ₹888 Cr 9,000 Future on Tata Motors Ltd
Derivatives | -2% -₹754 Cr 9,521,050
↓ -299,200 Tata Motors Ltd (Consumer Cyclical)
Equity, Since 31 Mar 22 | TATAMOTORS2% ₹749 Cr 9,521,050
↓ -299,200 Future on HDFC Bank Ltd
Derivatives | -2% -₹745 Cr 4,129,400
↓ -2,292,400 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK2% ₹742 Cr 4,129,400
↓ -2,292,400 Future on ICICI Bank Ltd
Derivatives | -2% -₹668 Cr 5,112,800
↑ 3,003,700
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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