What are the top performing Arbitrage funds?

Based on 1-year returns, the top performing Arbitrage funds are Quant Arbitrage Fund Direct-Growth with 7.60% return, WhiteOak Capital Arbitrage Fund Direct-Growth with 7.14% return, and Motilal Oswal Arbitrage Fund Direct-Growth with 7.02% return. The category average 1-year return is 6.58%.

Which Arbitrage funds have given the best returns over 3 years?

Over a 3-year period, the best performing Arbitrage funds are Quant Arbitrage Fund Direct-Growth with a 7.64% CAGR, WhiteOak Capital Arbitrage Fund Direct-Growth with 7.64% CAGR, and Motilal Oswal Arbitrage Fund Direct-Growth with 7.63% CAGR. The category average 3-year return stands at 7.38% CAGR.

Which Arbitrage funds have given the best returns over 5 years?

Over a 5-year period, the top Arbitrage funds are Quant Arbitrage Fund Direct-Growth with a 6.95% CAGR, WhiteOak Capital Arbitrage Fund Direct-Growth with 6.85% CAGR, and Motilal Oswal Arbitrage Fund Direct-Growth with 6.83% CAGR. The category average 5-year return is 6.53% CAGR.

Which are the best Arbitrage funds for SIP investment?

Based on average 5-year rolling returns, the best Arbitrage funds for SIP are Nippon India Arbitrage Fund Direct-Growth with 5-year average rolling return of 6.64%, Kotak Arbitrage Fund Direct-Growth with 6.58%, and Invesco India Arbitrage Fund Direct-Growth with 6.53%. You can start a SIP in Arbitrage funds with as little as ₹99 per month.

What are the largest Arbitrage mutual funds by assets?

The largest Arbitrage funds by Assets Under Management (AUM) are Kotak Arbitrage Fund Direct-Growth with ₹ 72,409.40 crore, SBI Arbitrage Opportunities Fund Direct-Growth with ₹ 45,923.10 crore, and ICICI Prudential Arbitrage Direct-Growth with ₹ 33,423.30 crore. Together, there are 39 Arbitrage funds available in India.

What is the minimum amount to invest in Arbitrage funds?

You can start investing in Arbitrage funds with a minimum SIP of ₹99 per month or a minimum lumpsum of ₹100. The minimum investment varies across fund houses — some funds allow even lower entry points.

How are Arbitrage fund returns taxed?

Gains from Arbitrage funds held for less than 12 months are taxed at 20% (Short-Term Capital Gains). Gains on units held for 12 months or more are taxed at 12.5% (Long-Term Capital Gains), with ₹1.25 lakh per year being exempt per financial year. Dividends (IDCW) are taxed at your applicable income tax slab rate.

Which Arbitrage funds have the lowest expense ratio?

Among Arbitrage funds, Parag Parikh Arbitrage Fund Direct-Growth has the lowest expense ratio at 1.00% (Direct Plan), followed by NJ Arbitrage Fund Direct-Growth at 1.02%. Lower expense ratios directly improve your net returns over the long term.

How many Arbitrage mutual funds are available in India?

There are currently 39 Arbitrage mutual funds available in India across different fund houses. You can compare all 39 funds on Sharpely based on returns, risk, AUM, and expense ratio to find the one that suits your investment goals.

mutual funds category

Arbitrage

Arbitrage Funds

Arbitrage funds follow arbitrage strategies in which they buy and sell securities simultaneously in different markets and earn profit from the price difference. According to the SEBI arbitrage funds must invest a minimum of 65% in equity and equity-related instruments.

Total Schemes

No. of schemes

Total AUM

₹ 3.43Lakh Cr

As on latest

Category Return (5Y)

6.53 %

CAGR

Benchmark Data

This category currently has no benchmark assigned.

Category Returns (%)

Period	1M	6M	1Y	3Y CAGR	5Y CAGR	10Y CAGR	YTD
Arbitrage	0.63 %	3.28 %	6.58 %	7.38 %	6.53 %	6.24 %	3.60 %
Benchmark Not Available No benchmark assigned	-	-	-	-	-	-	-

Top Arbitrage Funds (by AUM)

Fund Name	AUM (₹ Cr)	1Y Return	3Y CAGR	5Y CAGR	Expense Ratio
Kotak Arbitrage Fund Direct-GrowthNAV: ₹42.84	72,409.40 Cr	6.69%	7.64%	6.85%	2.34%
SBI Arbitrage Opportunities Fund Direct-GrowthNAV: ₹38.41	45,923.10 Cr	6.53%	7.45%	6.77%	1.48%
ICICI Prudential Arbitrage Direct-GrowthNAV: ₹39.32	33,423.30 Cr	6.57%	7.49%	6.65%	1.55%
Invesco India Arbitrage Fund Direct-GrowthNAV: ₹36.95	28,526.50 Cr	6.79%	7.63%	6.95%	2.36%
Aditya Birla Sun Life Arbitrage Fund Direct-GrowthNAV: ₹30.64	26,645.60 Cr	6.71%	7.59%	6.72%	1.25%
Tata Arbitrage Fund Direct-GrowthNAV: ₹16.18	24,026.00 Cr	6.77%	7.64%	6.77%	1.71%
HDFC Arbitrage Fund Direct-GrowthNAV: ₹21.55	23,772.00 Cr	6.60%	7.46%	6.58%	1.50%
Nippon India Arbitrage Fund Direct-GrowthNAV: ₹30.68	16,638.20 Cr	6.70%	7.48%	6.71%	1.37%
Edelweiss Arbitrage Fund Direct-GrowthNAV: ₹22.25	15,062.30 Cr	6.67%	7.59%	6.83%	1.76%
UTI Arbitrage Fund Direct-GrowthNAV: ₹39.85	11,324.10 Cr	6.56%	7.49%	6.62%	1.29%
Axis Arbitrage Fund Direct-GrowthNAV: ₹21.71	10,362.40 Cr	6.65%	7.50%	6.75%	1.43%
Bandhan Arbitrage Fund Direct-GrowthNAV: ₹37.48	8,189.71 Cr	6.44%	7.47%	6.66%	1.55%
DSP Arbitrage Fund Direct-GrowthNAV: ₹16.70	6,529.13 Cr	6.50%	7.39%	6.55%	1.21%
Mirae Asset Arbitrage Fund Direct-GrowthNAV: ₹14.45	3,737.48 Cr	6.70%	7.56%	6.69%	2.65%
HSBC Arbitrage Fund Direct-GrowthNAV: ₹21.71	2,944.22 Cr	6.58%	7.40%	6.53%	1.45%

About Arbitrage Funds

What is it?

Objective

The objective of arbitrage funds is to generate decent returns by benefitting from the arbitrage opportunities in different markets or market segments. They aim to benefit from highly volatile market conditions.

Suitability and opinion

Arbitrage funds are best suitable for investors with a low risk appetite looking to generate moderate returns from a volatile market. We feel that these funds can be a suitable option for investors who are looking for a low-risk investment option with the potential for higher returns than traditional debt funds. However, it is important to note that arbitrage funds may offer lower returns than other equity mutual fund categories and may not be suitable for long-term investment goals. The ideal time horizon can be of few weeks to a few months. But we feel liquid funds are a better alternative for the same investment purpose.

Arbitrage vs Other Categories

5Y CAGR Return Comparison

8.52%

8.24%

6.53%

Balanced Hybrid

Conservative Hybrid

Arbitrage

Key Insights

Arbitrage delivered 6.53% CAGR over the last 5 years.

It ranks #7 out of 7 categories based on 5Y performance.

Below the category average return of 9.60%.

6 categories outperform it, while 0 categories have lower returns.

Top performer: Multi Asset Allocation (13.49%).

Lowest performer: Arbitrage (6.53%).

Let's have a closer look

Now let us jump and check about these top 15 mutual fund schemes.

Kotak Arbitrage Fund Direct-Growth

Fund Performance: Kotak Arbitrage Fund Direct-Growth has given 7.64% annualized returns in the past three years and 6.85% in the last 5 years. The Kotak Arbitrage Fund Direct-Growth comes under the Hybrid category of Kotak Mahindra Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Kotak Arbitrage Fund Direct-Growth via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 72,409.40Cr

1Y Returns

6.69%

Expense Ratio

2.34%

SBI Arbitrage Opportunities Fund Direct-Growth

Fund Performance: SBI Arbitrage Opportunities Fund Direct-Growth has given 7.45% annualized returns in the past three years and 6.77% in the last 5 years. The SBI Arbitrage Opportunities Fund Direct-Growth comes under the Hybrid category of SBI Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in SBI Arbitrage Opportunities Fund Direct-Growth via lump sum is ₹ 5,000.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 45,923.10Cr

1Y Returns

6.53%

Expense Ratio

1.48%

ICICI Prudential Arbitrage Direct-Growth

Fund Performance: ICICI Prudential Arbitrage Direct-Growth has given 7.49% annualized returns in the past three years and 6.65% in the last 5 years. The ICICI Prudential Arbitrage Direct-Growth comes under the Hybrid category of ICICI Prudential Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Arbitrage Direct-Growth via lump sum is ₹ 5,000.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 33,423.30Cr

1Y Returns

6.57%

Expense Ratio

1.55%

Invesco India Arbitrage Fund Direct-Growth

Fund Performance: Invesco India Arbitrage Fund Direct-Growth has given 7.63% annualized returns in the past three years and 6.95% in the last 5 years. The Invesco India Arbitrage Fund Direct-Growth comes under the Hybrid category of Invesco Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Invesco India Arbitrage Fund Direct-Growth via lump sum is ₹ 1,000.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 1,000.00

AUM

₹ 28,526.50Cr

1Y Returns

6.79%

Expense Ratio

2.36%

Aditya Birla Sun Life Arbitrage Fund Direct-Growth

Fund Performance: Aditya Birla Sun Life Arbitrage Fund Direct-Growth has given 7.59% annualized returns in the past three years and 6.72% in the last 5 years. The Aditya Birla Sun Life Arbitrage Fund Direct-Growth comes under the Hybrid category of Aditya Birla Sun Life Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Aditya Birla Sun Life Arbitrage Fund Direct-Growth via lump sum is ₹ 1,000.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 1,000.00

AUM

₹ 26,645.60Cr

1Y Returns

6.71%

Expense Ratio

1.25%

Tata Arbitrage Fund Direct-Growth

Fund Performance: Tata Arbitrage Fund Direct-Growth has given 7.64% annualized returns in the past three years and 6.77% in the last 5 years. The Tata Arbitrage Fund Direct-Growth comes under the Hybrid category of Tata Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Tata Arbitrage Fund Direct-Growth via lump sum is ₹ 5,000.00 and via SIP is ₹ 150.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 24,026.00Cr

1Y Returns

6.77%

Expense Ratio

1.71%

HDFC Arbitrage Fund Direct-Growth

Fund Performance: HDFC Arbitrage Fund Direct-Growth has given 7.46% annualized returns in the past three years and 6.58% in the last 5 years. The HDFC Arbitrage Fund Direct-Growth comes under the Hybrid category of HDFC Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in HDFC Arbitrage Fund Direct-Growth via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 23,772.00Cr

1Y Returns

6.60%

Expense Ratio

1.50%

Nippon India Arbitrage Fund Direct-Growth

Fund Performance: Nippon India Arbitrage Fund Direct-Growth has given 7.48% annualized returns in the past three years and 6.71% in the last 5 years. The Nippon India Arbitrage Fund Direct-Growth comes under the Hybrid category of Nippon India Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Arbitrage Fund Direct-Growth via lump sum is ₹ 5,000.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 16,638.20Cr

1Y Returns

6.70%

Expense Ratio

1.37%

Edelweiss Arbitrage Fund Direct-Growth

Fund Performance: Edelweiss Arbitrage Fund Direct-Growth has given 7.59% annualized returns in the past three years and 6.83% in the last 5 years. The Edelweiss Arbitrage Fund Direct-Growth comes under the Hybrid category of Edelweiss Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Edelweiss Arbitrage Fund Direct-Growth via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 15,062.30Cr

1Y Returns

6.67%

Expense Ratio

1.76%

UTI Arbitrage Fund Direct-Growth

Fund Performance: UTI Arbitrage Fund Direct-Growth has given 7.49% annualized returns in the past three years and 6.62% in the last 5 years. The UTI Arbitrage Fund Direct-Growth comes under the Hybrid category of UTI Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in UTI Arbitrage Fund Direct-Growth via lump sum is ₹ 5,000.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 11,324.10Cr

1Y Returns

6.56%

Expense Ratio

1.29%

Axis Arbitrage Fund Direct-Growth

Fund Performance: Axis Arbitrage Fund Direct-Growth has given 7.50% annualized returns in the past three years and 6.75% in the last 5 years. The Axis Arbitrage Fund Direct-Growth comes under the Hybrid category of Axis Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Axis Arbitrage Fund Direct-Growth via lump sum is ₹ 500.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 500.00

AUM

₹ 10,362.40Cr

1Y Returns

6.65%

Expense Ratio

1.43%

Bandhan Arbitrage Fund Direct-Growth

Fund Performance: Bandhan Arbitrage Fund Direct-Growth has given 7.47% annualized returns in the past three years and 6.66% in the last 5 years. The Bandhan Arbitrage Fund Direct-Growth comes under the Hybrid category of Bandhan Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Bandhan Arbitrage Fund Direct-Growth via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 8,189.71Cr

1Y Returns

6.44%

Expense Ratio

1.55%

DSP Arbitrage Fund Direct-Growth

Fund Performance: DSP Arbitrage Fund Direct-Growth has given 7.39% annualized returns in the past three years and 6.55% in the last 5 years. The DSP Arbitrage Fund Direct-Growth comes under the Hybrid category of DSP Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in DSP Arbitrage Fund Direct-Growth via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 6,529.13Cr

1Y Returns

6.50%

Expense Ratio

1.21%

Mirae Asset Arbitrage Fund Direct-Growth

Fund Performance: Mirae Asset Arbitrage Fund Direct-Growth has given 7.56% annualized returns in the past three years and 6.69% in the last 5 years. The Mirae Asset Arbitrage Fund Direct-Growth comes under the Hybrid category of Mirae Asset Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Mirae Asset Arbitrage Fund Direct-Growth via lump sum is ₹ 5,000.00 and via SIP is ₹ 99.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 3,737.48Cr

1Y Returns

6.70%

Expense Ratio

2.65%

HSBC Arbitrage Fund Direct-Growth

Fund Performance: HSBC Arbitrage Fund Direct-Growth has given 7.40% annualized returns in the past three years and 6.53% in the last 5 years. The HSBC Arbitrage Fund Direct-Growth comes under the Hybrid category of HSBC Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in HSBC Arbitrage Fund Direct-Growth via lump sum is ₹ 5,000.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 2,944.22Cr

1Y Returns

6.58%

Expense Ratio

1.45%