Based on 1-year returns, the top performing Arbitrage funds are Quant Arbitrage Fund Direct-Growth with 7.69% return, WhiteOak Capital Arbitrage Fund Direct-Growth with 7.16% return, and Franklin India Arbitrage Fund Direct-Growth with 7.01% return. The category average 1-year return is 6.56%.
Best Arbitrage Mutual Funds 2026
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
40
No. of schemes
Total AUM
₹ 3.53Lakh Cr
As on latest
Category Return (5Y)
6.53 %
CAGR
Benchmark Data
NA
This category currently has no benchmark assigned.
Category Returns (%)
| Period | 1M | 6M | 1Y | 3Y CAGR | 5Y CAGR | 10Y CAGR | YTD |
|---|---|---|---|---|---|---|---|
Arbitrage | 0.49 % | 3.16 % | 6.56 % | 7.24 % | 6.53 % | 6.11 % | 4.46 % |
Benchmark Not Available No benchmark assigned | - | - | - | - | - | - | - |
About Arbitrage Funds
What is it?
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.
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
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 9.27%.
6 categories outperform it, while 0 categories have lower returns.
Top performer: Multi Asset Allocation (13.32%).
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 7.54% annualized returns in the past three years and 6.91% 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
₹ 74,398.70Cr
1Y Returns
6.74%
Expense Ratio
2.33%
SBI Arbitrage Fund Direct-Growth
Fund Performance: SBI Arbitrage Fund Direct-Growth has given 7.32% annualized returns in the past three years and 6.83% in the last 5 years. The SBI Arbitrage Fund Direct-Growth comes under the Hybrid category of SBI Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in SBI Arbitrage Fund Direct-Growth via lump sum is ₹ 5,000.00 and via SIP is ₹ 500.00.
Min Investment Amt
₹ 5,000.00
AUM
₹ 46,803.10Cr
1Y Returns
6.52%
Expense Ratio
1.48%
ICICI Prudential Arbitrage Direct-Growth
Fund Performance: ICICI Prudential Arbitrage Direct-Growth has given 7.37% annualized returns in the past three years and 6.71% 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 ₹ 500.00 and via SIP is ₹ 500.00.
Min Investment Amt
₹ 500.00
AUM
₹ 34,180.20Cr
1Y Returns
6.61%
Expense Ratio
1.63%
Invesco India Arbitrage Fund Direct-Growth
Fund Performance: Invesco India Arbitrage Fund Direct-Growth has given 7.52% annualized returns in the past three years and 7.03% 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
₹ 29,629.10Cr
1Y Returns
6.83%
Expense Ratio
2.25%
Aditya Birla Sun Life Arbitrage Fund Direct-Growth
Fund Performance: Aditya Birla Sun Life Arbitrage Fund Direct-Growth has given 7.48% annualized returns in the past three years and 6.78% 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
₹ 26,939.50Cr
1Y Returns
6.73%
Expense Ratio
1.24%
HDFC Arbitrage Fund Direct-Growth
Fund Performance: HDFC Arbitrage Fund Direct-Growth has given 7.35% annualized returns in the past three years and 6.64% 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
₹ 25,001.20Cr
1Y Returns
6.60%
Expense Ratio
1.53%
Tata Arbitrage Fund Direct-Growth
Fund Performance: Tata Arbitrage Fund Direct-Growth has given 7.54% annualized returns in the past three years and 6.83% 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
₹ 24,724.70Cr
1Y Returns
6.76%
Expense Ratio
1.61%
Nippon India Arbitrage Fund Direct-Growth
Fund Performance: Nippon India Arbitrage Fund Direct-Growth has given 7.37% annualized returns in the past three years and 6.77% 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
₹ 16,915.80Cr
1Y Returns
6.73%
Expense Ratio
1.37%
Edelweiss Arbitrage Fund Direct-Growth
Fund Performance: Edelweiss Arbitrage Fund Direct-Growth has given 7.47% annualized returns in the past three years and 6.87% 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
₹ 15,139.20Cr
1Y Returns
6.67%
Expense Ratio
1.58%
UTI Arbitrage Fund Direct-Growth
Fund Performance: UTI Arbitrage Fund Direct-Growth has given 7.38% annualized returns in the past three years and 6.67% 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
₹ 11,152.50Cr
1Y Returns
6.59%
Expense Ratio
1.25%
Axis Arbitrage Fund Direct-Growth
Fund Performance: Axis Arbitrage Fund Direct-Growth has given 7.42% annualized returns in the past three years and 6.80% 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
₹ 10,339.10Cr
1Y Returns
6.69%
Expense Ratio
1.41%
Bandhan Arbitrage Fund Direct-Growth
Fund Performance: Bandhan Arbitrage Fund Direct-Growth has given 7.37% annualized returns in the past three years and 6.71% 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
₹ 8,010.98Cr
1Y Returns
6.48%
Expense Ratio
1.67%
DSP Arbitrage Fund Direct-Growth
Fund Performance: DSP Arbitrage Fund Direct-Growth has given 7.28% annualized returns in the past three years and 6.61% 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
₹ 6,645.81Cr
1Y Returns
6.54%
Expense Ratio
1.17%
Mirae Asset Arbitrage Fund Direct-Growth
Fund Performance: Mirae Asset Arbitrage Fund Direct-Growth has given 7.43% annualized returns in the past three years and 6.72% 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
₹ 3,871.56Cr
1Y Returns
6.71%
Expense Ratio
2.57%
Motilal Oswal Arbitrage Fund Direct-Growth
Fund Performance: The Motilal Oswal Arbitrage Fund Direct-Growth comes under the Hybrid category of Motilal Oswal Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Motilal Oswal Arbitrage Fund Direct-Growth via lump sum is ₹ 500.00 and via SIP is ₹ 500.00.
Min Investment Amt
₹ 500.00
AUM
₹ 3,242.03Cr
1Y Returns
6.97%
Expense Ratio
1.00%
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