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Tuesday, 21 Jul 2026 · IST

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ProfitGuruOnline since 2007

SEBI sub-category

Arbitrage Fund funds

Funds

Direct plans only

Category 1Y avg

+6.53%

Category 5Y CAGR

+6.51%

Direct vs Regular

Direct Regular

5-Year return distribution

How the 38 Arbitrage Fund funds spread across return buckets. Taller bars = more funds in that band.

Risk vs Return — Arbitrage Fund

Each dot is a fund. Up-and-left = high return for low risk (the sweet spot). Down-and-right = under-performing with high volatility. Colour = 5-year peer quartile.

Q1 (top 25%) Q2 Q3 Q4 (bottom 25%) 20 funds plotted

All Arbitrage Fund funds

Sort by: 1Y 3Y 5Y 7Y 10Y

#	Scheme	NAV	1Y	3Y	5Y	7Y	10Y	Peer Q (5Y)	Sharpe	Max DD
1	Invesco India Arbitrage Fund - Direct Plan - Growth Option Invesco	36.94	+6.79%	+7.62%	+6.95%	+6.42%	+6.48%	Q1	—	-0.2%
2	Kotak Arbitrage Fund - Direct Plan - Growth Kotak	42.83	+6.57%	+7.60%	+6.83%	+6.35%	+6.48%	Q1	1.67	-0.3%
3	Edelweiss Arbitrage Fund- Direct Plan- Growth Option Edelweiss	22.24	+6.67%	+7.58%	+6.81%	+6.39%	+6.57%	Q1	—	-0.2%
4	Tata Arbitrage Fund-Direct Plan-Growth Tata	16.17	+6.77%	+7.62%	+6.76%	+6.45%	—	Q1	—	-0.2%
5	Axis Arbitrage Fund - Direct Plan - Growth Axis	21.71	+6.65%	+7.50%	+6.74%	+6.25%	+6.47%	Q1	—	-0.3%
6	Aditya Birla Sun Life Arbitrage Fund - Growth - Direct Plan Aditya Birla Sun Life	30.63	+6.71%	+7.58%	+6.71%	+6.25%	+6.42%	Q2	—	-0.3%
7	Nippon India Arbitrage Fund - Direct Plan Growth Plan - Growth Option Nippon India	30.66	+6.70%	+7.47%	+6.70%	+6.26%	+6.51%	Q2	—	-0.3%
8	Mirae Asset Arbitrage Fund Direct Growth Mirae Asset	14.44	+6.70%	+7.55%	+6.67%	—	—	Q2	—	-0.3%
9	BANDHAN Arbitrage Fund-Direct Plan- Growth Bandhan	37.47	+6.44%	+7.46%	+6.65%	+6.13%	+6.36%	Q2	—	-0.3%
10	ICICI Prudential Equity Arbitrage Fund - Direct Plan - Growth ICICI Prudential	39.30	+6.57%	+7.47%	+6.64%	+6.16%	+6.37%	Q2	—	-0.3%
11	UTI Arbitrage Fund - Direct Plan - Growth Option UTI	39.84	+6.56%	+7.48%	+6.61%	+6.18%	+6.35%	Q3	—	-0.3%
12	HDFC ARBITRAGE FUND - Wholesale Growth Option - Direct Plan HDFC	21.55	+6.60%	+7.45%	+6.57%	+6.04%	+6.16%	Q3	—	-0.8%
13	DSP Arbitrage Fund - Direct - Growth DSP	16.70	+6.50%	+7.37%	+6.54%	+6.06%	—	Q3	—	-0.3%
14	LIC MF Arbitrage Fund-Direct Plan-Growth LIC	15.43	+6.61%	+7.26%	+6.48%	+5.91%	—	Q3	—	-0.2%
15	Union Arbitrage Fund - Direct Plan - Growth Option Union	15.49	+6.39%	+7.32%	+6.44%	+6.00%	—	Q3	—	-0.3%
16	PGIM India Arbitrage Fund - Direct Plan - Growth PGIM India	20.93	+6.33%	+7.21%	+6.37%	+5.91%	+6.11%	Q4	—	-0.2%
17	JM Arbitrage Fund (Direct) - Growth Option —	37.06	+6.37%	+7.13%	+6.26%	+5.45%	+5.68%	Q4	—	-0.3%
18	ITI Arbitrage Fund - Direct Plan - Growth Option ITI	14.45	+6.55%	+7.43%	+6.07%	+5.38%	—	Q4	—	-0.3%
19	BANK OF INDIA Arbitrage Fund Direct Plan Growth Bank of India	15.30	+6.00%	+6.87%	+5.73%	+5.23%	—	Q4	—	-0.3%
20	Mahindra Manulife Arbitrage Fund - Direct Plan -Growth Mahindra Manulife	13.67	+6.17%	+6.50%	+5.71%	—	—	Q4	—	-0.2%
21	Bajaj Finserv Arbitrage Fund-Direct Plan-Growth Bajaj Finserv	12.15	+6.60%	—	—	—	—	—	—	—
22	BARODA BNP PARIBAS ARBITRAGE FUND-DIRECT PLAN-GROWTH OPTION Baroda BNP Paribas	18.10	+6.44%	+7.45%	—	—	—	—	—	-0.3%
23	Capitalmind Arbitrage Fund-Direct-Growth —	10.21	—	—	—	—	—	—	—	—
24	Franklin India Arbitrage Fund - Direct - Growth Franklin India	11.20	+6.83%	—	—	—	—	—	—	—
25	Groww Arbitrage Fund Direct Growth Groww	10.14	—	—	—	—	—	—	—	—
26	Helios Arbitrage Fund - Direct Growth Helios	10.20	—	—	—	—	—	—	—	—
27	HSBC Arbitrage Fund - Direct Growth HSBC	21.70	+6.58%	+7.38%	—	—	—	—	—	-0.3%
28	JioBlackRock Arbitrage Fund - Direct Plan - Growth Option —	10.41	—	—	—	—	—	—	—	—
29	Motilal Oswal Arbitrage Fund-Direct Plan-Growth Motilal Oswal	11.17	+7.02%	—	—	—	—	—	—	—
30	NJ Arbitrage Fund - Direct Plan - Growth Option NJ	13.03	+6.29%	+6.98%	—	—	—	—	—	-0.3%
31	Old Bridge Arbitrage Fund Direct Growth Old Bridge	10.44	—	—	—	—	—	—	—	—
32	Parag Parikh Arbitrage Fund - Direct Plan Growth Parag Parikh	12.03	+6.28%	—	—	—	—	—	—	—
33	quant Arbitrage Fund - Growth Option - Direct Plan Quant	10.97	+7.50%	—	—	—	—	—	—	—
34	Samco Arbitrage Fund - Direct Plan - Growth Samco	10.89	+5.12%	—	—	—	—	—	—	—
35	Sundaram Arbitrage Fund (Formerly Known as Prinicpal Arbitrage Fund) - Direct Plan - Growth Sundaram	16.31	+6.83%	+7.38%	—	—	—	—	—	-0.2%
36	THE WEALTH COMPANY ARBITRAGE FUND DIRECT GROWTH —	10.49	—	—	—	—	—	—	—	—
37	TRUSTMF ARBITRAGE FUND -DIRECT PLAN-GROWTH —	10.57	+5.68%	—	—	—	—	—	—	—
38	WhiteOak Capital Arbitrage Fund Direct Plan Growth WhiteOak Capital	11.40	+7.14%	—	—	—	—	—	—	—

Direct plans typically outperform Regular plans by around 50 basis points per year because they carry no distributor commission. The "Peer Q (5Y)" column shows the fund's quartile within this category over the 5-year window: Q1 = top 25%.

Frequently asked questions

Generated from this category's live aggregates — average returns, fund counts, quartile spreads. Updated daily.

Arbitrage Fund is a SEBI-defined mutual-fund category. Each scheme in it must follow the asset-allocation and exposure rules set out in the SEBI October-2017 categorisation circular. Hybrid bucket for tax purposes.

We currently track 38 active Arbitrage Fund schemes (Direct plan, Growth option). The list updates daily after AMFI publishes new NAVs and SEBI re-classifies schemes. 5 of them sit in the top quartile by 5-year CAGR.

Over the last 5 years, the average Arbitrage Fund (Direct plan) has returned 6.51% CAGR — that turns ₹1 lakh into roughly ₹137,088. Over the last 12 months the category averaged 6.53%. Top-quartile funds in this category typically beat the average by 3-6 percentage points per year — fund selection within a category matters more than the category choice itself.

Over the trailing 5-year window, the highest-returning Arbitrage Fund in our database is **Invesco India Arbitrage Fund - Direct Plan - Growth Option** (Invesco) with a CAGR of 6.95%. The category average is 6.51%. Past performance is no guarantee of future returns — top-quartile funds in one window often slip in the next.

The best 1-year return in the Arbitrage Fund category right now is **quant Arbitrage Fund - Growth Option - Direct Plan** (Quant) at 7.50%. 1-year numbers are noisy and shouldn't be the sole basis for picking — cross-check rolling returns and 5-year CAGR before deciding.

Across all Arbitrage Fund schemes with 5 years of history, the 5-year CAGR ranges from 5.71% (worst) to 6.95% (best), with a median of 6.64%. That spread of about 1 percentage points between top and bottom is a useful gauge of how much fund selection matters in this category.

On ProfitGuruOnline you can browse either Arbitrage Fund Direct plans (lower expense ratio, no broker commission baked in) or Regular plans (sold through distributors). Use the filter on the category page. Direct typically outperforms Regular by 0.5-1% per year in the same scheme — meaningful over 10+ years.

Arbitrage Fund is a Hybrid scheme — tax follows the actual equity allocation. ≥65% equity behaves like an equity fund; under 35% equity is taxed as debt. Check the AMC's monthly factsheet for the current allocation.

SIP suits hybrid/balanced categories because the in-built equity exposure benefits from rupee-cost averaging. Hybrid funds also rebalance internally so you don't have to manually shift between equity and debt.

Match the horizon to the Hybrid bucket: equity ≥5 years, debt 1-3 years (or per modified duration), hybrid 3-5 years.

Moderate risk. Equity portion brings volatility, debt portion cushions it. Aggressive hybrid (65-80% equity) is closer to pure equity in drawdown profile; conservative hybrid is closer to debt.

Two or three schemes from different AMCs is usually enough for a single category. Beyond that you'd be re-creating the category average minus your selection cost. Focus on consistency (% of rolling-return windows that ended positive) over chasing top performers — top quartile rarely repeats.

Quarterly is plenty for monitoring NAVs and aggregate gain; annually (or after major regulatory changes like Budget 2024) is the right cadence for re-evaluating against alternatives. Don't churn based on 1-month or even 1-year underperformance — equity funds need 3-5 year horizons to fairly judge.

We rank funds within each category by point-to-point CAGR over the chosen window (1Y, 3Y, 5Y, 7Y, 10Y, since inception), then assign quartile and decile bands so any fund's standing relative to peers is one click away. Numbers are recomputed nightly after AMFI's NAV publish.

Daily NAVs are pulled directly from AMFI's published feed. Category classification uses SEBI's October-2017 mutual-fund categorisation circular. We compute returns, rolling-window stats, SIP backtests, drawdowns and Sharpe ratios in-house — no third-party feeds, no hidden adjustments.

Educational content only — not investment advice. Tax rules summarised above reflect Budget 2024; consult a qualified adviser before transacting.