Best Arbitrage Funds

Fund Name
AUM
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3Y Returns
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Ratings
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Invesco India Arbitrage Fund Direct Plan Growth

Invesco India Arbitrage Fund Direct Plan Growth

Hybrid Arbitrage Fund

₹8,677.55 Cr.

5.93%

5

Invest
Invesco India Arbitrage Fund Direct Plan IDCW (Payout / Payout)

Invesco India Arbitrage Fund Direct Plan IDCW (Payout / Payout)

Hybrid Arbitrage Fund

₹8,677.55 Cr.

5.93%

5

Invest
Invesco India Arbitrage Fund Direct Plan IDCW (Reinvestment / Reinvestment)

Invesco India Arbitrage Fund Direct Plan IDCW (Reinvestment / Reinvestment)

Hybrid Arbitrage Fund

₹8,677.55 Cr.

5.93%

5

Invest
Kotak Equity Arbitrage Fund Growth Direct

Kotak Equity Arbitrage Fund Growth Direct

Hybrid Arbitrage Fund

₹28,957.71 Cr.

5.81%

4.5

Invest
Edelweiss Arbitrage Fund Direct Plan IDCW Payout

Edelweiss Arbitrage Fund Direct Plan IDCW Payout

Hybrid Arbitrage Fund

₹7,035.52 Cr.

5.78%

4.5

Invest
Edelweiss Arbitrage Fund Direct Plan IDCW Reinvestment

Edelweiss Arbitrage Fund Direct Plan IDCW Reinvestment

Hybrid Arbitrage Fund

₹7,035.52 Cr.

5.78%

4.5

Invest
Edelweiss Arbitrage Fund Monthly Direct Plan IDCW Payout

Edelweiss Arbitrage Fund Monthly Direct Plan IDCW Payout

Hybrid Arbitrage Fund

₹7,035.52 Cr.

5.78%

4.5

Invest
Edelweiss Arbitrage Fund Monthly Direct Plan IDCW Reinvestment

Edelweiss Arbitrage Fund Monthly Direct Plan IDCW Reinvestment

Hybrid Arbitrage Fund

₹7,035.52 Cr.

5.78%

4.5

Invest
Edelweiss Arbitrage Fund Direct Plan Growth

Edelweiss Arbitrage Fund Direct Plan Growth

Hybrid Arbitrage Fund

₹7,035.52 Cr.

5.78%

4.5

Invest
TATA Arbitrage Fund Direct Plan Monthly Payout of IDCW Payout

TATA Arbitrage Fund Direct Plan Monthly Payout of IDCW Payout

Hybrid Arbitrage Fund

₹7,682.14 Cr.

5.76%

3.5

Invest
TATA Arbitrage Fund Direct Plan Monthly Reinvestment of IDCW Reinvestment

TATA Arbitrage Fund Direct Plan Monthly Reinvestment of IDCW Reinvestment

Hybrid Arbitrage Fund

₹7,682.14 Cr.

5.76%

3.5

Invest
SBI Arbitrage Opportunities Fund Direct Plan Gr

SBI Arbitrage Opportunities Fund Direct Plan Gr

Hybrid Arbitrage Fund

₹22,370.08 Cr.

5.74%

4

Invest
SBI Arbitrage Opportunities Fund Direct Plan IDCW Payout

SBI Arbitrage Opportunities Fund Direct Plan IDCW Payout

Hybrid Arbitrage Fund

₹22,370.08 Cr.

5.74%

4

Invest
SBI Arbitrage Opportunities Fund Direct Plan IDCW Reinvestment

SBI Arbitrage Opportunities Fund Direct Plan IDCW Reinvestment

Hybrid Arbitrage Fund

₹22,370.08 Cr.

5.74%

4

Invest
TATA Arbitrage Fund Direct Plan Growth

TATA Arbitrage Fund Direct Plan Growth

Hybrid Arbitrage Fund

₹7,682.14 Cr.

5.69%

3.5

Invest
Nippon India Arbitrage Fund Direct Plan IDCW Payout

Nippon India Arbitrage Fund Direct Plan IDCW Payout

Hybrid Arbitrage Fund

₹11,326.42 Cr.

5.69%

4.5

Invest
Nippon India Arbitrage Fund Direct Plan IDCW Reinvestment

Nippon India Arbitrage Fund Direct Plan IDCW Reinvestment

Hybrid Arbitrage Fund

₹11,326.42 Cr.

5.69%

4.5

Invest
Nippon India Arbitrage Fund Direct Plan Monthly IDCW Payout

Nippon India Arbitrage Fund Direct Plan Monthly IDCW Payout

Hybrid Arbitrage Fund

₹11,326.42 Cr.

5.69%

4.5

Invest
Nippon India Arbitrage Fund Direct Plan Monthly IDCW Reinvestment

Nippon India Arbitrage Fund Direct Plan Monthly IDCW Reinvestment

Hybrid Arbitrage Fund

₹11,326.42 Cr.

5.69%

4.5

Invest
Nippon India Arbitrage Fund Direct Plan Growth Plan Growth

Nippon India Arbitrage Fund Direct Plan Growth Plan Growth

Hybrid Arbitrage Fund

₹11,326.42 Cr.

5.69%

4.5

Invest
Axis Arbitrage Fund Direct Plan Growth

Axis Arbitrage Fund Direct Plan Growth

Hybrid Arbitrage Fund

₹3,242.16 Cr.

5.68%

3.5

Invest
Aditya Birla Sun Life Arbitrage Fund Growth Direct Plan

Aditya Birla Sun Life Arbitrage Fund Growth Direct Plan

Hybrid Arbitrage Fund

₹5,923.24 Cr.

5.65%

3.5

Invest
Aditya Birla Sun Life Arbitrage Fund Direct IDCW Reinvestment

Aditya Birla Sun Life Arbitrage Fund Direct IDCW Reinvestment

Hybrid Arbitrage Fund

₹5,923.24 Cr.

5.65%

3.5

Invest
Aditya Birla Sun Life Arbitrage Fund Direct IDCW Payout

Aditya Birla Sun Life Arbitrage Fund Direct IDCW Payout

Hybrid Arbitrage Fund

₹5,923.24 Cr.

5.65%

3.5

Invest
Kotak Equity Arbitrage Fund Payout of IDCW Direct Payout

Kotak Equity Arbitrage Fund Payout of IDCW Direct Payout

Hybrid Arbitrage Fund

₹28,957.71 Cr.

5.58%

4.5

Invest
Kotak Equity Arbitrage Fund Reinvestment of IDCW Direct Reinvestment

Kotak Equity Arbitrage Fund Reinvestment of IDCW Direct Reinvestment

Hybrid Arbitrage Fund

₹28,957.71 Cr.

5.58%

4.5

Invest
ICICI Prudential Equity Arbitrage Fund Direct Plan IDCW Reinvestment

ICICI Prudential Equity Arbitrage Fund Direct Plan IDCW Reinvestment

Hybrid Arbitrage Fund

₹15,356.15 Cr.

5.57%

4

Invest
ICICI Prudential Equity Arbitrage Fund Direct Plan IDCW Payout

ICICI Prudential Equity Arbitrage Fund Direct Plan IDCW Payout

Hybrid Arbitrage Fund

₹15,356.15 Cr.

5.57%

4

Invest
ICICI Prudential Equity Arbitrage Fund Direct Plan Growth

ICICI Prudential Equity Arbitrage Fund Direct Plan Growth

Hybrid Arbitrage Fund

₹15,356.15 Cr.

5.57%

4

Invest
Bandhan Arbitrage Fund Direct Plan Annual IDCW Payout

Bandhan Arbitrage Fund Direct Plan Annual IDCW Payout

Hybrid Arbitrage Fund

₹4,096.11 Cr.

5.55%

3

Invest
Bandhan Arbitrage Fund Direct Plan Annual IDCW Reinvestment

Bandhan Arbitrage Fund Direct Plan Annual IDCW Reinvestment

Hybrid Arbitrage Fund

₹4,096.11 Cr.

5.55%

3

Invest
Bandhan Arbitrage Fund Direct Plan Growth

Bandhan Arbitrage Fund Direct Plan Growth

Hybrid Arbitrage Fund

₹4,096.11 Cr.

5.55%

3

Invest
Bandhan Arbitrage Fund Direct Plan Monthly IDCW Payout

Bandhan Arbitrage Fund Direct Plan Monthly IDCW Payout

Hybrid Arbitrage Fund

₹4,096.11 Cr.

5.55%

3

Invest
Bandhan Arbitrage Fund Direct Plan Monthly IDCW Reinvestment

Bandhan Arbitrage Fund Direct Plan Monthly IDCW Reinvestment

Hybrid Arbitrage Fund

₹4,096.11 Cr.

5.55%

3

Invest
UTI Arbitrage Fund Direct Plan Growth

UTI Arbitrage Fund Direct Plan Growth

Hybrid Arbitrage Fund

₹3,773.06 Cr.

5.55%

3

Invest
Mirae Asset Arbitrage Fund Direct Growth

Mirae Asset Arbitrage Fund Direct Growth

Hybrid Arbitrage Fund

₹529.38 Cr.

5.53%

0

Invest
DSP Arbitrage Fund Direct IDCW Monthly Payout

DSP Arbitrage Fund Direct IDCW Monthly Payout

Hybrid Arbitrage Fund

₹2,613.55 Cr.

5.53%

2.5

Invest
DSP Arbitrage Fund Direct IDCW Monthly Reinvestment

DSP Arbitrage Fund Direct IDCW Monthly Reinvestment

Hybrid Arbitrage Fund

₹2,613.55 Cr.

5.53%

2.5

Invest
HSBC Arbitrage Fund Direct Quarterly IDCW Reinvestment

HSBC Arbitrage Fund Direct Quarterly IDCW Reinvestment

Hybrid Arbitrage Fund

₹1,766.06 Cr.

5.51%

3

Invest
HSBC Arbitrage Fund Direct Quarterly IDCW Payout

HSBC Arbitrage Fund Direct Quarterly IDCW Payout

Hybrid Arbitrage Fund

₹1,766.06 Cr.

5.51%

3

Invest
HSBC Arbitrage Fund Direct Growth

HSBC Arbitrage Fund Direct Growth

Hybrid Arbitrage Fund

₹1,766.06 Cr.

5.51%

3

Invest
Mirae Asset Arbitrage Fund Direct IDCW Payout

Mirae Asset Arbitrage Fund Direct IDCW Payout

Hybrid Arbitrage Fund

₹529.38 Cr.

5.49%

0

Invest
Mirae Asset Arbitrage Fund Direct IDCW Reinvestment

Mirae Asset Arbitrage Fund Direct IDCW Reinvestment

Hybrid Arbitrage Fund

₹529.38 Cr.

5.49%

0

Invest
Baroda BNP Paribas Arbitrage Fund Direct Plan Growth

Baroda BNP Paribas Arbitrage Fund Direct Plan Growth

Hybrid Arbitrage Fund

₹423.56 Cr.

5.48%

2.5

Invest
Baroda BNP Paribas Arbitrage Fund Direct Plan Quarterly IDCW Reinvestment

Baroda BNP Paribas Arbitrage Fund Direct Plan Quarterly IDCW Reinvestment

Hybrid Arbitrage Fund

₹423.56 Cr.

5.48%

2.5

Invest
Baroda BNP Paribas Arbitrage Fund Direct Plan Quarterly IDCW Payout

Baroda BNP Paribas Arbitrage Fund Direct Plan Quarterly IDCW Payout

Hybrid Arbitrage Fund

₹423.56 Cr.

5.48%

2.5

Invest
HDFC Arbitrage Fund Wholesale IDCW Direct Plan Payout

HDFC Arbitrage Fund Wholesale IDCW Direct Plan Payout

Hybrid Arbitrage Fund

₹7,567.03 Cr.

5.48%

2.5

Invest
HDFC Arbitrage Fund Growth Direct Plan

HDFC Arbitrage Fund Growth Direct Plan

Hybrid Arbitrage Fund

₹7,567.03 Cr.

5.48%

2.5

Invest
HDFC Arbitrage Fund Wholesale Growth Direct Plan

HDFC Arbitrage Fund Wholesale Growth Direct Plan

Hybrid Arbitrage Fund

₹7,567.03 Cr.

5.48%

2.5

Invest
HDFC Arbitrage Fund Quarterly IDCW Direct Plan Reinvestment

HDFC Arbitrage Fund Quarterly IDCW Direct Plan Reinvestment

Hybrid Arbitrage Fund

₹7,567.03 Cr.

5.47%

2.5

Invest
HDFC Arbitrage Fund Wholesale Monthly IDCW Direct Plan Payout

HDFC Arbitrage Fund Wholesale Monthly IDCW Direct Plan Payout

Hybrid Arbitrage Fund

₹7,567.03 Cr.

5.47%

2.5

Invest
UTI Arbitrage Fund Direct Plan IDCW Payout

UTI Arbitrage Fund Direct Plan IDCW Payout

Hybrid Arbitrage Fund

₹3,773.06 Cr.

5.44%

3

Invest
UTI Arbitrage Fund Direct Plan IDCW Reinvestment

UTI Arbitrage Fund Direct Plan IDCW Reinvestment

Hybrid Arbitrage Fund

₹3,773.06 Cr.

5.44%

3

Invest
DSP Arbitrage Fund Direct Growth

DSP Arbitrage Fund Direct Growth

Hybrid Arbitrage Fund

₹2,613.55 Cr.

5.44%

2.5

Invest
DSP Arbitrage Fund Direct IDCW Payout

DSP Arbitrage Fund Direct IDCW Payout

Hybrid Arbitrage Fund

₹2,613.55 Cr.

5.4%

2.5

Invest
DSP Arbitrage Fund Direct IDCW Reinvestment

DSP Arbitrage Fund Direct IDCW Reinvestment

Hybrid Arbitrage Fund

₹2,613.55 Cr.

5.4%

2.5

Invest
LIC MF Arbitrage Fund Direct Plan Growth

LIC MF Arbitrage Fund Direct Plan Growth

Hybrid Arbitrage Fund

₹27.99 Cr.

5.36%

2.5

Invest
LIC MF Arbitrage Fund Direct Plan Monthly IDCW Payout

LIC MF Arbitrage Fund Direct Plan Monthly IDCW Payout

Hybrid Arbitrage Fund

₹27.99 Cr.

5.35%

2.5

Invest
LIC MF Arbitrage Fund Direct Plan Monthly IDCW Reinvestment

LIC MF Arbitrage Fund Direct Plan Monthly IDCW Reinvestment

Hybrid Arbitrage Fund

₹27.99 Cr.

5.35%

2.5

Invest
Baroda BNP Paribas Arbitrage Fund Direct Plan Adhoc IDCW Reinvestment

Baroda BNP Paribas Arbitrage Fund Direct Plan Adhoc IDCW Reinvestment

Hybrid Arbitrage Fund

₹423.56 Cr.

5.32%

2.5

Invest
Baroda BNP Paribas Arbitrage Fund Direct Plan Adhoc IDCW Payout

Baroda BNP Paribas Arbitrage Fund Direct Plan Adhoc IDCW Payout

Hybrid Arbitrage Fund

₹423.56 Cr.

5.32%

2.5

Invest
PGIM India Arbitrage Fund Direct Plan Growth

PGIM India Arbitrage Fund Direct Plan Growth

Hybrid Arbitrage Fund

₹153.43 Cr.

5.32%

2

Invest
Baroda BNP Paribas Arbitrage Fund Direct Plan Monthly IDCW Reinvestment

Baroda BNP Paribas Arbitrage Fund Direct Plan Monthly IDCW Reinvestment

Hybrid Arbitrage Fund

₹423.56 Cr.

5.31%

2.5

Invest
Baroda BNP Paribas Arbitrage Fund Direct Plan Monthly IDCW Payout

Baroda BNP Paribas Arbitrage Fund Direct Plan Monthly IDCW Payout

Hybrid Arbitrage Fund

₹423.56 Cr.

5.31%

2.5

Invest
PGIM India Arbitrage Fund Direct Plan Monthly Dividend Payout

PGIM India Arbitrage Fund Direct Plan Monthly Dividend Payout

Hybrid Arbitrage Fund

₹153.43 Cr.

5.27%

2

Invest
PGIM India Arbitrage Fund Direct Plan Monthly Dividend Reinvestment

PGIM India Arbitrage Fund Direct Plan Monthly Dividend Reinvestment

Hybrid Arbitrage Fund

₹153.43 Cr.

5.27%

2

Invest
Union Arbitrage Fund Direct Plan Growth

Union Arbitrage Fund Direct Plan Growth

Hybrid Arbitrage Fund

₹103.42 Cr.

5.23%

2

Invest
Union Arbitrage Fund Direct Plan IDCW Reinvestment

Union Arbitrage Fund Direct Plan IDCW Reinvestment

Hybrid Arbitrage Fund

₹103.42 Cr.

5.22%

2

Invest
Union Arbitrage Fund Direct Plan IDCW Payout

Union Arbitrage Fund Direct Plan IDCW Payout

Hybrid Arbitrage Fund

₹103.42 Cr.

5.22%

2

Invest
Axis Arbitrage Fund Direct Plan IDCW Payout

Axis Arbitrage Fund Direct Plan IDCW Payout

Hybrid Arbitrage Fund

₹3,242.16 Cr.

5.22%

3.5

Invest
Axis Arbitrage Fund Direct Plan IDCW Reinvestment

Axis Arbitrage Fund Direct Plan IDCW Reinvestment

Hybrid Arbitrage Fund

₹3,242.16 Cr.

5.22%

3.5

Invest
HSBC Arbitrage Fund Direct Monthly IDCW Reinvestment

HSBC Arbitrage Fund Direct Monthly IDCW Reinvestment

Hybrid Arbitrage Fund

₹1,766.06 Cr.

5.04%

3

Invest
HSBC Arbitrage Fund Direct Monthly IDCW Payout

HSBC Arbitrage Fund Direct Monthly IDCW Payout

Hybrid Arbitrage Fund

₹1,766.06 Cr.

5.04%

3

Invest
JM Arbitrage Fund Direct Bonus Principal Units

JM Arbitrage Fund Direct Bonus Principal Units

Hybrid Arbitrage Fund

₹118.79 Cr.

4.97%

2

Invest
JM Arbitrage Fund Direct Annual IDCW Payout

JM Arbitrage Fund Direct Annual IDCW Payout

Hybrid Arbitrage Fund

₹118.79 Cr.

4.97%

2

Invest
JM Arbitrage Fund Direct Annual IDCW Reinvestment

JM Arbitrage Fund Direct Annual IDCW Reinvestment

Hybrid Arbitrage Fund

₹118.79 Cr.

4.97%

2

Invest
JM Arbitrage Fund Direct Monthly IDCW Payout

JM Arbitrage Fund Direct Monthly IDCW Payout

Hybrid Arbitrage Fund

₹118.79 Cr.

4.97%

2

Invest
JM Arbitrage Fund Direct Monthly IDCW Reinvestment

JM Arbitrage Fund Direct Monthly IDCW Reinvestment

Hybrid Arbitrage Fund

₹118.79 Cr.

4.97%

2

Invest
JM Arbitrage Fund Direct Growth

JM Arbitrage Fund Direct Growth

Hybrid Arbitrage Fund

₹118.79 Cr.

4.97%

2

Invest
JM Arbitrage Fund Direct Annual Bonus Principal Units

JM Arbitrage Fund Direct Annual Bonus Principal Units

Hybrid Arbitrage Fund

₹118.79 Cr.

4.97%

0

Invest
JM Arbitrage Fund Direct IDCW Payout

JM Arbitrage Fund Direct IDCW Payout

Hybrid Arbitrage Fund

₹118.79 Cr.

4.97%

2

Invest
JM Arbitrage Fund Direct IDCW Reinvestment

JM Arbitrage Fund Direct IDCW Reinvestment

Hybrid Arbitrage Fund

₹118.79 Cr.

4.97%

2

Invest
JM Arbitrage Fund Direct Quarterly Bonus Principal Units

JM Arbitrage Fund Direct Quarterly Bonus Principal Units

Hybrid Arbitrage Fund

₹118.79 Cr.

4.97%

2

Invest
JM Arbitrage Fund Direct Half Yearly Bonus Principal Units

JM Arbitrage Fund Direct Half Yearly Bonus Principal Units

Hybrid Arbitrage Fund

₹118.79 Cr.

4.97%

2

Invest
JM Arbitrage Fund Direct Quarterly IDCW Payout

JM Arbitrage Fund Direct Quarterly IDCW Payout

Hybrid Arbitrage Fund

₹118.79 Cr.

4.97%

2

Invest
JM Arbitrage Fund Direct Quarterly IDCW Reinvestment

JM Arbitrage Fund Direct Quarterly IDCW Reinvestment

Hybrid Arbitrage Fund

₹118.79 Cr.

4.97%

2

Invest
JM Arbitrage Fund Direct Half Yearly IDCW Payout

JM Arbitrage Fund Direct Half Yearly IDCW Payout

Hybrid Arbitrage Fund

₹118.79 Cr.

4.96%

2

Invest
JM Arbitrage Fund Direct Half Yearly IDCW Reinvestment

JM Arbitrage Fund Direct Half Yearly IDCW Reinvestment

Hybrid Arbitrage Fund

₹118.79 Cr.

4.96%

2

Invest
Mahindra Manulife Arbitrage Fund Direct Plan Growth

Mahindra Manulife Arbitrage Fund Direct Plan Growth

Hybrid Arbitrage Fund

₹29.99 Cr.

4.7%

0

Invest
Mahindra Manulife Arbitrage Fund Direct Plan IDCW Reinvestment

Mahindra Manulife Arbitrage Fund Direct Plan IDCW Reinvestment

Hybrid Arbitrage Fund

₹29.99 Cr.

4.7%

0

Invest
Mahindra Manulife Arbitrage Fund Direct Plan IDCW Payout

Mahindra Manulife Arbitrage Fund Direct Plan IDCW Payout

Hybrid Arbitrage Fund

₹29.99 Cr.

4.7%

0

Invest
Sundaram Arbitrage Fund (Formerly Known as Prinicpal Arbitrage Fund) Direct Plan Growth

Sundaram Arbitrage Fund (Formerly Known as Prinicpal Arbitrage Fund) Direct Plan Growth

Hybrid Arbitrage Fund

₹102.07 Cr.

4.7%

1.5

Invest
Sundaram Arbitrage Fund (Formerly Known as Principal Arbitrage Fund) Direct Plan Monthly IDCW Payout

Sundaram Arbitrage Fund (Formerly Known as Principal Arbitrage Fund) Direct Plan Monthly IDCW Payout

Hybrid Arbitrage Fund

₹102.07 Cr.

4.7%

1.5

Invest
Sundaram Arbitrage Fund (Formerly Known as Principal Arbitrage Fund) Direct Plan Monthly IDCW Reinvestment

Sundaram Arbitrage Fund (Formerly Known as Principal Arbitrage Fund) Direct Plan Monthly IDCW Reinvestment

Hybrid Arbitrage Fund

₹102.07 Cr.

4.7%

1.5

Invest
ITI Arbitrage Fund Direct Plan Growth

ITI Arbitrage Fund Direct Plan Growth

Hybrid Arbitrage Fund

₹10.72 Cr.

4.4%

1

Invest
ITI Arbitrage Fund Direct Plan IDCW Payout

ITI Arbitrage Fund Direct Plan IDCW Payout

Hybrid Arbitrage Fund

₹10.72 Cr.

4.4%

1

Invest
ITI Arbitrage Fund Direct Plan IDCW Reinvestment

ITI Arbitrage Fund Direct Plan IDCW Reinvestment

Hybrid Arbitrage Fund

₹10.72 Cr.

4.4%

1

Invest
Bank of India Arbitrage Fund Direct Plan Growth

Bank of India Arbitrage Fund Direct Plan Growth

Hybrid Arbitrage Fund

₹17.76 Cr.

4.25%

1

Invest
Bank of India Arbitrage Fund Direct Plan Quarterly IDCW Payout

Bank of India Arbitrage Fund Direct Plan Quarterly IDCW Payout

Hybrid Arbitrage Fund

₹17.76 Cr.

4.25%

1

Invest
Bank of India Arbitrage Fund Direct Plan Quarterly IDCW Reinvestment

Bank of India Arbitrage Fund Direct Plan Quarterly IDCW Reinvestment

Hybrid Arbitrage Fund

₹17.76 Cr.

4.25%

1

Invest
Bank of India Arbitrage Fund Direct Plan Annual IDCW Payout

Bank of India Arbitrage Fund Direct Plan Annual IDCW Payout

Hybrid Arbitrage Fund

₹17.76 Cr.

4.23%

1

Invest
Bank of India Arbitrage Fund Direct Plan Annual IDCW Reinvestment

Bank of India Arbitrage Fund Direct Plan Annual IDCW Reinvestment

Hybrid Arbitrage Fund

₹17.76 Cr.

4.23%

1

Invest
Bank of India Arbitrage Fund Direct Plan Monthly IDCW Payout

Bank of India Arbitrage Fund Direct Plan Monthly IDCW Payout

Hybrid Arbitrage Fund

₹17.76 Cr.

4.23%

1

Invest
Bank of India Arbitrage Fund Direct Plan Monthly IDCW Reinvestment

Bank of India Arbitrage Fund Direct Plan Monthly IDCW Reinvestment

Hybrid Arbitrage Fund

₹17.76 Cr.

4.23%

1

Invest
NJ Arbitrage Fund Direct Plan Growth

NJ Arbitrage Fund Direct Plan Growth

Hybrid Arbitrage Fund

₹356.65 Cr.

0%

0

Invest
PGIM India Arbitrage Fund Direct Plan Regular Dividend Reinvestment

PGIM India Arbitrage Fund Direct Plan Regular Dividend Reinvestment

Hybrid Arbitrage Fund

₹153.43 Cr.

0%

2

Invest
PGIM India Arbitrage Fund Direct Plan Regular Dividend Payout

PGIM India Arbitrage Fund Direct Plan Regular Dividend Payout

Hybrid Arbitrage Fund

₹153.43 Cr.

0%

2

Invest

About Arbitrage Funds in detail

  • Arbitrage funds earn gains by simultaneously buying and selling securities in two different markets. These markets are the spot-cash market and the futures market. The fund manager simultaneously buys shares in the cash market and sells them in futures or derivatives markets. The difference between the cost and selling prices is the return you earn. In a nutshell, arbitrage funds work by benefiting through price differences in diverse markets.

How do Arbitrage Funds work

Arbitrage mutual funds are mutual fund schemes that essentially leverage the differences in prices in markets in order to generate profits. The primary aim of arbitrage funds is to deliver arbitrage profits via price differences that occur in different capital markets. Arbitrage, in simple terms, means purchasing and selling securities in different markets to gain risk-free returns or profits. If the price of any security is different in different markets, mutual fund investors can make risk-free gains by buying securities in the market where the price is lower and selling the same securities in the market where the price is higher.

You could say that arbitrage funds work with a predominant investment in equities but aim to minimise risk through the strategy of arbitrage. Funds work by taking advantage of price differences between stock exchanges or market segments. As per SEBI, the Securities and Exchange Board of India, arbitrage funds have to invest a minimum of 65% of their capital in equity and related securities.

Features of Arbitrage Funds

  • Since arbitrage opportunities tend to be more in case of volatile markets, the fund is likely to generate potentially higher returns than in a stable/calm market. However, these funds are known to give higher returns than a fixed deposit.
  • Managers buy and sell stocks at low risk in the futures and the cash market so they can easily calculate the kind of risk involved in arbitrage funds.
  • Since the manager is actively involved in buying and selling stocks simultaneously in two markets, arbitrage funds are categorised as actively managed funds
  • They generate profit by operating in different markets.
  • As the fund manager is usually aware of the buying and selling prices, the investors can remain assured even during economically volatile times.
  • When the arbitrage opportunities are low, the fund manager can use the investor capital in the choice debt instruments, which can be used to generate capital and can help with high credit quality. This can be done through instruments such as government bonds, debentures, and term deposits.
  • Even the best arbitrage funds can be volatile, but they’ve been known to return on par with liquid funds over the long term.
  • High expense ratio – The number of trades required to make profits from arbitrage funds can bring up the expense ratio. However, expense ratios are a key factor to be considered when investing in arbitrage funds.

Advantages of Arbitrage Funds

  1. Low risk – Since securities are bought and sold simultaneously, there is less risk involved in long-term investment. Part of the arbitrage funds is also invested in debt securities which are considered to be relatively stable. Hence this investment option turns out to be a suitable option for investors who have a low-risk tolerance. Being low-risk securities, these funds can thrive during market volatility. When prices are unstable, the differences between cash and the futures market increase.
  2. Liquidity – Arbitrage funds don’t require a long-term commitment as the securities are bought and sold simultaneously. However, it would be well-suited to stay invested for at least 3 months to balance out exit load charges.
  3. Thrives in a volatile market – As mentioned above, the best arbitrage funds are ones that thrive during market volatility helping investors with a steady income source.
  4. Balanced funds – Yet another advantage of arbitrage funds is that it is well-balanced and is a hybrid of debt and equity mutual funds. This allows the fund to have the benefits of both.

Risks involved in Arbitrage Funds

Here are some other risk factors involved:

  1. Unpredictable returns – Arbitrage funds are not entirely reliable in stable markets. In the absence of profitable arbitrage trades, this may lead the arbitrage fund to become a bond fund
  2. High expense ratio – The number of trades required to make profits from arbitrage funds can bring up the expense ratio. While it will be a well-suited practice to opt for a lower-expense ratio, investors must also focus on a good performance track record. The expense ratio should not be the only deciding factor when choosing an arbitrage fund

Factors to Consider Before Investing in Arbitrage Funds

While you may think that arbitrage funds offer minimal risks, they still invest in equities and there are certain factors you must consider before you invest:

  • Consider the role of the fund manager in any fund you are considering. In any arbitrage mutual fund scheme, the fund manager identifies opportunities for arbitrage and then invests to make maximum gains. A small portion may also be invested in fixed-income instruments with a high standard of credit, to maintain portfolio stability.
  • There is no real exposure to equity risk as the fund manager purchases equities in one market and simultaneously sells equities in another market. Nonetheless, such opportunities may become few and far between as more and more investors attempt this kind of investment, and the price differences may be small. In such cases, the returns may potentially be average. You may consider a longer-term investment if you wish to make potential gains.
  • Before you invest in such a fund it is important for investors to reflect on the costs of investment. For arbitrage funds, you will have to potentially bear expense ratio costs, and if you don’t plan to stay invested for a duration, there may be exit loads to consider.
  • You may consider arbitrage funds if you have some excess money you wish to invest for a medium to long-term duration.
  • The main element to consider concerns your own financial goals and plans for investment. Think of your time horizon as well as your risk tolerance. Your personal preferences and the kind of investor you are determine whether funds may be considered.

Who Should Invest in Arbitrage Funds?

  • Due to its nature of buying and selling at low risk in the futures and the cash market, fund managers can easily calculate the kind of risk involved in arbitrage funds.
  • Hence this type of financial instrument is perfect for individuals who wish to take advantage of the market volatilities without engaging in high risk.

Taxability of Arbitrage Funds

  • Despite investing in equities, arbitrage funds are considered hybrid funds as they invest both in equity and debt funds. As long as equity makes up for 65% of the portfolio, they are taxed as equity funds.
  • When an investor earns dividends on their arbitrage fund investments, the dividends are included in their taxable income and subject to taxation based on their income tax bracket. In addition, if the dividend amount exceeds Rs. 5000 in a financial year, a 10% Tax Deducted at Source (TDS) is applied to the excess amount.

As said earlier, capital gains of arbitrage funds are taxed as equity-oriented funds. Here’s how:

  1. Short-Term Capital Gains – In the case of assets owned for less than 12 months, a tax rate of 15% is applied to gains from arbitrage funds.
  2. Long-Term Capital Gains – If you hold the investment for more than 12 months, a long-term gain tax of 10% is applicable, without indexation on a gain of more than 1 lakh in a financial year from these funds.

How to invest in Arbitrage Funds

Investing in the arbitrage Mutual Fund is hassle-free when done through your Angel One account. You just have to follow these simple steps:

Step 1: Log in to your Angel One account.

Note: In case you do not have an account with Angel One, you can open a demat account with us in under a few minutes by submitting the necessary documents.

Step 2: Determine an arbitrage fund that suits your needs and risk profile. You can learn more about each arbitrage fund on the Angel One app. Things to consider at this stage are:

  1. Search for the fund you want to invest in.
  2. Analyse the fund’s past performance, tax incidence, and the sectors and companies it invests in. You can also calculate the potential returns using the calculator.
  3. Evaluate the fund’s level of risk, its ratings and expense ratio.

Step 3: Once you finalise the arbitrage fund(s) you want to invest in, open your Angel One account, go to the Mutual Funds section, and look for it.

  1. Decide whether you want to invest via SIP or make a one-time investment
  2. Decide your monthly SIP date. Now, enter the amount you want to invest and choose the payment mode.
  3. After placing the order, you can create an AutoPay to make hassle-free future instalments in case of SIP investments.

Top 5 Arbitrage Funds

Name AUM (Rs. in crores) Minimum lumpsum (Rs.) CAGR 3Y (%) CAGR 5Y (%)
Kotak Equity Arbitrage Fund 21,917.66 5000 4.79 5.62
ICICI Pru Equity-Arbitrage Fund 11,127.09 5000 4.60 5.50
Nippon India Arbitrage Fund 9,234.36 5000 4.75 5.69
SBI Arbitrage Opportunities Fund 8,800.63 5000 4.37 5.36
Tata Arbitrage Fund 5,925.66 5000 4.90

Kotak Equity Arbitrage Fund

  • The expense ratio of the Kotak Equity Arbitrage Fund is 0.43%, its PE ratio is 30.22, and its Sharpe ratio is 1.54. It has an exit load of 0.25%, a minimum lump sum of Rs. 5,000, and its benchmark is Nifty 50 arbitrage.
  • The fund is diversified in the following sectors: private banks (12.57%), miscellaneous (10.10%), home financing (4.85%), oil & gas-Refining & marketing (4.56%), and others (19.81%). The rest of the 48.11% is diversified into 47 other sectors.

ICICI Pru Equity-Arbitrage Fund

  • The ICICI Pru Equity-Arbitrage Fund expense ratio of the fund is 0.39%. With a PE ratio of 33.76 and a Sharpe ratio of 1.34, the fund has an exit load of 0.25%. The fund has a minimum lump sum of Rs. 5,000, with its benchmark being Nifty 50 Arbitrage.
  • The diversification of the fund is as follows: Private banks (11.11%), G-sec (11.10%), IT services and Consulting (4.94%), miscellaneous (13.14%), and others (4.80%). The remaining 54.81% of the fund is diversified into 44 different sectors.

Nippon India Arbitrage Fund

  • The exit load of the fund is 0.25%, with a minimum lump sum of Rs. 5,000, and its benchmark is Nifty 50 Arbitrage. The expense ratio of the Nippon India Arbitrage Fund is 0.21%, the PE ratio is 29.05, and the Sharpe ratio is 1.39.
  • The fund is diversified as follows: private banks (14.90%), miscellaneous (8.59%), IT services and consulting (5.84%), home financing (5.23%), and others (12.73%). The rest of the 52.71% of the fund is split into 45 other sectors.

SBI Arbitrage Opportunities Fund

  • The expense ratio of the fund is 0.36%, the PE ratio is 29.15, and its Sharpe ratio is 1.50. The exit load of the fund is set at 0.25%, with a minimum lump sum of Rs. 5,000.
  • Here’s how the fund is diversified: private banks (17.25%), miscellaneous (9.52%), Oil & Gas – Refining and Marketing (7.02%), Others (6.87%), and G-sec (6.85%). The remainder of the 52.49% of the share is diversified in 49 other sectors.

Tata Arbitrage Fund

  • The Tata arbitrage fund has an expense ratio of 0.28%, a PE ratio of 31.55, and a share ratio of 1.43. The exit load is set at 0.25%, and its minimum lump sum is Rs. 5000. The benchmark for the fund is Nifty 50 arbitrage.
  • Here’s how the fund is diversified: Private banks (11.154%), miscellaneous (6.04%), specialised finance (5.39%), Oil & gas – Refining & Marketing and Others 21.33%. The rest of the 50.68% of the fund is diversified in 42 other sectors.
Mutual Funds Calculator

Arbitrage Funds FAQs

Are arbitrage funds high-risk?

Arbitrage funds are known for their low level of risk to the investor. This is because the fund manager tends to create a suitable position by buying in the cash market and selling in the future market. It is still advised for investors to research the funds before investing in them.

Should I invest in arbitrage mutual funds?

The decision of whether or not an individual should invest in arbitrage mutual funds is dependent on multiple factors. These factors include the investor's goals, risk appetite, investment horizon, income, etc. Furthermore, an individual should also conduct thorough research on the schemes before investing.

What are the expected returns of arbitrage funds?

The funds usually generate returns of 7%-9% of the invested amount. This rate of return is considered to be higher compared to short-term debt funds, and liquid funds (when the RBI has reduced rates). This makes arbitrage funds a lucrative investment option.

What are the risks involved in investing in arbitrage funds?

Unpredictable arbitrage fund returns and a high-expense ratio are some of the risks involved in investing in this instrument. Besides that, arbitrage funds aren’t reliable and profitable during stable market conditions. If there is a lack of profitable arbitrage opportunities, the fund may turn into a bond.

Are arbitrage funds taxable?

For investment gains that are held for less than a year, a tax of 15% is applicable. Long-term gains that are held for 3 years or more are taxed at a rate of 20% post-indexation. Tax slab rates are applied for short-term capital gains.

How much money should I invest in arbitrage funds?

Arbitrage investments can help with low-risk and reasonable returns if the fund manager invests right. Investments depend on multiple personal factors such as your age, income cap, investment horizons, goals, and expected arbitrage funds returns.