Arbitrage Mutual Funds

We are aware that the equity market is volatile. Arbitrage funds focus on leveraging this market volatility. They function on buying and selling securities, commodities, or currencies simultaneously from different diverse markets to derive benefits from the difference in their price points at various vends. View More

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List of Arbitrage Mutual Funds

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Search Result - 39 Mutual Funds

Fund Name	Fund Size (Cr.)	3Y Returns	5Y Returns

Fund Name	1Y Returns	Rating	Fund Size (Cr.)

Who Should Invest in Arbitrage Mutual Funds?

Arbitrage funds are balanced or hybrid funds as they invest in both debt and equity, but their primary investments are in equities. Even though Arbitrage funds are relatively low-risk funds, their payoffs, or arbitrage fund returns, are unpredictable. They are another variant of mutual funds. They function on the principle of purchasing stock in the cash market and simultaneously selling off that interest in the futures market. View More

Features of Arbitrage Mutual Funds

Arbitrage funds offer multiple benefits to investors. Hence, they appeal most to investors with low-risk tolerance. These funds are born to rule only when the markets are volatile. However, if there is a shortage of profitable arbitrage trades, the funds are invested more heavily on debts. This retains them at low-risk levels, unlike longer-term investment funds. View More

Factors to consider while investing in Arbitrage Funds

Here are the parameters you must evaluate before investing in arbitrage funds:View More

Arbitrage Funds’ Performance
Big mutual fund houses like Axis, Tata, UTI, Invesco, HDFC, DSP, L&T, and the like offer arbitrage funds. However, despite being managed by some of the best arbitrage fund managers in India, not all arbitrage funds provide similar returns.

So, you must check the historical performance of the best arbitrage funds before picking one or more funds to invest in. Also, analyzing a minimum of three years’ data is wise to arrive at a solid conclusion.

Generally, if a fund performs decently for three to five years, it is believed that the momentum will also continue in the coming years.

Comparison With The Benchmark
Benchmark refers to the average returns offered by the underlying stocks or financial instruments the benchmark is composed of. The benchmark shows the status of the index or the sector it tracks.

For instance, if the benchmark S&P BSE Information Technology TRI increases, it proves that IT sector stocks are attracting investors’ interest. Funds are compared vis-a-vis the benchmark it follows. Generally, arbitrage funds’ performances are measured against the performance of the NIFTY 50 Arbitrage TRI.

Remember, the best arbitrage funds are the ones that consistently outperform the benchmark. Also, you may invest in funds that outperform the benchmark and the category.

The Expense Ratio
The expense ratio refers to the fee mutual fund houses charge to manage investors’ capital assets. They use the amount to cover their establishment costs. However, since the expense ratio reduces the investor’s profit margin, it is imperative to evaluate the ratio to maximise profits.

The Securities and Exchange Board of India (SEBI) has laid detailed guidelines on the expense fees mutual fund houses can charge customers. It specifies the maximum expense ratio fund houses may levy on specific fund types. However, fund houses or AMCs (Asset Management Companies) often charge lower expense rates than the SEBI-set limit to attract customers.

Before investing in the best arbitrage funds, it is wise to evaluate the expense ratio. Generally, the arbitrage fund expense ratio hovers between 0.30% and 0.45%. Remember, the lower the expense ratio, the more capital invested in the market. Hence, a lower expense ratio might increase your profits as well.

Taxation
Arbitrage funds are considered equity funds for taxation. So, if you hold your investment for more than a year, you must pay an LTCG (Long Term Capital Gains) tax of 10% + surcharge + cess on the profit. However, if you sell your investment before one year from the investment date, the STCG (Short Term Capital Gains) tax rate will be 15% + surcharge + cess. It is wise to note that you have to pay INR 0 if your LTCG is less than INR 1 lakh in any financial year.

So, before investing or withdrawing money from an arbitrage fund, calculate your taxes to maximise your income.

Financial Goals
Despite being classified as equity funds and taxed accordingly, arbitrage funds are not always as remunerative as pure equity funds. But, arbitrage funds are typically more stable and less volatile than pure equity funds. So, arbitrage funds are best-suited for investors with a long-term investment horizon. Tracking the past performance of the funds can give you an idea about the returns you may expect. Hence, tie your arbitrage fund investments with a financial goal and invest accordingly.

Exit Load
Exit load refers to the amount mutual fund houses charge for allowing withdrawals before a specific date from the investment date. Arbitrage funds’ exit load generally ranges between 0.25% and 1%. Check the exit load to make sensible investment decisions.

Fund Manager’s Expertise
Arbitrage funds are usually more complicated than standard equity or debt funds. So, the fund manager’s expertise plays a massive role in determining the returns. Generally, Indian mutual fund houses assign arbitrage fund management to the best fund managers. However, it is still wise to check the fund manager’s track record before investing in the best arbitrage funds.

Taxability of Arbitrage Funds

Since arbitrage funds involve 65% of their holding in equities, they are categorized as equity funds and are taxed accordingly. This way, these funds earn the advantage of zero taxability on long-term capital gains (LTCG). If the funds are held on for more than a year, they fall under the category of LTCG and are completely tax-free. View More

Risks Involved With Arbitrage Funds

Arbitrage funds are hybrid funds, primarily investing in debt funds that yield low returns, differentiating them from managed equity mutual funds. You need to keep the following points in mind before going ahead and investing in them. View More

Advantage of Arbitrage Mutual Funds

Arbitrage funds are good when you expect to get moderate returns from your investments. The advantages of investing in these funds are:View More

Popular Arbitrage Mutual Funds

Fund Name
Min Investment Amt
AUM
3Y Returns

Arbitrage Mutual Funds

List of Arbitrage Mutual Funds

Category

Sub Category

Rating

Who Should Invest in Arbitrage Mutual Funds?

Features of Arbitrage Mutual Funds

Factors to consider while investing in Arbitrage Funds

Taxability of Arbitrage Funds

Risks Involved With Arbitrage Funds

Advantage of Arbitrage Mutual Funds

Popular Arbitrage Mutual Funds

Kotak Arbitrage Fund Growth

₹ 100

₹ 69,9510

6.96%

Min SIP Investment Amt

₹ 100

AUM (Cr.)

₹ 69,951

3Y Return

6.96%

UTI-Arbitrage Fund Growth

₹ 500

₹ 10,8580

6.91%

Min SIP Investment Amt

₹ 500

AUM (Cr.)

₹ 10,858

3Y Return

6.91%

Invesco India Arbitrage Fund Growth

₹ 500

₹ 27,3210

6.88%

Min SIP Investment Amt

₹ 500

AUM (Cr.)

₹ 27,321

3Y Return

6.88%

SBI Arbitrage Opportunities Fund Growth

₹ 500

₹ 42,8470

6.87%

Min SIP Investment Amt

₹ 500

AUM (Cr.)

₹ 42,847

3Y Return

6.87%

HDFC Arbitrage Fund - WP Growth

₹ 100

₹ 24,4390

6.85%

Min SIP Investment Amt

₹ 100

AUM (Cr.)

₹ 24,439

3Y Return

6.85%

ICICI Pru Arbitrage Fund - Regular Growth

₹ 1000

₹ 32,2990

6.83%

Min SIP Investment Amt

₹ 1000

AUM (Cr.)

₹ 32,299

3Y Return

6.83%

Edelweiss Arbitrage Fund - Regular Growth

₹ 100

₹ 14,7170

6.82%

Min SIP Investment Amt

₹ 100

AUM (Cr.)

₹ 14,717

3Y Return

6.82%

HDFC Arbitrage Fund - Retail Growth

₹ 100

₹ 24,4390

6.81%

Min SIP Investment Amt

₹ 100

AUM (Cr.)

₹ 24,439

3Y Return

6.81%

Aditya Birla SL Arbitrage Fund Growth

₹ 100

₹ 25,6790

6.77%

Min SIP Investment Amt

₹ 100

AUM (Cr.)

₹ 25,679

3Y Return

6.77%

Tata Arbitrage Fund Growth

₹ 150

₹ 21,8240

6.76%

Min SIP Investment Amt

₹ 150

AUM (Cr.)

₹ 21,824

3Y Return

6.76%

Other Calculators

FAQs

Who can invest in arbitrage mutual funds?

What is the typical expense ratio of arbitrage funds?

How are arbitrage mutual funds taxed?

What is the typical return of arbitrage funds?

Is there any exit load on arbitrage mutual funds?

Which are the best arbitrage mutual funds in India?

Open Free Demat Account

Arbitrage Mutual Funds

List of Arbitrage Mutual Funds

Category

Sub Category

Rating

Who Should Invest in Arbitrage Mutual Funds?

Features of Arbitrage Mutual Funds

Factors to consider while investing in Arbitrage Funds

Taxability of Arbitrage Funds

Risks Involved With Arbitrage Funds

Advantage of Arbitrage Mutual Funds

Popular Arbitrage Mutual Funds

Kotak Arbitrage Fund Growth ₹ 100 ₹ 69,9510 6.96% Min SIP Investment Amt ₹ 100 AUM (Cr.) ₹ 69,951 3Y Return 6.96%

UTI-Arbitrage Fund Growth ₹ 500 ₹ 10,8580 6.91% Min SIP Investment Amt ₹ 500 AUM (Cr.) ₹ 10,858 3Y Return 6.91%

Invesco India Arbitrage Fund Growth ₹ 500 ₹ 27,3210 6.88% Min SIP Investment Amt ₹ 500 AUM (Cr.) ₹ 27,321 3Y Return 6.88%

SBI Arbitrage Opportunities Fund Growth ₹ 500 ₹ 42,8470 6.87% Min SIP Investment Amt ₹ 500 AUM (Cr.) ₹ 42,847 3Y Return 6.87%

HDFC Arbitrage Fund - WP Growth ₹ 100 ₹ 24,4390 6.85% Min SIP Investment Amt ₹ 100 AUM (Cr.) ₹ 24,439 3Y Return 6.85%

ICICI Pru Arbitrage Fund - Regular Growth ₹ 1000 ₹ 32,2990 6.83% Min SIP Investment Amt ₹ 1000 AUM (Cr.) ₹ 32,299 3Y Return 6.83%

Edelweiss Arbitrage Fund - Regular Growth ₹ 100 ₹ 14,7170 6.82% Min SIP Investment Amt ₹ 100 AUM (Cr.) ₹ 14,717 3Y Return 6.82%

HDFC Arbitrage Fund - Retail Growth ₹ 100 ₹ 24,4390 6.81% Min SIP Investment Amt ₹ 100 AUM (Cr.) ₹ 24,439 3Y Return 6.81%

Aditya Birla SL Arbitrage Fund Growth ₹ 100 ₹ 25,6790 6.77% Min SIP Investment Amt ₹ 100 AUM (Cr.) ₹ 25,679 3Y Return 6.77%

Tata Arbitrage Fund Growth ₹ 150 ₹ 21,8240 6.76% Min SIP Investment Amt ₹ 150 AUM (Cr.) ₹ 21,824 3Y Return 6.76%

Other Calculators

FAQs

Who can invest in arbitrage mutual funds?

What is the typical expense ratio of arbitrage funds?

How are arbitrage mutual funds taxed?

What is the typical return of arbitrage funds?

Is there any exit load on arbitrage mutual funds?

Which are the best arbitrage mutual funds in India?

Open Free Demat Account

Kotak Arbitrage Fund Growth

₹ 100

₹ 69,9510

6.96%

Min SIP Investment Amt

₹ 100

AUM (Cr.)

₹ 69,951

3Y Return

6.96%

UTI-Arbitrage Fund Growth

₹ 500

₹ 10,8580

6.91%

Min SIP Investment Amt

₹ 500

AUM (Cr.)

₹ 10,858

3Y Return

6.91%

Invesco India Arbitrage Fund Growth

₹ 500

₹ 27,3210

6.88%

Min SIP Investment Amt

₹ 500

AUM (Cr.)

₹ 27,321

3Y Return

6.88%

SBI Arbitrage Opportunities Fund Growth

₹ 500

₹ 42,8470

6.87%

Min SIP Investment Amt

₹ 500

AUM (Cr.)

₹ 42,847

3Y Return

6.87%

HDFC Arbitrage Fund - WP Growth

₹ 100

₹ 24,4390

6.85%

Min SIP Investment Amt

₹ 100

AUM (Cr.)

₹ 24,439

3Y Return

6.85%

ICICI Pru Arbitrage Fund - Regular Growth

₹ 1000

₹ 32,2990

6.83%

Min SIP Investment Amt

₹ 1000

AUM (Cr.)

₹ 32,299

3Y Return

6.83%

Edelweiss Arbitrage Fund - Regular Growth

₹ 100

₹ 14,7170

6.82%

Min SIP Investment Amt

₹ 100

AUM (Cr.)

₹ 14,717

3Y Return

6.82%

HDFC Arbitrage Fund - Retail Growth

₹ 100

₹ 24,4390

6.81%

Min SIP Investment Amt

₹ 100

AUM (Cr.)

₹ 24,439

3Y Return

6.81%

Aditya Birla SL Arbitrage Fund Growth

₹ 100

₹ 25,6790

6.77%

Min SIP Investment Amt

₹ 100

AUM (Cr.)

₹ 25,679

3Y Return

6.77%

Tata Arbitrage Fund Growth

₹ 150

₹ 21,8240

6.76%

Min SIP Investment Amt

₹ 150

AUM (Cr.)

₹ 21,824

3Y Return

6.76%