Arbitrage funds in India
77 plans (38 Regular, 39 Direct), rated on their track record against the median arbitrage fund, liquid funds and their peers. Data as of 6 Nov 2026.
A low-risk place to park money for a few months or more. Each stock bought is matched by a futures sale, so returns track short-term interest rates rather than the stock market. Before tax they usually earn a little less than liquid funds; they are taxed as equity, so after tax they often come out ahead for investors in the higher slabs. SEBI requires arbitrage funds to invest at least 65% in equities hedged with derivatives, earning the price gap between the cash and futures markets.
arbitrage funds (Regular plans with 3 years of history) beat the median liquid fund over 3 years after tax for an investor in the 30% slab. Before tax, 0 did.
Liquid-fund gains taxed at 31.2%, arbitrage gains at 13% (held over a year). Past returns, not a forecast.
Regular plans (38)
| Fund | Rating | 1Y return | 3Y return | 3Y vs liquid, after tax | Fund fee | Expense ratio | AUM |
|---|---|---|---|---|---|---|---|
| UTI - Arbitrage FundUTI Mutual Fund · 20.3 yrs | A+ | 6.05% | 6.76% | +0.40% | 0.73% | 1.80% | ₹10,900 cr |
| SBI Arbitrage FundSBI Mutual Fund · 20.0 yrs | A+ | 6.12% | 6.72% | +0.37% | 0.76% | 1.95% | ₹46,113 cr |
| Parag Parikh Arbitrage FundPPFAS Mutual Fund · 3.0 yrs | A+ | 6.16% | 6.58% | +0.24% | 0.53% | 1.39% | ₹2,720 cr |
| Kotak Arbitrage FundKotak Mahindra Mutual Fund · 19.4 yrs | A | 6.16% | 6.81% | +0.44% | 0.82% | 2.86% | ₹76,293 cr |
| HDFC Arbitrage FundHDFC Mutual Fund · 19.0 yrs | A | 6.14% | 6.72% | +0.37% | 0.80% | 2.02% | ₹25,841 cr |
| ICICI Prudential Arbitrage FundICICI Prudential Mutual Fund · 19.8 yrs | A | 6.13% | 6.72% | +0.36% | 0.78% | 2.13% | ₹35,347 cr |
| Invesco India Arbitrage FundInvesco Mutual Fund · 19.5 yrs | A | 6.20% | 6.76% | +0.40% | 0.91% | 2.82% | ₹31,962 cr |
| Axis Arbitrage FundAxis Mutual Fund · 12.2 yrs | A | 6.01% | 6.62% | +0.28% | 0.86% | 2.09% | ₹10,482 cr |
| Aditya Birla Sun Life Arbitrage FundAditya Birla Sun Life Mutual Fund · 17.3 yrs | B | 6.02% | 6.65% | +0.30% | 0.88% | 1.92% | ₹27,710 cr |
| Edelweiss Arbitrage FundEdelweiss Mutual Fund · 12.4 yrs | B | 5.99% | 6.67% | +0.32% | 0.90% | 2.20% | ₹14,127 cr |
| DSP Arbitrage fundDSP Mutual Fund · 8.8 yrs | B | 5.88% | 6.50% | +0.18% | 0.82% | 1.80% | ₹6,943 cr |
| LIC MF Arbitrage FundLIC Mutual Fund · 7.8 yrs | B | 6.13% | 6.42% | +0.10% | 0.74% | 1.62% | ₹315 cr |
| HSBC Arbitrage FundHSBC Mutual Fund · 3.9 yrs | B | 6.04% | 6.52% | +0.19% | 0.75% | 2.03% | ₹3,649 cr |
| Tata Arbitrage FundTata Mutual Fund · 7.9 yrs | B | 6.02% | 6.62% | +0.28% | 0.91% | 2.20% | ₹24,639 cr |
| Nippon India Arbitrage FundNippon India Mutual Fund · 16.0 yrs | B | 6.02% | 6.56% | +0.23% | 0.90% | 2.04% | ₹18,033 cr |
| Mirae Asset Arbitrage FundMirae Asset Mutual Fund · 6.4 yrs | B | 5.94% | 6.52% | +0.19% | 0.78% | 3.19% | ₹3,705 cr |
| Union Arbitrage FundUnion Mutual Fund · 7.7 yrs | B | 6.08% | 6.57% | +0.23% | 0.87% | 2.29% | ₹231 cr |
| BANDHAN Arbitrage FundBandhan Mutual Fund · 18.4 yrs | B | 5.75% | 6.52% | +0.19% | 0.90% | 2.31% | ₹7,630 cr |
| Sundaram Arbitrage Fund(Formerly Known as Prinicpal Arbitrage Fund)Sundaram Mutual Fund · 4.8 yrs | B | 6.18% | 6.49% | +0.16% | 0.82% | 1.69% | ₹575 cr |
| ITI Arbitrage FundITI Mutual Fund · 7.2 yrs | C | 5.72% | 6.50% | +0.18% | 0.81% | 1.77% | ₹64 cr |
| Bajaj Finserv Arbitrage FundBajaj Finserv Mutual Fund · 3.1 yrs | C | 5.94% | 6.27% | -0.03% | 0.90% | 1.97% | ₹1,366 cr |
| NJ Arbitrage FundNJ Mutual Fund · 4.3 yrs | C | 5.73% | 6.10% | -0.18% | 0.75% | 1.66% | ₹242 cr |
| Baroda BNP Paribas Arbitrage FundBaroda BNP Paribas Mutual Fund · 4.6 yrs | C | 5.50% | 6.38% | +0.07% | 0.96% | 2.23% | ₹1,020 cr |
| JM Arbitrage FundJM Financial Mutual Fund · 20.3 yrs | C | 5.83% | 6.26% | -0.03% | 0.91% | 2.11% | ₹417 cr |
| Bank Of India Arbitrage FundBank of India Mutual Fund · 8.4 yrs | C | 5.93% | 6.24% | -0.05% | 0.88% | 2.85% | ₹123 cr |
| Mahindra Manulife Arbitrage FundMahindra Manulife Mutual Fund · 6.2 yrs | C | 5.50% | 5.64% | -0.57% | 0.95% | 1.90% | ₹138 cr |
| Capitalmind Arbitrage FundCapitalmind Mutual Fund · 0.6 yrs | – | – | – | – | 0.86% | 2.03% | ₹22 cr |
| Franklin India Arbitrage FundFranklin Templeton Mutual Fund · 2.0 yrs | – | 6.40% | – | – | 0.89% | 2.04% | ₹2,332 cr |
| Groww Arbitrage FundGroww Mutual Fund · 0.5 yrs | – | – | – | – | 0.83% | 2.49% | ₹63 cr |
| Helios Arbitrage FundHelios Mutual Fund · 0.6 yrs | – | – | – | – | 0.87% | 2.17% | ₹131 cr |
| JioBlackRock Arbitrage FundJio BlackRock Mutual Fund · 0.2 yrs | – | – | – | – | 0.90% | 3.51% | ₹587 cr |
| Motilal Oswal Arbitrage FundMotilal Oswal Mutual Fund · 1.9 yrs | – | 6.02% | – | – | 0.94% | 1.89% | ₹3,493 cr |
| Old Bridge Arbitrage FundOld Bridge Mutual Fund · 1.0 yrs | – | – | – | – | 0.84% | 1.91% | ₹227 cr |
| Samco Arbitrage FundSamco Mutual Fund · 1.9 yrs | – | 3.94% | – | – | 1.55% | 2.60% | ₹33 cr |
| Trustmf Arbitrage FundTrust Mutual Fund · 1.2 yrs | – | 5.81% | – | – | 0.85% | 2.12% | ₹159 cr |
| The Wealth Company Arbitrage FundThe Wealth Company Mutual Fund · 1.1 yrs | – | 5.80% | – | – | 0.80% | 2.14% | ₹116 cr |
| WhiteOak Capital Arbitrage FundWhiteOak Capital Mutual Fund · 2.2 yrs | – | 6.39% | – | – | 1.04% | 3.02% | ₹2,973 cr |
| quant Arbitrage Fundquant Mutual Fund · 1.6 yrs | – | 6.96% | – | – | 0.83% | 2.22% | ₹1,137 cr |
Direct plans (39)
| Fund | Rating | 1Y return | 3Y return | 3Y vs liquid, after tax | Fund fee | Expense ratio | AUM |
|---|---|---|---|---|---|---|---|
| Tata Arbitrage FundTata Mutual Fund · 7.9 yrs | A+ | 6.83% | 7.46% | +0.96% | 0.26% | 1.52% | ₹24,639 cr |
| Aditya Birla Sun Life Arbitrage FundAditya Birla Sun Life Mutual Fund · 13.8 yrs | A | 6.78% | 7.42% | +0.92% | 0.27% | 1.20% | ₹27,710 cr |
| Mirae Asset Arbitrage FundMirae Asset Mutual Fund · 6.4 yrs | A | 6.77% | 7.37% | +0.88% | 0.13% | 2.43% | ₹3,705 cr |
| UTI - Arbitrage FundUTI Mutual Fund · 13.8 yrs | A | 6.63% | 7.31% | +0.83% | 0.26% | 1.25% | ₹10,900 cr |
| Axis Arbitrage FundAxis Mutual Fund · 12.2 yrs | A | 6.74% | 7.34% | +0.85% | 0.27% | 1.39% | ₹10,482 cr |
| Invesco India Arbitrage FundInvesco Mutual Fund · 13.8 yrs | A | 6.91% | 7.47% | +0.97% | 0.34% | 2.16% | ₹31,962 cr |
| Parag Parikh Arbitrage FundPPFAS Mutual Fund · 3.0 yrs | A | 6.56% | 6.96% | +0.53% | 0.19% | 0.99% | ₹2,720 cr |
| Kotak Arbitrage FundKotak Mahindra Mutual Fund · 13.8 yrs | A | 6.80% | 7.45% | +0.95% | 0.32% | 2.27% | ₹76,293 cr |
| BANDHAN Arbitrage FundBandhan Mutual Fund · 13.8 yrs | B | 6.52% | 7.29% | +0.81% | 0.29% | 1.59% | ₹7,630 cr |
| Edelweiss Arbitrage FundEdelweiss Mutual Fund · 12.4 yrs | B | 6.70% | 7.40% | +0.90% | 0.33% | 1.53% | ₹14,127 cr |
| Sundaram Arbitrage Fund(Formerly Known as Prinicpal Arbitrage Fund)Sundaram Mutual Fund · 4.8 yrs | B | 6.97% | 7.28% | +0.80% | 0.20% | 0.97% | ₹575 cr |
| Nippon India Arbitrage FundNippon India Mutual Fund · 13.8 yrs | B | 6.76% | 7.30% | +0.82% | 0.31% | 1.35% | ₹18,033 cr |
| ICICI Prudential Arbitrage FundICICI Prudential Mutual Fund · 13.8 yrs | B | 6.68% | 7.30% | +0.82% | 0.34% | 1.61% | ₹35,347 cr |
| ITI Arbitrage FundITI Mutual Fund · 7.2 yrs | B | 6.47% | 7.27% | +0.80% | 0.21% | 1.08% | ₹64 cr |
| HSBC Arbitrage FundHSBC Mutual Fund · 3.9 yrs | B | 6.61% | 7.19% | +0.72% | 0.22% | 1.41% | ₹3,649 cr |
| SBI Arbitrage FundSBI Mutual Fund · 13.8 yrs | B | 6.65% | 7.27% | +0.80% | 0.34% | 1.46% | ₹46,113 cr |
| DSP Arbitrage fundDSP Mutual Fund · 8.8 yrs | B | 6.56% | 7.20% | +0.73% | 0.30% | 1.19% | ₹6,943 cr |
| LIC MF Arbitrage FundLIC Mutual Fund · 7.8 yrs | B | 6.80% | 7.11% | +0.66% | 0.24% | 1.04% | ₹315 cr |
| Bajaj Finserv Arbitrage FundBajaj Finserv Mutual Fund · 3.1 yrs | B | 6.68% | 7.01% | +0.57% | 0.31% | 1.28% | ₹1,366 cr |
| HDFC Arbitrage FundHDFC Mutual Fund · 12.6 yrs | C | 6.71% | 7.29% | +0.81% | 0.34% | 1.49% | ₹25,841 cr |
| Baroda BNP Paribas Arbitrage FundBaroda BNP Paribas Mutual Fund · 4.6 yrs | C | 6.33% | 7.20% | +0.73% | 0.31% | 1.47% | ₹1,020 cr |
| Union Arbitrage FundUnion Mutual Fund · 7.7 yrs | C | 6.73% | 7.21% | +0.74% | 0.33% | 1.65% | ₹231 cr |
| Bank Of India Arbitrage FundBank of India Mutual Fund · 8.4 yrs | C | 6.55% | 6.88% | +0.46% | 0.29% | 2.16% | ₹123 cr |
| Mahindra Manulife Arbitrage FundMahindra Manulife Mutual Fund · 6.2 yrs | C | 6.31% | 6.47% | +0.10% | 0.30% | 1.14% | ₹138 cr |
| NJ Arbitrage FundNJ Mutual Fund · 4.3 yrs | C | 6.44% | 6.85% | +0.43% | 0.25% | 1.07% | ₹242 cr |
| JM Arbitrage FundJM Financial Mutual Fund · 13.8 yrs | C | 6.53% | 6.99% | +0.55% | 0.35% | 1.46% | ₹417 cr |
| Capitalmind Arbitrage FundCapitalmind Mutual Fund · 0.6 yrs | – | – | – | – | 0.18% | 1.25% | ₹22 cr |
| Franklin India Arbitrage FundFranklin Templeton Mutual Fund · 2.0 yrs | – | 7.17% | – | – | 0.23% | 1.28% | ₹2,332 cr |
| Groww Arbitrage FundGroww Mutual Fund · 0.5 yrs | – | – | – | – | 0.21% | 1.79% | ₹63 cr |
| Helios Arbitrage FundHelios Mutual Fund · 0.6 yrs | – | – | – | – | 0.42% | 1.64% | ₹131 cr |
| JioBlackRock Arbitrage FundJio BlackRock Mutual Fund · 0.9 yrs | – | – | – | – | 0.28% | 2.04% | ₹587 cr |
| Motilal Oswal Arbitrage FundMotilal Oswal Mutual Fund · 1.9 yrs | – | 7.06% | – | – | 0.09% | 0.96% | ₹3,493 cr |
| Old Bridge Arbitrage FundOld Bridge Mutual Fund · 1.0 yrs | – | – | – | – | 0.12% | 1.06% | ₹227 cr |
| Samco Arbitrage FundSamco Mutual Fund · 1.9 yrs | – | 5.33% | – | – | 0.32% | 1.15% | ₹33 cr |
| Trustmf Arbitrage FundTrust Mutual Fund · 1.2 yrs | – | 6.63% | – | – | 0.17% | 1.35% | ₹159 cr |
| The Wealth Company Arbitrage FundThe Wealth Company Mutual Fund · 1.1 yrs | – | 6.56% | – | – | 0.20% | 1.46% | ₹116 cr |
| WhiteOak Capital Arbitrage FundWhiteOak Capital Mutual Fund · 2.2 yrs | – | 7.19% | – | – | 0.37% | 2.22% | ₹2,973 cr |
| Zerodha CASE Arbitrage FundZerodha CASE Mutual Fund · 0.2 yrs | – | – | – | – | 0.20% | 2.14% | ₹51 cr |
| quant Arbitrage Fundquant Mutual Fund · 1.6 yrs | – | 7.64% | – | – | 0.30% | 1.63% | ₹1,137 cr |
3Y vs liquid, after tax: the fund's 3-year return minus the median liquid fund's, both after tax for the 30% slab. Fund fee: the base expense ratio the fund house charges. Expense ratio: AMFI's total, which adds brokerage and statutory levies; for arbitrage funds these are mostly securities transaction tax on their trades, already reflected in the returns.
Common questions
What does a arbitrage fund invest in?
SEBI requires arbitrage funds to invest at least 65% in equities hedged with derivatives, earning the price gap between the cash and futures markets.
Arbitrage fund or liquid fund?
Before tax, liquid funds have usually earned a little more. Arbitrage funds are taxed as equity (12.5% on gains held over a year, beyond ₹1.25 lakh), liquid funds at your slab rate, so for investors in the higher slabs who hold for over a year, arbitrage funds have usually come out ahead after tax. Liquid funds suit money you may need within days; arbitrage funds suit a few months or more.
How are arbitrage funds rated?
Against each other, Regular with Regular and Direct with Direct: return over the Nifty 50 Arbitrage index (rolling 1-year and 3-year), consistency (how often they stay ahead, volatility, months with a loss), the fund fee, and size, since a very small fund has fewer trades to spread its costs over. To be rated A or A+, a fund must also have beaten the median liquid fund after tax for a top-slab investor.
Ratings describe past track records and are not a recommendation to buy or sell. Read the scheme documents before investing.