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Arbitrage Funds
- Average Return 5.1%
- No of Funds 22
What is Arbitrage Mutual Fund
Arbitrage funds are hybrid mutual funds that generate returns by using the strategy of simultaneously buying and selling of securities in different markets to take advantage of different prices.
Advantages of Arbitrage Funds
- No stock market risk as the buying and selling price of a stock is known to fund manager
- Suitable for an investment horizon of 1-3 years
- Equity taxation means more tax-efficient returns when compared to Fixed Deposits
Top schemes of Arbitrage Mutual Funds sorted by last 5 year returns
22 funds
ShowReturns for
via
#3 of 19
Fund Size
₹5,894 Crs
Return (p.a)
+ 5.86% + 15.93% + 6.14% + 37.05% + 2.36% + 2.36% + 6.33% + 10.05% + 1.40% + 1.40% + 7.05% + 7.40% + 4.34% + 4.34% + 0.74% + 0.74%
ETM Rank
#3 of 19
#1 of 19
Fund Size
₹5,881 Crs
Return (p.a)
+ 5.76% + 15.65% N.A. N.A. + 2.31% + 2.31% + 6.05% + 9.60% + 1.37% + 1.37% + 6.65% + 6.98% + 4.20% + 4.20% + 0.70% + 0.70%
ETM Rank
#1 of 19
#4 of 19
Fund Size
₹23,737 Crs
Return (p.a)
+ 5.71% + 15.50% + 6.13% + 36.97% + 2.33% + 2.33% + 6.08% + 9.64% + 1.37% + 1.37% + 6.69% + 7.02% + 4.24% + 4.24% + 0.69% + 0.69%
ETM Rank
#4 of 19
#2 of 19
Fund Size
₹9,753 Crs
Return (p.a)
+ 5.66% + 15.37% + 6.18% + 37.30% + 2.30% + 2.30% + 5.97% + 9.46% + 1.34% + 1.34% + 6.56% + 6.89% + 4.18% + 4.18% + 0.68% + 0.68%
ETM Rank
#2 of 19
#8 of 19
Fund Size
₹2,783 Crs
Return (p.a)
+ 5.57% + 15.11% N.A. N.A. + 2.16% + 2.16% + 5.88% + 9.31% + 1.24% + 1.24% + 6.39% + 6.70% + 3.98% + 3.98% + 0.57% + 0.57%
ETM Rank
#8 of 19
Fund Size
₹5,235 Crs
Return (p.a)
+ 5.55% + 15.05% + 6.01% + 36.10% + 2.28% + 2.28% + 5.88% + 9.31% + 1.35% + 1.35% + 6.47% + 6.78% + 4.14% + 4.14% + 0.69% + 0.69%
ETM Rank
#5 of 19
#13 of 19
Fund Size
₹14,313 Crs
Return (p.a)
+ 5.52% + 14.96% + 5.90% + 35.36% + 2.34% + 2.34% + 6.07% + 9.63% + 1.35% + 1.35% + 6.72% + 7.06% + 4.27% + 4.27% + 0.64% + 0.64%
ETM Rank
#13 of 19
#7 of 19
Fund Size
₹1,795 Crs
Return (p.a)
+ 5.51% + 14.92% N.A. N.A. + 2.26% + 2.26% + 5.73% + 9.08% + 1.33% + 1.33% + 6.33% + 6.64% + 4.09% + 4.09% + 0.65% + 0.65%
ETM Rank
#7 of 19
#6 of 19
Fund Size
₹3,494 Crs
Return (p.a)
+ 5.49% + 14.88% + 5.99% + 35.95% + 2.28% + 2.28% + 5.86% + 9.29% + 1.31% + 1.31% + 6.51% + 6.83% + 4.17% + 4.17% + 0.64% + 0.64%
ETM Rank
#6 of 19
Fund Size
₹11,822 Crs
Return (p.a)
+ 5.49% + 14.87% + 6.00% + 36.04% + 2.24% + 2.24% + 5.82% + 9.21% + 1.30% + 1.30% + 6.41% + 6.73% + 4.09% + 4.09% + 0.64% + 0.64%
ETM Rank
#10 of 19
#11 of 19
Fund Size
₹3,129 Crs
Return (p.a)
+ 5.48% + 14.85% + 5.96% + 35.74% + 2.24% + 2.24% + 5.76% + 9.11% + 1.32% + 1.32% + 6.33% + 6.64% + 4.07% + 4.07% + 0.66% + 0.66%
ETM Rank
#11 of 19
Fund Size
₹324 Crs
Return (p.a)
+ 5.47% + 14.80% N.A. N.A. + 2.35% + 2.35% + 5.71% + 9.04% + 1.44% + 1.44% + 6.32% + 6.63% + 4.16% + 4.16% + 0.76% + 0.76%
ETM Rank
#9 of 19
#12 of 19
Fund Size
₹1,639 Crs
Return (p.a)
+ 5.42% + 14.66% N.A. N.A. + 2.28% + 2.28% + 5.77% + 9.13% + 1.34% + 1.34% + 6.45% + 6.77% + 4.17% + 4.17% + 0.66% + 0.66%
ETM Rank
#12 of 19
#16 of 19
Fund Size
₹145 Crs
Return (p.a)
+ 5.21% + 14.05% N.A. N.A. + 2.08% + 2.08% + 5.50% + 8.69% + 1.20% + 1.20% + 6.02% + 6.31% + 3.83% + 3.83% + 0.61% + 0.61%
ETM Rank
#16 of 19
#19 of 19
Fund Size
₹96 Crs
Return (p.a)
+ 4.79% + 12.87% N.A. N.A. + 2.12% + 2.12% + 5.33% + 8.42% + 1.22% + 1.22% + 5.95% + 6.24% + 3.88% + 3.88% + 0.55% + 0.55%
ETM Rank
#19 of 19
Show all funds
Arbitrage Funds Returns Calculator
See what your investment would have yielded in
Invested ₹ 6 Lakh
Profit ₹ 3.33 Lakh
₹ 9.33 Lakh
This fund has generated an XIRR of 5.86% over the past 5 Years
SIP Calculator
Mutual Fund Calculator
Lumpsum CalculatorHow to invest in Arbitrage Funds?
It is quite easy to invest in Arbitrage mutual funds on ET Money. Here are the steps that you have to follow.
- Register online on ET Money app or website
- Head to Mutual Funds sections and choose the Arbitrage fund you want to invest in.
- Click on invest and choose the amount and mode of investment (SIP or Lumpsum)
- Provide your KYC details (Pan number, Bank details) and complete your investment.
Frequently Asked Questions
Which are the best Arbitrage Mutual Funds to invest in 2023?
These are top 5 Arbitrage funds you can invest in 2023
| Fund Name | Fund Category | ETM Rank | Consistency | 5 Year Return (Annualized) |
|---|---|---|---|---|
| Invesco India Arbitrage Fund | Hybrid | # 9 of 22 | 5.79 % p.a. | |
| Edelweiss Arbitrage Fund | Hybrid | # 9 of 22 | 5.87 % p.a. | |
| Kotak Equity Arbitrage Fund | Hybrid | # 1 of 22 | 5.76 % p.a. | |
| Nippon India Arbitrage Fund | Hybrid | # 1 of 22 | 5.8 % p.a. | |
| Axis Arbitrage Fund | Hybrid | # 3 of 22 | 5.7 % p.a. |
How long should I stay invested in Arbitrage Mutual Funds?
Arbitrage Mutual Funds try leveraging mispricing of stocks in different markets to generate returns. A lot of times, these arbitrage opportunities might not exist in the market, and due to this, these funds can be volatile in the very short run. To avoid this and make sure you earn good returns, you can consider them for an investment horizon of at least 1 year. This also ensures you get better tax-adjusted returns because the returns will be classified as Long Term Capital Gains and those are tax-free up to the limit of Rs. 1 lakh.
Where do Arbitrage Mutual Funds invest?
Arbitrage Funds buy stocks in the cash market and at the same time sell them n the futures markets. The idea is to take advantage of any mispricing opportunities available. There is some part of their money that has to be kept in debt. Most funds use short-term FDs or liquid debt instruments for that allocation.
Are Arbitrage Mutual Funds high risk?
Arbitrage Funds don't carry the usual risk that comes with investing in equities. That's because they buy and sell stocks at the same time. So the risk of price movement of stocks affecting their returns is not there.
What kind of returns can i earn from Arbitrage ?
Arbitrage Funds have on an average delivered 5.39% p.a. returns in the last 5 years. Their 3 and 10 year annualized returns are 5.1% and 6.59% p.a.
