Top Arbitrage Mutual Funds (2026)
Ranked by 3 year return, Direct plans, as on the latest NAV · AUM as on 30-09-2026
There are 40 Arbitrage mutual funds. Their average 3 year return is 7.2% a year, and +6.6% over the last year. The highest 3 year returns: Invesco India Arbitrage Fund 7.5%, Kotak Arbitrage Fund 7.4%, Tata Arbitrage Fund 7.4%.
- Total AUM
- ₹3,56,016 Cr
- As on 30-09-2026
- Funds
- 40
- From 40 fund houses
- Expense ratio
- 0.97% to 2.48%
- Direct plans, lowest to highest
- Average 3Y return
- 7.2%
- A year, Direct plans
All Arbitrage Funds
Ranked by 3 year return, highest first
Ranked by 3 year return, highest first
| Exit load | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Invesco India Arbitrage Fund | 1 | 30,396 | +6.88% | +7.46% | +7.14% | +6.46% | Low | 2.20% | 0.5% within 15 days | 1.09% |
| Kotak Arbitrage Fund | 2 | 75,275 | +6.75% | +7.43% | +6.98% | +6.46% | Low | 2.31% | 0.25% within 30 days | 1.10% |
| Tata Arbitrage Fund | 3 | 24,539 | +6.77% | +7.43% | +6.90% | -- | Low | 1.57% | 0.25% within 15 days | 1.02% |
| Aditya Birla Sun Life Arbitrage Fund | 4 | 26,933 | +6.75% | +7.40% | +6.85% | +6.38% | Low | 1.23% | None | 1.07% |
| Edelweiss Arbitrage Fund | 5 | 14,250 | +6.66% | +7.37% | +6.92% | +6.52% | Low | 1.53% | 0.25% within 15 days | 1.05% |
| Mirae Asset Arbitrage Fund | 6 | 3,571 | +6.73% | +7.35% | +6.82% | -- | Low | 2.48% | 0.25% within 15 days | 1.16% |
| Axis Arbitrage Fund | 7 | 10,168 | +6.68% | +7.31% | +6.84% | +6.44% | Low | 1.40% | 0.25% within 15 days | 1.05% |
| UTI - Arbitrage Fund | 8 | 10,900 | +6.59% | +7.29% | +6.74% | +6.32% | Low | 1.26% | 0.25% within 15 days | 1.03% |
| Nippon India Arbitrage Fund | 9 | 17,216 | +6.71% | +7.28% | +6.83% | +6.47% | -- | 1.35% | -- | 1.06% |
| ICICI Prudential Arbitrage Fund | 10 | 35,576 | +6.62% | +7.27% | +6.77% | +6.33% | -- | 1.63% | 0.25% within 15 days | 1.10% |
| Bandhan Arbitrage Fund | 11 | 7,796 | +6.48% | +7.27% | +6.78% | +6.33% | Low | 1.63% | 0.25% within 1 month | 1.06% |
| HDFC Arbitrage Fund | 12 | 25,407 | +6.66% | +7.26% | +6.73% | +6.13% | Low | 1.48% | 0.25% within 15 days | 1.10% |
| ITI Arbitrage Fund | 13 | 65 | +6.38% | +7.25% | +6.26% | -- | Low | 1.10% | 0.25% within 15 days | 1.23% |
| SBI Arbitrage Fund | 14 | 46,309 | +6.59% | +7.24% | +6.83% | +6.24% | Low | 1.47% | 0.25% within 15 days | 1.12% |
| Baroda BNP Paribas Arbitrage Fund | 15 | 1,015 | +6.29% | +7.22% | -- | -- | -- | 1.47% | -- | 1.08% |
| Sundaram Arbitrage Fund | 16 | 539 | +6.83% | +7.22% | -- | -- | Low | 0.97% | 0.25% within 15 days | 1.19% |
| DSP Arbitrage fund | 17 | 6,720 | +6.49% | +7.18% | +6.68% | -- | Low | 1.17% | 0.25% within 15 days | 1.08% |
| HSBC Arbitrage Fund | 18 | 3,633 | +6.54% | +7.17% | -- | -- | Low | 1.45% | 0.25% within 1 month | 1.10% |
| Union Arbitrage Fund | 19 | 220 | +6.59% | +7.14% | +6.58% | -- | Low | 1.61% | 0.25% within 1 month | 1.14% |
| LIC MF Arbitrage Fund | 20 | 305 | +6.72% | +7.08% | +6.64% | -- | Low | 1.04% | 0.25% within 1 month | 1.09% |
| Bajaj Finserv Arbitrage Fund | 21 | 1,375 | +6.61% | +6.98% | -- | -- | Low | 1.29% | 0.25% within 15 days | 1.10% |
| JM Arbitrage Fund | 22 | 341 | +6.43% | +6.94% | +6.44% | +5.63% | Low | 1.42% | 0.5% within 30 days | 1.14% |
| Bank of India Arbitrage Fund | 23 | 111 | +6.46% | +6.84% | +6.02% | -- | Low | 2.13% | 0.5% within 15 days | 1.19% |
| NJ Arbitrage Fund | 24 | -- | +6.46% | +6.82% | -- | -- | Low | 1.05% | None | 1.34% |
| Mahindra Manulife Arbitrage Fund | 25 | 138 | +6.26% | +6.42% | +5.89% | -- | Low | 1.15% | 0.25% within 30 days | 1.14% |
| Motilal Oswal Arbitrage Fund | -- | 3,434 | +6.98% | -- | -- | -- | Low | 0.99% | 0.25% within 30 days | -- |
| Parag Parikh Arbitrage Fund | -- | 2,750 | +6.52% | -- | -- | -- | Low | 0.99% | 0.25% within 30 days | -- |
| WhiteOak Capital Arbitrage Fund | -- | 2,623 | +7.07% | -- | -- | -- | Low | 2.35% | Varies | -- |
| Franklin India Arbitrage Fund | -- | 1,921 | +7.13% | -- | -- | -- | -- | 1.20% | -- | -- |
| quant Arbitrage Fund | -- | 1,007 | +7.56% | -- | -- | -- | Low | 1.60% | 0.25% within 1 month | -- |
| JioBlackRock Arbitrage Fund | -- | 558 | -- | -- | -- | -- | Low | 1.99% | None | -- |
| Old Bridge Arbitrage Fund | -- | 254 | -- | -- | -- | -- | Low | 1.09% | 0.25% within 7 days | -- |
| TRUSTMF Arbitrage Fund | -- | 138 | +6.53% | -- | -- | -- | Low | 1.42% | 0.25% within 7 days | -- |
| The Wealth Company Arbitrage Fund | -- | 138 | +6.43% | -- | -- | -- | Low to Moderate | 1.50% | 0.25% within 7 days | -- |
| Helios Arbitrage Fund | -- | 133 | -- | -- | -- | -- | Low | 1.76% | 0.25% within 7 days | -- |
| PGIM India Arbitrage Fund | -- | 98 | -- | -- | -- | -- | Low | 1.23% | 0.25% within 30 days | -- |
| Groww Arbitrage Fund | -- | 70 | -- | -- | -- | -- | Low to Moderate | 1.86% | 0.25% within 30 days | -- |
| Zerodha Arbitrage Fund | -- | 47 | -- | -- | -- | -- | Low | 2.31% | None | -- |
| Samco Arbitrage Fund | -- | 26 | +5.24% | -- | -- | -- | Low | 1.09% | 0.25% within 7 days | -- |
| Capitalmind Arbitrage Fund | -- | 23 | -- | -- | -- | -- | Low | 1.18% | Varies | -- |
Returns of each fund's Direct plan (its only plan where it has one), as on the latest NAV. 3, 5 and 10 year figures are a rate a year. Std dev: how much the daily returns swung over 3 years, as a yearly figure; lower is steadier. Riskometer and exit load from the fund's scheme summary document; "Varies" means the load changes with how long you hold, and the fund page has the full wording. Expense ratio: Direct plan, from AMFI. AUM at the end of the fund's last reported month. A fund younger than 3 years has no rank and is listed after the ranked ones.
Stocks Arbitrage Funds Bought and Sold in September 2026
What the 5 largest Arbitrage funds changed in their September 2026 portfolios, against the month before
Bought
| Stock | New in | Added by |
|---|---|---|
| SWIGGY LTDKotak Arbitrage, SBI Arbitrage, ICICI Prudential Arbitrage, Invesco India Arbitrage, Aditya Birla Sun Life Arbitrage | 5 funds | -- |
| KEI Industries Ltd.Kotak Arbitrage, SBI Arbitrage, ICICI Prudential Arbitrage, Invesco India Arbitrage, Aditya Birla Sun Life Arbitrage | 5 funds | -- |
| MACROTECH DEVELOPERS LTDKotak Arbitrage, SBI Arbitrage, ICICI Prudential Arbitrage, Invesco India Arbitrage, Aditya Birla Sun Life Arbitrage | 5 funds | -- |
| ASTRAL LTD.Kotak Arbitrage, SBI Arbitrage, ICICI Prudential Arbitrage, Invesco India Arbitrage, Aditya Birla Sun Life Arbitrage | 2 funds | 3 funds |
| ETERNAL LIMITEDKotak Arbitrage, SBI Arbitrage, ICICI Prudential Arbitrage, Invesco India Arbitrage, Aditya Birla Sun Life Arbitrage | 2 funds | 3 funds |
| L&T FINANCE LTDKotak Arbitrage, SBI Arbitrage, ICICI Prudential Arbitrage, Invesco India Arbitrage, Aditya Birla Sun Life Arbitrage | 2 funds | 3 funds |
| Avenue Supermarts LtdKotak Arbitrage, SBI Arbitrage, ICICI Prudential Arbitrage, Invesco India Arbitrage, Aditya Birla Sun Life Arbitrage | 1 fund | 4 funds |
| RELIANCE INDUSTRIES LTD.Kotak Arbitrage, SBI Arbitrage, ICICI Prudential Arbitrage, Invesco India Arbitrage, Aditya Birla Sun Life Arbitrage | -- | 5 funds |
| ICICI BANK LTD.Kotak Arbitrage, SBI Arbitrage, ICICI Prudential Arbitrage, Invesco India Arbitrage, Aditya Birla Sun Life Arbitrage | -- | 5 funds |
| ADANI POWER LTDKotak Arbitrage, SBI Arbitrage, ICICI Prudential Arbitrage, Invesco India Arbitrage, Aditya Birla Sun Life Arbitrage | -- | 5 funds |
Sold
| Stock | Exited by | Reduced by |
|---|---|---|
| COCHIN SHIPYARD LTDKotak Arbitrage, SBI Arbitrage, ICICI Prudential Arbitrage, Invesco India Arbitrage, Aditya Birla Sun Life Arbitrage | 4 funds | 1 fund |
| ICICI Prudential Life Insurance Co. Ltd.Kotak Arbitrage, SBI Arbitrage, ICICI Prudential Arbitrage, Invesco India Arbitrage, Aditya Birla Sun Life Arbitrage | 2 funds | 3 funds |
| Hero MotoCorp Ltd.Kotak Arbitrage, SBI Arbitrage, ICICI Prudential Arbitrage, Invesco India Arbitrage, Aditya Birla Sun Life Arbitrage | 1 fund | 4 funds |
| Minda Industries Ltd.Kotak Arbitrage, SBI Arbitrage, ICICI Prudential Arbitrage, Invesco India Arbitrage, Aditya Birla Sun Life Arbitrage | 1 fund | 4 funds |
| MANKIND PHARMA LTDKotak Arbitrage, SBI Arbitrage, ICICI Prudential Arbitrage, Invesco India Arbitrage, Aditya Birla Sun Life Arbitrage | 1 fund | 4 funds |
| Rail Vikas Nigam LimitedKotak Arbitrage, SBI Arbitrage, ICICI Prudential Arbitrage, Invesco India Arbitrage, Aditya Birla Sun Life Arbitrage | 1 fund | 4 funds |
| AXIS BANK LTD.Kotak Arbitrage, SBI Arbitrage, ICICI Prudential Arbitrage, Invesco India Arbitrage, Aditya Birla Sun Life Arbitrage | -- | 5 funds |
| Bharat Electronics Ltd.Kotak Arbitrage, SBI Arbitrage, ICICI Prudential Arbitrage, Invesco India Arbitrage, Aditya Birla Sun Life Arbitrage | -- | 5 funds |
| KOTAK MAHINDRA BANK LTD.Kotak Arbitrage, SBI Arbitrage, ICICI Prudential Arbitrage, Invesco India Arbitrage, Aditya Birla Sun Life Arbitrage | -- | 5 funds |
| ITC Ltd.Kotak Arbitrage, SBI Arbitrage, ICICI Prudential Arbitrage, Invesco India Arbitrage, Aditya Birla Sun Life Arbitrage | -- | 5 funds |
From each fund's own monthly portfolio, stocks only. "New in" means the fund did not hold the stock the month before; "Exited by" means it sold all of it. Added and reduced count shares held, so a price move alone is not a change. Funds counted: Kotak Arbitrage Fund, SBI Arbitrage Fund, ICICI Prudential Arbitrage Fund, Invesco India Arbitrage Fund, Aditya Birla Sun Life Arbitrage Fund.
Compare Arbitrage Funds
The largest funds of the category, side by side
How Arbitrage Funds Are Taxed
As equity funds: 65% or more of each fund is in Indian stocks
| When you sell | Tax on the gain |
|---|---|
| Within 1 year | 20% of the gain (short term) |
| After 1 year | 12.5% of gains above ₹1.25 lakh a financial year (long term) |
- IDCW (dividend) payouts are added to your income and taxed at your slab rate.
- A stamp duty of 0.005% is deducted when you invest.
Rules in force from 23-07-2024 (Finance Act 2024). Tax depends on your own income; this is general information, not tax advice.
What Is a Arbitrage Fund?
At least 65% in stocks, each bought and sold forward at the same time, so it earns the price gap rather than the market's move. This is the rule SEBI sets for every fund in the category, so their portfolios can be compared.
Other hybrid categories: Aggressive Hybrid · Balanced Advantage · Multi Asset · Equity Savings · Conservative Hybrid
Arbitrage Funds: Frequently Asked Questions
Which are the top Arbitrage mutual funds?
By 3 year return, the top Arbitrage funds are 1. Invesco India Arbitrage Fund (7.5% a year), 2. Kotak Arbitrage Fund (7.4% a year), 3. Tata Arbitrage Fund (7.4% a year), 4. Aditya Birla Sun Life Arbitrage Fund (7.4% a year), 5. Edelweiss Arbitrage Fund (7.4% a year). Past returns do not promise future returns, so also look at costs, risk and how long each fund has done well.
How many Arbitrage funds are there?
40 Arbitrage funds are open for investment, from 40 fund houses.
What is a Arbitrage fund?
At least 65% in stocks, each bought and sold forward at the same time, so it earns the price gap rather than the market's move.
What is the average return of Arbitrage funds?
1 year: 6.6%, 3 years: 7.2% a year, 5 years: 6.7% a year. The simple average of every Arbitrage fund's Direct plan.
Which Arbitrage fund has the lowest expense ratio?
Sundaram Arbitrage Fund, at 0.97% a year (Direct plan), as reported to AMFI.
Which is the largest Arbitrage fund?
Kotak Arbitrage Fund, with ₹75,275 Cr of investors' money on 30-09-2026.
How are Arbitrage funds taxed?
As equity funds: gains on units sold within 1 year are taxed at 20%; after that, gains above ₹1.25 lakh a financial year are taxed at 12.5%.
This page is information, not investment advice. Mutual fund investments are subject to market risks; read all scheme related documents carefully. Past returns do not promise future returns. Figures come from AMFI, NSE, BSE and each fund house's own documents.