Franklin India Arbitrage Fund vs HDFC BSE 500 Index Fund
Direct Plan, Growth option · Data as on 30-10-2026
Franklin India Arbitrage Fund is an Arbitrage fund and HDFC BSE 500 Index Fund is an Index fund. In the year to 30-10-2026, Franklin India Arbitrage Fund (Direct) returned 7.1% and HDFC BSE 500 Index Fund (Direct) returned −8.0%. Franklin India Arbitrage Fund charges 1.20% a year and HDFC BSE 500 Index Fund 0.35% (Direct plans). Their portfolios overlap 48.5%: they hold 131 of the same securities.
Franklin India Arbitrage Fund
Arbitrage
- 1 year return
- 7.1%
- Expense ratio
- 1.20%
- NAV
- ₹11.42
HDFC BSE 500 Index Fund
Index
- 1 year return
- −8.0%
- Expense ratio
- 0.35%
- NAV
- ₹14.81
Which is better, Franklin India Arbitrage or HDFC BSE 500 Index? Key differences
It depends on what you want from the fund. These are the differences in numbers, from the data on this page.
- Franklin India Arbitrage returned more over 1 year: 7.1% against −8.0%.
- HDFC BSE 500 Index costs less: 0.35% a year against 1.20% (Direct plans).
- Franklin India Arbitrage fell less in its worst fall since 19-11-2024: −0.4% against −14.8%.
- HDFC BSE 500 Index holds more in large companies: 67.0% of the fund in large caps against 51.9%.
- Franklin India Arbitrage is the larger fund: ₹1,921 Cr against ₹313 Cr.
- Their portfolios overlap 48.5%: 131 of the same holdings.
Past returns do not promise future returns. This page is information, not investment advice.
Key facts
From each fund's scheme summary document and AMFI
| Fact | Franklin India Arbitrage Fund | HDFC BSE 500 Index Fund |
|---|---|---|
| Fund house | Franklin Templeton Mutual Fund | HDFC Mutual Fund |
| Category | Arbitrage | Index |
| AUM | ₹1,921 Cr (30-09-2026) | ₹313 Cr (30-09-2026) |
| NAV | ₹11.42 (Direct) | ₹14.81 (Direct) |
| Expense ratio (Direct) | 1.20% | 0.35% |
| Expense ratio (Regular) | 1.97% | 0.84% |
| Riskometer | Not available | Very High |
| Benchmark | Not available | BSE 500 TRI |
| Launch date | Not available | 21-04-2023 |
| Minimum investment | Not available | ₹100 |
| Lock in | Not available | None |
| Fund managers | Not available | Nandita Menezes, Arun Agarwal |
| Exit load | Not available | NIL |
Franklin India Arbitrage vs HDFC BSE 500 Index: Returns Comparison
Returns as on 30-10-2026. Up to one year they are absolute returns. Longer periods are a rate per year.
| Fund | 1M | 3M | 6M | 1Y | 3Y | 5Y | 10Y |
|---|---|---|---|---|---|---|---|
| Franklin India Arbitrage Fund (Direct) | +0.58% | +1.71% | +3.51% | +7.13% | -- | -- | -- |
| HDFC BSE 500 Index Fund (Direct) | −0.90% | −6.15% | −3.10% | −7.96% | +9.29% | -- | -- |
| Arbitrage average | +0.56% | +1.52% | +3.20% | +6.62% | -- | -- | -- |
Category average: the average of the 39 Arbitrage funds, same plan type.
Franklin India Arbitrage vs HDFC BSE 500 Index: Year-wise Returns
| Year | Franklin India ArbitrageFranklin India Arbitrage | HDFC BSE 500 IndexHDFC BSE 500 Index |
|---|---|---|
| 2026to date | +5.84% | −8.06% |
| 2025 | +7.19% | +7.17% |
| 2024 | -- | +14.95% |
Franklin India Arbitrage vs HDFC BSE 500 Index: Rolling Returns
Every holding period of both funds, against BSE 500 TRI, the benchmark of HDFC BSE 500 Index Fund
Rolling returns
Every 1-year holding period, 233 of them, one for each trading day from 19-11-2025 to 30-10-2026: the yearly return (CAGR) of each, plotted on the day it ended. One lucky or unlucky start day cannot flatter or hide a fund.
Franklin India Arbitrage Fund (Direct)
HDFC BSE 500 Index Fund (Direct)
BSE 500 TRI
to
Dec 2025Feb 2025
to
Feb 2026Apr 2025
to
Apr 2026Jun 2025
to
Jun 2026Aug 2025
to
Aug 2026Oct 2025
to
Oct 2026
How the periods spread
| Fund | Below 0% | 0-5% | 5-10% | 10-15% | 15-20% | 20-25% | Above 25% | Mean | Median | Lowest | Highest | Beat benchmark |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Franklin India Arbitrage | 0.0 | 0.0 | 100.0 | 0.0 | 0.0 | 0.0 | 0.0 | 7.0% | 7.0% | 6.5% | 7.7% | 76% |
| HDFC BSE 500 Index | 31.8 | 32.6 | 26.6 | 8.2 | 0.9 | 0.0 | 0.0 | 3.0% | 2.5% | −9.5% | 15.2% | 0% |
| BSE 500 TRI | 28.8 | 32.6 | 27.5 | 9.4 | 1.7 | 0.0 | 0.0 | 3.4% | 2.8% | −9.2% | 15.7% | -- |
The table shows the % of periods in each return band; a darker cell holds more of them. Lumpsum: the yearly rate (CAGR) from a period's first NAV to its last. SIP: the XIRR of the monthly instalments. The benchmark is BSE 500 TRI, over the same periods. "Beat benchmark" counts the periods in which the fund did better. Every fund is measured over the days all of them have, from 19-11-2024. Past returns do not promise future returns.
Franklin India Arbitrage vs HDFC BSE 500 Index: SIP and Lumpsum Returns
What the same monthly or one-time investment would be worth in each fund today, from their own NAV history
Growth of an investment
₹10,000 on the first trading day of every month, from 19-11-2024 to 30-10-2026: 24 instalments, ₹2,40,000 in all.
| Investment | Invested | Value now | Gain | Return a year |
|---|---|---|---|---|
| Franklin India ArbitrageFranklin India Arbitrage Fund (Direct) | ₹2,40,000 | ₹2,57,663 | ₹17,663 | 7.0% |
| HDFC BSE 500 IndexHDFC BSE 500 Index Fund (Direct) | ₹2,40,000 | ₹2,33,799 | −₹6,201 | −2.5% |
Franklin India ArbitrageFranklin India Arbitrage Fund (Direct)
HDFC BSE 500 IndexHDFC BSE 500 Index Fund (Direct)
Amount invested
From each plan's published NAV (Growth option), over the same days. Return a year: XIRR for a SIP, CAGR for a lumpsum, shown for a year or more. It does not include exit load, stamp duty or tax. Past returns do not promise future returns.
Franklin India Arbitrage vs HDFC BSE 500 Index: Risk and Drawdowns
How much each fund swings, and the worst fall over the same days
Risk and return
| Measure | Franklin India Arbitrage Fund (Direct) | HDFC BSE 500 Index Fund (Direct) |
|---|---|---|
| Return (CAGR) | +7.13% | −7.96% |
| Standard deviation | 1.42% | 14.18% |
| Sharpe ratio | 1.33 | -0.93 |
| Sortino ratio | 2.08 | -1.23 |
| Maximum drawdown | −0.4% (06-08-2026) | −14.8% (31-03-2026) |
| Beta | -- | 1.00 |
| Alpha | -- | −0.34% |
From daily NAVs, 30-10-2025 to 30-10-2026. Standard deviation: how much the daily value swings, scaled to a year. Sharpe: return above the risk-free rate (NSE's overnight rate index) per unit of swing. Sortino: the same, counting only the falls. Beta and alpha compare each fund with its own benchmark's TRI.
| Measure | Franklin India Arbitrage Fund (Direct) | HDFC BSE 500 Index Fund (Direct) |
|---|---|---|
| Return (CAGR) | +7.09% | +11.82% |
| Standard deviation | 1.17% | 13.39% |
| Sharpe ratio | 1.25 | 0.42 |
| Sortino ratio | 1.93 | 0.57 |
| Maximum drawdown | −0.4% (06-08-2026) | −18.8% (28-02-2025) |
| Beta | -- | 1.00 |
| Alpha | -- | −0.58% |
From daily NAVs, 19-11-2024 to 30-10-2026. Standard deviation: how much the daily value swings, scaled to a year. Sharpe: return above the risk-free rate (NSE's overnight rate index) per unit of swing. Sortino: the same, counting only the falls. Beta and alpha compare each fund with its own benchmark's TRI.
Drawdowns
How far below its previous high each one was on every day: the falls an investor had to sit through. 0% means it was at a new high.
Franklin India Arbitrage Fund (Direct)
HDFC BSE 500 Index Fund (Direct)
BSE 500 TRI
| Fund | Worst fall | High before it | Bottom | Back at the high | Time to climb back | Below its high today |
|---|---|---|---|---|---|---|
| Franklin India Arbitrage Fund (Direct) | −0.4% | 03-08-2026 | 06-08-2026 | 24-08-2026 | 18 days | 0.0% |
| HDFC BSE 500 Index Fund (Direct) | −14.8% | 02-01-2026 | 31-03-2026 | Not yet | -- | −8.9% |
| BSE 500 TRI | −14.8% | 02-01-2026 | 30-03-2026 | Not yet | -- | −8.7% |
From daily values since 19-11-2024, the first day every fund has.
Rolling standard deviation
Whether the swings have grown or calmed over time: the standard deviation of daily changes over every 1-year window, scaled to a year, plotted on the window's last day. Higher means a bumpier ride.
Franklin India Arbitrage Fund (Direct)
HDFC BSE 500 Index Fund (Direct)
BSE 500 TRI
Against BSE 500 TRI
| Fund | Up capture | Down capture | Tracking error |
|---|---|---|---|
| Franklin India Arbitrage Fund (Direct) | 17% | -17% | 16.18% |
| HDFC BSE 500 Index Fund (Direct) | 99% | 101% | 0.05% |
From month-end values since 19-11-2024. Up capture: a fund's average month when the benchmark rose, as % of the benchmark's; above 100% it gained more. Down capture: the same for months the benchmark fell; below 100% it fell less. Tracking error: how far the monthly returns strayed from the benchmark's, a year; an index fund aims near 0.
Franklin India Arbitrage vs HDFC BSE 500 Index: Portfolio Overlap
From each fund's latest monthly portfolio: Franklin India Arbitrage Fund, September 2026; HDFC BSE 500 Index Fund, September 2026
Holdings in common
- Overlap
- 48.5%
- Held by both
- 131
- Only in Franklin India Arbitrage
- 13
- Only in HDFC BSE 500 Index
- 369
| Security | % of Franklin India Arbitrage | % of HDFC BSE 500 Index |
|---|---|---|
| HDFC Bank Ltd | 5.79% | 5.72% |
| ICICI Bank Ltd | 6.04% | 5.02% |
| Reliance Industries Ltd | 4.13% | 4.16% |
| Bharti Airtel Ltd | 2.55% | 2.90% |
| Larsen & Toubro Ltd | 1.88% | 2.32% |
| Axis Bank Ltd | 3.37% | 1.86% |
| State Bank of India | 1.78% | 2.11% |
| Bajaj Finance Ltd | 1.03% | 1.36% |
| Sun Pharmaceutical Industries Ltd | 0.98% | 1.04% |
| Mahindra & Mahindra Ltd | 0.92% | 1.39% |
| Maruti Suzuki India Ltd | 1.38% | 0.81% |
| Bharat Electronics Ltd | 1.33% | 0.74% |
| Hindalco Industries Ltd | 1.79% | 0.72% |
| Hindustan Unilever Ltd | 0.71% | 0.89% |
| Kotak Mahindra Bank Ltd | 0.63% | 1.62% |
| Adani Ports and Special Economic Zone Ltd | 0.58% | 0.74% |
| Eternal Ltd | 0.54% | 1.22% |
| Adani Enterprises Ltd | 1.44% | 0.52% |
| Eicher Motors Ltd | 0.75% | 0.52% |
| TVS Motor Co Ltd | 0.60% | 0.50% |
| Adani Power Ltd | 0.51% | 0.46% |
| Multi Commodity Exchange Of India Ltd | 0.58% | 0.44% |
| Laurus Labs Ltd | 0.81% | 0.41% |
| ITC Ltd | 0.40% | 1.34% |
| NTPC Ltd | 0.40% | 0.81% |
| One 97 Communications Ltd | 0.52% | 0.38% |
| Jio Financial Services Ltd | 0.44% | 0.38% |
| Bajaj Finserv Ltd | 0.34% | 0.51% |
| Oil & Natural Gas Corporation Ltd | 0.33% | 0.46% |
| JSW Steel Ltd | 0.33% | 0.63% |
| Coforge Ltd | 0.70% | 0.32% |
| Tata Power Co Ltd | 0.60% | 0.32% |
| IndusInd Bank Ltd | 1.22% | 0.31% |
| AU Small Finance Bank Ltd | 0.70% | 0.30% |
| IDFC First Bank Ltd | 2.11% | 0.29% |
| HDFC Life Insurance Co Ltd | 1.82% | 0.29% |
| Coal India Ltd | 0.29% | 0.54% |
| Indian Hotels Co Ltd | 0.28% | 0.34% |
| Indus Towers Ltd | 0.48% | 0.26% |
| Info Edge (India) Ltd | 0.53% | 0.25% |
| Cipla Ltd | 0.24% | 0.40% |
| Aurobindo Pharma Ltd | 0.41% | 0.24% |
| Ultratech Cement Ltd | 0.24% | 0.68% |
| Solar Industries India Ltd | 0.23% | 0.25% |
| FSN E-Commerce Ventures Ltd | 1.16% | 0.23% |
| APL Apollo Tubes Ltd | 0.65% | 0.23% |
| Ashok Leyland Ltd | 0.43% | 0.23% |
| Bank of Baroda | 0.29% | 0.23% |
| Marico Ltd | 0.95% | 0.22% |
| Apollo Hospitals Enterprise Ltd | 0.22% | 0.44% |
| Punjab National Bank | 0.41% | 0.21% |
| Canara Bank | 0.35% | 0.21% |
| United Spirits Ltd | 0.23% | 0.21% |
| GAIL (India) Ltd | 0.20% | 0.24% |
| Varun Beverages Ltd | 0.20% | 0.31% |
| PB Fintech Ltd | 0.98% | 0.20% |
| Tata Motors Passenger Vehicles Ltd | 0.19% | 0.32% |
| Vodafone Idea Ltd | 2.41% | 0.19% |
| Yes Bank Ltd | 0.56% | 0.19% |
| Infosys Ltd | 0.18% | 1.86% |
| Glenmark Pharmaceuticals Ltd | 0.26% | 0.18% |
| Adani Green Energy Ltd | 0.18% | 0.22% |
| Shriram Finance Ltd | 0.17% | 0.72% |
| UPL Ltd | 1.00% | 0.16% |
| Bharat Heavy Electricals Ltd | 0.16% | 0.32% |
| National Aluminium Co Ltd | 0.16% | 0.16% |
| Mphasis Ltd | 0.52% | 0.15% |
| Steel Authority of India Ltd | 0.69% | 0.14% |
| Hindustan Zinc Ltd | 0.33% | 0.14% |
| Ather Energy Ltd | 0.26% | 0.14% |
| NMDC Ltd | 0.16% | 0.14% |
| Adani Energy Solutions Ltd | 0.13% | 0.21% |
| Nestle India Ltd | 0.13% | 0.49% |
| Samvardhana Motherson International Ltd | 0.13% | 0.38% |
| Power Finance Corporation Ltd | 0.11% | 0.25% |
| Ambuja Cements Ltd | 0.11% | 0.12% |
| Godrej Properties Ltd | 0.41% | 0.11% |
| PNB Housing Finance Ltd | 0.16% | 0.11% |
| Lupin Ltd | 0.11% | 0.26% |
| Divi's Laboratories Ltd | 0.11% | 0.63% |
| Titan Co Ltd | 0.10% | 0.99% |
| Swiggy Ltd | 0.10% | 0.20% |
| Manappuram Finance Ltd | 0.27% | 0.09% |
| Astral Ltd | 0.22% | 0.09% |
| Bandhan Bank Ltd | 0.20% | 0.09% |
| Computer Age Management Services Ltd | 0.18% | 0.09% |
| ICICI Prudential Life Insurance Co Ltd | 0.17% | 0.09% |
| Jubilant Foodworks Ltd | 0.11% | 0.09% |
| SBI Life Insurance Co Ltd | 0.09% | 0.40% |
| Power Grid Corporation of India Ltd | 0.09% | 0.63% |
| Kalyan Jewellers India Ltd | 0.09% | 0.11% |
| SBI Cards and Payment Services Ltd | 0.08% | 0.09% |
| Ge Vernova T&D India Ltd | 0.08% | 0.27% |
| Angel One Ltd | 0.17% | 0.08% |
| Container Corporation Of India Ltd | 0.16% | 0.08% |
| Motilal Oswal Financial Services Ltd | 0.12% | 0.08% |
| Cummins India Ltd | 0.08% | 0.34% |
| Patanjali Foods Ltd | 0.17% | 0.07% |
| L&T Finance Ltd | 0.07% | 0.12% |
| Biocon Ltd | 0.07% | 0.14% |
| LIC Housing Finance Ltd | 0.07% | 0.08% |
| Tata Steel Ltd | 0.07% | 0.80% |
| Dabur India Ltd | 0.06% | 0.12% |
| Crompton Greaves Consumer Electricals Ltd | 0.05% | 0.07% |
| Sagility Ltd | 0.08% | 0.05% |
| Grasim Industries Ltd | 0.04% | 0.61% |
| Indian Oil Corporation Ltd | 0.04% | 0.26% |
| NBCC (India) Ltd | 0.12% | 0.04% |
| KPIT Technologies Ltd | 0.07% | 0.04% |
| Cholamandalam Investment and Finance Co Ltd | 0.04% | 0.37% |
| Interglobe Aviation Ltd | 0.04% | 0.59% |
| Bank of India | 0.03% | 0.08% |
| JSW Energy Ltd | 0.03% | 0.16% |
| Indian Energy Exchange Ltd | 0.03% | 0.05% |
| Pidilite Industries Ltd | 0.03% | 0.24% |
| Bharat Petroleum Corporation Ltd | 0.02% | 0.31% |
| Hitachi Energy India Ltd | 0.02% | 0.20% |
| 360 One Wam Ltd | 0.02% | 0.14% |
| HDFC Asset Management Co Ltd | 0.02% | 0.24% |
| ICICI Lombard General Insurance Co Ltd | 0.02% | 0.20% |
| Tata Consumer Products Ltd | 0.01% | 0.32% |
| Colgate Palmolive (India) Ltd | 0.01% | 0.12% |
| Federal Bank Ltd | 0.01% | 0.42% |
| Hindustan Aeronautics Ltd | 0.01% | 0.46% |
| Radico Khaitan Ltd | 0.01% | 0.18% |
| Max Healthcare Institute Ltd | 0.01% | 0.36% |
| Bajaj Auto Ltd | 0.00% | 0.61% |
| Hindustan Petroleum Corporation Ltd | 0.00% | 0.18% |
| Amber Enterprises India Ltd | 0.00% | 0.08% |
| Fortis Healthcare Ltd | 0.00% | 0.21% |
| Life Insurance Corporation Of India | 0.00% | 0.29% |
Overlap: for each holding both funds own, the smaller of its two weights, added up. 48.5% means 48.5% of each fund's money sits in positions the other also holds. Matched by ISIN. Cash and hedged positions are left out.
Largest holdings only in Franklin India Arbitrage Fund
| Security | % of fund |
|---|---|
| Franklin India Money Market Fund Direct-Growth Plan | 12.02% |
| Canara Bank (30-Nov-2026) | 2.58% |
| Union Bank of India (16-Mar-2027) | 2.52% |
| National Bank For Agriculture & Rural Development (17-Mar-2027) | 2.52% |
| Indian Bank (04-Dec-2026) | 1.29% |
Largest holdings only in HDFC BSE 500 Index Fund
| Security | % of fund |
|---|---|
| Tata Consultancy Services Ltd. | 1.10% |
| HCL Technologies Ltd. | 0.69% |
| Asian Paints Limited | 0.57% |
| Tech Mahindra Ltd. | 0.52% |
| LENSKART SOLUTIONS LIMITED | 0.49% |
Asset and sector split
Share of each fund, from its latest monthly portfolio
Asset allocation
| Asset | Franklin India Arbitrage | HDFC BSE 500 Index |
|---|---|---|
| Equity | 71.4% | 99.8% |
| Debt | 14.5% | 0.0% |
| Cash and others | 14.1% | 0.2% |
Market cap of stocks
| Market cap | Franklin India Arbitrage | HDFC BSE 500 Index |
|---|---|---|
| Large Cap | 51.9% | 67.0% |
| Mid Cap | 17.7% | 21.5% |
| Small Cap | 1.8% | 11.3% |
Share of the whole fund. Groups follow AMFI's latest list: Large Cap is the 100 largest companies, Mid Cap the next 150, Small Cap the rest.
Largest sectors
| Sector | Franklin India Arbitrage | HDFC BSE 500 Index |
|---|---|---|
| Banks | 23.5% | 19.4% |
| Finance | 2.8% | 6.4% |
| Pharmaceuticals & Biotechnology | 3.0% | 5.8% |
| IT - Software | 1.5% | 5.8% |
| Telecom - Services | 5.4% | 3.6% |
| Petroleum Products | 4.2% | 5.0% |
| Automobiles | 4.1% | 4.9% |
The six largest sectors of each fund's stocks, % of the fund.
Franklin India Arbitrage vs HDFC BSE 500 Index: Expense Ratio
What each plan charges a year, from AMFI's expense ratio file
| Charge | Franklin India Arbitrage Fund | HDFC BSE 500 Index Fund |
|---|---|---|
| Total expense ratio (Direct) | 1.20% | 0.35% |
| Base expense ratio (Direct) | 0.23% | 0.24% |
| Total expense ratio (Regular) | 1.97% | 0.84% |
| Base expense ratio (Regular) | 0.89% | 0.65% |
The expense ratio comes out of the fund's assets every day, so every return on this page is already after it. Base expense ratio: the fund house's own fee. The total adds brokerage, transaction costs, and levies with GST.
More comparisons
Each fund against the others of its category
Franklin India Arbitrage Fund vs HDFC BSE 500 Index Fund: Frequently Asked Questions
What is the difference between Franklin India Arbitrage Fund and HDFC BSE 500 Index Fund?
Franklin India Arbitrage Fund is an Arbitrage fund, HDFC BSE 500 Index Fund is an Index fund, run by Franklin Templeton Mutual Fund and HDFC Mutual Fund. Their portfolios overlap 48.5%. Franklin India Arbitrage Fund charges 1.20% a year and HDFC BSE 500 Index Fund 0.35%.
Which has given higher returns, Franklin India Arbitrage Fund or HDFC BSE 500 Index Fund?
Over 1 year: Franklin India Arbitrage Fund +7.13%, HDFC BSE 500 Index Fund −7.96%. As on 30-10-2026. Past returns do not promise future returns.
Which has the lower expense ratio, Franklin India Arbitrage Fund or HDFC BSE 500 Index Fund?
HDFC BSE 500 Index Fund charges less: 0.35% a year against 1.20%. These are the Direct plans' total expense ratios reported to AMFI.
How much do Franklin India Arbitrage Fund and HDFC BSE 500 Index Fund overlap?
48.5%. They hold 131 of the same securities, the largest shared ones being HDFCBANK, ICICIBANK, RELIANCE. From each fund's latest monthly portfolio.
Can I invest in both Franklin India Arbitrage Fund and HDFC BSE 500 Index Fund?
Yes. 48.5% of each fund's money sits in the same holdings, so a large part of the two investments would move together.
Sources: NAV and expense ratio from AMFI. Holdings from each fund house's monthly portfolio statement. Fund facts from each scheme summary document.
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.