Kotak Arbitrage Fund vs Zerodha Arbitrage Fund
Direct Plan, Growth option · Data as on 30-10-2026
Kotak Arbitrage Fund and Zerodha Arbitrage Fund are both Arbitrage funds. Kotak Arbitrage Fund charges 2.31% a year and Zerodha Arbitrage Fund 2.31% (Direct plans). Their portfolios overlap 28.7%: they hold 45 of the same securities.
Which is better, Kotak Arbitrage or Zerodha Arbitrage? Key differences
It depends on what you want from the fund. These are the differences in numbers, from the data on this page.
- Kotak Arbitrage costs less: 2.31% a year against 2.31% (Direct plans).
- Kotak Arbitrage fell less in its worst fall since 20-08-2026: −0.3% against −0.3%.
- Kotak Arbitrage is the larger fund: ₹75,275 Cr against ₹47 Cr.
- Their portfolios overlap 28.7%: 45 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 | Kotak Arbitrage Fund | Zerodha Arbitrage Fund |
|---|---|---|
| Fund house | Kotak Mahindra Mutual Fund | Zerodha Mutual Fund |
| Category | Arbitrage | Arbitrage |
| AUM | ₹75,275 Cr (30-09-2026) | ₹47 Cr (30-09-2026) |
| NAV | ₹43.60 (Direct) | ₹10.12 (Direct) |
| Expense ratio (Direct) | 2.31% | 2.31% |
| Expense ratio (Regular) | 2.89% | Not available |
| Riskometer | Low | Low |
| Benchmark | Nifty 50 Arbitrage Index | Nifty 50 Arbitrage TRI |
| Launch date | 29-09-2005 | 18-08-2026 |
| Minimum investment | ₹100 | Lumpsum: ?5000 and in multiples of ‘any amount’ thereafter SIP: ?1000 and in multiples of ‘any amount’ thereafter. |
| Lock in | None | None |
| Fund managers | Hiten Shah | Kedarnath Mirajkar |
| Exit load | Exit load of 0.25% if redeemed within 30 days | Nil |
Kotak Arbitrage vs Zerodha Arbitrage: 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 |
|---|---|---|---|---|---|---|---|
| Kotak Arbitrage Fund (Direct) | +0.55% | +1.55% | +3.29% | +6.75% | +7.43% | +6.98% | +6.46% |
| Zerodha Arbitrage Fund (Direct) | +0.62% | -- | -- | -- | -- | -- | -- |
| Arbitrage average | +0.56% | -- | -- | -- | -- | -- | -- |
Category average: the average of the 39 Arbitrage funds, same plan type.
Kotak Arbitrage vs Zerodha Arbitrage: Year-wise Returns
| Year | KotakKotak Arbitrage | ZerodhaZerodha Arbitrage |
|---|---|---|
| 2026to date | +5.53% | -- |
| 2025 | +7.06% | -- |
| 2024 | +8.47% | -- |
| 2023 | +8.01% | -- |
| 2022 | +5.14% | -- |
| 2021 | +4.56% | -- |
Kotak Arbitrage vs Zerodha Arbitrage: Rolling Returns
Every holding period of both funds
Kotak Arbitrage vs Zerodha Arbitrage: Risk and Drawdowns
How much each fund swings, and the worst fall over the same days
Risk and return
| Measure | Kotak Arbitrage Fund (Direct) | Zerodha Arbitrage Fund (Direct) |
|---|---|---|
| Return (CAGR) | +7.07% | +6.28% |
| Standard deviation | 1.02% | 1.82% |
| Sharpe ratio | 1.00 | 0.56 |
| Sortino ratio | 1.52 | 0.82 |
| Maximum drawdown | −0.6% (03-06-2020) | −0.3% (04-09-2026) |
| Beta | -- | -- |
| Alpha | -- | -- |
From daily NAVs, 07-01-2013 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.
Kotak Arbitrage Fund (Direct)
Zerodha Arbitrage Fund (Direct)
| Fund | Worst fall | High before it | Bottom | Back at the high | Time to climb back | Below its high today |
|---|---|---|---|---|---|---|
| Kotak Arbitrage Fund (Direct) | −0.3% | 24-08-2026 | 26-08-2026 | 31-08-2026 | 5 days | −0.0% |
| Zerodha Arbitrage Fund (Direct) | −0.3% | 31-08-2026 | 04-09-2026 | 18-09-2026 | 14 days | −0.0% |
From daily values since 20-08-2026, the first day every fund has.
Kotak Arbitrage vs Zerodha Arbitrage: Portfolio Overlap
From each fund's latest monthly portfolio: Kotak Arbitrage Fund, September 2026; Zerodha Arbitrage Fund, September 2026
Holdings in common
- Overlap
- 28.7%
- Held by both
- 45
- Only in Kotak Arbitrage
- 149
- Only in Zerodha Arbitrage
- 6
| Security | % of Kotak Arbitrage | % of Zerodha Arbitrage |
|---|---|---|
| ICICI BANK LTD. | 4.17% | 4.36% |
| AXIS BANK LTD. | 2.94% | 2.30% |
| RELIANCE INDUSTRIES LTD. | 3.06% | 2.16% |
| HDFC BANK LTD. | 2.03% | 8.18% |
| Tata Steel Ltd. | 1.53% | 2.06% |
| BHARTI AIRTEL LTD. | 1.45% | 2.50% |
| Infosys Ltd. | 1.25% | 1.96% |
| Coal India Limited | 1.18% | 2.21% |
| BAJAJ FINANCE LTD. | 1.20% | 1.08% |
| STATE BANK OF INDIA. | 1.35% | 0.92% |
| ITC Ltd. | 0.85% | 2.04% |
| Coforge Limited | 0.78% | 1.07% |
| SWIGGY LTD | 0.75% | 0.98% |
| BANK OF BARODA | 0.69% | 2.45% |
| Indus Towers Ltd. | 0.65% | 2.31% |
| TVS Motor Company Ltd. | 0.94% | 0.62% |
| TATA CONSULTANCY SERVICES LTD. | 0.53% | 0.79% |
| IDFC FIRST BANK LIMITED | 0.47% | 2.59% |
| GAIL (India) Ltd. | 0.44% | 1.30% |
| TATA MOTORS PASSENGER VEHICLES LTD | 0.43% | 1.94% |
| Divis Laboratories Ltd. | 0.96% | 0.40% |
| GODREJ PROPERTIES LIMITED | 0.40% | 1.59% |
| PNB HOUSING FINANCE LTD. | 0.29% | 2.34% |
| HDFC ASSET MANAGEMENT COMPANY LTD. | 0.28% | 0.29% |
| ADITYA BIRLA CAPITAL LTD | 0.30% | 0.25% |
| Tata Power Company Ltd. | 0.25% | 0.89% |
| Crompton Greaves Consumer Electricals Limited | 0.23% | 2.78% |
| Cummins India Ltd. | 0.82% | 0.20% |
| MARICO LTD. | 0.34% | 0.20% |
| Life Insurance Corporation Of India | 0.20% | 1.89% |
| ASTRAL LTD. | 0.19% | 1.12% |
| CANARA BANK | 0.55% | 0.17% |
| Bajaj Auto Ltd. | 0.52% | 0.17% |
| ADANI POWER LTD | 1.43% | 0.16% |
| UNION BANK OF INDIA | 0.25% | 0.16% |
| HCL Technologies Ltd. | 0.15% | 1.05% |
| Nestle India Ltd. | 0.25% | 0.14% |
| BANK OF INDIA | 0.19% | 0.14% |
| Container Corporation of India Ltd. | 0.14% | 0.48% |
| Power Finance Corporation Ltd. | 0.80% | 0.09% |
| Pidilite Industries Ltd. | 0.08% | 0.16% |
| TRENT LTD | 0.06% | 2.02% |
| Oberoi Realty Limited | 0.05% | 0.13% |
| Persistent Systems Limited | 0.05% | 0.56% |
| Hero MotoCorp Ltd. | 0.01% | 0.17% |
Overlap: for each holding both funds own, the smaller of its two weights, added up. 28.7% means 28.7% 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 Kotak Arbitrage Fund
| Security | % of fund |
|---|---|
| Kotak Money Market Fund Direct Growth | 9.78% |
| Kotak Savings Fund Direct Growth | 4.98% |
| Kotak Ultra Short to Short Term Fund | 3.86% |
| Kotak Liquid Direct Growth | 3.13% |
| HDFC BANK LTD. | 1.94% |
Largest holdings only in Zerodha Arbitrage Fund
| Security | % of fund |
|---|---|
| HSBC Liquid Fund - Direct Growth | 12.88% |
| 364 Days Treasury Bill 12-Aug-2027 | 10.17% |
| The Federal Bank Limited | 3.91% |
| AU Small Finance Bank Limited | 1.95% |
| IndusInd Bank Limited | 1.08% |
Asset and sector split
Share of each fund, from its latest monthly portfolio
Asset allocation
| Asset | Kotak Arbitrage | Zerodha Arbitrage |
|---|---|---|
| Equity | 71.1% | 68.5% |
| Debt | 5.8% | 10.2% |
| Cash and others | 23.1% | 21.4% |
Market cap of stocks
| Market cap | Kotak Arbitrage | Zerodha Arbitrage |
|---|---|---|
| Large Cap | 52.1% | 47.0% |
| Mid Cap | 16.4% | 16.4% |
| Small Cap | 2.6% | 5.1% |
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 | Kotak Arbitrage | Zerodha Arbitrage |
|---|---|---|
| Banks | 14.4% | 28.2% |
| Finance | 5.7% | 3.8% |
| IT - Software | 3.8% | 5.4% |
| Telecom - Services | 3.4% | 4.8% |
| Petroleum Products | 4.6% | 2.2% |
| Pharmaceuticals and Biotechnology | 4.2% | 0.0% |
| Power | 3.9% | 1.1% |
| Automobiles | 3.4% | 2.9% |
| Retailing | 1.7% | 3.0% |
The six largest sectors of each fund's stocks, % of the fund.
Kotak Arbitrage vs Zerodha Arbitrage: Expense Ratio
What each plan charges a year, from AMFI's expense ratio file
| Charge | Kotak Arbitrage Fund | Zerodha Arbitrage Fund |
|---|---|---|
| Total expense ratio (Direct) | 2.31% | 2.31% |
| Base expense ratio (Direct) | 0.33% | 0.20% |
| Total expense ratio (Regular) | 2.89% | Not available |
| Base expense ratio (Regular) | 0.83% | 0.00% |
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
Compare Kotak Arbitrage with
Kotak Arbitrage Fund vs Zerodha Arbitrage Fund: Frequently Asked Questions
What is the difference between Kotak Arbitrage Fund and Zerodha Arbitrage Fund?
Both are Arbitrage funds, run by Kotak Mahindra Mutual Fund and Zerodha Mutual Fund. Their portfolios overlap 28.7%. Kotak Arbitrage Fund charges 2.31% a year and Zerodha Arbitrage Fund 2.31%.
Which has the lower expense ratio, Kotak Arbitrage Fund or Zerodha Arbitrage Fund?
Kotak Arbitrage Fund charges less: 2.31% a year against 2.31%. These are the Direct plans' total expense ratios reported to AMFI.
How much do Kotak Arbitrage Fund and Zerodha Arbitrage Fund overlap?
28.7%. They hold 45 of the same securities, the largest shared ones being ICICIBANK, AXISBANK, RELIANCE. From each fund's latest monthly portfolio.
Which is riskier, Kotak Arbitrage Fund or Zerodha Arbitrage Fund?
On SEBI's riskometer, Kotak Arbitrage Fund is rated Low and Zerodha Arbitrage Fund Low. Over their common history, the standard deviation of daily returns was 1.02% and 1.82% a year.
Can I invest in both Kotak Arbitrage Fund and Zerodha Arbitrage Fund?
Yes. 28.7% of each fund's money sits in the same holdings, so some of the two investments would move together.
Who manages Kotak Arbitrage Fund and Zerodha Arbitrage Fund?
Kotak Arbitrage Fund: Hiten Shah. Zerodha Arbitrage Fund: Kedarnath Mirajkar.
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.