HSBC Arbitrage Fund Direct-Growth

Q: What are the returns of this mutual fund scheme?

The HSBC Arbitrage Fund Direct-Growth is a 11 yrs 3 m old fund and has delivered average annual returns of 6.63% since inception. HSBC Arbitrage Fund Direct-Growth Returns 1-Year 3-Year 5-Year 10-Year Since Inception 7.03% 7.51% 6.18% 6.37% 6.63%

NAV as of Sep 29, 2025	Returns since inception	ET Money Rank	AUM (Fund size)
₹20.6029+0.0% 1 day change	6.63% p.a.	App exclusive #NA View Ranked Funds	₹2,245 Cr

Historical NAV & returns

NAV: ₹20.6029 as on Sep 29, 2025

This fund Category average

HSBC Arbitrage Fund overview

Expense ratio	0.28% as on Aug 31, 2025
Exit load	0.25% Exit load of 0.25% if redeemed within 1 month!
AUM (Fund size)	₹2,245 Cr
Lock-in Period	Nil
Age	11 yrs 3 m since Jun 26, 2014
Benchmark	NIFTY 50 Arbitrage TRI
Min. investment	SIP: ₹500 & Lumpsum: ₹5000
Risk	Low
Short term capital gains (STCG)	Returns taxed at 20% if you redeem before 1 year
Long term capital gains (LTCG)	After 1 year, returns above ₹1.25 lakh in a financial year are taxed at 12.5%

HSBC Arbitrage Fund Returns calculator

Investment type

Monthly investment

₹ 10,000

Investment period

Lumpsum investment

₹1 lakh

Investment period

Disclaimer: Products compared like fixed deposits may provide fixed guaranteed returns. Mutual Funds investments are subject to market risk, read all scheme related documents carefully. Past performance is not an indicator of future returns.

Total investment ₹ 12 lakh
Profit ₹12 lakhs
Total corpus ₹1 lakh
Absolute return 52.69%

Trailing returns as on Sep 30, 2025

Period	This fund	Category average
1 Month	0.4%	0.39%
3 Months	1.41%	1.39%
6 Months	3.14%	3.11%
1 Year	7.03%	7.07%
2 Years	7.49%	7.48%
3 Years	7.51%	7.48%
4 Years	6.62%	6.64%
5 Years	6.18%	6.14%
7 Years	6.2%	6.1%
10 Years	6.37%	6.35%

Asset allocationas on Mar 31, 2025

Large Cap -0.24%

Mid Cap -0.06%

Small Cap -0.04%

Other Cap 0%

Top holdings

ICICI Bank Ltd.7.17%

State Bank of India7.14%

HDFC Bank Ltd.6.35%

Axis Bank Ltd.5.26%

Top sectors

Financial 42.09%

Energy 5.499999999999999%

Metals & Mining 3.7800000000000002%

Services 3.749999999999999%

Cash 75.37553309%

A1+ 20.70905866%

SOV 3.972439%

AAA 2.348929%

Top Debt Holdings

LIC Housing Finance Ltd. 2.2%

National Bank For Agriculture & Rural Development 2.14%

Union Bank of India 2.0%

HDFC Bank Ltd. 1.81%

Allocation by Instruments

Cash Margin 69.97873198%

Mutual Fund 16.14642435%

Debenture 7.71230109%

Certificate of Deposit 4.82159692%

Other Holdings

Others 69.98%

HSBC Money Market Fund Direct-Growth 11.35%

HSBC Ultra Short Duration Fund Direct - Growth 3.56%

HSBC Liquid Fund Direct-Growth 1.23%

Detailed portfolio analysis

Peer comparison

Fund name	1M	6M	1Y	3Y	5Y	10Y
HSBC Arbitrage Fund	0.4%	3.14%	7.03%	7.51%	6.18%	6.37%
Tata Arbitrage Fund	0.39%	3.31%	7.39%	7.77%	6.44%	4.37%
Invesco India Arbitrage Fund	0.4%	3.21%	7.3%	7.83%	6.52%	6.46%
Axis Arbitrage Fund	0.38%	3.22%	7.22%	7.57%	6.34%	6.48%
Edelweiss Arbitrage Fund	0.42%	3.19%	7.34%	7.75%	6.45%	6.59%
Aditya Birla Sun Life Arbitrage Fund	0.38%	3.28%	7.37%	7.69%	6.35%	6.4%

Fund name	Std. deviation	Beta	Sharpe	Sortino
HSBC Arbitrage Fund	0.39	0.26	2.45	3.89
Tata Arbitrage Fund	0.38	0.33	3.19	5.18
Invesco India Arbitrage Fund	0.37	0.17	3.54	6.33
Axis Arbitrage Fund	0.4	0.33	2.53	3.77
Edelweiss Arbitrage Fund	0.42	0.3	2.82	4.87
Aditya Birla Sun Life Arbitrage Fund	0.4	0.36	2.83	4.44

Fund name	ETM Rank	AUM	Fund age	Expense ratio
HSBC Arbitrage Fund	N.A.	2,245 Cr	11 yrs 3 m	0.28%
Tata Arbitrage Fund	N.A.	14,982 Cr	6 yrs 9 m	0.31%
Invesco India Arbitrage Fund	N.A.	25,150 Cr	12 yrs 8 m	0.39%
Axis Arbitrage Fund	N.A.	7,545 Cr	11 yrs 2 m	0.33%
Edelweiss Arbitrage Fund	N.A.	15,931 Cr	11 yrs 3 m	0.38%
Aditya Birla Sun Life Arbitrage Fund	N.A.	23,581 Cr	12 yrs 8 m	0.31%

View all Arbitrage funds

Key risk & return ratios Compared to other funds in the category

Alpha	1.43 vs. 2.78 Underperformed at beating benchmark
Sharpe	2.45 vs. 2.83 Poor risk-adjusted returns
Beta	0.26 vs. 1.55 Less sensitive to market ups & downs
Standard deviation	0.39 vs. 0.31 More volatile performance

Compare HSBC Arbitrage Fund in detail with

About this fund

About HSBC Arbitrage Fund

HSBC Arbitrage Fund Direct-Growth is a Arbitrage mutual fund scheme from Hsbc Mutual Fund. This fund has been in existence for 11 yrs 3 m, having been launched on 26/06/2014. HSBC Arbitrage Fund Direct-Growth has ₹2,245 Crores worth of assets under management (AUM) as on 31/03/2025 and is medium-sized fund of its category. The latest Net Asset Value (NAV) of HSBC Arbitrage Fund Direct-Growth as of 29/09/2025 is ₹20.60. The fund has an expense ratio of 0.28%, which is close to what most other Arbitrage funds charge. Currently, the fund has a -0.33% allocation to equity and 27.09% to Debt.

HSBC Arbitrage Fund Direct-Growth returns of last 1-year are 7.10%. Since launch, it has delivered 6.63% average annual returns. The fund has doubled the money invested in it every 11 yrs.
HSBC Arbitrage Fund Direct-Growth scheme's ability to deliver returns consistently is in-line with most funds of its category. Its ability to control losses in a falling market is average.
The fund's equity portion is primarily invested in Financial, Unclassified, Energy, Metals & Mining, Services sectors. It has taken less exposure in Financial, Unclassified sectors compared to other funds in the category.
The debt portion of the fund has low credit quality indicating the quality of borrowers it has lent it to is not too great.
The fund's top 5 holdings are in HSBC Money Market Fund Direct-Growth, ICICI Bank Ltd., State Bank of India, Axis Bank Ltd., Reliance Industries Ltd..

...

Fund AUM	2,245 Cr as on Mar 31, 2025
Scheme document	View Scheme Document

Fund managers

Praveen Ayathan

Mr. Praveen is a B.Sc (Mathematics). Prior to joining HSBC Mutual Fund, he has worked with L&T MF, Kotak Mahindra AMC and Dalal & Broacha Stock Broking Pvt. Ltd.

Mahesh A Chhabria

Mr. Chhabria is a Commerce Graduate and has also pursued FCA and CFA. Prior to joining HSBC MF, he has worked with L&T AMC, Edelweiss Securities Ltd, Darivium Traditions Pvt. Ltd. and FIL Fund Management Pvt. Ltd.

Asif Rizwi

Mr. Rizwi has done B.Tech and PGDM from IIM-C Prior to joining HSBC MF, he has worked with L&T MF, Yes Bank, ICICI Bank, Nomura International plc and Deutsche Bank

Investment objective

The scheme seeks to generate reasonable returns by predominantly investing in arbitrage opportunities in the cash and derivatives segments of the equity markets and by investing balance in debt and money market instruments.

HSBC Mutual Fund details

No. of schemes	44 view all schemes
Total AUM	1,29,985 Cr as on Jun 30, 2025
Address	9-11th Floor, NESCO - IT Park Bldg. 3, Western Express Highway, Goregaon East, Mumbai, 400063

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See all Hybrid funds from this AMC

Frequently asked questions

What is the current NAV of HSBC Arbitrage Fund Direct-Growth?

The current Net Asset Value (NAV) of the HSBC Arbitrage Fund - Direct Growth plan is approximately ₹20.6029 as of Sep 29, 2025.

What are the returns of this mutual fund scheme?

The HSBC Arbitrage Fund Direct-Growth is a 11 yrs 3 m old fund and has delivered average annual returns of 6.63% since inception.

HSBC Arbitrage Fund Direct-Growth Returns

1-Year	3-Year	5-Year	10-Year	Since Inception
7.03%	7.51%	6.18%	6.37%	6.63%

How much does this mutual fund charge as expense ratio?

The HSBC Arbitrage Fund - Direct Growth has an expense ratio of 0.28%, representing the annual cost of managing and operating the fund. This fee is deducted from the fund's AUM while declaring the daily NAV, reducing investor returns.

What is the AUM or fund size of this mutual fund?

The HSBC Arbitrage Fund currently has assets under management (AUM) or fund size valued at approximately 2,245 Cr as on Mar 31, 2025.

What is risk level of HSBC Arbitrage Fund?

This is a Arbitrage fund comes with Low risk.

Is there any lock-in period in this mutual fund?

No, this fund does not have any lock-in period.

How do I invest in HSBC Arbitrage Fund Direct-Growth?

It is very fast, easy, and completely paperless in this mutual fund scheme on ET Money. The whole process takes just a few minutes. Here's how it works:

For the Desktop Version:

Click on the "Invest Now" button at the top right, then scan the QR code to download the app.

For the Mobile Version:

Click on the "Invest on App" button at the bottom to download the app.
Once the app is downloaded:
Sign-up and complete your one time KYC process, or log in if you're already registered.
Search for HSBC Arbitrage Fund - Direct Growth, select your investment mode (lump sum or SIP), and enter the investment amount.
Provide the required details, including the bank account you'll use for payment, and confirm your investment.

That's it. Your investment in the HSBC Arbitrage Fund is complete.

How can I redeem my investments in HSBC Arbitrage Fund?

Redeeming your investments in the HSBC Arbitrage Fund is simple. If you have invested via ET Money, just log in to the app, go to the holdings section, and submit the redemption request.

If you have invested from anywhere else, you can go to the fund house website and put a request through it.

ET Money rank

App exclusive

in Arbitrage

#NA

Volatility Protection: This fund is one of the best in protecting against volatility in it's category.
Return Outperformance: This fund has generated highest return amongst Arbitrage funds in the last 10 Years.
Return Consistency: This fund ranks lower in terms of generating consistent return in it's category.
Return/Risk: The fund is performing poorly than its category.
Exit Load: Exit load of 0.25% if redeemed within 1 month