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Arbitrage Funds
- Average Return 6.76%
- No. of Funds 17
What is Arbitrage Mutual Fund
Arbitrage funds are hybrid mutual funds that aim to generate profits by exploiting price differences of securities in different markets or segments. These funds primarily benefit from arbitrage opportunities in the equity markets?buying and selling the same asset in different markets or segments to capitalize on temporary price discrepancies.
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 Returns
17 funds
ShowReturns for
via
#NA of NA
ETM Rank: App exclusive 
Fund Size
₹67,362 Cr
Return (p.a)
+ 4.09%+ 0.38% + 5.31%+ 0.88% + 5.93%+ 1.68% + 6.47%+ 3.44% + 7.18%+ 11.46% + 6.61%+ 18.16%
ETM Rank
#NA of NA
App exclusive
#NA of NA
ETM Rank: App exclusive
Fund Size
₹31,895 Cr
Return (p.a)
+ 4.19%+ 0.4% + 5.57%+ 0.93% + 6.2%+ 1.76% + 6.6%+ 3.51% + 7.13%+ 11.38% + 6.59%+ 18.11%
ETM Rank
#NA of NA
App exclusive
#NA of NA
ETM Rank: App exclusive
Fund Size
₹25,150 Cr
Return (p.a)
+ 3.94%+ 0.39% + 5.42%+ 0.9% + 5.97%+ 1.7% + 6.42%+ 3.42% + 7.07%+ 11.29% + 6.58%+ 18.07%
ETM Rank
#NA of NA
App exclusive
#NA of NA
ETM Rank: App exclusive
Fund Size
₹7,308 Cr
Return (p.a)
+ 4.31%+ 0.4% + 5.4%+ 0.9% + 6.08%+ 1.73% + 6.57%+ 3.5% + 7.13%+ 11.39% + 6.47%+ 17.75%
ETM Rank
#NA of NA
App exclusive
#NA of NA
ETM Rank: App exclusive
Fund Size
₹28,444 Cr
Return (p.a)
+ 4.11%+ 0.4% + 5.35%+ 0.89% + 6.02%+ 1.71% + 6.51%+ 3.46% + 7.06%+ 11.27% + 6.45%+ 17.68%
ETM Rank
#NA of NA
App exclusive
#NA of NA
ETM Rank: App exclusive
Fund Size
₹14,236 Cr
Return (p.a)
+ 3.95%+ 0.38% + 5.25%+ 0.88% + 5.97%+ 1.7% + 6.46%+ 3.44% + 7.0%+ 11.18% + 6.38%+ 17.49%
ETM Rank
#NA of NA
App exclusive
#NA of NA
ETM Rank: App exclusive
Fund Size
₹14,982 Cr
Return (p.a)
+ 4.3%+ 0.39% + 5.42%+ 0.9% + 6.02%+ 1.71% + 6.45%+ 3.44% + 6.98%+ 11.14% + 6.35%+ 17.4%
ETM Rank
#NA of NA
App exclusive
#NA of NA
ETM Rank: App exclusive
Fund Size
₹5,746 Cr
Return (p.a)
+ 3.99%+ 0.38% + 5.14%+ 0.86% + 5.85%+ 1.66% + 6.34%+ 3.38% + 6.92%+ 11.04% + 6.34%+ 17.35%
ETM Rank
#NA of NA
App exclusive
#NA of NA
ETM Rank: App exclusive
Fund Size
₹9,042 Cr
Return (p.a)
+ 3.4%+ 0.34% + 4.85%+ 0.82% + 5.63%+ 1.6% + 6.22%+ 3.32% + 6.92%+ 11.04% + 6.32%+ 17.31%
ETM Rank
#NA of NA
App exclusive
#NA of NA
ETM Rank: App exclusive
Fund Size
₹14,511 Cr
Return (p.a)
+ 4.07%+ 0.4% + 5.15%+ 0.87% + 5.71%+ 1.63% + 6.18%+ 3.29% + 6.84%+ 10.91% + 6.29%+ 17.21%
ETM Rank
#NA of NA
App exclusive
#NA of NA
ETM Rank: App exclusive
Fund Size
₹2,245 Cr
Return (p.a)
+ 4.58%+ 0.43% + 5.31%+ 0.89% + 5.84%+ 1.66% + 6.23%+ 3.32% + 6.81%+ 10.86% + 6.21%+ 16.99%
ETM Rank
#NA of NA
App exclusive
#NA of NA
ETM Rank: App exclusive
Fund Size
₹263 Cr
Return (p.a)
+ 3.69%+ 0.36% + 5.01%+ 0.84% + 5.54%+ 1.58% + 6.07%+ 3.23% + 6.83%+ 10.9% + 6.21%+ 16.98%
ETM Rank
#NA of NA
App exclusive
#NA of NA
ETM Rank: App exclusive
Fund Size
₹168 Cr
Return (p.a)
+ 3.86%+ 0.37% + 5.02%+ 0.85% + 5.57%+ 1.59% + 6.08%+ 3.25% + 6.62%+ 10.54% + 6.04%+ 16.47%
ETM Rank
#NA of NA
App exclusive
#NA of NA
ETM Rank: App exclusive
Fund Size
₹195 Cr
Return (p.a)
+ 4.18%+ 0.4% + 5.06%+ 0.86% + 5.41%+ 1.55% + 5.83%+ 3.11% + 6.5%+ 10.35% + 5.92%+ 16.13%
ETM Rank
#NA of NA
App exclusive
#NA of NA
ETM Rank: App exclusive
Fund Size
₹43 Cr
Return (p.a)
+ 4.31%+ 0.38% + 5.09%+ 0.85% + 5.49%+ 1.57% + 5.93%+ 3.17% + 6.39%+ 10.17% + 5.6%+ 15.21%
ETM Rank
#NA of NA
App exclusive
Show all 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 6.61% over the past 5 Years
SIP Calculator
Mutual Fund Calculator
Lumpsum CalculatorHow to invest in Arbitrage Funds?
Investing in Arbitrage mutual funds on the ET Money app is simple. Follow these steps:
For Desktop Users:
- Click on the "Invest" button next to the scheme in the Arbitrage fund list shown above.
- Scan the QR code to download the app.
For Mobile Users:
- Tap on the "Invest" button in the Arbitrage fund list to download the app.
- Open the app, sign up, and complete your one-time KYC process, or log in if you're already registered.
- Search for the mutual fund you want to invest in and choose your investment mode (Lump sum investment or SIP).
- Enter your investment amount.
- Fill in the required details, including your bank account for payment, and confirm.
All set! Your investment is complete.
Frequently Asked Questions
Which are the best Arbitrage Mutual Funds to invest in 2025?
These are top 5 Arbitrage funds you can invest in 2025
| Fund Name | Fund Category | Consistency | 5.0 Year Return (Annualized) |
|---|---|---|---|
| SBI Arbitrage Opportunities Fund | Hybrid | 5.82 % p.a. | |
| UTI Arbitrage Fund | Hybrid | 5.69 % p.a. | |
| Mahindra Manulife Arbitrage Fund | Hybrid | 4.45 % p.a. | |
| Bajaj Finserv Arbitrage Fund | Hybrid | NA | |
| JM Arbitrage Fund | Hybrid | 5.06 % 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 5.42% p.a. returns in the last 5 years. Their 3 and 10 year annualized returns are 6.76% and 5.68% p.a.
