Kotak Arbitrage Fund

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

The Kotak Arbitrage Fund is a 20 yrs 3 m old fund and has delivered average annual returns of 6.88% since inception. Kotak Arbitrage Fund Returns 1-Year 3-Year 5-Year 10-Year Since Inception 6.34% 7.28% 5.99% 5.92% 6.88%

Q: How much does this mutual fund charge as expense ratio?

The Kotak Arbitrage Fund has an expense ratio of 1.05% , 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.

Previously called: Kotak Equity Arbitrage Reg-G

NAV as of Dec 04, 2025	Returns since inception	ET Money Rank	AUM (Fund size)
₹38.3617+0.0% 1 day change	6.88% p.a.	App exclusive #NA View Ranked Funds	₹72,279 Cr

Historical NAV & returns

NAV: ₹38.3617 as on Dec 04, 2025

This fund Category average

Kotak Arbitrage Fund overview

AUM (Fund size)	₹72,279 Cr
Exit load	0.25% Exit load of 0.25% if redeemed within 30 days!
Lock-in Period	Nil
Age	20 yrs 3 m since Sep 12, 2005
Benchmark	NIFTY 50 Arbitrage TRI
Min. investment	SIP: ₹500 & Lumpsum: ₹1000
Expense ratio	1.05% as on Nov 30, 2025
Plan type	Regular
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%

Kotak 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 Dec 05, 2025

Period	This fund	Category average
1 Month	0.5%	0.45%
3 Months	1.37%	1.37%
6 Months	2.85%	2.79%
1 Year	6.34%	6.16%
2 Years	7.15%	6.79%
3 Years	7.28%	6.94%
4 Years	6.45%	6.07%
5 Years	5.99%	5.59%
7 Years	5.76%	5.42%
10 Years	5.92%	5.62%

Asset allocationas on Oct 31, 2025

Large Cap -0.3%

Mid Cap -0.1%

Small Cap -0.02%

Other Cap 0%

Top holdings

HDFC Bank Ltd.3.07%

ICICI Bank Ltd.2.49%

Eternal Ltd.2.04%

Reliance Industries Ltd.1.84%

Top sectors

Financial 22.320000000000004%

Services 8.41%

Metals & Mining 7.98%

Energy 7.39%

Cash 83.0366337%

A1+ 12.37946249%

SOV 2.384193%

AAA 1.572532%

Top Debt Holdings

National Bank For Agriculture & Rural Development 0.61%

Small Industries Devp. Bank of India Ltd. 0.44%

Allocation by Instruments

Cash Margin 83.0366337%

Mutual Fund 16.19483043%

Repo 2.45030334%

Certificate of Deposit 0.6079549%

Other Holdings

Kotak Money Market Fund Direct-Growth 11.36%

Kotak Savings Fund Direct-Growth 4.84%

Others 2.45%

Detailed portfolio analysis

Peer comparison

Fund name	1M	6M	1Y	3Y	5Y	10Y
Kotak Arbitrage Fund	0.5%	2.85%	6.34%	7.28%	5.99%	5.92%
Invesco India Arbitrage Fund	0.51%	2.92%	6.33%	7.2%	5.97%	5.8%
Tata Arbitrage Fund	0.49%	2.8%	6.27%	7.03%	5.71%	3.93%
ICICI Prudential Equity Arbitrage Fund	0.48%	2.83%	6.32%	7.1%	5.81%	5.78%
Edelweiss Arbitrage Fund	0.49%	2.84%	6.3%	7.12%	5.84%	5.85%
Axis Arbitrage Fund	0.5%	2.81%	6.25%	6.98%	5.73%	5.69%

Fund name	Std. deviation	Beta	Sharpe	Sortino
Kotak Arbitrage Fund	0.41	0.14	1.94	3.18
Invesco India Arbitrage Fund	0.37	0.08	2.01	3.19
Tata Arbitrage Fund	0.36	0.2	1.6	2.49
ICICI Prudential Equity Arbitrage Fund	0.38	0.21	1.69	2.57
Edelweiss Arbitrage Fund	0.4	0.14	1.65	2.54
Axis Arbitrage Fund	0.38	0.15	1.39	2.15

Fund name	ETM Rank	AUM	Fund age	Expense ratio
Kotak Arbitrage Fund	N.A.	72,279 Cr	20 yrs 3 m	1.05%
Invesco India Arbitrage Fund	N.A.	27,560 Cr	18 yrs 8 m	1.06%
Tata Arbitrage Fund	N.A.	20,107 Cr	7 yrs	1.09%
ICICI Prudential Equity Arbitrage Fund	N.A.	32,196 Cr	19 yrs 1 m	0.93%
Edelweiss Arbitrage Fund	N.A.	16,687 Cr	11 yrs 6 m	1.07%
Axis Arbitrage Fund	N.A.	7,873 Cr	11 yrs 4 m	1.02%

View all Arbitrage funds

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

Alpha	1.05 vs. 2.08 Underperformed at beating benchmark
Sharpe	1.94 vs. 1.96 Poor risk-adjusted returns
Beta	0.14 vs. 0.71 Less sensitive to market ups & downs
Standard deviation	0.41 vs. 0.27 More volatile performance

Compare Kotak Arbitrage Fund in detail with

About this fund

About Kotak Arbitrage Fund

Kotak Arbitrage Fund is a Arbitrage mutual fund scheme from Kotak Mahindra Mutual Fund. This fund has been in existence for 20 yrs 3 m, having been launched on 12/09/2005. Kotak Arbitrage Fund has ₹72,279 Crores worth of assets under management (AUM) as on 31/10/2025 and is medium-sized fund of its category. The latest Net Asset Value (NAV) of Kotak Arbitrage Fund as of 04/12/2025 is ₹38.36. The fund has an expense ratio of 1.05%, which is higher than what most other Arbitrage funds charge. Currently, the fund has a -0.42% allocation to equity and 16.88% to Debt.

Kotak Arbitrage Fund returns of last 1-year are 6.36%. Since launch, it has delivered 6.88% average annual returns. The fund has doubled the money invested in it every 12 yrs.
Kotak Arbitrage Fund 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 above average.
The fund's equity portion is primarily invested in Financial, Unclassified, Services, Metals & Mining, Energy 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 Kotak Money Market Fund Direct-Growth, Kotak Savings Fund Direct-Growth, HDFC Bank Ltd., ICICI Bank Ltd., Eternal Ltd..

...

Fund AUM	72,279 Cr as on Oct 31, 2025
Scheme document	View Scheme Document

Fund managers

Hiten Shah

Mr. Shah is a Masters in Management Studies (Finance) from Mumbai University. Prior to joining Kotak Mahindra Mutual fund, he was associated with Edelweiss Asset Management for more than 8 years as a CoFund manager and Chief dealer in equities segment. He was also associated with Edelweiss securities Ltd. as low risk arbitrage trader for more than 3 years.

Investment objective

The scheme aims to generate income through arbitrage opportunities emerging out of pricing anomaly between the spot & futures market; and also through deployment of surplus cash in fixed income instruments.

Kotak Mahindra Mutual Fund details

No. of schemes	84 view all schemes
Total AUM	5,66,982 Cr as on Sep 30, 2025
Address	The Capital Building, Behind ICICI Bank, G Block BKC, Bandra Kurla Complex Bandra (E) Mumbai, 400051
Phone	022-61152100 / 1800-22-2626

More funds from Kotak Mahindra Mutual Fund

Fund name	ETM Rank	AUM	1Y	5Y
Kotak Multi Asset Omni FoF	N.A.	2,084 Cr	13.07%	18.99%
Kotak Balanced Advantage Fund	N.A.	17,874 Cr	4.57%	11.08%
Kotak Equity Savings Fund	N.A.	9,023 Cr	6.28%	11.02%
Kotak Debt Hybrid Fund	N.A.	3,124 Cr	3.95%	9.83%
Kotak Multi Asset Allocation Fund	N.A.	9,429 Cr	14.29%	N.A.

See all Hybrid funds from this AMC

Frequently asked questions

What is the current NAV of Kotak Arbitrage Fund?

The current Net Asset Value (NAV) of the Kotak Arbitrage Fund plan is approximately ₹38.3617 as of Dec 04, 2025.

What are the returns of this mutual fund scheme?

The Kotak Arbitrage Fund is a 20 yrs 3 m old fund and has delivered average annual returns of 6.88% since inception.

Kotak Arbitrage Fund Returns

1-Year	3-Year	5-Year	10-Year	Since Inception
6.34%	7.28%	5.99%	5.92%	6.88%

How much does this mutual fund charge as expense ratio?

The Kotak Arbitrage Fund has an expense ratio of 1.05%, 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 Kotak Arbitrage Fund currently has assets under management (AUM) or fund size valued at approximately 72,279 Cr as on Oct 31, 2025.

What is risk level of Kotak 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 can I redeem my investments in Kotak Arbitrage Fund?

Redeeming your investments in the Kotak 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

Return Consistency: This fund is one of the best in generating consistent return in it's category.
Return Outperformance: This fund has generated highest return amongst Arbitrage funds in the last 10 Years.
Volatility Protection: This fund ranks lower in terms of protecting against volatility within its category.
Return/Risk: The fund is performing poorly than its category.
Exit Load: Exit load of 0.25% if redeemed within 30 days