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Arbitrage Funds Mutual Funds

Find here some best Arbitrage Funds fund to invest

  • Annual Returns 5.81%
  • Average Risk Medium
  • Total Funds 23

What is Arbitrage Funds Mutual Fund?

Arbitrage mutual funds seek to take the benefit of arbitrage opportunities to deliver capital appreciation at a little or no risk. The fund manager of arbitrage funds takes advantage of the price difference of an instrument to gain decent capital gains. These funds offer low risk and generate average returns hence they are suitable for conservative investors who seek capital appreciation in short-term at low risk.

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Top Performing Arbitrage Funds in India for High Return

AMC List

  • Kotak
  • Aditya Birla Sun Life
  • ICICI
  • Tata
  • HDFC
  • SBI
  • UTI
  • Nippon
  • Sundaram
  • Canara
  • Invesco
  • Axis
  • Baroda BNP Paribas
  • DSP
  • EDELWEISS
  • Franklin
  • HSBC
  • LIC
  • Mirae Asset
  • Motilal Oswal
  • Mahindra
  • PGIM
  • WOC
  • Bandhan
  • 360 One
  • Bajaj Finserv
  • Quant
  • Parag Parikh
  • ITI

Minimum SIP Amt.

  • ₹100 - ₹500
  • ₹500 - ₹1000
  • ₹1000 - ₹5000

Fund Option

  • Growth
  • Dividend
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Snapshot

Returns

Risk

Information

NAV Details

Compare Funds

Lumpsum 3Y P.a 6.56%
SIP 3Y P.a. 7.18%
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Lumpsum 3Y P.a 6.43%
SIP 3Y P.a. 7.21%
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Lumpsum 3Y P.a 6.37%
SIP 3Y P.a. 7.1%
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Lumpsum 3Y P.a 6.23%
SIP 3Y P.a. 7.02%
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Lumpsum 3Y P.a 6.18%
SIP 3Y P.a. 7.02%
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Lumpsum 3Y P.a 6.16%
SIP 3Y P.a. 6.98%
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Lumpsum 3Y P.a 6.14%
SIP 3Y P.a. 6.99%
Return Vs Category

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Lumpsum 3Y P.a 6.13%
SIP 3Y P.a. 6.85%
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Lumpsum 3Y P.a 6.1%
SIP 3Y P.a. 6.92%
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Lumpsum 3Y P.a 6.08%
SIP 3Y P.a. 6.91%
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Short Term

Long Term

SIP

Rolling Term

1 Week 0.1%
1 Month 0.59%
3 Months 1.7%
6 Months 3.7%
1 Year 7.6%
Invest
1 Week 0.19%
1 Month 0.73%
3 Months 1.75%
6 Months 3.82%
1 Year 7.81%
Invest
1 Week 0.1%
1 Month 0.6%
3 Months 1.67%
6 Months 3.62%
1 Year 7.52%
Invest
1 Week 0.11%
1 Month 0.63%
3 Months 1.68%
6 Months 3.62%
1 Year 7.61%
Invest
1 Week 0.09%
1 Month 0.61%
3 Months 1.71%
6 Months 3.69%
1 Year 7.64%
Invest
1 Week 0.1%
1 Month 0.63%
3 Months 1.73%
6 Months 3.7%
1 Year 7.56%
Invest
1 Week 0.09%
1 Month 0.63%
3 Months 1.71%
6 Months 3.7%
1 Year 7.63%
Invest
1 Week 0.1%
1 Month 0.62%
3 Months 1.66%
6 Months 3.6%
1 Year 7.51%
Invest
1 Week 0.1%
1 Month 0.6%
3 Months 1.67%
6 Months 3.66%
1 Year 7.51%
Invest
1 Week 0.1%
1 Month 0.62%
3 Months 1.68%
6 Months 3.62%
1 Year 7.5%
Invest
2 Years 7.6%
3 Years 6.56%
5 Years 5.47%
Annual Rt 6.57%
Invest
2 Years 7.76%
3 Years 6.43%
5 Years 5.53%
Annual Rt 6.91%
Invest
2 Years 7.64%
3 Years 6.37%
5 Years 5.31%
Annual Rt 6.73%
Invest
2 Years 7.51%
3 Years 6.23%
5 Years 5.41%
Annual Rt 6.33%
Invest
2 Years 7.53%
3 Years 6.18%
5 Years 5.19%
Annual Rt 6.51%
Invest
2 Years 7.47%
3 Years 6.16%
5 Years 5.32%
Annual Rt 6.88%
Invest
2 Years 7.51%
3 Years 6.14%
5 Years 5.33%
Annual Rt 6.8%
Invest
2 Years 7.31%
3 Years 6.13%
5 Years 5.23%
Annual Rt 5.83%
Invest
2 Years 7.44%
3 Years 6.1%
5 Years 5.13%
Annual Rt 6.54%
Invest
2 Years 7.42%
3 Years 6.08%
5 Years 5.26%
Annual Rt 6.28%
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Min SIP ₹500
Min Lumpsum ₹1000
Expense Ratio 1.06%
Fund Manager Deepak Gupta
Launch Date 30-Apr 2007
Invest
Min SIP ₹100
Min Lumpsum ₹100
Expense Ratio 1.01%
Fund Manager Hiten Shah
Launch Date 29-Sep 2005
Invest
Min SIP ₹500
Min Lumpsum ₹5000
Expense Ratio 0.96%
Fund Manager R Arun
Launch Date 03-Nov 2006
Invest
Min SIP ₹100
Min Lumpsum ₹100
Expense Ratio 1.09%
Fund Manager Dhawal Dalal
Launch Date 05-Jun 2014
Invest
Min SIP ₹100
Min Lumpsum ₹100
Expense Ratio 0.93%
Fund Manager Anil Bamboli
Launch Date 10-Oct 2007
Invest
Min SIP ₹1000
Min Lumpsum ₹5000
Expense Ratio 0.9%
Fund Manager Kayzad Eghlim
Launch Date 30-Dec 2006
Invest
Min SIP ₹500
Min Lumpsum ₹5000
Expense Ratio 0.9%
Fund Manager Sharwan Kumar Goyal
Launch Date 22-Jun 2006
Invest
Min SIP ₹100
Min Lumpsum ₹500
Expense Ratio 1.01%
Fund Manager Devang Shah
Launch Date 20-Aug 2014
Invest
Min SIP ₹100
Min Lumpsum ₹100
Expense Ratio 1.11%
Fund Manager Harshal Joshi
Launch Date 21-Dec 2006
Invest
Min SIP ₹100
Min Lumpsum ₹1000
Expense Ratio 1.03%
Fund Manager Lovelish Solanki
Launch Date 24-Jul 2009
Invest
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Comparison of Top Arbitrage Funds Funds

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  • Invested Amount ₹43,855
  • Interest Earned ₹6,145

Arbitrage Funds - Beneficial than Debt Funds and Secure than Equity Funds

Arbitrage Funds sounds to be some sort of very complicated type of mutual fund. But, the reality is something different. It is actually very easy to Arbitrage Funds understand and invest. The basic idea behind the launch of Arbitrage mutual funds, was to introduce such an equity fund which will earn the profits from the different prices of the same commodity. The Arbitrage and Arbitrage Plus mutual funds buy in the shares in cash from the equity market and sell them in the future market. Both the processes work simultaneously. Implying that as and when the equity shares are bought firm the share market under Arbitrage Funds at the same time they are sold to in the future market. The difference between Arbitrage mutual funds is that in Arbitrage MF all shares bought from the capital market is resold in the futures market. But, in Arbitrage Plus Mutual Fund all the equity shares are not sold in the futures market. Apart from this difference there is no other difference in both the funds.

Let us understand the meaning of Arbitrage and Arbitrage Plus mutual funds with the help of a simple example. Suppose, the AMC (Asset Management Company) providing Arbitrage and Arbitrage Plus mutual funds intends to invest in the equity shares of ABC Ltd. The per share price of the company in the equity market is Rs. 500 and that in the future market is Rs. 520. The fund managers of Arbitrage and Arbitrage Plus mutual funds for the AMC will buy the shares of ABC Ltd. and simultaneously sell them in the futures market. The reason of preferring Arbitrage and Arbitrage Plus mutual funds over debt funds and equity funds is that you get the benefit of both the schemes in one single fund. 

 Arbitrage and Arbitrage Plus mutual funds share negligible risk as the equities are bought and sold simultaneously. Only Arbitrage mutual fund keeps some equities unsold and share a little risk but that too, very low. On the other hand, the Arbitrage and Arbitrage Plus mutual funds deal in equity shares so the returns are not fixed. They fluctuate with the bullish or bearish market conditions. Thus, they provide the scope for returns which are not stagnant. 

Arbitrage and Arbitrage Plus Fund's Advantage

The Arbitrage Funds have many advantages over debt funds and equity-based funds. They are as follows: 

  1. Risk-free investing: As the equities are bought in the capital market and sold in the futures market simultaneously under Arbitrage and Arbitrage Plus mutual funds, the risk factor is almost reduced to zero. There is a little risk in the Arbitrage Plus Mutual Fund, as it keeps some equity shares that are not sold in the futures market. Thus, Arbitrage and Arbitrage Plus mutual funds give capital-appreciation and at the same time saves the clients from the market fluctuations.
  2. Tax-benefit: Arbitrage and Arbitrage Plus mutual funds provide greater tax-benefit because you can keep them for one year and have to pay the same tax as you would have paid for the equity-oriented funds. Thus, enjoying the benefits of security and capital-appreciation at the same time you have tax-efficient scheme in your portfolio.
  3. Higher returns than debt funds: Arbitrage and Arbitrage Plus mutual funds have a high rate of return that lies between 7-8% as compared to debt funds (4-5%). Thus, providing a risk-free investing option in the equities and also giving fairly good returns, Arbitrage and Arbitrage Plus mutual funds online are on the priority list of investors. 

You can definitely reach our site and take the advice of our experts for investment in various mutual fund categories in order to give your portfolio an interesting twist and that too with no extra cost.

Frequently Asked Questions

Who should invest in Arbitrage Funds Mutual Funds?
Arbitrage Funds funds are suitable for the investors who can digest high risk in search for higher returns. Moreover, these funds are not suitable for the investors who are stepping in the finance market with a short term investment perspective as they might end up delivering negative returns.
What is the minimum investment required for investing in Arbitrage Funds funds?
The minimum investment depends from one scheme to another. In general, for lumpsum investment the minimum investment can range from Rs. 500 to Rs. 5000. Whereas, in case of SIP, the range may vary between Rs. 500 to Rs. 1000. For authentic information, never forget to check the scheme related documents.
What is the investment philosophy followed by Arbitrage Funds companies?
The fund manager of Arbitrage Funds fund targets the best small sized companies having the potential to generate excellent gains in the future. Such companies do not have much resources as the large cap or mid cap companies but have high potential to outperform many big companies.
Why to invest in Arbitrage Funds funds?
Arbitrage Funds funds have more tendency of providing exceptional returns than the other categories of funds. Moreover, they can also be a suitable option for providing diversification to your portfolio.
How risky are Arbitrage Funds funds?
Arbitrage Funds funds are one of the riskiest mutual funds. But at the same time rewards are also high. Therefore, an investor who is willing to expose his corpus towards risk for fetching higher returns should invest in Arbitrage Funds funds.
Are Arbitrage Funds Funds for long term investment?
Yes, Arbitrage Funds funds are a suitable choice for generating long term capital appreciation. Moreover, in short term these funds can cause double digit losses to the investors. Thus, always maintain a long term investment perspective while investing in Arbitrage Funds mutual funds.
What is the benchmark of Arbitrage Funds Fund?
Benchmark is a standard with which a mutual fund competes in terms of growth & performance. Different Arbitrage Funds funds have different benchmark. Thus, read the mutual fund document carefully to know the benchmark.
What are the taxes applied on Arbitrage Funds Mutual Funds?
Arbitrage Funds funds are eligible for two types of taxes- STCG (Short Term Capital Gain) and LTCG (Long Term Capital Gain). STCG is the capital gain generated on the units which are hold for up to 1 year. The STCG tax imposed by the Government of India is 15%. LTCG is the profit generated on the units which are hold for more than one years. The LTCG levied is 10% for the profit above Rs. 1 Lakh.

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