Best Arbitrage Hybrid Mutual Funds

The word arbitrage defines simultaneous selling and buying of securities, currencies, etc. in different markets to gain maximum profits. Hybrid Arbitrage funds perform in the same way and are composed of only debt and cash securities. These are the ones that are very stable and offer little risk along with a three year annualized return ranging from 6 percent to 8 percent. It might go up to 9 percent depending on the market conditions.

However, these funds do come with an expense ratio, and if sold before three years 15 percent tax is imposed. Post that; there’s no fee on returns.

Purpose: Securely park your money without any fear of loss of money and gain returns that are equivalent to fixed deposits.

Top 10 Arbitrage Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
Indiabulls Arbitrage FundHybridModerately Low6.5%5star510
Reliance Arbitrage FundHybridModerately Low7.6%5star9,226
HDFC Arbitrage FundHybridModerately Low6.3%4star4,267
Axis Enhanced Arbitrage FundHybridModerate7.2%4star2,014
Kotak Equity Arbitrage FundHybridModerately Low7.0%4star13,184
Edelweiss Arbitrage FundHybridModerately Low6.9%4star3,561
BNP Paribas Arbitrage FundHybridModerately High7.0%3star719
L&T Arbitrage Opportunities FundHybridModerately Low6.9%3star870
IDFC Arbitrage FundHybridModerately Low7.2%3star2,906
UTI Arbitrage FundHybridModerately Low6.8%3star1,197
ICICI Prudential Equity Arbitrage FundHybridModerate7.0%3star8,629
Aditya Birla Sun Life Arbitrage FundHybridModerate6.8%3star3,719
Invesco India Arbitrage FundHybridModerately Low6.8%3star314
DHFL Pramerica Arbitrage FundHybridModerately Low6.5%2star525
HDFC Arbitrage FundHybridModerately Low6.3%2star3,516
View All Top 10 Arbitrage Mutual Funds

Let's have a closer look

Now let us jump and check about these top 10 mutual fund schemes.

Indiabulls Arbitrage Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Arbitrage segment and provided 6.89% annualized returns in the last 3 years. In the last 1 year, it gave 6.53% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.53% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Hybrid mutual fund in India.

Fund Manager: Malay Shah, Sumit Bhatnagar

Launch Date18 Dec 2014
Min Investment Amt500
Groww Rating5star
AUM510Cr
1Y Returns6.5%

Reliance Arbitrage Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Arbitrage segment and provided 7% annualized returns in the last 3 years. In the last 1 year, it gave 7.56% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.56% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Hybrid mutual fund in India.

Fund Manager: Payal Kaipunjal

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating5star
AUM9,226Cr
1Y Returns7.6%

HDFC Arbitrage Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Arbitrage segment and provided 6.51% annualized returns in the last 3 years. In the last 1 year, it gave 6.28% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.28% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Hybrid mutual fund in India.

Fund Manager: Krishan Daga

Launch Date31 Dec 2012
Min Investment Amt1,00,000
Groww Rating4star
AUM4,267Cr
1Y Returns6.3%

Axis Enhanced Arbitrage Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Arbitrage segment and provided 7.04% annualized returns in the last 3 years. In the last 1 year, it gave 7.2% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.2% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Hybrid mutual fund in India.

Fund Manager: Ashwin Patni, Devang Shah

Launch Date13 Aug 2014
Min Investment Amt5,000
Groww Rating4star
AUM2,014Cr
1Y Returns7.2%

Kotak Equity Arbitrage Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Arbitrage segment and provided 6.85% annualized returns in the last 3 years. In the last 1 year, it gave 6.98% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.98% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Hybrid mutual fund in India.

Fund Manager: Deepak Gupta

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating4star
AUM13,184Cr
1Y Returns7.0%

Edelweiss Arbitrage Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Arbitrage segment and provided 6.97% annualized returns in the last 3 years. In the last 1 year, it gave 6.93% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.93% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Hybrid mutual fund in India.

Fund Manager: Dhawal Dalal, Bhavesh Jain

Launch Date26 Jun 2014
Min Investment Amt5,000
Groww Rating4star
AUM3,561Cr
1Y Returns6.9%

BNP Paribas Arbitrage Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Arbitrage segment and provided -100% annualized returns in the last 3 years. In the last 1 year, it gave 7% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Hybrid mutual fund in India.

Fund Manager: Karthikraj Lakshmanan, Mayank Prakash

Launch Date29 Dec 2016
Min Investment Amt5,000
Groww Rating3star
AUM719Cr
1Y Returns7.0%

L&T Arbitrage Opportunities Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Arbitrage segment and provided 6.83% annualized returns in the last 3 years. In the last 1 year, it gave 6.93% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.93% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Hybrid mutual fund in India.

Fund Manager: Venugopal Manghat, Praveen Ayathan, Karan Desai

Launch Date29 Jun 2014
Min Investment Amt5,000
Groww Rating3star
AUM870Cr
1Y Returns6.9%

IDFC Arbitrage Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Arbitrage segment and provided 6.78% annualized returns in the last 3 years. In the last 1 year, it gave 7.15% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.15% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Hybrid mutual fund in India.

Fund Manager: Yogik Pitti, Harshal Joshi, Arpit Kapoor

Launch Date31 Dec 2012
Min Investment Amt100
Groww Rating3star
AUM2,906Cr
1Y Returns7.2%

UTI Arbitrage Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Arbitrage segment and provided 6.68% annualized returns in the last 3 years. In the last 1 year, it gave 6.79% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.79% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Hybrid mutual fund in India.

Fund Manager: Kaushik Basu

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating3star
AUM1,197Cr
1Y Returns6.8%

ICICI Prudential Equity Arbitrage Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Arbitrage segment and provided 6.91% annualized returns in the last 3 years. In the last 1 year, it gave 7.01% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.01% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Hybrid mutual fund in India.

Fund Manager: Kayzad Englim, Manish Banthia

Launch Date6 Jan 2013
Min Investment Amt5,000
Groww Rating3star
AUM8,629Cr
1Y Returns7.0%

Aditya Birla Sun Life Arbitrage Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Arbitrage segment and provided 6.73% annualized returns in the last 3 years. In the last 1 year, it gave 6.76% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.76% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Hybrid mutual fund in India.

Fund Manager: Lovelish Solanki

Launch Date31 Dec 2012
Min Investment Amt1,000
Groww Rating3star
AUM3,719Cr
1Y Returns6.8%

Invesco India Arbitrage Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Arbitrage segment and provided 6.7% annualized returns in the last 3 years. In the last 1 year, it gave 6.85% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.85% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Hybrid mutual fund in India.

Fund Manager: Pranav Gokhale

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating3star
AUM314Cr
1Y Returns6.8%

DHFL Pramerica Arbitrage Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Arbitrage segment and provided -100% annualized returns in the last 3 years. In the last 1 year, it gave 6.51% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.51% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Hybrid mutual fund in India.

Fund Manager: Utkarsh Katkoria, Hitash Dang

Launch Date26 Aug 2014
Min Investment Amt5,000
Groww Rating2star
AUM525Cr
1Y Returns6.5%

HDFC Arbitrage Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Arbitrage segment and provided 6.52% annualized returns in the last 3 years. In the last 1 year, it gave 6.29% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.29% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Hybrid mutual fund in India.

Fund Manager: Krishan Daga

Launch Date3 Apr 2014
Min Investment Amt1,00,000
Groww Rating2star
AUM3,516Cr
1Y Returns6.3%

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Who issues Arbitrage mutual funds?

Asset management companies (or AMCs or fund houses) create mutual funds. All AMCs will have to be approved by the government body, Securities and Exchange Board of India (SEBI). All mutual funds have to be whetted by SEBI before it is open for the public to invest.

How to invest in Arbitrage mutual funds on Groww?

One of the best ways to hedge against the small-cap volatility is to adopt a phased approach, also known as Systematic Investment Plan (SIP) approach. We are sure that you must be aware of SIP and its benefits. Buying in small quantity but buying regularly provides you with faster growth. On Groww.in, all transactions to and from AMC is done via BSE. When you decide to invest in a large cap mutual fund of your choice, you choose that mutual fund on the website and click ‘invest’. Following that, you are redirected to the BSE page where you make the payment. BSE then directs your money to the AMC managing your mutual fund. To be assured at your end, you can visit the individual AMC website after the payment. You would be able to see all your purchased units against your folio number.

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Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.
Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, investment goal, time frame, risk and reward balance and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs.
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