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Best Arbitrage Funds

Ranked by 3-Year Sharpe • 35 schemes • Group: Hybrid • Benchmark: Nifty 50 • Data as of 2026-11-11

Funds following arbitrage strategies across cash and derivative market segments with minimum 65% gross equity. Across 35 analyzed schemes, the top-ranked fund is Kotak Arbitrage Fund (3Y CAGR +6.82%). The category median 3-year CAGR stands at +6.54%, median expense ratio is 2.12%, and median MFIQ score is 5.1/10.

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Rank Scheme Score 1Y Return 3Y CAGR 5Y CAGR Alpha Beta Expense Upside Downside Fund Size
#1
KM
Kotak Mahindra Mutual Fund
3Y: +6.82% • 5Y: +6.39% • AUM: Rs 76,564 cr
6.3 +6.31% +6.82% +6.39% - - 2.86% - - Rs 76,564 cr
#2
UT
UTI Mutual Fund
3Y: +6.77% • 5Y: +6.22% • AUM: Rs 11,067 cr
6.6 +6.20% +6.77% +6.22% - - 1.80% - - Rs 11,067 cr
#3
IN
Invesco Mutual Fund
3Y: +6.77% • 5Y: +6.48% • AUM: Rs 32,388 cr
6.2 +6.37% +6.77% +6.48% - - 2.82% - - Rs 32,388 cr
#4
HD
HDFC Mutual Fund
3Y: +6.74% • 5Y: +6.22% • AUM: Rs 26,069 cr
6.3 +6.29% +6.74% +6.22% - - 2.02% - - Rs 26,069 cr
#5
ED
Edelweiss Mutual Fund
3Y: +6.67% • 5Y: +6.23% • AUM: Rs 13,897 cr
6.5 +6.12% +6.67% +6.23% - - 2.20% - - Rs 13,897 cr
#6
AB
Aditya Birla Sun Life Mutual Fund
3Y: +6.66% • 5Y: +6.15% • AUM: Rs 27,972 cr
5.9 +6.15% +6.66% +6.15% - - 1.92% - - Rs 27,972 cr
#7
TA
Tata Mutual Fund
3Y: +6.63% • 5Y: +6.11% • AUM: Rs 24,777 cr
5.3 +6.13% +6.63% +6.11% - - 2.20% - - Rs 24,777 cr
#8
PP
PPFAS Mutual Fund
3Y: +6.60% • 5Y: - • AUM: Rs 2,724 cr
6.5 +6.27% +6.60% - - - 1.39% - - Rs 2,724 cr
#9
UN
Union Mutual Fund
3Y: +6.57% • 5Y: +6.02% • AUM: Rs 240 cr
4.4 +6.22% +6.57% +6.02% - - 2.29% - - Rs 240 cr
#10
AX
Axis Mutual Fund
3Y: +6.63% • 5Y: +6.16% • AUM: Rs 10,449 cr
5.3 +6.13% +6.63% +6.16% - - 2.09% - - Rs 10,449 cr
#11
MA
Mirae Asset Mutual Fund
3Y: +6.54% • 5Y: +6.07% • AUM: Rs 3,802 cr
4.3 +6.13% +6.54% +6.07% - - 3.19% - - Rs 3,802 cr
#12
IT
ITI Mutual Fund
3Y: +6.54% • 5Y: +5.56% • AUM: Rs 63.1 cr
4.8 +5.97% +6.54% +5.56% - - 1.77% - - Rs 63.1 cr
#13
HS
HSBC Mutual Fund
3Y: +6.53% • 5Y: - • AUM: Rs 3,803 cr
5.6 +6.18% +6.53% - - - 2.03% - - Rs 3,803 cr
#14
DS
DSP Mutual Fund
3Y: +6.52% • 5Y: +6.07% • AUM: Rs 6,701 cr
5.1 +6.02% +6.52% +6.07% - - 1.80% - - Rs 6,701 cr
#15
SU
Sundaram Mutual Fund
3Y: +6.47% • 5Y: - • AUM: Rs 576 cr
5.1 +6.26% +6.47% - - - 1.69% - - Rs 576 cr
#16
BA
Bandhan Mutual Fund
3Y: +6.53% • 5Y: +6.08% • AUM: Rs 7,699 cr
3.5 +5.90% +6.53% +6.08% - - 2.31% - - Rs 7,699 cr
#17
LI
LIC Mutual Fund
3Y: +6.41% • 5Y: +5.93% • AUM: Rs 300 cr
4.5 +6.22% +6.41% +5.93% - - 1.62% - - Rs 300 cr
#18
BB
Baroda BNP Paribas Mutual Fund
3Y: +6.36% • 5Y: - • AUM: Rs 1,014 cr
4.2 +5.60% +6.36% - - - 2.23% - - Rs 1,014 cr
#19
PI
PGIM India Mutual Fund
3Y: +6.35% • 5Y: +5.84% • AUM: Rs 109 cr
3.7 +6.12% +6.35% +5.84% - - 1.91% - - Rs 109 cr
#20
JF
JM Financial Mutual Fund
3Y: +6.27% • 5Y: +5.81% • AUM: Rs 418 cr
2.6 +5.98% +6.27% +5.81% - - 2.11% - - Rs 418 cr
#21
BF
Bajaj Finserv Mutual Fund
3Y: +6.27% • 5Y: - • AUM: Rs 1,352 cr
4.1 +6.05% +6.27% - - - 1.97% - - Rs 1,352 cr
#22
BO
Bank of India Mutual Fund
3Y: +6.26% • 5Y: +5.50% • AUM: Rs 129 cr
2.0 +6.07% +6.26% +5.50% - - 2.85% - - Rs 129 cr
#23
NJ
NJ Mutual Fund
3Y: +6.10% • 5Y: - • AUM: Rs 222 cr
3.3 +5.89% +6.10% - - - 1.66% - - Rs 222 cr
#24
MM
Mahindra Manulife Mutual Fund
3Y: +5.62% • 5Y: +5.09% • AUM: Rs 143 cr
3.3 +5.56% +5.62% +5.09% - - 1.91% - - Rs 143 cr
#25
QU
quant Mutual Fund
3Y: - • 5Y: - • AUM: Rs 1,185 cr
8.0 +7.17% - - - - 2.22% - - Rs 1,185 cr
#26
WC
WhiteOak Capital Mutual Fund
3Y: - • 5Y: - • AUM: Rs 3,150 cr
6.2 +6.55% - - - - 3.02% - - Rs 3,150 cr
#27
MO
Motilal Oswal Mutual Fund
3Y: - • 5Y: - • AUM: Rs 3,557 cr
6.0 +6.19% - - - - - - - Rs 3,557 cr
#28
TR
Trust Mutual Fund
3Y: - • 5Y: - • AUM: Rs 147 cr
3.8 +5.96% - - - - 2.12% - - Rs 147 cr
#29
TW
The Wealth Company Mutual Fund
3Y: - • 5Y: - • AUM: Rs 117 cr
2.8 +5.83% - - - - 2.14% - - Rs 117 cr
#30
OB
Old Bridge Mutual Fund
3Y: - • 5Y: - • AUM: Rs 227 cr
3.8 - - - - - 1.91% - - Rs 227 cr
#31
SA
Samco Mutual Fund
3Y: - • 5Y: - • AUM: Rs 23.2 cr
0.8 +3.94% - - - - 2.60% - - Rs 23.2 cr
-
CA
Capitalmind Mutual Fund
3Y: - • 5Y: - • AUM: Rs 23.1 cr
5.6 - - - - - 2.03% - - Rs 23.1 cr
-
HE
Helios Mutual Fund
3Y: - • 5Y: - • AUM: Rs 134 cr
6.1 - - - - - 2.17% - - Rs 134 cr
-
GR
Groww Mutual Fund
3Y: - • 5Y: - • AUM: Rs 63.3 cr
4.4 - - - - - 2.49% - - Rs 63.3 cr
-
JB
Jio BlackRock Mutual Fund
3Y: - • 5Y: - • AUM: Rs 597 cr
5.1 - - - - - 3.51% - - Rs 597 cr

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Frequently Asked Questions about Arbitrage Funds

What investment mandate defines Arbitrage funds?

Funds following arbitrage strategies across cash and derivative market segments with minimum 65% gross equity.

Which is the highest-ranked Arbitrage fund?

The top fund in this category is Kotak Arbitrage Fund with a 3Y CAGR of +6.82% and an MFIQ Score of 6.3/10.

What is the median expense ratio for Arbitrage funds?

Across regular growth options in this category, the median total expense ratio (TER) is 2.12%.