HSBC Arbitrage Fund - Regular Growth
💡 Why Pick This Fund? Quantitative Strengths & Watch-outs
- Delivered positive returns in 100% of 3-year investment horizons.
- Over 12 years of operational history across different market cycles.
- Equities carry market risk; returns fluctuate and recommended investment horizon is 5+ years.
Key Statistics vs Category Median
Trailing Returns Comparison
| Period | Fund Return | Category Median | Difference |
|---|---|---|---|
| 1 Month | +0.68% | +0.72% | -0.04% |
| 3 Months | +1.37% | +1.49% | -0.12% |
| 6 Months | +3.04% | +3.04% | 0.00% |
| 1 Year | +6.18% | +6.13% | +0.05% |
| 3 Years CAGR | +6.53% | +6.54% | -0.01% |
| Since Inception | +6.73% | - | - |
📈 Monthly SIP vs Bank Fixed Deposit (FD) Replay
See how a regular monthly SIP in HSBC Arbitrage Fund compares against a standard 7.0% p.a. Bank Fixed Deposit.
Calendar Year Returns
| Year | Fund | Category Median | Gap |
|---|---|---|---|
| 2026 | +5.24% | +5.16% | +0.08% |
| 2025 | +6.23% | +6.23% | 0.00% |
| 2024 | +7.33% | +7.46% | -0.13% |
| 2023 | +7.07% | +7.05% | +0.02% |
Daily Rolling Returns Summary
| Rolling Window | Minimum | Average | Median | Maximum | % Positive | % Beating Proxy |
|---|---|---|---|---|---|---|
| 1-Year Rolling | +5.46% | +6.74% | +6.83% | +7.86% | 100.0% | - |
| 3-Year Rolling | +6.44% | +6.74% | +6.76% | +6.98% | 100.0% | - |
Risk Profile & Deepest Drawdowns
Portfolio & Asset Allocation
Statutory Asset Allocation Mandate (SEBI / SID)
| Instrument Category | Permitted Allocation Range |
|---|---|
| Equity and equity related securities and equity derivatives | 65% -90% Debt instruments in CDs, government securities with maturities upto 1 year, mutual fund units of liquid, money market or schemes having Macaulay duration less than 1 year for meeting liquidity and margin requirements : 10-35% |
Investment Objective & Strategy
The investment objective of the Scheme is to seek to generate reasonable returns by predominantly investing in arbitrage opportunities in the cash and derivatives segments of the equity markets and by investing balance in debt and money market instruments. There is no assurance that the objective of the Scheme will be realised and the Scheme does not assure or guarantee any returns.
ℹ️ Detailed monthly stock-level holdings for this scheme are updated periodically from asset management company statutory disclosures.
Fund Size Position
Currently managing Rs 3,803 cr (AMFI Daily Fund AUM as of 2026-11-11). Positioned as comfortable relative to Arbitrage schemes.
Fund Management
Cost & Capital Gains Taxation
From April 2026 the total expense ratio includes brokerage, transaction costs and statutory levies on top of the base fee.
Equity-oriented schemes: 20% short-term capital gains tax if sold within 12 months; 12.5% long-term capital gains tax on gains exceeding ₹1.25 lakh per financial year when held for more than 12 months.
Closest Arbitrage Peers by Rank
| Scheme | Score | 3Y Return | Expense | Downside | Fund Size | Compare |
|---|---|---|---|---|---|---|
| ITI Arbitrage Fund | 4.8 | +6.54% | 1.77% | - | Rs 63.1 cr | Compare → |
| DSP Arbitrage Fund | 5.1 | +6.52% | 1.80% | - | Rs 6,701 cr | Compare → |
| Mirae Asset Arbitrage Fund | 4.3 | +6.54% | 3.19% | - | Rs 3,802 cr | Compare → |
| Sundaram Arbitrage Fund Formerly Know as Principal Arbitrage Fund | 5.1 | +6.47% | 1.69% | - | Rs 576 cr | Compare → |
| Axis Arbitrage Fund | 5.3 | +6.63% | 2.09% | - | Rs 10,449 cr | Compare → |
Frequently Asked Questions about HSBC Arbitrage Fund
What is the expense ratio of HSBC Arbitrage Fund?
HSBC Arbitrage Fund has a total expense ratio (TER) of 2.03% with a base expense ratio of 0.75%, compared to the Arbitrage category median of 2.12%.
Who manages HSBC Arbitrage Fund?
HSBC Arbitrage Fund is managed by Praveen Ayathan.
What are the historical returns of HSBC Arbitrage Fund?
HSBC Arbitrage Fund delivered a 3-year CAGR of 6.53%. Its 1-year return stands at +6.18%.
How large is HSBC Arbitrage Fund?
HSBC Arbitrage Fund manages assets of Rs 3,803 cr, placing it in the 'comfortable' size band relative to Arbitrage peers.
How is HSBC Arbitrage Fund scored on MFIQ?
HSBC Arbitrage Fund holds an MFIQ Score of 5.6/10 (Average), based on a category percentile composite across returns, risk, consistency, and cost.
How risky is HSBC Arbitrage Fund?
HSBC Arbitrage Fund has an official SEBI riskometer rating of Very High. Over the analyzed period, its annualized standard deviation is 1.13% with a maximum historical drawdown of -0.33%.