Nippon India Arbitrage Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 11, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Nippon India Arbitrage Fund Direct Growth Plan has a NAV of ₹31.0034 as of 10 Sep 2026 and a scheme AUM of ₹17,532 Cr. Its 1-year, 3-year and 5-year returns are 6.64%, 7.31% and 6.74% respectively, and the scheme carries a Low Risk tag.
Our view is that this is a steadier, income-oriented hybrid option rather than a high-octane return seeker. The return pattern is modest but consistent, and the benchmark comparison suggests it has held up better than the Nifty 50 over the shorter and longer windows shown here.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹31.0034 as of 10 Sep 2026 |
| AUM | ₹17,532 Cr |
| Expense Ratio | 0.38% |
| Launch Date | 01 Jan 2013 |
| Min SIP | ₹100 |
| Risk Category | Low Risk |
| Benchmark | Nifty 50 |
| Fund Category | Hybrid |
| Exit Load | 0.25% on or before 1M, Nil after 1M |
| Fund Managers | Vikash Agarwal, Rohit Shah, Nemish Sheth |
The fund is managed by Vikash Agarwal, Rohit Shah and Nemish Sheth.
Source data date: as of 10 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.62% | -4.06% |
| 3M | 1.83% | 1.37% |
| 1Y | 6.64% | -7.31% |
| 3Y | 7.31% | 6.07% |
| 5Y | 6.74% | 5.91% |
The short-term picture is better than the benchmark. Over 1 month, the fund stayed slightly positive while the benchmark was negative, and over 3 months it also held a small edge. That matters for an arbitrage-style scheme because the return pattern should usually look calmer than an equity benchmark, not flashy.
The 1-year return of 6.64% is notably ahead of the benchmark’s -7.31%, which shows the gap between a low-volatility arbitrage profile and a directional equity index when markets are uneven. The 3-year and 5-year returns remain fairly close to the high-6% to low-7% zone, which tells us the fund has preserved a fairly stable compounding path rather than relying on one strong year.
What stands out in the movement pattern is the limited swing around the trend line. The series does not show abrupt jumps, which is consistent with the lower-volatility label and with the purpose of an arbitrage strategy. For investors, that means the fund is built more around consistency and capital preservation behaviour than around chasing equity-like upside.
Compared with the benchmark, the longer-term return edge is visible but not dramatic. That makes the fund useful mainly for investors who care about steadier return delivery and lower turbulence, while accepting that the payoff will usually be modest relative to more growth-oriented market exposure.
Source data date: as of 10 Sep 2026
Should you BUY or HOLD Nippon India Arbitrage?
A fund’s past returns alone don’t tell you whether you should buy it today or continue holding it.
The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.
Already holding Nippon India Arbitrage? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Nippon India Arbitrage Fund Direct Growth Plan | 6.64% | 7.31% | 6.74% |
| Quant Arbitrage Fund Direct Growth Plan | 7.82% | Data not available | Data not available |
| Franklin India Arbitrage Fund Direct Growth Plan | 7.23% | Data not available | Data not available |
| Motilal Oswal Arbitrage Fund Direct Growth Plan | 7.19% | Data not available | Data not available |
| WOC Arbitrage Fund Direct Growth Plan | 7.1% | Data not available | Data not available |
| Invesco India Arbitrage Fund Direct Growth Plan | 7.02% | 7.54% | 7.05% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On the 1-year view, the fund trails the stronger peer return figures shown here, with Quant Arbitrage Fund, Franklin India Arbitrage Fund, Motilal Oswal Arbitrage Fund and WOC Arbitrage Fund all posting higher numbers. That said, the current fund’s 3-year and 5-year returns are steady and sit close to the better longer-window figures available, especially when compared with Invesco India Arbitrage Fund.
The short-term and longer-term comparisons tell slightly different stories. In the recent window, the fund is not the fastest mover among the peer set, but over 3 years and 5 years it shows a more durable and fairly balanced track record. For an investor, that usually matters more than a single stronger year when the aim is smoother participation rather than aggressive return chasing.
Source data date: as of 10 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| Nippon India Money Market Fund Dir Pl-Growth-Gr Op | Domestic Mutual Funds Units | 15.10% |
| Nippon India Ultra Short Term Fund- DR GR Op | Domestic Mutual Funds Units | 7.38% |
| HDFC Bank Limited | Bank | 4.46% |
| Reliance Industries Limited | Crude Oil | 4.21% |
| Triparty Repo | Cash & Cash Equivalents and Net Assets | 3.65% |
| Axis Bank Limited | Bank | 3.03% |
| State Bank of India | Bank | 2.14% |
| JSW Steel Limited | Iron & Steel | 1.85% |
| Kotak Mahindra Bank Limited | Bank | 1.72% |
| ICICI Bank Limited | Bank | 1.50% |
The top 10 holdings account for approximately 45.04% of the portfolio.
To see all holdings, visit the Nippon India Arbitrage Fund Direct Growth Plan page
The largest holding is Nippon India Money Market Fund Dir Pl-Growth-Gr Op at 15.10%, which is sizeable for a single position inside a strategy built around cash-like and arbitrage exposures. The next few holdings fall away fairly quickly, with the second holding at 7.38% and the tenth at 1.50%, so the portfolio does not rely on one dominant asset alone.
That said, the displayed holdings still look moderately concentrated, because the top 10 together make up about 45.04% of the portfolio while the remaining disclosed holdings are spread across a longer tail of 45 total holdings. This mix may help keep day-to-day movements contained, while still leaving some individual positions likely to have greater influence than a broad, fully diversified basket.
We also note the presence of mutual fund units, bank stocks, repo and cash-like exposure in the visible holdings list. For an arbitrage fund, that kind of blend is consistent with a structure designed to manage spreads and liquidity rather than to depend on one theme or one stock.
Source data date: as of 10 Sep 2026
Who should invest
This fund suits investors who are comfortable with a low-risk profile and want a steadier alternative to equity-heavy allocations. The return pattern across 1 year, 3 years and 5 years suggests a narrow range of outcomes, which may appeal to investors who value predictability more than upside.
The main trade-off is clear: the scheme has been more resilient than the benchmark across the periods shown, but the return profile is still modest compared with growth-focused funds. It may work better for short-to-medium holding periods within a conservative allocation, especially when the goal is to reduce volatility rather than maximise capital growth.
Tax and exit load
| Holding period | Tax rate | Description |
|---|---|---|
| Units held less than 1 year | 20% | Short-term capital gains tax |
| Units held more than 1 year | 12.5% | Long-term capital gains tax |
Exit load applies at 0.25% if units are sold within 1 month. After 1 month, there is no exit load.
Source data date: as of 10 Sep 2026
Frequently asked questions
What is the current NAV of Nippon India Arbitrage Fund Direct Growth Plan?
The current NAV is ₹31.0034 as of 10 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The 1-year return is 6.64%, the 3-year return is 7.31% and the 5-year return is 6.74%.
How does it compare with the benchmark?
It has done better than the Nifty 50 across the periods shown here. The gap is especially visible in the 1-year window, where the fund stayed positive while the benchmark was negative.
How does it compare with peer arbitrage funds on 1-year return?
Its 1-year return is below several peer figures shown here, including Quant Arbitrage Fund at 7.82%, Franklin India Arbitrage Fund at 7.23% and Motilal Oswal Arbitrage Fund at 7.19%. The longer-term return profile is steadier, though.
What is the minimum SIP amount?
The minimum SIP amount is ₹100.
What is the exit load and who manages the fund?
Exit load is 0.25% if units are sold within 1 month, and nil after 1 month. The fund is managed by Vikash Agarwal, Rohit Shah and Nemish Sheth.
Bottom line
Nippon India Arbitrage Fund Direct Growth Plan looks like a steady, low-volatility fund where the return path has remained fairly consistent rather than dramatic. Its longer-term numbers are close to its recent figures, and the benchmark comparison has been favourable across the periods shown. The portfolio has a meaningful mix of mutual fund units, bank stocks and cash-like exposure, with the largest disclosed holding still not overwhelming the whole book. That makes the scheme more suited to conservative investors who want stability first and growth second.
Published on 11 September 2026 at 12:50 PM IST
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RIA disclosure
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.