Edelweiss Arbitrage Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 11, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Edelweiss Arbitrage Fund Direct Growth Plan has a NAV of ₹22.4751 as of 10 Sep 2026 and a scheme AUM of ₹14,849 Cr. Its 1-year, 3-year and 5-year returns are 6.88%, 7.49% and 6.89%, and the fund sits in the Low Risk category.
Our view is that this is a steady arbitrage-style option for conservative investors who want controlled movement rather than aggressive market-linked swings. The return pattern is stable, the benchmark comparison is constructive, and the portfolio structure suggests diversified exposure across many positions.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹22.4751 as of 10 Sep 2026 |
| AUM | ₹14,849 Cr |
| Expense Ratio | 0.39% |
| Launch Date | 27 Jun 2014 |
| Min SIP | ₹100 |
| Risk Category | Low Risk |
| Benchmark | Nifty 50 |
| Fund Category | Hybrid |
| Exit Load | 0.25% on or before 15D, Nil after 15D |
| Fund Managers | Bhavesh Jain, Hetul Raval, Rahul Dedhia, Amit Vora |
The fund is managed by Bhavesh Jain, Hetul Raval, Rahul Dedhia and Amit Vora.
Source data date: as of 10 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.57% | -4.06% |
| 3M | 1.80% | 1.37% |
| 1Y | 6.88% | -7.31% |
| 3Y | 7.49% | 6.07% |
| 5Y | 6.89% | 5.91% |
The latest 1-month and 3-month numbers show a calm return path, which is what we would expect from an arbitrage strategy. The fund has stayed positive over both periods, while the benchmark has moved more unevenly, especially over 1 month. That supports the idea that the fund is designed to reduce directional equity dependence rather than chase strong market moves.
Over 1 year, the fund has clearly held up better than the benchmark, which makes the shorter-term picture look stronger than the index. The 3-year and 5-year returns are also ahead of the benchmark, though by a narrower margin. That tells us the fund has not only protected itself in weak phases but also compounded steadily over longer holding periods.
The movement pattern through the 1-year and 3-year periods looks more like gradual compounding than sharp jumps. In our view, that is useful for investors who want predictability and lower volatility, even if it means the fund is unlikely to deliver the kind of upside associated with equity-heavy portfolios. The performance profile is consistent with a conservative allocation tool rather than a return-chasing product.
Source data date: as of 10 Sep 2026
Should you BUY or HOLD Edelweiss 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 Edelweiss Arbitrage? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Edelweiss Arbitrage Fund Direct Growth Plan | 6.88% | 7.49% | 6.89% |
| 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 | 7.10% | 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 1-year return, this fund trails several peer funds in the comparison set, even though its own number is still positive and well above the benchmark. That keeps the recent picture respectable, but not the strongest among the available peer returns. The difference is narrower when we look at 3-year and 5-year figures, where the fund sits close to Invesco India Arbitrage Fund Direct Growth Plan and stays ahead of the benchmark.
The short-term and longer-term stories are therefore not identical. Recent 1-year performance is a little softer than some peers, while the medium-term record remains solid and broadly competitive. For investors, that means the fund looks more like a steady, lower-volatility holding than a fund that is trying to dominate every recent comparison.
Source data date: as of 10 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| Edelweiss Liquid Fund – Direct PL -GR | Domestic Mutual Funds Units | 9.02% |
| Edelweiss Money Market Fund – Direct PL | Domestic Mutual Funds Units | 3.80% |
| HDFC Bank Ltd. | Bank | 3.05% |
| ICICI Bank Ltd. | Bank | 2.67% |
| Reliance Industries Ltd. | Crude Oil | 2.17% |
| Clearing Corporation of India Ltd. | Cash & Cash Equivalents and Net Assets | 2.00% |
| Adani Energy Solutions Ltd. | Power | 1.93% |
| Sidbi CD Red 04-02-2027# | Certificate of Deposit | 1.91% |
| Bharti Airtel Ltd. | Telecom | 1.90% |
| Vodafone Idea Ltd. | Telecom | 1.88% |
The top 10 holdings account for approximately 30.33% of the portfolio.
To see all holdings, visit the Edelweiss Arbitrage Fund Direct Growth Plan page
The largest disclosed holding is Edelweiss Liquid Fund – Direct PL -GR at 9.02%, which is meaningfully larger than the next holding and gives the cash-management sleeve a visible role. After that, the weights step down fairly quickly into the 3% to 2% range, with the tenth holding at 1.88%. That drop suggests no single equity position dominates the visible list.
Because the top 10 holdings together make up about 30.33% of the portfolio and there are 58 disclosed holdings in total, the portfolio appears spread across a long tail of positions rather than concentrated in only a few names. In our view, that kind of structure may reduce dependence on one or two holdings, although the disclosed weights still show a clear tilt toward a few larger positions at the top.
This mix may suit investors who want an arbitrage fund with visible diversification across many holdings, while still accepting that the largest positions could have more influence on short-term movement than the smaller ones. The allocation also fits the fund’s low-risk profile better than a concentrated equity-style portfolio would.
Source data date: as of 10 Sep 2026
Who should invest
This fund is better suited to conservative investors who are comfortable with low risk and want a steadier return profile than equity funds usually offer. The 1-year, 3-year and 5-year pattern points to gradual compounding rather than sharp swings, and the benchmark comparison shows that the fund has handled weak market periods better than Nifty 50.
The main trade-off is that steadier movement usually comes with more modest upside than aggressive market-linked products. For someone with a short to medium investment horizon, or for an investor using arbitrage as a lower-volatility allocation, the fund may fit well. It is less compelling for anyone whose main goal is to maximize rapid 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: 0.25% on or before 15D, Nil after 15D
Source data date: as of 10 Sep 2026
Frequently asked questions
What is the current NAV of Edelweiss Arbitrage Fund Direct Growth Plan?
The NAV is ₹22.4751 as of 10 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The returns are 6.88% for 1 year, 7.49% for 3 years and 6.89% for 5 years.
How does the fund compare with Nifty 50?
It has outperformed Nifty 50 over 1 year, 3 years and 5 years, while also staying positive over the 1-month and 3-month periods.
How does it compare with peer arbitrage funds on recent returns?
Its 1-year return is below several peer funds in the comparison set, but its 3-year and 5-year returns remain competitive where those figures are available.
What is the minimum SIP amount?
The minimum SIP amount is ₹100.
Who manages the fund, and what is the exit load?
The fund is managed by Bhavesh Jain, Hetul Raval, Rahul Dedhia and Amit Vora. The exit load is 0.25% on or before 15 days and nil after 15 days.
Bottom line
Edelweiss Arbitrage Fund Direct Growth Plan shows a steadier long-term pattern than its benchmark, and its recent performance has remained positive even when the market has been choppier. Compared with available peer data, the fund is not the strongest on the latest 1-year return, but its 3-year and 5-year record stays broadly competitive. The low-risk profile and a diversified 58-holding structure make it more suitable for conservative investors who value stability and controlled movement over aggressive upside.
Published on 11 September 2026 at 3:12 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.