PGIM India Arbitrage Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 11, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
PGIM India Arbitrage Fund Direct Growth Plan has a NAV of ₹21.1479 as of 10 Sep 2026 and a scheme AUM of ₹99 Cr. Its 1-year, 3-year and 5-year returns are 6.34%, 7.04% and 6.39% respectively, and the fund is in the Low Risk category. Our view is that it suits conservative investors who want relatively steadier outcomes than an equity-heavy fund, while still accepting that arbitrage returns can move differently from the benchmark over shorter periods.
The fund’s recent pattern is calm rather than explosive, and that matches its portfolio structure, which is heavily tilted toward net receivables, liquid exposure and treasury bills. The trade-off is clear: the return path has been modest, but the risk profile is also restrained. That makes the scheme more relevant for investors who value consistency and liquidity over high growth expectations.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹21.1479 as of 10 Sep 2026 |
| AUM | ₹99 Cr |
| Expense Ratio | 0.36% |
| Launch Date | 27 Aug 2014 |
| Min SIP | ₹1,000 |
| Risk Category | Low Risk |
| Benchmark | Nifty 50 |
| Fund Category | Hybrid |
| Exit Load | 0.25% on or before 30D, Nil after 30D |
| Fund Managers | Chetan Chavan, Puneet Pal |
The fund is managed by Chetan Chavan and Puneet Pal.
Source data date: as of 10 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.7% | -4.06% |
| 3M | 1.75% | 1.37% |
| 1Y | 6.34% | -7.31% |
| 3Y | 7.04% | 6.07% |
| 5Y | 6.39% | 5.91% |
The recent numbers show a fund that has held up better than the benchmark over the shorter windows. Over 1 month, the fund stayed slightly positive while the benchmark was negative, and the same pattern holds over 1 year where the fund remained in positive territory while the benchmark finished lower. That is consistent with an arbitrage strategy that is designed to keep volatility muted rather than chase sharp market moves.
At the same time, the 3-month return is modest at 1.75%, only a little ahead of the benchmark’s 1.37%. This tells us the gap versus the index is not dramatic in the very short run. The deeper picture is more balanced: the 3-year and 5-year returns of 7.04% and 6.39% sit above the benchmark’s 6.07% and 5.91%, which suggests the fund has stayed competitive over longer holding periods.
The time pattern also matters. The fund’s movement appears relatively stable, with gradual gains rather than large swings. That is important for investors who want a steadier ride and are comfortable with a return profile that may not look exciting in one or two quarters but can remain consistent across several years. The benchmark comparison therefore points to resilience first, not outperformance by a wide margin.
Source data date: as of 10 Sep 2026
Should you BUY or HOLD PGIM 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 PGIM India Arbitrage? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| PGIM India Arbitrage Fund Direct Growth Plan | 6.34% | 7.04% | 6.39% |
| 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 latest 1-year numbers, the fund trails several peers with stronger recent returns, although it still sits in a positive zone. On the longer view, its 3-year and 5-year returns are competitive, but Invesco India Arbitrage Fund Direct Growth Plan has the edge on both available longer periods among the peers listed here.
That split tells a useful story. The fund looks more balanced than standout in the short run, while its multi-year record remains respectable. For investors comparing steady arbitrage options, the question is less about aggressive upside and more about whether they prefer a slightly steadier return path or the stronger recent 1-year numbers seen in some peer schemes.
Source data date: as of 10 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| Net Receivables / (Payables) | Cash & Cash Equivalents and Net Assets | 69.53% |
| Pgim India Liquid Fund | Domestic Mutual Funds Units | 12.55% |
| Clearing Corporation of India Ltd. | Cash & Cash Equivalents and Net Assets | 5.85% |
| 182 Days Tbill Red 19-11-2026 | Treasury Bills | 4.99% |
| 364 Days Tbill Red 24-09-2026 | Treasury Bills | 2.52% |
| 91 Days Tbill Red 19-11-2026 | Treasury Bills | 2.49% |
| 364 Days Tbill Red 20-05-2027 | Treasury Bills | 2.42% |
The largest holding, Net Receivables / (Payables), accounts for 69.53% of the portfolio, so it is likely to have the greatest influence on the scheme’s day-to-day movement. After that, exposure drops sharply to Pgim India Liquid Fund at 12.55% and then to Clearing Corporation of India Ltd. at 5.85%, which shows a clear concentration in the first few positions.
The remaining holdings are smaller treasury-bill positions in the 2.42% to 4.99% range. That pattern suggests the portfolio is not spread evenly across many similar-sized bets; instead, a few positions carry most of the disclosed weight. Since the disclosed holdings count is 7 and the displayed set totals 100%, the structure looks compact and highly concentrated in its largest components, which may help explain the fund’s relatively controlled return pattern.
Source data date: as of 10 Sep 2026
Who should invest
This fund fits investors with a low-risk comfort level who want a short-to-medium horizon product with steadier behavior than equity-oriented funds. The 1-year, 3-year and 5-year return pattern shows consistency rather than sharp acceleration, and the benchmark comparison suggests it has generally stayed resilient when market conditions were less favorable. The main trade-off is that the portfolio’s conservative structure can limit upside, so the scheme is more about preserving stability and earning moderate returns than trying to stretch for higher growth.
It can also make sense for investors who want an allocation that behaves differently from broad equity exposure. The portfolio is built around cash-like and short-duration positions, so the return path may feel smoother, but that also means expectations should stay measured.
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 30D, Nil after 30D.
Source data date: as of 10 Sep 2026
Frequently asked questions
What is the current NAV of PGIM India Arbitrage Fund Direct Growth Plan?
The NAV is ₹21.1479 as of 10 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The returns are 6.34% for 1 year, 7.04% for 3 years and 6.39% for 5 years.
How does the fund compare with the benchmark?
It has stayed ahead of the benchmark across the listed periods. The gap is most visible at 1 year, while the 3-year and 5-year differences are narrower.
How does it compare with peer arbitrage funds on recent returns?
Its 1-year return is below some peer funds listed here, while its 3-year and 5-year returns remain competitive among peers with longer-history figures available.
What is the minimum SIP amount?
The minimum SIP amount is ₹1,000.
Who manages the fund and what is the exit load?
The fund is managed by Chetan Chavan and Puneet Pal. The exit load is 0.25% on or before 30D, and nil after 30D.
Bottom line
PGIM India Arbitrage Fund Direct Growth Plan looks more like a steady arbitrage option than a return-chasing one. Its short-term numbers are positive, but not the strongest versus peers, while the longer-term record remains solid and ahead of the benchmark. The portfolio is dominated by net receivables and other cash-like positions, which supports the Low Risk profile and helps explain the restrained performance profile. For investors who want a conservative, low-volatility allocation with moderate returns, it fits that brief well.
Published on 11 September 2026 at 3:18 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.