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Franklin India Income Plus Arbitrage Active FoF Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

  • September 11, 2026
  • Posted by: Chaitanya Auti
  • Category: Mutual Funds
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Franklin India Income Plus Arbitrage Active FoF Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

Franklin India Income Plus Arbitrage Active FoF Direct Growth Plan has a current NAV of ₹25.4095 as of 09 Sep 2026 and scheme AUM of ₹143 Cr. Its 1-year, 3-year and 5-year returns are 6.39%, 12.65% and 11.05%, and the scheme sits in the Balanced Risk category. Our view is that it suits investors looking for a steadier hybrid-style allocation than an equity-heavy fund, but the recent return pattern is still more uneven than the longer-term record suggests.

The fund’s portfolio structure, built around debt, arbitrage and cash-oriented underlying funds, supports that balance. Compared with the benchmark’s weaker 1-year showing, the fund has held up better over the same period, while its 3-year and 5-year numbers still point to moderate compounding rather than aggressive growth.

Table of Contents

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  • Quick facts
  • Performance
  • Should you BUY or HOLD Franklin India Income Plus Arbitrage Active FoF?
  • Peer comparison
  • Portfolio: where your money goes
  • Who should invest
  • Tax and exit load
  • Frequently asked questions
    • What is the current NAV of Franklin India Income Plus Arbitrage Active FoF Direct Growth Plan?
    • What are the fund’s 1-year, 3-year and 5-year returns?
    • How does the fund compare with the benchmark?
    • How does it compare with the peer funds listed here?
    • What is the minimum SIP amount?
    • Who manages the fund and does it have an exit load?
  • Bottom line
  • Explore mutual funds with Univest
  • RIA disclosure

Quick facts

Particular Details
NAV ₹25.4095 as of 09 Sep 2026
AUM ₹143 Cr
Expense Ratio 0.24%
Launch Date 28 Nov 2014
Min SIP ₹500
Risk Category Balanced Risk
Benchmark Nifty 50
Fund Category Fund of Fund
Exit Load No exit load
Fund Managers Rohan Maru, Pallab Roy, Rahul Goswami

The fund is managed by Rohan Maru, Pallab Roy and Rahul Goswami.

Source data date: as of 09 Sep 2026

Performance

Period Fund return Benchmark return
1M 0.35% -4.06%
3M 1.78% 1.37%
1Y 6.39% -7.31%
3Y 12.65% 6.07%
5Y 11.05% 5.91%

The recent pattern is constructive. Over 1 month and 3 months, the fund remained positive while the benchmark was flat to negative, which tells us the scheme has been more resilient in the latest stretch.

The 1-year figure is especially notable because the benchmark is negative over the same period. That does not make the fund a high-growth equity substitute, but it does show that the underlying mix has absorbed a weaker market backdrop better than the benchmark.

Longer-term, the story is more balanced. The 3-year and 5-year returns are both positive and comfortably ahead of the benchmark, yet they are still moderate rather than fast-moving. That profile fits a fund designed to combine income-oriented exposure with arbitrage and other low-volatility building blocks.

The return path also looks less linear than a pure debt-style product, with periods of mild recovery and soft patches before the longer compounding trend reasserted itself. For an investor, that means the scheme may be useful as a diversified allocation rather than a simple steady-return parking place.

Source data date: as of 09 Sep 2026

Should you BUY or HOLD Franklin India Income Plus Arbitrage Active FoF?

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.

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Peer comparison

Fund 1Y return 3Y return 5Y return
Franklin India Income Plus Arbitrage Active FoF Direct Growth Plan 6.39% 12.65% 11.05%
SBI Silver ETF FOF Direct Growth Plan 88.17% Data not available Data not available
Kotak Silver ETF FoF Direct Growth Plan 86.54% 46.64% Data not available
Axis Silver FoF Direct Growth Plan 85.6% 46.72% Data not available
Zerodha Silver ETF FoF Direct Growth Plan 85.48% Data not available Data not available
Aditya Birla SL Silver ETF FOF Direct Growth Plan 84.59% 46.31% Data not available

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.

The fund’s 1-year return trails the silver-linked peer set by a wide margin, but that comparison is not really like-for-like because the peer group is built around a very different theme. Within its own style, the more relevant point is that Franklin’s scheme has a steadier longer record than the short-term figures alone imply.

Its 3-year and 5-year returns are respectable, and those longer windows are much more useful for judging a fund that mixes underlying debt, arbitrage and other income-oriented exposures. The short-term peer comparison tells one story about theme-driven momentum, while the longer-term comparison tells another story about steadier compounding.

Source data date: as of 09 Sep 2026

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Portfolio: where your money goes

Holding Sector Weight
Franklin India Money Market Fund – Direct-Growth Plan Domestic Mutual Funds Units 19.51%
Franklin India Corporate Bond Fund – Direct Plan – Growth Domestic Mutual Funds Units 19.48%
Franklin India Arbitrage Fund – Direct Plan – Growth Domestic Mutual Funds Units 19.41%
Franklin India Gilt Fund – Direct Plan – Growth Domestic Mutual Funds Units 10.29%
Aditya Birla Sun Life Arbitrage Fund – Direct Plan – Growth Domestic Mutual Funds Units 7.21%
Kotak Arbitrage Fund – Direct Plan – Growth Domestic Mutual Funds Units 7.02%
Tata Arbitrage Fund – Direct Plan – Growth Domestic Mutual Funds Units 6.84%
Axis Corporate Bond Fund – Direct Plan – Growth Domestic Mutual Funds Units 4.04%
Kotak Corporate Bond Fund – Direct Plan – Growth Domestic Mutual Funds Units 3.31%
Call, Cash & Other Assets Cash & Cash Equivalents and Net Assets 2.16%

The single largest holding is Franklin India Money Market Fund – Direct-Growth Plan at 19.51%, which is large enough to matter but not so dominant that one line item defines the scheme on its own. The next few positions are also close in size, with three holdings clustered around the 19% mark, so the portfolio does not lean on a single oversized bet.

Weight then steps down gradually into the high single digits and low single digits. By the tenth disclosed holding, the weight is 2.16%, which suggests a clear taper rather than a sudden drop-off.

Because the top 10 disclosed holdings together account for about 99.27% of the portfolio and 11 holdings are disclosed in total, the visible allocation looks highly concentrated in a small set of underlying funds. That concentration may make the return pattern more dependent on the behaviour of a few sleeve-level exposures, even though the underlying mix itself still spans money market, corporate bond, arbitrage, gilt and cash-oriented holdings.

To see all holdings, visit the Franklin India Income Plus Arbitrage Active FoF Direct Growth Plan page

Source data date: as of 09 Sep 2026

Who should invest

This scheme fits investors who can accept Balanced Risk exposure and want a fund that behaves more steadily than a broad equity allocation. Its 1-year return has been positive even while the benchmark has been negative, and the 3-year and 5-year numbers show that the fund has been able to compound over time without relying on aggressive swings.

The main trade-off is that the fund’s return profile is moderate rather than high-octane. It may suit a medium- to longer-horizon investor who values smoother participation across debt, arbitrage and other underlying income-oriented sleeves, while accepting that short-term bursts of performance are unlikely to resemble theme-led equity products.

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: No exit load.

Source data date: as of 09 Sep 2026

Frequently asked questions

What is the current NAV of Franklin India Income Plus Arbitrage Active FoF Direct Growth Plan?

The current NAV is ₹25.4095 as of 09 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?

The fund’s 1-year return is 6.39%, the 3-year return is 12.65%, and the 5-year return is 11.05%.

How does the fund compare with the benchmark?

It has outperformed the benchmark across 1 month, 3 months, 1 year, 3 years and 5 years. The gap is widest at 1 year, where the fund is positive while the benchmark is negative.

How does it compare with the peer funds listed here?

The fund’s 1-year return is much lower than the silver-linked peer funds shown here, while its 3-year and 5-year figures are more useful for judging its own style. Those peer funds are built around a different theme, so the comparison is best read as a return snapshot rather than a like-for-like verdict.

What is the minimum SIP amount?

The minimum SIP amount is ₹500.

Who manages the fund and does it have an exit load?

The fund is managed by Rohan Maru, Pallab Roy and Rahul Goswami. It has no exit load.

Bottom line

Franklin India Income Plus Arbitrage Active FoF Direct Growth Plan has a steadier longer record than its short-term path alone suggests. The fund has stayed ahead of the benchmark over the recent windows as well as over 3 years and 5 years, but the return profile remains moderate rather than aggressive. Its portfolio is built from a small set of underlying fund exposures, so a few sleeves are likely to have greater influence on outcomes. That makes it better suited to investors who want balanced-risk exposure and can hold through uneven periods.

Published on 11 September 2026 at 3:38 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.



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