Union Arbitrage Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 16, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Union Arbitrage Fund Direct Growth Plan has a NAV of ₹15.6516 as of 15 September 2026 and scheme AUM of ₹220 Cr. Its 1-year, 3-year and 5-year returns are 6.57%, 7.24% and 6.5%, and the fund sits in the Low Risk category.
Our view is that this is a steadier fit for investors who want low-volatility equity-arbitrage-style exposure rather than a high-growth profile. The benchmark has been weaker over the same horizons, while the portfolio is built around cash, money-market and large-cap-style holdings, which supports a more conservative return pattern.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹15.6516 as of 15 Sep 2026 |
| AUM | ₹220 Cr |
| Expense Ratio | 0.53% |
| Launch Date | 20 Feb 2019 |
| Min SIP | ₹500 |
| Risk Category | Low Risk |
| Benchmark | Nifty 50 |
| Fund Category | Hybrid |
| Exit Load | 0.25% on or before 1M, Nil after 1M |
| Fund Managers | Vishal Thakker, Devesh Thacker |
The fund is managed by Vishal Thakker and Devesh Thacker.
Source data date: as of 15 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.57% | -4.81% |
| 3M | 1.68% | -3.63% |
| 1Y | 6.57% | -8.27% |
| 3Y | 7.24% | 5.59% |
| 5Y | 6.5% | 5.58% |
The short-term picture is steady rather than exciting. Over 1 month and 3 months, the fund stayed positive while the benchmark was negative, which suggests the scheme has been able to hold its ground when the market was under pressure.
The 1-year return of 6.57% also stands out against the benchmark’s -8.27%. That gap is meaningful because it shows the fund behaved very differently from the index during a weaker market phase. For an investor, that kind of pattern usually matters more than any single upward move in the fund’s NAV.
Looking further out, the 3-year return of 7.24% is ahead of the benchmark’s 5.59%, and the 5-year return of 6.5% is also ahead of the benchmark’s 5.58%. That tells us the fund has not only defended well in the recent period, but has also compounded at a slightly better pace over longer stretches.
The trend across the full period is consistent with a low-volatility portfolio that may aim to deliver modest but smoother outcomes. The time pattern is not dramatic, but it is fairly stable, and that is usually the point of an arbitrage-style allocation.
Source data date: as of 15 Sep 2026
Should you BUY or HOLD Union 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 Union Arbitrage? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Union Arbitrage Fund Direct Growth Plan | 6.57% | 7.24% | 6.5% |
| Quant Arbitrage Fund Direct Growth Plan | 7.6% | Data not available | Data not available |
| WOC Arbitrage Fund Direct Growth Plan | 7.08% | Data not available | Data not available |
| Motilal Oswal Arbitrage Fund Direct Growth Plan | 7% | Data not available | Data not available |
| Franklin India Arbitrage Fund Direct Growth Plan | 6.99% | Data not available | Data not available |
| Invesco India Arbitrage Fund Direct Growth Plan | 6.85% | 7.5% | 7.04% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
On 1-year return, the fund trails Quant Arbitrage Fund Direct Growth Plan, WOC Arbitrage Fund Direct Growth Plan, Motilal Oswal Arbitrage Fund Direct Growth Plan and Franklin India Arbitrage Fund Direct Growth Plan, but it remains close to Invesco India Arbitrage Fund Direct Growth Plan. That keeps the short-term comparison fairly tight among the peer set.
On longer horizons, the picture is more mixed. The fund’s 3-year return of 7.24% is below Invesco India Arbitrage Fund Direct Growth Plan at 7.5%, but above the benchmark-style comparison available in this group for the same period. Its 5-year return of 6.5% also remains below Invesco India Arbitrage Fund Direct Growth Plan’s 7.04% where available. The short-term and longer-term comparisons therefore point in the same direction: the fund is competitive, but not the strongest among the peers with visible multi-year figures.
Source data date: as of 15 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| Union Money Market Fund – Direct Plan – | Domestic Mutual Funds Units | 13.94% |
| TREPS | Cash & Cash Equivalents and Net Assets | 7.82% |
| Bank of Baroda** | Certificate of Deposit | 6.57% |
| Patanjali Foods Ltd. | FMCG | 4.51% |
| Reliance Industries Ltd. | Crude Oil | 3.36% |
| Bharti Airtel Ltd. | Telecom | 2.81% |
| Kotak Mahindra Bank Ltd. | Bank | 2.7% |
| HDFC Bank Ltd. | Bank | 2.63% |
| Vodafone Idea Ltd. | Telecom | 2.6% |
| NTPC Ltd. | Power | 2.07% |
The top 10 holdings account for approximately 49.01% of the portfolio.
To see all holdings, visit the Union Arbitrage Fund Direct Growth Plan page
The largest holding is Union Money Market Fund – Direct Plan – at 13.94%, which is large enough to matter but not so dominant that it defines the full scheme on its own. The next few positions drop off fairly quickly, with TREPS at 7.82% and Bank of Baroda** at 6.57%, and then the weights continue to step down into the 4% and 2% range.
That pattern suggests a moderate concentration in the first few holdings, followed by a broader spread across the remaining names. Because the top 10 holdings together account for 49.01% of the portfolio and the scheme has 55 disclosed holdings, the rest of the book is likely to provide a meaningful tail of smaller positions. In our view, that can make the portfolio less dependent on any single equity holding, while still leaving a few large lines with greater influence on returns.
Source data date: as of 15 Sep 2026
Who should invest
This fund fits investors who are comfortable with a low-risk profile and want a smoother return pattern rather than sharp upside. The 1-year, 3-year and 5-year returns have all stayed in a fairly narrow band, which suits someone looking for stability over excitement.
The benchmark comparison also matters here: the fund has outpaced the benchmark over 1 year, 3 years and 5 years, which makes the track record more relevant for conservative allocations. The trade-off is that the upside is modest, so it may appeal more to investors with a medium-to-long horizon who can accept slower compounding in exchange for lower volatility.
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% if units are sold on or before 1 month; no exit load after that holding period.
Source data date: as of 15 Sep 2026
Frequently asked questions
What is the current NAV of Union Arbitrage Fund Direct Growth Plan?
The current NAV is ₹15.6516 as of 15 September 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
Its 1-year return is 6.57%, its 3-year return is 7.24%, and its 5-year return is 6.5%.
How has it performed versus the benchmark?
It has beaten the benchmark across 1 month, 3 months, 1 year, 3 years and 5 years. The gap is especially wide over 1 year.
How does it compare with peer funds on 1-year return?
Its 1-year return of 6.57% is below several peers in the comparison set, but it remains close to Invesco India Arbitrage Fund Direct Growth Plan at 6.85%.
What is the minimum SIP amount?
The minimum SIP amount is ₹500.
Who manages the fund and what is the exit load?
The fund is managed by Vishal Thakker and Devesh Thacker. The exit load is 0.25% if units are sold on or before 1 month; after that, no exit load applies.
Bottom line
Union Arbitrage Fund Direct Growth Plan has a steadier recent pattern than its benchmark, and that stability extends into its 3-year and 5-year results. Among the peer figures available here, its returns are competitive but not the highest, so the case for the fund is consistency rather than standout upside. The portfolio is also shaped by a meaningful cash and money-market base, with the largest holding at 13.94% and a fairly long tail beyond the top 10. That makes it more suitable for conservative investors seeking moderate, low-volatility compounding.
Published on 16 September 2026 at 11:53 AM 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.