Groww Arbitrage Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 17, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Groww Arbitrage Fund Direct Growth Plan has a NAV of ₹10.2367 as of 16 Sep 2026 and scheme AUM of ₹83 Cr. Its 1-year, 3-year and 5-year returns are 0%, 0% and 0%, and the scheme sits in the Balanced Risk category. Our view is that this is a very short-history arbitrage-oriented hybrid fund, so the most useful read is its current stability and benchmark behaviour rather than any long-run track record.
The fund has a low expense ratio of 0.0% and a minimum SIP of ₹500. Given the limited return history and the portfolio’s heavy exposure to cash-equivalent and liquid-fund style holdings, it may suit investors who want a cautious allocation and can accept that the early return record is still developing.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹10.2367 as of 16 Sep 2026 |
| AUM | ₹83 Cr |
| Expense Ratio | 0.0% |
| Launch Date | 28 Apr 2026 |
| Min SIP | ₹500 |
| Risk Category | Balanced Risk |
| Benchmark | Nifty 50 |
| Fund Category | Hybrid |
| Exit Load | 0.25% on or before 30D, Nil after 30D |
| Fund Managers | Paras Matalia, Shashi Kumar, Wilfred Gonsalves |
The fund is managed by Paras Matalia, Shashi Kumar and Wilfred Gonsalves.
Source data date: as of 16 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.6% | -4.41% |
| 3M | 1.54% | -3.6% |
| 1Y | Data not available | Data not available |
| 3Y | Data not available | Data not available |
| 5Y | Data not available | Data not available |
Short-term performance has been better than the benchmark. Over 1 month and 3 months, the fund shows small positive returns while the Nifty 50 is negative in both periods, which points to the scheme behaving more defensively than the equity index in the recent window.
The 1-month pattern is especially steady, with only limited movement, while the 3-month path shows a mild upward drift rather than sharp swings. That kind of profile is consistent with an arbitrage-style allocation where the goal is generally to preserve capital more than to chase large upside.
Because the scheme launched on 28 Apr 2026, it does not yet have a meaningful 1-year, 3-year or 5-year track record in the available figures. For that reason, the recent return pattern matters more than long-run compounding at this stage, and the current evidence favours stability over aggressive growth.
The gap versus the benchmark also tells a clear story: the fund has held up positively while the index has been weak. That relative resilience is useful for investors who care more about smoothing near-term variability than about matching broad-market moves.
Source data date: as of 16 Sep 2026
Should you BUY or HOLD Groww 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 Groww Arbitrage? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Groww Arbitrage Fund Direct Growth Plan | Data not available | Data not available | Data not available |
| Quant Arbitrage Fund Direct Growth Plan | 7.61% | Data not available | Data not available |
| WOC Arbitrage Fund Direct Growth Plan | 7.17% | Data not available | Data not available |
| Franklin India Arbitrage Fund Direct Growth Plan | 7.03% | Data not available | Data not available |
| Motilal Oswal Arbitrage Fund Direct Growth Plan | 6.94% | Data not available | Data not available |
| Invesco India Arbitrage Fund Direct Growth Plan | 6.84% | 7.49% | 7.02% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
Against the available peer set, the fund does not yet show a live 1-year return figure, while several peers have 1-year numbers in the mid-to-high single digits. That makes the comparison one-sided on recent performance, even though the fund’s own short-term steadiness still stands out versus the benchmark.
For longer horizons, the picture is also limited because the scheme has no available 3-year or 5-year figures yet. In contrast, one peer with mature history shows 3-year and 5-year returns, so the current fund is not yet in a position to be judged on the same long-run basis.
The short-term and longer-term peer stories therefore differ. Short-term behaviour suggests defensive stability, but the absence of longer-term numbers means the market still has little evidence on how that pattern compounds over time.
Source data date: as of 16 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| Net Receivable/Payable | Cash & Cash Equivalents and Net Assets | 73.49% |
| Groww Liquid Fund – Dir Plan Growth Opt | Domestic Mutual Funds Units | 24.26% |
| TREPS 01-Sep-2026 | Cash & Cash Equivalents and Net Assets | 2.64% |
The largest disclosed position is Net Receivable/Payable at 73.49%, which is very large in absolute terms and likely to have a strong influence on day-to-day portfolio behaviour. That kind of weight means the scheme’s visible exposure is dominated by cash-equivalent mechanics rather than a wide spread of equity-style holdings.
The second holding drops to 24.26%, and the third is 2.64%. The fall from the first to the third holding is steep, which suggests the disclosed portfolio is highly concentrated in just a few positions rather than spread across a long tail.
Only three holdings are disclosed, and together they account for 100% of the visible portfolio. That means the portfolio structure shown here is fully concentrated within the disclosed bucket, with little room for a broad holding base in the visible set.
Source data date: as of 16 Sep 2026
Who should invest
This scheme is more suitable for investors with a cautious to moderate risk tolerance who want a steadier alternative to a pure equity allocation. The Balanced Risk label and the recent return pattern suggest that it is designed to keep swings contained rather than deliver large upside.
The current evidence is strongest over 1 month and 3 months, where the fund has been ahead of the benchmark, but it does not yet have meaningful 3-year or 5-year figures in the available record. That makes it more appropriate for shorter-horizon or parking-style use than for an investor who needs a long proven track record.
The main trade-off is simple: the fund may help with stability, but that usually comes with limited return ambition. Investors who are comfortable with that compromise may find the profile useful, while those seeking a longer history of growth need to wait for more seasoning.
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 16 Sep 2026
Frequently asked questions
What is the current NAV of Groww Arbitrage Fund Direct Growth Plan?
The current NAV is ₹10.2367 as of 16 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The available headline returns are 0% for 1 year, 0% for 3 years and 0% for 5 years. Because the scheme was launched on 28 Apr 2026, these long-horizon figures do not yet provide a mature track record.
How has the fund compared with the benchmark recently?
It has been ahead of the Nifty 50 over both 1 month and 3 months. The fund shows small positive returns while the benchmark is negative over the same periods.
How does it compare with peers on available return data?
Several peers show 1-year returns in the mid-to-high single digits, while this fund does not yet have an available 1-year figure. One peer also has 3-year and 5-year figures available, so the comparison is still limited on longer horizons.
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 Paras Matalia, Shashi Kumar and Wilfred Gonsalves. The exit load is 0.25% on or before 30D, and nil after 30D.
Bottom line
Groww Arbitrage Fund Direct Growth Plan is still very early in its life, so the most useful evidence is its short-term behaviour rather than a long record. Recent returns have held up better than the Nifty 50, but the scheme does not yet have meaningful 3-year or 5-year numbers. The visible portfolio is heavily concentrated in cash-equivalent and liquid-fund style exposures, which supports its Balanced Risk profile and makes it more suitable for investors who value steadier outcomes over high growth potential.
Published on 17 September 2026 at 4:37 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.