UTI Arbitrage Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 18, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
UTI Arbitrage Fund Direct Growth Plan is at a NAV of ₹40.2285 as of 17 Sep 2026, with scheme AUM of ₹11,131 Cr. Its 1-year, 3-year and 5-year returns are 6.65%, 7.37% and 6.68%, and it sits in the Low Risk bucket. Our view is that this is a steadier hybrid option than an equity-style return seeker, with returns that have been fairly consistent rather than explosive.
The fund has delivered a measured return pattern across market cycles, and the portfolio mix shows a meaningful allocation to cash-like and arbitrage-related instruments alongside large-cap financial and telecom holdings. That combination may appeal to conservative investors who want lower volatility, while still accepting that the return profile is designed to stay modest relative to higher-growth equity funds.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹40.2285 as of 17 Sep 2026 |
| AUM | ₹11,131 Cr |
| Expense Ratio | 0.3% |
| Launch Date | 01 Jan 2013 |
| Min SIP | ₹500 |
| Risk Category | Low Risk |
| Benchmark | Nifty 50 |
| Fund Category | Hybrid |
| Exit Load | 0.25% on or before 15D, Nil after 15D |
| Fund Managers | Sharwan Kumar Goyal, Amit Sharma, Monish Lotia |
The fund is managed by Sharwan Kumar Goyal, Amit Sharma and Monish Lotia.
Source data date: as of 17 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.48% | -3.66% |
| 3M | 1.56% | -3.71% |
| 1Y | 6.65% | -7.13% |
| 3Y | 7.37% | 5.82% |
| 5Y | 6.68% | 5.72% |
The recent numbers look steady. Over 1 month and 3 months, the fund stayed positive while the benchmark was negative, which tells us the strategy has held up better in choppier short-term conditions.
The 1-year figure is also comfortably ahead of the benchmark, but the more important signal is consistency: the fund has not shown a sharp swing in performance, even though arbitrage-oriented returns are naturally limited compared with aggressive equity strategies. That fits the time-series pattern, which shows a gradual, mostly orderly climb rather than wide drawdowns.
Over 3 years and 5 years, the fund has remained ahead of the benchmark on the figures available, though the margin is not dramatic. Our read is that this is the kind of fund where downside control and return stability matter more than high upside, and the data supports that profile.
At the same time, the recent 1M and 3M resilience is useful because it suggests the strategy has not depended only on one favorable market phase. The longer track record still points to moderate compounding, not rapid growth.
Source data date: as of 17 Sep 2026
Should you BUY or HOLD UTI 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 UTI Arbitrage? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| UTI Arbitrage Fund Direct Growth Plan | 6.65% | 7.37% | 6.68% |
| 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.
On 1-year return, the fund trails the stronger recent figures from Quant Arbitrage Fund Direct Growth Plan, WOC Arbitrage Fund Direct Growth Plan and Franklin India Arbitrage Fund Direct Growth Plan, but it is close to Motilal Oswal Arbitrage Fund Direct Growth Plan and not far from Invesco India Arbitrage Fund Direct Growth Plan. That suggests the recent picture is competitive without being the strongest in this peer set.
For 3-year and 5-year figures, only Invesco India Arbitrage Fund Direct Growth Plan offers comparable data here, and it is slightly ahead on both horizons. The gap is not wide, so the long-term picture still looks broadly aligned with the peer group rather than meaningfully weaker. The short-term comparison and the longer-term comparison tell a similar story: steady, but not the most aggressive return profile.
Source data date: as of 17 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| MF Units Uti-Money Market Fund | Domestic Mutual Funds Units | 16.83% |
| Eq – HDFC Bank Limited | Bank | 4.6% |
| Eq – Reliance Industries Ltd. | Crude Oil | 3.53% |
| Eq – State Bank of India | Bank | 3.44% |
| Eq – ICICI Bank Ltd | Bank | 3.04% |
| Eq – Bharti Airtel Ltd. | Telecom | 2.75% |
| Eq – Kotak Mahindra Bank Ltd. | Bank | 2.71% |
| CD – Canara Bank – 28/01/2027 | Certificate of Deposit | 2.19% |
| Eq – Steel Authority of India Ltd. | Iron & Steel | 2.07% |
| Eq – Canara Bank | Bank | 2.02% |
The top 10 holdings account for approximately 43.18% of the portfolio.
To see all holdings, visit the UTI Arbitrage Fund Direct Growth Plan page
The largest holding is MF Units Uti-Money Market Fund at 16.83%, which is materially larger than any single equity position in the list. That kind of lead holding may help explain why the fund behaves more like a cautious, income-oriented hybrid allocation than a pure equity portfolio.
Weights then step down fairly quickly into the 4% to 2% range, with the tenth holding at 2.02%. The spread from the largest holding to the tenth suggests that no single equity name dominates the visible portion of the book, even though the money-market sleeve is clearly important.
Because the top 10 holdings together make up 43.18% of the portfolio and the scheme has 48 disclosed holdings, the visible exposure looks spread across a fairly long tail. In our view, that may reduce dependence on any one stock or instrument, while still leaving the fund with a meaningful core allocation that is likely to influence day-to-day behaviour.
Source data date: as of 17 Sep 2026
Who should invest
This fund suits investors with a conservative to moderate risk tolerance who want a lower-volatility hybrid allocation rather than a high-growth equity bet. The Low Risk label, along with the benchmark-beating but moderate return profile, points to a fund that is designed to stay comparatively stable through market swings.
A longer investment horizon can still help, but the main appeal is not capital chasing. The trade-off is clear: you may get steadier behaviour and better short-term resilience than a typical equity fund, but you should also accept that returns are likely to remain 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 applies at 0.25% on or before 15 days, and there is no exit load after that holding period.
Source data date: as of 17 Sep 2026
Frequently asked questions
What is the current NAV of UTI Arbitrage Fund Direct Growth Plan?
The current NAV is ₹40.2285 as of 17 Sep 2026.
How has UTI Arbitrage Fund Direct Growth Plan performed over 1 year, 3 years and 5 years?
Its returns are 6.65% over 1 year, 7.37% over 3 years and 6.68% over 5 years.
How does UTI Arbitrage Fund Direct Growth Plan compare with the benchmark?
It has outpaced the Nifty 50 benchmark across the reported 1-month, 3-month, 1-year, 3-year and 5-year periods. The recent and longer-horizon figures both point to a steadier profile than the benchmark.
How does it compare with peer arbitrage funds on 1-year return?
Its 1-year return of 6.65% is below the stronger recent figures from Quant Arbitrage Fund Direct Growth Plan, WOC Arbitrage Fund Direct Growth Plan and Franklin India Arbitrage Fund Direct Growth Plan, but it remains close to the rest of the listed peer set.
What is the minimum SIP amount?
The minimum SIP amount is ₹500.
What are the fund’s risk category and exit load?
It is classified as Low Risk. Exit load is 0.25% on or before 15 days, and there is no exit load after that period.
Bottom line
UTI Arbitrage Fund Direct Growth Plan looks like a steady hybrid option with a return pattern that has held up better than the benchmark in both recent and longer windows. Against peers, the 1-year figure is competitive but not the strongest, while the longer-term numbers remain broadly in line with the group where comparable data is available. The Low Risk profile, the large money-market holding and the relatively broad spread across 48 disclosed holdings point to a controlled, diversified structure. That makes it more suitable for conservative investors who value stability and moderate compounding over aggressive upside.
Published on 18 September 2026 at 3:52 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.