Invesco India Arbitrage Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 10, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Invesco India Arbitrage Fund Direct Growth Plan closed at ₹37.2657 on 09 September 2026, with scheme AUM of ₹29,629 Cr. Its 1-year, 3-year and 5-year returns are 6.76%, 7.47% and 7.01%, and the fund sits in the Low Risk category.
Our view is that this is a steady arbitrage-style hybrid option for conservative investors who want relatively contained volatility rather than aggressive upside. The return pattern has stayed positive over longer periods and has held up better than the benchmark in the medium and long term, while the portfolio remains heavily anchored in cash, liquid mutual funds and short-dated debt instruments.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹37.2657 as of 09 Sep 2026 |
| AUM | ₹29,629 Cr |
| Expense Ratio | 0.39% |
| Launch Date | 01 Jan 2013 |
| Min SIP | ₹500 |
| Risk Category | Low Risk |
| Benchmark | Nifty 50 |
| Fund Category | Hybrid |
| Exit Load | 0.50% on or before 15D, Nil after 15D |
| Fund Managers | Deepak Gupta, Pradeep Sukte |
The fund is managed by Deepak Gupta and Pradeep Sukte.
Source data date: as of 09 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.46% | -4.69% |
| 3M | 1.60% | 0.93% |
| 1Y | 6.76% | -7.16% |
| 3Y | 7.47% | 6.00% |
| 5Y | 7.01% | 5.87% |
The recent pattern has been constructive. Over 1 month, the fund stayed positive while the benchmark was negative, and over 3 months it also held a cleaner upward path than the index. That tells us the portfolio has continued to deliver the kind of smoother, defensive behaviour investors usually expect from an arbitrage strategy.
The 1-year return of 6.76% is materially better than the benchmark’s -7.16%, but the comparison is more meaningful when viewed alongside the 3-year and 5-year numbers. Those longer periods remain close to the mid-single-digit to low-single-digit range, which suits a lower-volatility objective rather than an equity-style growth expectation.
The 3-year and 5-year returns of 7.47% and 7.01% are both ahead of the benchmark’s 6.00% and 5.87%. The long-run picture is therefore more important than the short-term movement: the fund has shown consistency, with modest but steady compounding that has generally outpaced the benchmark over the periods shown.
We also see a fairly stable trend in the underlying movement rather than sharp swings. That supports the case for an investor who values predictability, especially when the role of the holding is to dampen portfolio volatility instead of chase large capital appreciation.
Source data date: as of 09 Sep 2026
Should you BUY or HOLD Invesco 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 Invesco India Arbitrage? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Invesco India Arbitrage Fund Direct Growth Plan | 6.76% | 7.47% | 7.01% |
| Quant Arbitrage Fund Direct Growth Plan | 7.62% | Data not available | Data not available |
| WOC Arbitrage Fund Direct Growth Plan | 7.16% | Data not available | Data not available |
| Franklin India Arbitrage Fund Direct Growth Plan | 6.91% | Data not available | Data not available |
| Motilal Oswal Arbitrage Fund Direct Growth Plan | 6.86% | Data not available | Data not available |
| Tata Arbitrage Fund Direct Growth Plan | 6.77% | 7.51% | 6.80% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On the most recent 1-year measure, the fund trails Quant Arbitrage Fund Direct Growth Plan and WOC Arbitrage Fund Direct Growth Plan, but it stays close to Franklin India Arbitrage Fund Direct Growth Plan, Motilal Oswal Arbitrage Fund Direct Growth Plan and Tata Arbitrage Fund Direct Growth Plan. That keeps the recent comparison tight rather than one-sided.
The longer-term picture is more balanced. The fund’s 3-year return of 7.47% is below Tata Arbitrage Fund Direct Growth Plan at 7.51%, while the 5-year return of 7.01% is ahead of Tata Arbitrage Fund Direct Growth Plan at 6.80%. With only one peer in this set showing usable 3-year and 5-year figures, the longer-horizon comparison suggests the fund has stayed competitive rather than drifting away from the group.
So the peer story is mixed: the short-term measure does not lead the set, but the medium- and long-term figures remain solid and consistent with a conservative arbitrage outcome.
Source data date: as of 09 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| Net Receivables / (Payables) | Cash & Cash Equivalents and Net Assets | 65.30% |
| Invesco India Liquid Fund – Direct Plan – Growth | Domestic Mutual Funds Units | 14.22% |
| Triparty Repo | Cash & Cash Equivalents and Net Assets | 5.09% |
| Invesco India Money Market Fund-Direct Plan-Growth | Domestic Mutual Funds Units | 5.03% |
| HDFC Bank Limited 2027 ** # | Certificate of Deposit | 1.63% |
| Kotak Mahindra Bank Limited 2027 ** # | Certificate of Deposit | 1.30% |
| Punjab National Bank 2027 ** # | Certificate of Deposit | 1.30% |
| Bank of Baroda 2027 ** # | Certificate of Deposit | 0.98% |
| Small Industries Dev Bank of India 2027 ** # | Certificate of Deposit | 0.97% |
| Invesco India Low Duration Fund – Direct Plan – Growth | Domestic Mutual Funds Units | 0.71% |
The largest disclosed holding is Net Receivables / (Payables) at 65.30%, which is a very large cash-like balance and likely to have the strongest influence on near-term behaviour. After that, the allocation steps down sharply into liquid fund units, repo and certificate-of-deposit exposures, which suggests the portfolio is built for liquidity and stability rather than for stock-specific risk.
The drop from 65.30% to 0.71% by the tenth holding is steep, and that matters because it shows the disclosed book is dominated by a small number of defensive positions. The top 10 holdings account for approximately 96.53% of the portfolio, so the visible allocation is highly concentrated in a narrow set of instruments, even though those instruments themselves are low-risk in nature.
With 12 disclosed holdings in total, the tail beyond the top 10 appears relatively short. That concentration could support smoother execution and may help keep the fund aligned with its arbitrage mandate, but it also means the largest cash and cash-equivalent positions are likely to drive much of the portfolio’s day-to-day profile.
To see all holdings, visit the Invesco India Arbitrage Fund Direct Growth Plan page
Source data date: as of 09 Sep 2026
Who should invest
This fund may suit conservative investors who are comfortable with a low-risk profile and want a steadier return pattern rather than sharp capital appreciation. The 1-year, 3-year and 5-year numbers show consistency, and the benchmark comparison indicates the fund has behaved better over the medium and long term than the index used for reference.
The main trade-off is clear: investors are likely to give up equity-like upside in exchange for lower volatility and a more stable path of returns. The heavy weight in cash-like and short-duration instruments also reinforces that role. A longer horizon can still make sense, but mainly for investors who want a defensive parking place within a broader allocation.
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 | 12.50% | Long-term capital gains tax |
Exit load
- 0.50% on or before 15D, Nil after 15D
Source data date: as of 09 Sep 2026
Frequently asked questions
What is the current NAV of Invesco India Arbitrage Fund Direct Growth Plan?
The current NAV is ₹37.2657 as of 09 September 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s returns are 6.76% for 1 year, 7.47% for 3 years and 7.01% for 5 years.
How has the fund performed versus the benchmark?
It has outpaced the benchmark over 1 year, 3 years and 5 years. The benchmark returns are -7.16% for 1 year, 6.00% for 3 years and 5.87% for 5 years.
How does it compare with the peer funds shown here?
On the 1-year measure, it sits below Quant Arbitrage Fund Direct Growth Plan and WOC Arbitrage Fund Direct Growth Plan, while staying close to Franklin India Arbitrage Fund Direct Growth Plan, Motilal Oswal Arbitrage Fund Direct Growth Plan and Tata Arbitrage Fund Direct Growth Plan. On the available longer-term figures, it remains competitive.
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 Deepak Gupta and Pradeep Sukte. The exit load is 0.50% on or before 15D, and nil after 15D.
Bottom line
The fund’s short-term movement is steadier than the benchmark, and its 3-year and 5-year returns keep that pattern intact rather than sharply changing it. Against the peer set shown here, the recent 1-year figure is competitive but not the strongest, while the longer-horizon numbers remain in the same broad range. The portfolio is heavily weighted toward cash-like and short-duration instruments, which fits the Low Risk label and supports its defensive role for conservative investors.
Published on 10 September 2026 at 11:09 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.