SBI Arbitrage Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 10, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
SBI Arbitrage Fund Direct Growth Plan currently has an NAV of ₹38.713 as of 09 Sep 2026 and a scheme AUM of ₹47,282 Cr. Its 1-year, 3-year and 5-year returns are 6.45%, 7.27% and 6.8%, and the risk category is Low Risk.
Our view is that this is a steadier hybrid option for conservative investors who want lower volatility rather than aggressive return chasing. The fund has kept pace with its benchmark over longer periods, and its arbitrage-style mix with cash-like and banking exposures supports that defensive profile.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹38.713 as of 09 Sep 2026 |
| AUM | ₹47,282 Cr |
| Expense Ratio | 0.4% |
| Launch Date | 11 Jan 2013 |
| 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 | Neeraj Kumar, Ardhendu Bhattacharya |
The fund is managed by Neeraj Kumar and Ardhendu Bhattacharya.
Source data date: as of 09 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.39% | -4.69% |
| 3M | 1.48% | 0.93% |
| 1Y | 6.45% | -7.16% |
| 3Y | 7.27% | 6% |
| 5Y | 6.8% | 5.87% |
The recent picture is comfortable rather than exciting. Over 1 month and 3 months, the fund has stayed positive while the benchmark moved through a weaker patch, which tells us the strategy has continued to behave defensively in the short run.
The 1-year number is the clearest contrast: 6.45% for the fund against -7.16% for the benchmark. That gap is meaningful because it shows the fund has not relied on broad market direction to produce its return profile.
Longer-term figures are more balanced. The 3-year return of 7.27% is above the benchmark’s 6%, while the 5-year return of 6.8% is also ahead of the benchmark’s 5.87%. That tells us the fund’s edge has been modest but persistent, rather than driven by a single sharp period.
The return pattern also looks smoother than an equity-oriented product, which fits the arbitrage approach. For investors, that usually matters more than chasing highs: the key appeal is steadier compounding with limited drawdown style behaviour, not large swings in either direction.
Source data date: as of 09 Sep 2026
Should you BUY or HOLD SBI 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 SBI Arbitrage? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| SBI Arbitrage Fund Direct Growth Plan | 6.45% | 7.27% | 6.8% |
| 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% | 6.8% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
On the 1-year view, the fund sits below several peers that have a stronger short-term number, including Quant Arbitrage Fund Direct Growth Plan and WOC Arbitrage Fund Direct Growth Plan. Even so, its 1-year return remains solid and clearly positive.
The longer-term picture is more mixed but still constructive. The fund is below Tata Arbitrage Fund Direct Growth Plan on the 3-year measure, while matching its 5-year return at 6.8%. That combination suggests the fund’s recent short-term pace is not the best in this peer set, but its longer-term compounding remains competitive where data is available.
Source data date: as of 09 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| SBI Money Market Fund – Direct Plan – Growth Option | Domestic Mutual Funds Units | 10.38% |
| SBI Liquid Fund – Direct Plan -Growth Option | Domestic Mutual Funds Units | 5.48% |
| HDFC Bank Ltd. | Bank | 5.14% |
| Reliance Industries Ltd. | Crude Oil | 4.3% |
| State Bank of India | Bank | 3.75% |
| TREPS | Cash & Cash Equivalents and Net Assets | 2.87% |
| ICICI Bank Ltd. | Bank | 2.46% |
| Axis Bank Ltd. | Bank | 2.41% |
| Bharti Airtel Ltd. | Telecom | 2.37% |
| Bank of Baroda | Certificate of Deposit | 2.02% |
The largest holding is SBI Money Market Fund – Direct Plan – Growth Option at 10.38%, which is large enough to matter but still far from dominating the portfolio on its own. The next few positions step down gradually, with the tenth holding at 2.02%, so the visible basket does not look concentrated in a single name.
The combined weight of the top 10 holdings is approximately 41.18%, which suggests the portfolio spreads risk across a wider tail of positions. With 51 disclosed holdings in total, the fund appears to use a layered structure rather than relying only on a small cluster of top bets.
That mix may help keep the portfolio behaviour stable, especially for an arbitrage-oriented hybrid fund. At the same time, the presence of bank holdings, liquid fund exposure and TREPS means the larger lines are likely to have greater influence on how the portfolio behaves day to day.
To see all holdings, visit the SBI Arbitrage Fund Direct Growth Plan page
Source data date: as of 09 Sep 2026
Who should invest
This fund is suited to conservative investors who want a low-risk profile and are comfortable with a hybrid structure that aims for steadier movement rather than fast capital growth. The 1-year return has been positive, while the 3-year and 5-year figures show consistent medium-term compounding with modest but stable gains versus the benchmark.
The main trade-off is straightforward: you give up the possibility of sharp upside in exchange for a smoother return pattern and lower volatility. That makes the fund more suitable for investors with a medium to long horizon who value predictability, especially when compared with return patterns that can swing more widely in equity-heavy options.
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; nil after 1 month.
Source data date: as of 09 Sep 2026
Frequently asked questions
What is the current NAV of SBI Arbitrage Fund Direct Growth Plan?
The current NAV is ₹38.713 as of 09 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
Its returns are 6.45% for 1 year, 7.27% for 3 years and 6.8% for 5 years.
How has it performed against the benchmark?
It has been ahead of the benchmark across the 1-year, 3-year and 5-year periods shown here. The gap is widest over 1 year, where the fund is positive while the benchmark is negative.
How does it compare with peer funds on recent returns?
Its 1-year return is below some peers such as Quant Arbitrage Fund Direct Growth Plan and WOC Arbitrage Fund Direct Growth Plan, but it remains ahead of the benchmark on the periods shown.
Is there a minimum SIP amount?
Yes, the minimum SIP amount is ₹500.
Who manages the fund and what is the exit load?
The fund is managed by Neeraj Kumar and Ardhendu Bhattacharya. The exit load is 0.25% if units are sold on or before 1 month, and nil after 1 month.
Bottom line
SBI Arbitrage Fund Direct Growth Plan shows a steadier return pattern over time than its short-term moves alone might suggest. The 1-year figure is respectable, while the 3-year and 5-year returns show consistent compounding that stays ahead of the benchmark. Compared with peers, the recent return is not the strongest in the group, but the longer-term picture remains competitive where data is available. With a Low Risk label and a portfolio built around money-market, liquid and banking exposure, it is a better fit for conservative investors who value stability more than upside surprise.
Published on 10 September 2026 at 11:49 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.