Aditya Birla SL Arbitrage Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

Aditya Birla SL Arbitrage Fund Direct Growth Plan has a NAV of ₹30.8419 as of 28 Aug 2026 and an AUM of ₹26,939 Cr. Its 1-year, 3-year and 5-year returns are 6.6341%, 7.4758% and 6.7314%, and the scheme is tagged as Low Risk. Our view is that this looks like a relatively steady arbitrage-style option for conservative investors who want lower volatility and are comfortable with moderate return outcomes rather than aggressive growth.

The fund’s recent return pattern is broadly stable, and its longer-term numbers have stayed in a similar band. Against the Nifty 50 benchmark, the fund has been more resilient in weaker market phases, though the benchmark has sometimes moved ahead over shorter stretches. The portfolio mix is tilted toward financial exposure and cash-like or defensive positioning, which supports the low-risk profile.

Quick facts

Detail	Value
NAV	₹30.8419
AUM	₹26,939 Cr
Expense Ratio	0.31%
Launch Date	01 Jan 2013
Min SIP	₹0
Risk Category	Low Risk
Benchmark	Nifty 50
Fund Category	Equity
Exit Load	0.25% on or before 15D, Nil after 15D
Fund Managers	Lovelish Solanki, Mohit Sharma, Krina Mehta

The fund is managed by Lovelish Solanki, Mohit Sharma and Krina Mehta.

Source data date: as of 28 Aug 2026

Performance

Period	Fund return	Benchmark return
1M	0.42%	-0.85%
3M	1.80%	3.39%
1Y	6.63%	-2.29%
3Y	7.48%	6.40%
5Y	6.73%	7.13%

Recent performance has been measured rather than flashy. The fund gained 0.42% over 1 month and 1.80% over 3 months, while the benchmark moved from a negative 1-month reading to a stronger 3-month figure. That tells us the fund has been steady, but not always the faster mover in short bursts.

Over 1 year, the fund’s 6.63% return stands out because the benchmark was negative at -2.29%. This is the clearest sign of the fund’s defensive character: it has held up far better when the broader market index struggled. For an arbitrage strategy, that relative stability matters more than chasing large swings.

Across 3 years, the fund’s 7.48% return is slightly ahead of the benchmark’s 6.40%. Over 5 years, the benchmark is modestly ahead at 7.13% versus 6.73% for the fund. Our read is that the fund has delivered a smoother path, but the longer compounding edge has been small and has not consistently beaten the index over every horizon.

That pattern fits the time profile we would expect from a lower-volatility equity strategy. The fund has not shown explosive upside, but it has avoided the sharp drawdowns that can pull returns down in weaker stretches. For investors, the key question is whether stability and lower volatility matter more than squeezing out the last bit of return in stronger markets.

Source data date: as of 28 Aug 2026

Should you BUY or HOLD Aditya Birla SL 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.

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Peer comparison

Fund	1Y return	3Y return	5Y return
Aditya Birla SL Arbitrage Fund Direct Growth Plan	6.6341%	7.4758%	6.7314%
ICICI Pru Strategic Metal and Energy Equity FoF Direct Growth Plan	74.6291%	37.4093%	Data not available
SBI Automotive Opportunities Fund Direct Growth Plan	36.1787%	Data not available	Data not available
Aditya Birla SL Mfg. Equity Fund Direct Growth Plan	31.2065%	23.5399%	17.0758%
Motilal Oswal Active Momentum Fund Direct Growth Plan	30.7865%	Data not available	Data not available
Kotak Healthcare Fund Direct Growth Plan	29.7972%	Data not available	Data not available

The 1-year comparison is clearly more subdued for this fund than for the higher-return peers in the table, but those peers are also very different strategies. The more useful comparison is on the longer horizon: the fund’s 3-year return is stronger than several peers where data is available, though some equity-oriented peers have delivered much faster growth. On 5 years, the fund sits below Aditya Birla SL Mfg. Equity Fund Direct Growth Plan, which has a clearly stronger long-term number.

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. The takeaway is that the current fund’s return profile is steadier and lower-octane than many of the comparison names, especially over the shorter period. Short-term peer comparisons and longer-term peer comparisons tell different stories because the fund is built for stability, not for maximum upside.

Source data date: as of 28 Aug 2026

Portfolio: where your money goes

The market-cap mix is 48.42% large cap, 19.18% mid cap, 3.12% small cap and 29.28% other exposures. That means the portfolio is not dominated by small companies; it is anchored by large-cap and non-traditional arbitrage-style holdings that can help keep overall volatility contained.

Sector	Weight	Key holdings
BANK	22.28%	KOTAK MAHINDRA BANK LIMITED (6.3%), HDFC BANK LIMITED (3.53%)
DOMESTIC MUTUAL FUNDS UNITS	14.25%	ADITYA BIRLA SUN LIFE MONEY MANAGER FUND – GROWTH – DIRECT PLAN (8.87%), ADITYA BIRLA SUNLIFE FLOATING RATE FUND – DIRECT PLAN – GROWTH (3.06%)
FINANCE	8.61%	MULTI COMMODITY EXCHANGE OF INDIA LIMITED (2.36%), HDFC ASSET MANAGEMENT COMPANY LIMITED (0.82%)
CERTIFICATE OF DEPOSIT	6.49%	—
CRUDE OIL	4.49%	RELIANCE INDUSTRIES LIMITED (3.17%)

BANK is the largest sector at 22.28%, and it is materially larger than the next sector, Domestic Mutual Funds Units, at 14.25%. That gap matters because BANK exposure could have a greater influence on day-to-day movement than any single sector below it. At the same time, the presence of 29.28% under other-cap style exposure and 6.49% in certificate of deposit suggests the portfolio has meaningful defensive support.

Within the visible holdings, Kotak Mahindra Bank and HDFC Bank are the clearest single-stock weights inside the BANK sleeve, but the overall structure is still more about spread and cash-like positioning than a concentrated equity bet. Our view is that the mix may help dampen sharp swings, especially when combined with the fund’s low-risk profile. The largest sector should therefore be watched as the main driver of portfolio behaviour, while the rest of the book acts more as a supporting layer.

Source data date: as of 28 Aug 2026

Who should invest

This fund fits investors who prefer lower volatility and can accept that stability may come with only moderate return potential. The Low Risk label and the 1-year result above the benchmark but the 5-year result slightly below it point to a strategy that aims for consistency rather than standout upside.

A longer holding horizon can still help because the fund’s 3-year and 5-year numbers show that it has stayed within a relatively narrow return band. The main trade-off is simple: an investor may give up some upside versus stronger-growth peers in exchange for a smoother path and less sensitivity to broader market swings. The large-cap and cash-like portfolio mix supports that trade-off.

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 is 0.25% on or before 15D, and nil after 15D.

Source data date: as of 28 Aug 2026

Frequently asked questions

What is the current NAV of Aditya Birla SL Arbitrage Fund Direct Growth Plan?

The current NAV is ₹30.8419 as of 28 Aug 2026.

What are the fund’s 1-year, 3-year and 5-year returns?

The fund’s 1-year, 3-year and 5-year returns are 6.6341%, 7.4758% and 6.7314%.

How has the fund done against the benchmark?

It has outpaced the benchmark over 1 year and 3 years, while the benchmark is slightly ahead over 5 years. Over 3 months, the benchmark has also been stronger.

How does the fund compare with the peer funds listed here?

Its return profile is steadier and lower than several equity-oriented peer names over 1 year, but it looks more balanced on the longer horizon where some peer figures are unavailable. Compared with Aditya Birla SL Mfg. Equity Fund Direct Growth Plan, the fund’s 5-year return is lower.

What is the minimum SIP amount?

The minimum SIP amount is ₹0.

Who manages the fund and what is the exit load?

The fund is managed by Lovelish Solanki, Mohit Sharma and Krina Mehta. The exit load is 0.25% on or before 15D and nil after 15D.

Bottom line

Aditya Birla SL Arbitrage Fund Direct Growth Plan has been more stable than exciting: it has handled the weaker 1-year benchmark backdrop well, stayed reasonably consistent over 3 and 5 years, and kept a low-risk profile. Compared with the listed peers, its return pattern is calmer and less aggressive, especially on the short end. The portfolio is led by BANK exposure and supported by meaningful other-cap and certificate-of-deposit allocation, which reinforces the defensive character. It suits investors who want a steadier equity-oriented strategy and can accept modest upside in exchange for lower volatility.

Published on 31 August 2026 at 2:58 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.