Bajaj Finserv Arbitrage Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

Bajaj Finserv Arbitrage Fund Direct Growth Plan currently has a NAV of ₹12.223 as of 28 Aug 2026 and a scheme AUM of ₹1,193 Cr. Its 1-year, 3-year and 5-year returns are 6.5%, Data not available and Data not available, and it sits in the Low Risk category. Our view is that it fits investors looking for a relatively steady, arbitrage-oriented hybrid option, with recent returns ahead of the benchmark and a portfolio that is dominated by cash-like and short-term instruments rather than equity-heavy exposure.

That said, the fund’s short history means longer-horizon return evidence is limited, so the most useful read is its recent stability and benchmark behaviour rather than a full cycle comparison. The combination of low-risk positioning, modest expense ratio and conservative portfolio mix makes it more relevant for investors who want lower volatility than a conventional equity fund.

Quick facts

Metric	Value
NAV	₹12.223
AUM	₹1,193 Cr
Expense Ratio	0.31%
Launch Date	15 September 2023
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	Ilesh Savla; Siddharth Chaudhary

The fund is managed by Ilesh Savla and Siddharth Chaudhary.

Source data date: as of 28 Aug 2026

Performance

Period	Fund return	Benchmark return
1M	0.37%	-0.85%
3M	1.66%	3.39%
1Y	6.5%	-2.29%
3Y	Data not available	Data not available
5Y	Data not available	Data not available

The fund has started to show a clearer positive drift over the most recent one-year period, while the benchmark has been more uneven. The 1-year figure is the cleanest evidence of how the scheme has behaved so far: the fund stayed in positive territory while the benchmark was negative over the same period. That is a useful sign for an arbitrage-style product, because it suggests the return profile has been relatively stable rather than dependent on broad market direction.

The shorter 1-month and 3-month figures need a more careful read. The fund was positive in both windows, but the benchmark was stronger over 3 months and weaker over 1 month. That tells us the fund has not been uniformly ahead in every short stretch, even though the overall 1-year result is better. For investors, this kind of pattern is consistent with a conservative hybrid fund that may move differently from a plain equity benchmark.

The absence of 3-year and 5-year numbers means we should not stretch the story beyond the fund’s available history. The more sensible interpretation is that the scheme has delivered a modest positive trend since launch, with recent behaviour better than the benchmark on a 1-year view and more mixed at shorter intervals. In other words, the return pattern supports the fund’s low-volatility positioning more than a high-growth narrative.

Source data date: as of 28 Aug 2026

Should you BUY or HOLD Bajaj Finserv 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
Bajaj Finserv Arbitrage Fund Direct Growth Plan	6.5%	Data not available	Data not available
Quant Arbitrage Fund Direct Growth Plan	7.543%	Data not available	Data not available
WOC Arbitrage Fund Direct Growth Plan	7.0177%	Data not available	Data not available
Motilal Oswal Arbitrage Fund Direct Growth Plan	6.923%	Data not available	Data not available
Franklin India Arbitrage Fund Direct Growth Plan	6.8938%	Data not available	Data not available
Invesco India Arbitrage Fund Direct Growth Plan	6.7079%	7.51%	6.9804%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On the return table, the fund’s 1-year performance is below several peers that have higher recent figures, though it remains in the same broad return band. Where longer-horizon figures are available, Invesco India Arbitrage Fund Direct Growth Plan shows usable 3-year and 5-year data, while this fund does not yet have those longer records. That means the short-term comparison looks mixed, and the longer-term comparison is constrained by the fund’s shorter track record rather than by a weak longer-term trend.

Source data date: as of 28 Aug 2026

Portfolio: where your money goes

Market-cap distribution

Market-cap bucket	Weight
Large cap	16.41%
Mid cap	0%
Small cap	-0.38%
Other cap	100.25%

Sector	Weight	Holdings
CASH & CASH EQUIVALENTS AND NET ASSETS	67.45%	NET RECEIVABLES / (PAYABLES) — 64.01%; CLEARING CORPORATION OF INDIA LTD — 3.44%
DOMESTIC MUTUAL FUNDS UNITS	23.62%	BAJAJ FINSERV MONEY MARKET FUND-DIRECT PLAN-GROWTH — 13.02%; BAJAJ FINSERV LIQUID FUND – DIRECT PLAN – GROWTH — 10.6%
BANK	3%	HDFC BANK LIMITED — 5.51%; ICICI BANK LIMITED — 3.82%
FINANCE	2.43%	MULTI COMMODITY EXCHANGE OF INDIA LIMITED — 2.64%; ADITYA BIRLA CAPITAL LIMITED — 1.76%
CERTIFICATE OF DEPOSIT	1.3%	Data not available

The portfolio is tilted heavily toward cash and near-cash exposure, with cash, receivables and net assets taking the largest share. That structure is consistent with the fund’s low-risk profile and helps explain why the scheme may behave differently from a conventional equity-oriented product. The domestic mutual fund units line also matters because it adds another layer of liquid, short-duration exposure rather than stretching into more volatile assets.

The largest sector, cash and cash equivalents, is materially larger than the next two sectors, so portfolio behaviour is likely to be shaped first by liquidity and short-term market conditions. Domestic mutual fund units are the next major block, while bank and finance exposures are much smaller. That gap suggests the portfolio is not evenly spread across sectors; instead, it is concentrated in short-term and defensive holdings.

In our view, the cash-heavy mix is the most influential feature here. It may support smoother movement than an equity fund, although returns can also remain modest when markets are strong. The bank and finance allocations are visible, but they are not large enough to dominate the overall profile. The result is a portfolio that is likely to be driven more by short-term positioning and liquidity management than by equity-style stock selection.

Source data date: as of 28 Aug 2026

Who should invest

This fund suits investors who are comfortable with a low-risk profile and who want a relatively stable hybrid allocation rather than aggressive growth. Its one-year return has been positive, while the longer record is still too short to build a full multi-year story, so the main appeal is the defensive structure rather than a long performance track record.

The fund may work better for a short-to-medium horizon where steadier behaviour matters more than equity-like upside. The trade-off is straightforward: investors may accept lower return potential in exchange for a portfolio that is built around cash-like and liquid instruments and has already shown less dependence on broad market direction than the benchmark.

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 15 days; nil after 15 days.

Source data date: as of 28 Aug 2026

Frequently asked questions

What is the current NAV of Bajaj Finserv Arbitrage Fund Direct Growth Plan?

The current NAV is ₹12.223 as of 28 Aug 2026.

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

The 1-year return is 6.5%, while the 3-year and 5-year returns are Data not available.

How has it performed versus the benchmark?

Its 1-year return of 6.5% is ahead of the benchmark’s -2.29% for the same period. Over shorter windows, the comparison is mixed, with the benchmark ahead over 3 months but behind over 1 month.

How does it compare with the peer funds listed here?

Its 1-year return is below some of the peer funds shown, including Quant Arbitrage Fund Direct Growth Plan at 7.543% and WOC Arbitrage Fund Direct Growth Plan at 7.0177%. Invesco India Arbitrage Fund Direct Growth Plan has longer-horizon figures available, while this fund does not yet have 3-year and 5-year numbers.

What is the minimum SIP amount?

The minimum SIP amount is ₹500.

What is the risk profile, and who manages the fund?

The fund is in the Low Risk category. It is managed by Ilesh Savla and Siddharth Chaudhary, and its portfolio is weighted heavily toward cash and cash equivalents.

Bottom line

Bajaj Finserv Arbitrage Fund Direct Growth Plan has shown a better one-year result than its benchmark, but its shorter-term path is mixed and its longer-term record is still limited by its launch date. Compared with the peer set shown here, its recent return sits below several comparable arbitrage funds, while the absence of 3-year and 5-year figures limits deeper comparison. The low-risk label and cash-heavy portfolio make it most relevant for investors who value steadier behaviour and can accept modest return potential.

Published on 31 August 2026 at 4:19 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.