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

Bandhan Arbitrage Fund Direct Growth Plan is priced at ₹37.793 as of 09 Sep 2026, with scheme AUM of ₹8,010 Cr. Its 1-year, 3-year and 5-year returns are 6.45%, 7.32% and 6.7%, and the fund sits in the Low Risk bucket.

Our view is that this looks like a steadier hybrid-style option for conservative investors who want a comparatively muted ride and can live with return levels that are close to, but not materially above, the benchmark over longer periods. The portfolio mix and the use of debt-oriented holdings alongside equities help explain why the fund has been more measured than a pure equity strategy.

Quick facts

Particular	Details
NAV	₹37.793 as of 09 Sep 2026
AUM	₹8,010 Cr
Expense Ratio	0.35%
Launch Date	01 Jan 2013
Min SIP	₹100
Risk Category	Low Risk
Benchmark	Nifty 50
Fund Category	Hybrid
Exit Load	0.25% on or before 15D, Nil after 15D
Fund Managers	Kapil Kankonkar, Harshal Joshi

The fund is managed by Kapil Kankonkar and Harshal Joshi.

Source data date: as of 09 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.42%	-4.69%
3M	1.54%	0.93%
1Y	6.45%	-7.16%
3Y	7.32%	6%
5Y	6.7%	5.87%

The recent pattern is constructive. Over the latest month and quarter, the fund held positive territory while the benchmark was softer, which suggests the strategy has continued to behave defensively in a weak patch for the index. That matters for investors who value smoother participation more than sharp upside.

The 1-year figure is also notably better than the benchmark’s negative reading, so the fund has absorbed market stress better over the trailing year. That said, the gap is not dramatic over the longer horizon: the 3-year and 5-year returns are only modestly ahead of the benchmark, which points to a more measured compounding profile rather than a strong return premium.

Our reading is that this fund’s return profile is steadier than high-growth equity funds and more resilient than the benchmark in softer stretches, but it has not separated itself by a wide margin over full market cycles. The time pattern supports a conservative allocation role rather than a return-chasing one.

Source data date: as of 09 Sep 2026

Should you BUY or HOLD Bandhan 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 Bandhan Arbitrage? Thinking of investing now?

Get your portfolio analysed for FREE by SEBI-registered Investment Adviser (RIA) through Univest MF Premium

Peer comparison

Fund	1Y return	3Y return	5Y return
Bandhan Arbitrage Fund Direct Growth Plan	6.45%	7.32%	6.7%
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 latest 1-year figures, the fund trails the higher recent numbers shown by Quant Arbitrage Fund Direct Growth Plan and WOC Arbitrage Fund Direct Growth Plan, while remaining close to Franklin India Arbitrage Fund Direct Growth Plan and Motilal Oswal Arbitrage Fund Direct Growth Plan. That makes the short-term picture fairly tight among the comparable names.

Over 3 years and 5 years, the fund’s available numbers are ahead of the benchmark and sit slightly below Tata Arbitrage Fund Direct Growth Plan on 5-year return, while Tata also shows a marginally better 3-year outcome. So the longer view is mixed: the fund is steady, but not clearly the strongest among the peer set where longer-horizon figures are available.

Source data date: as of 09 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
BANDHAN MONEY MARKET FUND -DIRECT PLAN-GROWTH	Domestic Mutual Funds Units	12.93%
BANDHAN LOW DURATION FUND -DIRECT PL-GROWTH	Domestic Mutual Funds Units	10.76%
BANDHAN ULTRA SHORT DURATION FUND – DR PLAN GR	Domestic Mutual Funds Units	3.48%
VODAFONE IDEA LIMITED	Telecom	2.7%
HDFC BANK LIMITED	Bank	2.62%
KOTAK MAHINDRA BANK LIMITED	Bank	2.51%
AXIS BANK LIMITED	Bank	2.37%
RELIANCE INDUSTRIES LIMITED	Crude Oil	2.18%
BHARTI AIRTEL LIMITED	Telecom	1.74%
JIO FINANCIAL SERVICES LIMITED	Finance	1.74%

The top 10 holdings account for approximately 43.03% of the portfolio.

To see all holdings, visit the Bandhan Arbitrage Fund Direct Growth Plan page

The largest disclosed holding is Bandhan Money Market Fund -Direct Plan-Growth at 12.93%, which is sizeable for a single line but not dominant on its own. The next two holdings are also domestic mutual fund units, so the fund begins with a strong cash-and-short-duration style core before moving into equities and sector exposures.

The weight then steps down to 3.48% for the third holding and stays mostly in the 1.74% to 2.7% range through the tenth. That drop from the first two positions to the rest of the table suggests the portfolio is structured with a few heavier anchors and a broader set of smaller exposures rather than one concentrated bet.

Because the top 10 holdings together account for 43.03% and the scheme discloses 55 holdings in total, the displayed portion is meaningfully spread across a longer tail. That mix may reduce single-position influence, although the fund still appears to rely on its larger liquid and short-duration holdings for a meaningful share of the overall profile.

Source data date: as of 09 Sep 2026

Who should invest

This fund is most suitable for investors with a conservative risk tolerance who want a Low Risk hybrid allocation rather than a pure equity return profile. The 1-year, 3-year and 5-year returns show steady compounding, and the benchmark comparison indicates that the fund has been better behaved in softer periods than the index.

The main trade-off is that the return profile is relatively restrained. Investors looking for large upside swings may find the upside limited, but those who want a steadier path and a medium-to-long investment horizon may appreciate how the portfolio is built around liquid and short-duration exposures alongside equities.

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 15D, Nil after 15D.

Source data date: as of 09 Sep 2026

Frequently asked questions

What is the current NAV of Bandhan Arbitrage Fund Direct Growth Plan?
Its current NAV is ₹37.793 as of 09 Sep 2026.

How have the fund’s returns looked over 1 year, 3 years and 5 years?
The fund’s returns are 6.45% for 1 year, 7.32% for 3 years and 6.7% for 5 years.

How does the fund compare with the benchmark?
It has outpaced the benchmark over 1 year, 3 years and 5 years. The benchmark’s returns are -7.16%, 6% and 5.87% for those same periods.

How does it compare with the peer funds shown here?
Its 1-year return is below Quant Arbitrage Fund Direct Growth Plan and WOC Arbitrage Fund Direct Growth Plan, but close to Franklin India Arbitrage Fund Direct Growth Plan and Motilal Oswal Arbitrage Fund Direct Growth Plan. On the longer periods shown, Tata Arbitrage Fund Direct Growth Plan has slightly better available 3-year and 5-year figures.

What is the minimum SIP amount?
The minimum SIP amount is ₹100.

Who manages the fund, and what is the exit load?
The fund is managed by Kapil Kankonkar and Harshal Joshi. The exit load is 0.25% on or before 15 days, and nil after 15 days.

Bottom line

Bandhan Arbitrage Fund Direct Growth Plan has shown a steadier recent pattern than the benchmark, while its longer-term returns remain only moderately ahead of the index. That makes it more of a consistent, lower-volatility hybrid-style holding than a high-octane return driver. The portfolio also leans on a meaningful core of liquid and short-duration holdings, with a broader tail underneath. In our view, it fits investors who value stability and measured compounding more than aggressive upside.

Published on 10 September 2026 at 3:44 PM IST

Explore mutual funds with Univest

Review mutual fund data, compare performance and explore fund insights on Univest.

Explore Univest

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.