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

Baroda BNP Paribas Arbitrage Fund Direct Growth Plan is priced at ₹18.2612 as of 17 Sep 2026, and the scheme has an AUM of ₹1,055 Cr. Its 1-year, 3-year and 5-year returns are 6.37%, 7.27% and 6.59% respectively, and the fund sits in the Low Risk category.

Our view is that this is a measured option for investors who want a low-volatility arbitrage-style hybrid exposure with relatively steady medium-term compounding. The fund’s return pattern has been more stable over longer stretches than in shorter windows, and the portfolio is dominated by cash-like and treasury-bill positions rather than equity-style exposure.

Quick facts

Particular	Details
NAV	₹18.2612 as of 17 Sep 2026
AUM	₹1,055 Cr
Expense Ratio	0.31%
Launch Date	28 Dec 2016
Min SIP	₹250
Risk Category	Low Risk
Benchmark	Nifty 50
Fund Category	Hybrid
Exit Load	0.25% on or before 15D, Nil after 15D
Fund Managers	Neeraj Saxena, Meenakshi Gururaj, Vikram Pamnani

The fund is managed by Neeraj Saxena, Meenakshi Gururaj and Vikram Pamnani.

Source data date: as of 17 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.41%	-3.66%
3M	1.47%	-3.71%
1Y	6.37%	-7.13%
3Y	7.27%	5.82%
5Y	6.59%	5.72%

The recent pattern has been constructive. Over 1 month and 3 months, the fund stayed positive while the benchmark was negative, which tells us the strategy has behaved differently from the broader equity market in the near term.

That divergence also shows up over 1 year, where the fund finished at 6.37% while the benchmark was at -7.13%. The gap is meaningful and supports the idea that this is not trying to mirror Nifty 50 behaviour over short horizons; it is trying to generate steadier carry from arbitrage and cash-like positioning.

Over longer periods, the picture remains stable rather than flashy. The 3-year return of 7.27% is ahead of the benchmark’s 5.82%, and the 5-year return of 6.59% is also ahead of the benchmark’s 5.72%. The longer pattern suggests steady compounding rather than sharp bursts of growth, which is what we would expect from a low-risk hybrid strategy.

For investors, the important point is that the fund has not relied on a single strong quarter to make its case. The shorter windows, 1-year and 3-year figures, and the 5-year track all point in the same direction: moderate positive returns with lower volatility than the benchmark.

Source data date: as of 17 Sep 2026

Should you BUY or HOLD Baroda BNP Paribas 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
Baroda BNP Paribas Arbitrage Fund Direct Growth Plan	6.37%	7.27%	6.59%
Quant Arbitrage Fund Direct Growth Plan	7.61%	Data not available	Data not available
WOC Arbitrage Fund Direct Growth Plan	7.17%	Data not available	Data not available
Franklin India Arbitrage Fund Direct Growth Plan	7.03%	Data not available	Data not available
Motilal Oswal Arbitrage Fund Direct Growth Plan	6.94%	Data not available	Data not available
Invesco India Arbitrage Fund Direct Growth Plan	6.84%	7.49%	7.02%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On 1-year performance, the fund trails the strongest peer figure in this set, with several peers showing a higher recent return. Even so, the fund remains competitive versus the peer group shown, and the spread is not wide enough to change the overall picture of a stable arbitrage fund.

On the longer horizon, the available comparisons are mixed. The fund’s 3-year return of 7.27% is behind Invesco India Arbitrage Fund Direct Growth Plan at 7.49%, while its 5-year return of 6.59% is also below Invesco’s 7.02%. That said, the fund still delivers a solid long-term return profile, and the short-term versus long-term comparison tells a more nuanced story: recent relative return strength is respectable, but not the highest in this peer set.

Source data date: as of 17 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Net Receivables / (Payables)	Cash & Cash Equivalents and Net Assets	73.84%
Baroda BNP Paribas Liquid Fund – Direct Growth	Domestic Mutual Funds Units	7.66%
Clearing Corporation of India Ltd	Cash & Cash Equivalents and Net Assets	5.12%
182 Days Tbill (MD 19/11/2026)	Treasury Bills	4.68%
364 Days Tbill (MD 11/03/2027)	Treasury Bills	4.6%
364 Days Tbill (MD 26/11/2026)	Treasury Bills	2.34%
364 Days Tbill (MD 19/03/2027)	Treasury Bills	2.3%

The largest disclosed position, net receivables and payables, is 73.84% of the portfolio. That is a very large single line item, so it is likely to have greater influence on the fund’s day-to-day profile than any of the smaller holdings.

The weight then falls quickly into smaller pieces. The second holding is 7.66%, and the last disclosed line is 2.3%, so the visible holdings move from a dominant cash-like claim to much smaller treasury-bill and liquidity positions. That steep drop suggests the portfolio is not evenly spread across similar-sized positions.

At the same time, the seven disclosed holdings together account for 100% of the portfolio shown here, which means the fund is concentrated in a short list of instruments rather than a long tail. In our view, that structure is consistent with an arbitrage fund designed to keep exposures tight and relatively predictable.

Source data date: as of 17 Sep 2026

Who should invest

This fund may suit investors with a conservative risk appetite who want a low-risk hybrid fund rather than an equity-led return profile. The 1-year, 3-year and 5-year figures show steady positive returns, while the benchmark has been much more uneven over short windows.

The main trade-off is that the fund is built for stability and consistency, not for fast growth. Investors with a medium-to-long horizon who value lower volatility, along with exposure that has stayed ahead of the benchmark over the longer periods shown, may find the risk-return balance appropriate. The concentrated holding pattern also means the fund is more about controlled positioning than broad diversification.

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 17 Sep 2026

Frequently asked questions

What is the current NAV of Baroda BNP Paribas Arbitrage Fund Direct Growth Plan?
The current NAV is ₹18.2612 as of 17 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s returns are 6.37% over 1 year, 7.27% over 3 years and 6.59% over 5 years.

How has it done versus the benchmark?
It has been ahead of Nifty 50 over 1 month, 3 months, 1 year, 3 years and 5 years. The gap has been especially visible over the shorter windows.

How does it compare with peer arbitrage funds on recent returns?
Its 1-year return of 6.37% is below several peers in the comparison set, while its 3-year and 5-year figures are solid but below Invesco India Arbitrage Fund Direct Growth Plan where data is available.

What is the minimum SIP for this fund?
The minimum SIP is ₹250.

What are the fund’s risk category, managers and exit load?
It is a Low Risk fund managed by Neeraj Saxena, Meenakshi Gururaj and Vikram Pamnani. The exit load is 0.25% on or before 15 days and nil after 15 days.

Bottom line

Baroda BNP Paribas Arbitrage Fund Direct Growth Plan has shown steadier medium-term performance than the benchmark and has stayed positive across the key return windows. Against peers, its recent and longer-term returns are respectable, though not the strongest where direct comparisons are available. The risk profile is low, and the portfolio is heavily tilted toward cash-like and treasury-bill exposures, which supports the fund’s conservative character. For investors seeking a controlled, low-volatility hybrid allocation, the fund’s profile is easy to understand.

Published on 18 September 2026 at 4:05 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.