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

DSP Arbitrage Fund Direct Growth Plan is at ₹16.842 as of 11 September 2026, with scheme AUM of ₹6,672 Cr. Its 1-year, 3-year and 5-year returns are 6.48%, 7.23% and 6.59%, and the scheme is in the Low Risk category. Our view is that this is a steadier return profile than an equity fund that chases sharp upside, but it still depends on market spreads and can move unevenly over shorter periods.

The fund may suit investors who want a relatively conservative hybrid allocation and can accept that short stretches may be flat or choppy. The recent numbers are modest, but the longer-term track record is consistent enough to make the fund relevant for parking money with lower volatility than a pure equity approach.

Quick facts

Particular	Details
NAV	₹16.842 as of 11 Sep 2026
AUM	₹6,672 Cr
Expense Ratio	0.35%
Launch Date	25 Jan 2018
Min SIP	₹100
Risk Category	Low Risk
Benchmark	Nifty 50
Fund Category	Hybrid
Exit Load	Nil upto 10% of units and 0.25% for remaining units on or before 15D, Nil after 15D
Fund Managers	Kaivalya Nadkarni, Karan Mundhra

The fund is managed by Kaivalya Nadkarni and Karan Mundhra.

Source data date: as of 11 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.45%	-3.66%
3M	1.53%	-1.91%
1Y	6.48%	-7.62%
3Y	7.23%	6.22%
5Y	6.59%	5.84%

In the near term, the fund has held up much better than the benchmark. The 1-month and 3-month return figures are positive while the benchmark is negative over both windows, which suggests the fund has continued to provide a smoother path when equity markets were under pressure.

The 1-year comparison is even clearer. The fund’s 6.48% return contrasts with the benchmark’s -7.62%, so the scheme has preserved value while the index has fallen over the same horizon. That is an important feature for investors using this type of hybrid strategy as a low-volatility allocation rather than a growth engine.

Over 3 years and 5 years, the fund stays ahead of the benchmark, with returns of 7.23% and 6.59% against 6.22% and 5.84%. The longer-term pattern is therefore consistent: the fund has not produced explosive gains, but it has compounded more steadily than the benchmark and has not relied on one strong year to carry the result.

The recent profile does not look materially different from the longer-term trend. We see a fund that has tended to compound in a restrained way, with short-term stability doing more work than strong directional equity exposure.

Source data date: as of 11 Sep 2026

Should you BUY or HOLD DSP 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
DSP Arbitrage Fund Direct Growth Plan	6.48%	7.23%	6.59%
Quant Arbitrage Fund Direct Growth Plan	7.6%	Data not available	Data not available
WOC Arbitrage Fund Direct Growth Plan	7.08%	Data not available	Data not available
Franklin India Arbitrage Fund Direct Growth Plan	6.94%	Data not available	Data not available
Motilal Oswal Arbitrage Fund Direct Growth Plan	6.92%	Data not available	Data not available
Invesco India Arbitrage Fund Direct Growth Plan	6.76%	7.46%	7%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. The fund’s 1-year return is close to the middle of the available peer set, with a few peers showing a somewhat higher recent figure. On longer horizons, the picture is more mixed: one available peer is ahead on 3-year and 5-year numbers, while another peer with available 3-year and 5-year data is slightly below the fund on 5-year return but ahead on 3-year return. That tells us the short-term and longer-term comparisons do not point in exactly the same direction.

Source data date: as of 11 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
DSP Money Market Fund	Domestic Mutual Funds Units	10.98%
HDFC Bank Limited	Bank	4.73%
Reliance Industries Limited	Crude Oil	4.48%
Vodafone Idea Limited	Telecom	3.58%
Indian Bank**	Certificate of Deposit	2.88%
TREPS / Reverse Repo Investments	Cash & Cash Equivalents and Net Assets	2.83%
Small Industries Development Bank of India**	Certificate of Deposit	2.49%
Axis Bank Limited	Bank	2.43%
Bank of Baroda	Certificate of Deposit	2.16%
ICICI Bank Limited	Bank	2.07%

The largest holding is DSP Money Market Fund at 10.98%, which is materially larger than any other single line in the list. After that, weights step down fairly quickly into the 4% range and then into the 2% range, so the disclosed top positions are not clustered tightly around one dominant exposure.

The tenth holding, ICICI Bank Limited at 2.07%, is much smaller than the first holding, which shows that the visible book has a noticeable spread across names. Even so, the top 10 holdings together account for approximately 38.63% of the portfolio, so a meaningful share remains outside this disclosed slice.

With 56 total holdings, the fund appears to rely on a longer tail rather than a very narrow set of positions. That structure may help reduce the impact of any single holding, although the leading names could still have a greater influence on short-term movement than the smaller positions.

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

Source data date: as of 11 Sep 2026

Who should invest

This fund may suit investors with a low-risk mindset who want a comparatively steadier return pattern than a pure equity allocation. The benchmark comparison is useful here: the fund has stayed ahead over 1 year, 3 years and 5 years, while the recent 1-month and 3-month figures also held up better than the benchmark.

The main trade-off is that returns remain moderate rather than high, so the fund is better for stability-oriented money than for investors seeking fast capital appreciation. A medium- to long-term horizon is more sensible than a very short one, because the longer track record shows more clearly how the strategy compounds through market cycles.

The portfolio also supports that interpretation: the holdings are spread across many names, with the top 10 only a partial slice of the total book. For investors who value lower volatility and are comfortable accepting measured gains, that structure can be a reasonable fit.

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: Nil up to 10% of units and 0.25% for the remaining units if sold on or before 15 days; no exit load after 15 days.

Source data date: as of 11 Sep 2026

Frequently asked questions

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

The current NAV is ₹16.842 as of 11 September 2026.

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

Its 1-year return is 6.48%, the 3-year return is 7.23%, and the 5-year return is 6.59%.

How does the fund compare with Nifty 50?

The fund has outperformed the benchmark over 1 month, 3 months, 1 year, 3 years and 5 years. The gap is especially wide over 1 year, where the benchmark has been negative.

How does it compare with the peer funds listed here?

Its 1-year return sits below one peer’s recent figure and above several others, while longer-term comparison is mixed because only some peers have 3-year and 5-year figures available. The available numbers do not tell one single story across all time periods.

What is the expense ratio and risk category?

The expense ratio is 0.35%, and the scheme is in the Low Risk category. That combination supports a conservative hybrid profile rather than a high-growth style.

Who manages the fund and what is the exit load?

The fund is managed by Kaivalya Nadkarni and Karan Mundhra. Exit load is nil up to 10% of units and 0.25% for the remaining units if sold on or before 15 days; there is no exit load after 15 days.

Bottom line

DSP Arbitrage Fund Direct Growth Plan has shown a steadier pattern than the Nifty 50 across recent and longer periods, with moderate returns and a Low Risk classification. The peer comparison is mixed rather than one-sided, because some peers edge it on the latest 1-year figure while longer-term numbers vary depending on which funds have available history. The portfolio is spread across many holdings, so it is not dependent on a single line. That profile may appeal to investors looking for a more conservative hybrid allocation with measured compounding.

Published on 15 September 2026 at 3:56 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.