HSBC Income Plus Arbitrage Active FOF Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

HSBC Income Plus Arbitrage Active FOF Direct Growth Plan has a NAV of ₹24.2072 as of 09 Sep 2026 and a scheme AUM of ₹530 Cr. Its 1-year, 3-year and 5-year returns are 5.55%, 7.40% and 6.21% respectively, and the fund sits in the Medium Risk category.

Our view is that this is a steadier hybrid-style allocation for investors who want lower volatility than equity-heavy funds, but it still needs a medium-risk comfort level. The return pattern has been measured rather than aggressive, and the portfolio is built around a small set of HSBC debt, arbitrage and liquid exposure that may help keep outcomes smoother.

Quick facts

Particular	Details
NAV	₹24.2072 as of 09 Sep 2026
AUM	₹530 Cr
Expense Ratio	0.09%
Launch Date	30 Apr 2014
Min SIP	₹1,000
Risk Category	Medium Risk
Benchmark	Nifty 50
Fund Category	Hybrid
Exit Load	No exit load
Fund Managers	Mohd Asif Rizwi, Mahesh Chhabria

The fund is managed by Mohd Asif Rizwi and Mahesh Chhabria.

Source data date: as of 09 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.19%	-4.06%
3M	1.57%	1.37%
1Y	5.55%	-7.31%
3Y	7.40%	6.07%
5Y	6.21%	5.91%

Recent performance has been constructive. Over 1 month, the fund stayed positive while the benchmark was negative, which suggests better short-term stability. Over 3 months, the gap was small, but the fund still stayed slightly ahead.

The 1-year number is more striking because the fund produced a positive 5.55% return while the benchmark was down 7.31%. That tells us the fund has been much more resilient over the last year than the index used for comparison.

The longer view is steadier than dramatic. The 3-year return of 7.40% is ahead of the benchmark’s 6.07%, and the 5-year return of 6.21% is also slightly ahead of the benchmark’s 5.91%. That pattern suggests the fund has not relied on one sharp run-up; instead, it has delivered a gradual compounding profile with relatively modest swings.

Our reading of the time pattern is that the fund has absorbed periods of weakness without losing its longer-term footing. The 3-year and 5-year profiles look consistent with a lower-volatility hybrid structure, while the 1-year stretch shows that it can also hold up better than the benchmark when markets become uneven.

Source data date: as of 09 Sep 2026

Should you BUY or HOLD HSBC Income Plus Arbitrage Active FOF?

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
HSBC Income Plus Arbitrage Active FOF Direct Growth Plan	5.55%	7.40%	6.21%
Bank of India Aggressive Hybrid Fund Direct Growth Plan	15.71%	17.16%	14.99%
HSBC Multi Asset Active FOF Direct Growth Plan	15.45%	15.43%	12.38%
Quant Aggressive Hybrid Fund Direct Growth Plan	10.68%	12.75%	13.04%
Navi Aggressive Hybrid Fund Direct Growth Plan	9.83%	11.99%	11.51%
HSBC Aggressive Hybrid Active FOF Direct Growth Plan	9.12%	12.58%	11.02%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On the available return figures, the fund trails the peer set on 1-year performance, but the gap is narrower over longer periods because its 3-year and 5-year numbers remain positive and fairly steady. That makes the comparison less about short-term outperformance and more about a calmer return pattern. Peers with higher recent returns have also shown stronger multi-year numbers, while this fund’s profile looks more defensive and more measured.

Source data date: as of 09 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
HSBC Arbitrage Fund – Direct Growth	Domestic Mutual Funds Units	36.43%
HSBC Short Term Fund – Direct Growth	Domestic Mutual Funds Units	31.98%
HSBC Banking and PSU Debt Fund – Direct Growth	Domestic Mutual Funds Units	15.86%
HSBC Corporate Bond Fund – Direct Growth	Domestic Mutual Funds Units	15.1%
TREPS	Cash & Cash Equivalents and Net Assets	0.68%

HSBC Arbitrage Fund – Direct Growth is the largest holding at 36.43%, so it is likely to be the single most important contributor to day-to-day portfolio behaviour. The next three positions are also sizable, all above 15%, which means the portfolio is built more around a few large sleeves than around many small ones.

The step-down from the largest holding to TREPS is steep, and that gap matters because the fund’s disclosed holdings are not evenly spread. Even so, the mix is still anchored in domestic mutual fund units, with the cash-like TREPS component playing only a very small supporting role.

Because the full disclosed portfolio contains only 5 holdings and those 5 add up to 100%, the fund appears concentrated within a compact set of exposures rather than spread across a long tail. That structure may support a more controlled return path, but it also means changes in the biggest sleeves could have a greater influence on outcomes.

Source data date: as of 09 Sep 2026

Who should invest

This fund suits investors who are comfortable with Medium Risk and who want a hybrid allocation that has historically behaved more steadily than the benchmark. The 1-year result is stronger than the index, while the 3-year and 5-year results remain positive and close enough to the benchmark to suggest gradual compounding rather than sharp swings.

The better fit is a medium-term horizon, especially for investors who prefer a calmer path and can accept that returns are likely to be more moderate than in aggressive hybrid funds. The main trade-off is straightforward: the portfolio may help reduce volatility, but it may also leave some upside on the table when stronger-performing peer funds are posting higher returns.

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: No exit load.

Source data date: as of 09 Sep 2026

Frequently asked questions

What is the current NAV of HSBC Income Plus Arbitrage Active FOF Direct Growth Plan?
The current NAV is ₹24.2072 as of 09 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s returns are 5.55% for 1 year, 7.40% for 3 years and 6.21% for 5 years.

How does the fund compare with the benchmark?
It has beaten the benchmark across all the displayed periods. The gap is most noticeable over 1 year, where the fund was positive while the benchmark was negative.

How does it compare with peer funds on recent returns?
Its 1-year return is lower than the peer funds listed here, while its 3-year and 5-year figures remain positive and relatively steady. That makes it more conservative than the higher-return peers in this comparison.

Is there a minimum SIP amount?
Yes, the minimum SIP amount is ₹1,000.

Who manages the fund and what is the exit load?
The fund is managed by Mohd Asif Rizwi and Mahesh Chhabria. There is no exit load.

Bottom line

HSBC Income Plus Arbitrage Active FOF Direct Growth Plan looks more like a steady compounding fund than a high-velocity return seeker. Its recent performance is quieter than the stronger peer funds, but the 3-year and 5-year numbers stay positive and remain close to the benchmark, which supports the case for a more controlled return profile. The portfolio is also concentrated in a small number of large sleeves, which may keep behaviour more contained while still leaving the biggest holdings influential.

Published on 11 September 2026 at 1:46 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.