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

ICICI Pru Arbitrage Fund Direct Growth Plan has a NAV of ₹39.6469 as of 09 Sep 2026 and a scheme AUM of ₹34,849 Cr. Its 1-year, 3-year and 5-year returns are 6.56%, 7.32% and 6.69%, and the scheme sits in the Low Risk category.

Our view is that this is a conservative-style hybrid option that has delivered steady compounding rather than sharp upside. The fund’s benchmark has been weaker over the same longer periods, while the portfolio is built around a sizeable money-market position and a measured set of equity and debt-linked exposures.

Quick facts

Particular	Details
NAV	₹39.6469 as of 09 Sep 2026
AUM	₹34,849 Cr
Expense Ratio	0.4%
Launch Date	07 Jan 2013
Min SIP	₹1,000
Risk Category	Low Risk
Benchmark	Nifty 50
Fund Category	Hybrid
Exit Load	0.25% on or before 1M, Nil after 1M
Fund Managers	Archana Nair, Ajaykumar Solanki, Darshil Dedhia, Nikhil Kabra

The fund is managed by Archana Nair, Ajaykumar Solanki, Darshil Dedhia and Nikhil Kabra.

Source data date: as of 09 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.39%	-4.69%
3M	1.6%	0.93%
1Y	6.56%	-7.16%
3Y	7.32%	6%
5Y	6.69%	5.87%

The recent picture is constructive. Over 1 month, the fund stayed marginally positive while the benchmark was negative, and over 3 months it remained ahead with a modest gain versus a smaller benchmark rise. That points to a smoother short-term path than the index and is consistent with an arbitrage style that typically aims to reduce large swings.

The 1-year result is more telling. The fund posted 6.56% while the benchmark was down 7.16%, so the gap is material and supports the case that the portfolio has been far more resilient over the past year than the broad market proxy used here. For an investor comparing the two, that difference matters more than a single month’s move.

On a 3-year and 5-year basis, the fund has remained ahead of the benchmark, but the lead is narrower than the 1-year spread. That suggests its longer-term edge has come from steadier participation rather than aggressive outperformance. The time pattern also points to a few uneven stretches within an otherwise stable compounding path, which is typical of a low-volatility hybrid strategy.

Our view is that the fund has behaved consistently with its role: it has not chased strong market-style upside, but it has held returns together better than the benchmark through the latest 1-year stretch. The current run therefore looks more like a continuation of its defensive profile than a sudden change in style.

Source data date: as of 09 Sep 2026

Should you BUY or HOLD ICICI Pru 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
ICICI Pru Arbitrage Fund Direct Growth Plan	6.56%	7.32%	6.69%
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 1-year performance, the fund trails the stronger recent figures posted by Quant Arbitrage Fund Direct Growth Plan and WOC Arbitrage Fund Direct Growth Plan, while staying close to Franklin India Arbitrage Fund Direct Growth Plan and Motilal Oswal Arbitrage Fund Direct Growth Plan. The longer record is more balanced: its 3-year and 5-year returns are both solid, but Tata Arbitrage Fund Direct Growth Plan is slightly ahead on the comparable periods available here. Short-term comparison therefore looks less favourable than the longer-term view, which still shows a stable return profile.

Source data date: as of 09 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
ICICI Prudential Money Market Fund – Direct Plan – Growth	Domestic Mutual Funds Units	15.21%
Reliance Industries Ltd.	Crude Oil	4.02%
Bharti Airtel Ltd.	Telecom	3.89%
Axis Bank Ltd.	Bank	3.58%
Vodafone Idea Ltd.	Telecom	3.49%
HDFC Bank Ltd.	Bank	3.27%
Union Bank of India **	Certificate of Deposit	2.37%
TREPS	Cash & Cash Equivalents and Net Assets	2.14%
State Bank of India	Bank	1.96%
Bharat Electronics Ltd.	Capital Goods	1.88%

The largest holding is 15.21%, which is meaningful but still below a level that would normally imply extreme single-name dependence. The next positions are much smaller, and by the tenth holding the weight has eased to 1.88%, so the exposure curve is fairly steep from the top slot into the rest of the basket.

The top 10 holdings account for approximately 41.81% of the portfolio, and the scheme discloses 45 holdings in total. That points to a mix of a few larger anchor positions with a longer tail of smaller holdings, rather than a highly concentrated book. The profile may help limit abrupt swings, although the first few holdings could still influence returns more than the rest of the list.

Because the disclosed holdings stop at 45 and the top 10 together are well under half the portfolio, the visible allocation looks spread across a broader set of positions. That can make the portfolio less dependent on any one holding, but the meaningful first holding and the cluster of bank, telecom and money-market exposures may still shape short-term behaviour.

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

Source data date: as of 09 Sep 2026

Who should invest

This fund is most suitable for investors who are comfortable with Low Risk positioning and want a steadier return profile than a broad equity benchmark. The 1-year result has held up far better than the benchmark, while the 3-year and 5-year numbers show gradual compounding rather than aggressive growth.

The main trade-off is that this kind of profile is designed for consistency, not maximum upside. Investors looking for a longer holding period and a measured, lower-volatility allocation may find the return pattern and portfolio structure more relevant than the benchmark’s weaker recent stretch. The fund may fit a conservative hybrid allocation where steady participation matters more than chasing market rallies.

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% if units are sold within 1 month; nil after 1 month.

Source data date: as of 09 Sep 2026

Frequently asked questions

What is the current NAV of ICICI Pru Arbitrage Fund Direct Growth Plan?
The NAV is ₹39.6469 as of 09 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s returns are 6.56% over 1 year, 7.32% over 3 years and 6.69% over 5 years.

How does the fund compare with its benchmark?
The fund has outpaced the benchmark across 1 month, 3 months, 1 year, 3 years and 5 years. The widest gap is over 1 year, where the benchmark was negative and the fund remained positive.

How does the fund compare with the listed peer funds?
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 that are available, Tata Arbitrage Fund Direct Growth Plan is slightly ahead.

Does this fund have a minimum SIP amount?
No minimum SIP amount is stated here, so we are not showing one.

Who manages the fund and what is the exit load?
The fund is managed by Archana Nair, Ajaykumar Solanki, Darshil Dedhia and Nikhil Kabra. The exit load is 0.25% if units are sold within 1 month, and nil after 1 month.

Bottom line

ICICI Pru Arbitrage Fund Direct Growth Plan has a steadier recent profile than its benchmark, and its longer-term returns remain consistent with a low-risk hybrid strategy. In the peer set used here, the latest 1-year result is a little softer than some rivals, while the 3-year and 5-year numbers still show stable compounding. The portfolio is anchored by a large money-market holding and then spread across a broader set of smaller positions, which supports a measured risk profile. That makes it more relevant for cautious investors than for those seeking high-growth outcomes.

Published on 10 September 2026 at 3:08 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.