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

ITI Arbitrage Fund Direct Growth Plan is at a NAV of ₹14.5705 as of 15 September 2026, with an AUM of ₹62 Cr. Its 1-year, 3-year and 5-year returns are 6.4%, 7.27% and 6.14% respectively, and the fund sits in the Low Risk bucket. Our view is that it suits conservative investors who want relatively steady return behaviour, but the benchmark comparison and the portfolio mix show that the fund is still dependent on arbitrage-style market conditions rather than a broad equity-led growth pattern.

The current setup is more about consistency than speed. With a low expense ratio of 0.21% and a diversified but not overly large book, the fund may appeal to investors who can accept modest return swings in exchange for lower volatility than a typical equity fund.

Quick facts

Particular	Details
NAV	₹14.5705 as of 15 Sep 2026
AUM	₹62 Cr
Expense Ratio	0.21%
Launch Date	09 Sep 2019
Min SIP	₹500
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	Vikas Nathani, Animesh Singh, Laukik Bagwe

The fund is managed by Vikas Nathani, Animesh Singh and Laukik Bagwe.

Source data date: as of 15 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.53%	-4.81%
3M	1.34%	-3.63%
1Y	6.4%	-8.27%
3Y	7.27%	5.59%
5Y	6.14%	5.58%

The recent profile has been steady. Over 1 month and 3 months, the fund has posted small positive returns while the benchmark has remained negative, which points to a far smoother short-term path than the index.

The 1-year figure is also clearly ahead of the benchmark, with the fund in positive territory while the benchmark is negative. That gap matters because it shows the strategy has held up better through a weaker market backdrop rather than relying on a one-off rebound.

Over longer windows, the picture is more balanced. The 3-year return is above the benchmark, but the margin is not large, and the 5-year result stays close to the benchmark as well. Taken together, the fund has produced a relatively stable compounding pattern, with less dramatic movement than the benchmark and a return path that looks more defensive than cyclical.

For investors, that means the fund’s appeal is not in chasing sharp upside. It is in preserving a smoother return profile while still keeping long-run numbers in a narrow positive range against the benchmark.

Source data date: as of 15 Sep 2026

Should you BUY or HOLD ITI 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
ITI Arbitrage Fund Direct Growth Plan	6.4%	7.27%	6.14%
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
Motilal Oswal Arbitrage Fund Direct Growth Plan	7%	Data not available	Data not available
Franklin India Arbitrage Fund Direct Growth Plan	6.99%	Data not available	Data not available
Invesco India Arbitrage Fund Direct Growth Plan	6.85%	7.5%	7.04%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.

The fund is close to the stronger 1-year peer figures, but it does not lead that group on the available numbers. Its 3-year return is respectable versus the peer set with multi-year data, and its 5-year number is solid but still below the longer-run figure shown by Invesco India Arbitrage Fund Direct Growth Plan.

The short-term comparison and the longer-term comparison do not tell exactly the same story. In the near term, the fund sits in the middle of the pack on return strength, while the multi-year numbers show a steadier profile that is not far from the better longer-run peer figures. That mix supports a view that the fund is designed more for consistency than for standout bursts.

Source data date: as of 15 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Net Receivables / (Payables)	Cash & Cash Equivalents and Net Assets	16.31%
Iti Liquid Fund – Direct Plan – Growth Option	Domestic Mutual Funds Units	15.17%
One 97 Communications Limited	IT	9.29%
HDFC Bank Limited	Bank	5.85%
Cummins India Limited	Automobile & Ancillaries	5.02%
Power Finance Corporation Limited	Finance	4.72%
Bharti Airtel Limited	Telecom	3.42%
Adani Ports and Special Economic Zone Limited	Logistics	3.24%
Varun Beverages Limited	FMCG	2.92%
Shriram Finance Limited	Finance	2.62%

The single largest disclosed holding is Net Receivables / (Payables) at 16.31%, which is a meaningful share for a cash-and-net-assets line. The next largest position, ITI Liquid Fund Direct Plan – Growth Option, is also sizable at 15.17%, so the top of the portfolio may have an important influence on day-to-day movement.

The drop from the first holding to the tenth is fairly pronounced, moving from 16.31% to 2.62%. That pattern suggests the portfolio is not evenly spread across the top names, even though no single equity position dominates the table on its own.

Across the ten disclosed holdings, the combined weight is 68.56% and the fund discloses 32 holdings in total. That points to a book that is relatively concentrated in the visible core while still leaving room for a longer tail of smaller positions. For an arbitrage strategy, that mix may help keep the return profile anchored, but the large cash and liquid-fund components also mean the fund’s outcome could remain sensitive to how arbitrage opportunities develop.

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

Source data date: as of 15 Sep 2026

Who should invest

This fund fits investors who are comfortable with low-risk positioning and want a steadier return pattern than a conventional equity fund. The 1-year, 3-year and 5-year numbers show moderate compounding rather than aggressive growth, and the benchmark comparison suggests the fund has usually held up better when the index has been weak.

It is better suited to a shorter to medium horizon where the investor values smoother behaviour and accepts that upside may be limited. The main trade-off is simple: lower volatility and more defensive behaviour can come with returns that are less exciting than equity-led alternatives.

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 upto 10% of units and 0.25% for remaining units on or before 15D, NIL after 15D. There is no exit load after the holding period.

Source data date: as of 15 Sep 2026

Frequently asked questions

What is the current NAV of ITI Arbitrage Fund Direct Growth Plan?
Its NAV is ₹14.5705 as of 15 September 2026.

What are the 1-year, 3-year and 5-year returns?
The fund’s returns are 6.4% over 1 year, 7.27% over 3 years and 6.14% over 5 years.

How does it compare with Nifty 50?
The fund has done better than Nifty 50 in the recent periods shown, especially over 1 month, 3 months and 1 year. Over 3 years and 5 years, the gap is narrower.

How does it compare with the peer funds listed here?
Its 1-year return is below some peers such as Quant Arbitrage Fund Direct Growth Plan and WOC Arbitrage Fund Direct Growth Plan, but its 3-year and 5-year numbers are solid among the peers with multi-year data available.

Is there a minimum SIP amount?
The minimum SIP amount is ₹500.

Who manages the fund and what is the exit load?
The fund is managed by Vikas Nathani, Animesh Singh and Laukik Bagwe. The exit load is NIL upto 10% of units and 0.25% for remaining units on or before 15D, with NIL after 15D.

Bottom line

ITI Arbitrage Fund Direct Growth Plan looks like a steadier arbitrage-style option rather than a high-upside equity fund. Recent returns have been better than the benchmark, and the longer-term numbers stay in a moderate, consistent range. Compared with peers, the fund is competitive on the available figures without standing out as the strongest on every horizon. The portfolio is also fairly core-heavy, with cash, liquid-fund exposure and a handful of listed positions shaping outcomes more than a broad equity spread.

Published on 16 September 2026 at 1:42 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.