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

JM Arbitrage Fund Direct Growth Plan is an arbitrage-oriented hybrid fund with a NAV of ₹37.3438 as of 09 Sep 2026 and scheme AUM of ₹482 Cr. Its 1-year, 3-year and 5-year returns are 6.24%, 6.97% and 6.34%, and the fund sits in the Low Risk category. Our view is that it can suit conservative investors who want relatively steady equity-market-linked participation, but the return pattern remains modest rather than aggressive.

The fund’s recent return trend is stable, and its portfolio is built around a diversified set of holdings rather than a single dominant position. That combination may appeal to investors who prioritise lower volatility and a measured compounding profile over sharp upside.

Quick facts

Particular	Details
NAV	₹37.3438 as of 09 Sep 2026
AUM	₹482 Cr
Expense Ratio	0.41%
Launch Date	01 Jan 2013
Min SIP	₹1,000
Risk Category	Low Risk
Benchmark	Nifty 50
Fund Category	Hybrid
Exit Load	No exit load after holding period
Fund Managers	Asit Bhandarkar, Satish Ramanathan, Deepak Gupta., Ruchi Fozdar

The fund is managed by Asit Bhandarkar, Satish Ramanathan, Deepak Gupta. and Ruchi Fozdar.

Source data date: as of 09 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.37%	-4.69%
3M	1.41%	0.93%
1Y	6.24%	-7.16%
3Y	6.97%	6.00%
5Y	6.34%	5.87%

JM Arbitrage Fund Direct Growth Plan has held up better than the benchmark over the most recent periods, especially over 1 month and 1 year. The 1-year figure is particularly notable because the benchmark is negative, which shows that the fund has protected better than the Nifty 50 over that stretch.

Over longer horizons, the fund’s returns remain steady rather than spectacular. The 3-year and 5-year numbers are both in the mid-6% range, which points to a fairly consistent compounding pattern rather than a sharp spike in performance.

The recent pattern is slightly better than the benchmark, but not dramatically different from the fund’s longer-term track record. The 3-month return also suggests that the fund has kept its gains modest and controlled, which is consistent with an arbitrage-style approach.

Compared with the benchmark, the fund is ahead across all the displayed periods. The gap is widest in the 1-year period, while the 3-year and 5-year comparisons are closer, so the main edge has come from relative stability rather than from aggressive outperformance.

Source data date: as of 09 Sep 2026

Should you BUY or HOLD JM 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
JM Arbitrage Fund Direct Growth Plan	6.24%	6.97%	6.34%
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%	6.80%

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

On the 1-year measure, the fund trails the stronger peer readings shown here, with Quant, WOC, Franklin India, Motilal Oswal and Tata all above it on that period. That said, the gap is not extreme, and the fund still stays comfortably above the benchmark on a 1-year basis.

For longer horizons, Tata Arbitrage Fund Direct Growth Plan shows slightly better available 3-year and 5-year figures, while the current fund’s own 3-year and 5-year returns remain steady in the mid-6% range. The short-term comparison therefore looks weaker than the longer-term picture, which suggests this fund is more about consistency than about stretching ahead in every window.

Source data date: as of 09 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
JM Financial Mutual Fund	Domestic Mutual Funds Units	6.53%
Ccil	Cash & Cash Equivalents and Net Assets	5.14%
HDFC Bank Limited	Bank	3.65%
Kotak Mahindra Bank Limited	Bank	3.65%
ICICI Bank Limited	Bank	3.38%
Reliance Industries Limited	Crude Oil	3.14%
Axis Bank Limited	Bank	2.95%
Tata Steel Limited	Iron & Steel	2.73%
Vodafone Idea Limited	Telecom	2.72%
Bharti Airtel Limited	Telecom	2.55%

The largest holding is JM Financial Mutual Fund at 6.53%, which is not an oversized single-position concentration by itself. The next few positions are close enough to matter, but the fall from the top holding to the tenth holding is still gradual, with Bharti Airtel Limited at 2.55%.

The top 10 holdings account for approximately 36.44% of the portfolio, so the disclosed book is spread across a fairly long tail of holdings. With 60 total holdings disclosed, the fund may avoid leaning too heavily on only a few names, even though the top positions are still likely to have greater influence than the smaller ones.

That structure may support the fund’s steadier return profile, because it combines cash-like and equity-linked exposures across several large positions instead of a sharply concentrated portfolio. The mix is broad enough to suggest balance, while the visible weights still point to a meaningful core set of holdings.

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

Source data date: as of 09 Sep 2026

Who should invest

This fund may suit investors who want low-risk equity-oriented exposure and can accept modest but steadier returns rather than fast growth. The return pattern across 1 year, 3 years and 5 years suggests consistency, and the benchmark comparison shows that it has been more resilient than the Nifty 50 in the recent past.

A longer investment horizon can make sense here, but the trade-off is clear: the fund is built more for stability and incremental compounding than for standout upside. The holding mix also suggests a diversified, measured structure, which may appeal to conservative investors who want to limit sharp swings.

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 after the holding period.

Source data date: as of 09 Sep 2026

Frequently asked questions

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

The current NAV is ₹37.3438 as of 09 Sep 2026.

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

The fund’s 1-year, 3-year and 5-year returns are 6.24%, 6.97% and 6.34%.

How does it compare with the benchmark?

It has outperformed the Nifty 50 across the displayed 1-month, 3-month, 1-year, 3-year and 5-year periods. The biggest gap is in the 1-year period, where the benchmark is negative.

How does it compare with the peer funds shown here?

Its 1-year return sits below the peer funds listed here, while its available 3-year and 5-year numbers are steady. Tata Arbitrage Fund Direct Growth Plan has the stronger available longer-term peer figures among the funds shown with 3-year and 5-year data.

What is the minimum SIP amount?

The minimum SIP amount is ₹1,000.

What is the fund’s risk profile and who manages it?

The fund is classified as Low Risk. It is managed by Asit Bhandarkar, Satish Ramanathan, Deepak Gupta. and Ruchi Fozdar, and it has no exit load after the holding period.

Bottom line

JM Arbitrage Fund Direct Growth Plan looks steadier than spectacular. Its recent return pattern is consistent with its longer-term record, and it has stayed ahead of the benchmark over the displayed periods, while peer comparison shows a weaker 1-year reading than several peers but a still-reasonable longer-term profile. The Low Risk tag, diversified holdings and 36.44% top-10 weight make it feel measured rather than concentrated. It may fit conservative investors who want equity-linked participation with a controlled profile and can live with moderate returns.

Published on 10 September 2026 at 2:19 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.