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

Mahindra Manulife Arbitrage Fund Direct Growth Plan is at a NAV of ₹13.7834 as of 15 September 2026, with scheme AUM of ₹134 Cr. Its 1-year, 3-year and 5-year returns are 6.21%, 6.45% and 5.81%, and the fund is in the Low Risk category.

Our view is that this is a relatively steady arbitrage fund rather than a return-chasing one. The longer-term return profile has stayed positive, while the benchmark has been more uneven, so the fund may suit conservative investors looking for a lower-volatility allocation with equity-like taxation treatment rather than high growth.

Quick facts

Particular	Details
NAV	₹13.7834 as of 15 Sep 2026
AUM	₹134 Cr
Expense Ratio	0.22%
Launch Date	24 Aug 2020
Min SIP	₹500
Risk Category	Low Risk
Benchmark	Nifty 50
Fund Category	Hybrid
Exit Load	0.25% on or before 30D, Nil after 30D
Fund Managers	Mitul Doshi, Navin Matta, Rahul Pal

The fund is managed by Mitul Doshi, Navin Matta and Rahul Pal.

Source data date: as of 15 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.52%	-4.81%
3M	1.4%	-3.63%
1Y	6.21%	-8.27%
3Y	6.45%	5.59%
5Y	5.81%	5.58%

The recent pattern is constructive. Over 1 month and 3 months, the fund stayed positive while the benchmark was weak, which tells us the strategy has been doing its job of reducing day-to-day swings rather than amplifying them.

The 1-year figure is more striking because the fund remained positive even as the benchmark finished negative. That gap matters for conservative investors, because it suggests the fund has been able to preserve a smoother return path when broad equity conditions were difficult.

Longer term, the picture is steadier than spectacular. The 3-year and 5-year returns are close to each other and both sit a little above the benchmark’s own 3-year and 5-year outcomes. That tells us the fund has not depended on one strong burst alone; the compounding pattern has been gradual and fairly consistent.

At the same time, the fund is not trying to beat an equity benchmark by a wide margin. Its role is better understood as a low-volatility allocation that aims for a stable return stream, and the recent and longer-term numbers both fit that profile.

Source data date: as of 15 Sep 2026

Should you BUY or HOLD Mahindra Manulife 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
Mahindra Manulife Arbitrage Fund Direct Growth Plan	6.21%	6.45%	5.81%
Quant Arbitrage Fund Direct Growth Plan	7.71%	Data not available	Data not available
WOC Arbitrage Fund Direct Growth Plan	7.17%	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.

On 1-year returns, the fund trails a few peer schemes that have higher recent numbers, so its latest pace is respectable but not the strongest in the group. That said, its 3-year and 5-year figures remain usable for comparison against the peers that report longer histories, and the fund looks steadier than the faster recent performers whose longer records are not available here.

The peer set also tells two different stories: some funds have stronger recent returns, while the current fund shows a more balanced medium-term record. For investors who value consistency over a short sprint, that difference matters more than the one-year gap alone.

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	70.67%
Mahindra Manulife Low Duration Fund – Direct Plan -Growth	Domestic Mutual Funds Units	12.85%
Mahindra Manulife Liquid Fund -Direct Plan -Growth	Domestic Mutual Funds Units	10.71%
Triparty Repo	Cash & Cash Equivalents and Net Assets	6.01%

The single largest holding is Net Receivables / (Payables) at 70.67%, which is very large in absolute terms and tells us the portfolio is heavily shaped by cash and settlement balances. The next two positions are in Mahindra Manulife Low Duration Fund Direct Plan Growth and Mahindra Manulife Liquid Fund Direct Plan Growth, so the exposure is clearly centred on liquid and low-duration instruments rather than operating businesses or equity-style stock selection.

Weight drops sharply after the first position. From 70.67% to 12.85% is a steep fall, and the gap from there to 10.71% and then 6.01% shows a long way down to the smaller disclosed position. That kind of shape may mean the first few entries could have the greatest influence on short-term movement.

Because the disclosed holdings are only four and they already add up to 100%, the visible portfolio is tightly concentrated within a short list rather than spread across many separate positions. That said, the nature of the holdings is consistent with an arbitrage strategy that may rely on cash-like and fund-of-funds style exposures rather than broad diversification across many names.

Source data date: as of 15 Sep 2026

Who should invest

This fund fits investors who are comfortable with a Low Risk profile and want a steadier return pattern than an equity fund. The 1-year, 3-year and 5-year figures suggest a fairly stable compounding profile, and the benchmark comparison shows that the fund has held up better in weak equity stretches.

The main trade-off is that the return path is measured rather than aggressive. Investors looking for high upside may find the pace modest, but those who prefer a lower-volatility parking place for money over a meaningful horizon may appreciate that the fund has kept positive momentum across different market conditions.

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 on or before 30 days; nil after 30 days.

Source data date: as of 15 Sep 2026

Frequently asked questions

What is the current NAV of Mahindra Manulife Arbitrage Fund Direct Growth Plan?
The current NAV is ₹13.7834 as of 15 September 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
Its 1-year return is 6.21%, its 3-year return is 6.45%, and its 5-year return is 5.81%.

How does this fund compare with the benchmark?
The fund has been ahead of the benchmark on the 1-month, 3-month, 1-year, 3-year and 5-year figures shown here. The benchmark was negative over 1 month, 3 months and 1 year, while the fund stayed positive.

How does it compare with peer funds on recent returns?
Its 1-year return of 6.21% is below some peers such as Quant Arbitrage Fund Direct Growth Plan and WOC Arbitrage Fund Direct Growth Plan, but it remains in the same general band as several others. Longer-term peer comparisons are limited because some peer funds do not show 3-year or 5-year figures here.

What is the minimum SIP amount?
The minimum SIP amount is ₹500.

What is the fund’s risk profile and exit load?
The fund is tagged as Low Risk. The exit load is 0.25% if units are sold on or before 30 days, and nil after 30 days.

Bottom line

Mahindra Manulife Arbitrage Fund Direct Growth Plan has a steadier long-term profile than its benchmark and a recent return pattern that stayed positive even when the benchmark was weak. Compared with peer funds, its 1-year return is decent but not the strongest, while its longer-term numbers remain consistent enough to support a conservative allocation view. The portfolio is highly concentrated in cash-like and low-duration positions, which suits the fund’s low-volatility role and may appeal to investors who value stability over high growth.

Published on 16 September 2026 at 4:17 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.