Nippon India Income Plus Arbitrage Active FoF Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

Nippon India Income Plus Arbitrage Active FoF Direct Growth Plan has a NAV of ₹10.7115 as of 15 Sep 2026 and a scheme AUM of ₹636 Cr. Its 1-year, 3-year and 5-year returns are 5.83%, 0% and 0%, and the scheme sits in the Medium Risk category. Our view is that this is a cautious, relatively low-movement fund of funds, but the short track record means the longer-term return picture is still limited.

The portfolio is built almost entirely around domestic mutual fund units, which helps explain the restrained movement in recent periods. The benchmark has been weaker across the same windows, so the fund has held up better than the index on a recent basis, but investors still need to be comfortable with modest return potential rather than fast compounding.

Quick facts

Particular	Details
NAV	₹10.7115 as of 15 Sep 2026
AUM	₹636 Cr
Expense Ratio	0.07%
Launch Date	17 Jun 2025
Min SIP	₹100
Risk Category	Medium Risk
Benchmark	Nifty 50
Fund Category	Fund of Fund
Exit Load	NIL
Fund Managers	Sushil Budhia, Vikash Agarwal

The fund is managed by Sushil Budhia and Vikash Agarwal.

Source data date: as of 15 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.12%	-4.81%
3M	1.33%	-3.63%
1Y	5.83%	-8.27%
3Y	Data not available	Data not available
5Y	Data not available	Data not available

The fund’s recent pattern is steadier than the benchmark’s. Over 1M and 3M, it stayed positive while the benchmark was negative, which suggests the portfolio has been able to cushion short-term pressure better than the index. That matters for conservative investors, because a smoother path can be more important than a large headline number when the goal is capital preservation and limited volatility.

The 1-year return of 5.83% also stands out against the benchmark’s -8.27%. That gap shows the fund has materially outperformed the index over the last year, even though the absolute return is still moderate. The path through the year appears choppy rather than linear, with periods of flat movement followed by small recoveries, so this is not a fund that has compounding momentum in the way an equity-heavy option might.

Longer-horizon figures are not yet available, which is important in itself. Because the scheme launched only in June 2025, the 3-year and 5-year return fields cannot yet describe a full cycle. Our read is that the recent strength is genuine, but investors should treat it as a short-history outcome rather than proof of durable long-term compounding.

Source data date: as of 15 Sep 2026

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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
Nippon India Income Plus Arbitrage Active FoF Direct Growth Plan	5.83%	Data not available	Data not available
SBI Silver ETF FOF Direct Growth Plan	75.06%	Data not available	Data not available
Kotak Silver ETF FoF Direct Growth Plan	74.67%	44.26%	Data not available
Axis Silver FoF Direct Growth Plan	73.7%	44.39%	Data not available
Zerodha Silver ETF FoF Direct Growth Plan	73.46%	Data not available	Data not available
Nippon India Silver ETF FOF Direct Growth Plan	72.65%	43.94%	Data not available

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On 1-year returns, the fund trails the peer set that has meaningful figures by a wide margin, so it does not look competitive on recent return momentum. The more important distinction is that several peers here are silver-linked FoFs, while this fund has a much more defensive return pattern; that makes the comparison useful for context, but not as a direct style match.

For the available longer windows, some peers show 3-year returns in the low-to-mid 40% range, while this fund has no 3-year figure yet because of its shorter history. So the peer set tells two different stories: recent relative strength versus the benchmark, and weaker relative returns when placed beside the available peer return figures. That combination suggests the scheme may be more relevant for investors seeking steadier movement than for those chasing faster upside.

Source data date: as of 15 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Nippon India Corporate Bond Fund – DR Plan GR Opt	Domestic Mutual Funds Units	48.71%
Nippon India Arbitrage Fund Dir Growth PLN GR Op	Domestic Mutual Funds Units	41.46%
Nippon India Floating Int RT Fd-Dir PL-GR Pl-Gropt	Domestic Mutual Funds Units	8.06%
Triparty Repo	Cash & Cash Equivalents and Net Assets	1.81%

The largest holding is Nippon India Corporate Bond Fund – DR Plan GR Opt at 48.71%, so nearly half the portfolio sits in one underlying fund. That is large enough to matter for day-to-day movement, especially because the next holding is also substantial at 41.46%. The remaining positions are much smaller, which suggests the portfolio leans heavily on two core exposures.

The weight drop from the largest holding to the smallest disclosed holding is sharp. After the first two positions, the allocation falls to 8.06% and then 1.81%, so the tail is quite short and the displayed holdings are not evenly spread. In practical terms, the top two positions are likely to have greater influence on the fund’s behaviour than the rest of the basket.

Because the table covers all four disclosed holdings and they together account for 100% of the portfolio, concentration is clearly visible rather than hidden in a long tail. That does not make the structure aggressive, but it does mean the fund’s outcome may depend heavily on the performance of a small set of underlying instruments.

Source data date: as of 15 Sep 2026

Who should invest

This fund fits investors who are comfortable with Medium Risk and prefer a comparatively steady return profile over high growth. The short history shows positive 1-year performance and a better run than the benchmark, but the absence of longer-term figures means the evidence base is still limited. That makes the scheme more suitable for a moderate horizon and for investors who can accept that returns may remain muted even when volatility stays under control. The main trade-off is clear: a more defensive structure and smoother recent movement in exchange for limited upside so far.

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. 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 Nippon India Income Plus Arbitrage Active FoF Direct Growth Plan?

The current NAV is ₹10.7115 as of 15 Sep 2026.

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

The 1-year return is 5.83%, while the 3-year and 5-year returns are Data not available because the scheme history is still short.

How has the fund done versus the benchmark?

It has done better than the benchmark over 1M, 3M and 1Y. The fund returned 0.12%, 1.33% and 5.83% across those periods, while the benchmark returned -4.81%, -3.63% and -8.27%.

How does it compare with the peer funds listed here?

The fund’s 1-year return is well below the peer figures shown for the silver-linked FoFs in this comparison set. Its own profile is also more defensive, so the comparison is best read as context rather than a direct style match.

What is the minimum SIP amount?

The minimum SIP amount is ₹100.

Who manages the fund and what is the exit load?

The fund is managed by Sushil Budhia and Vikash Agarwal. The exit load is NIL, and no exit load applies after the holding period.

Bottom line

Nippon India Income Plus Arbitrage Active FoF Direct Growth Plan has shown a steadier recent path than the benchmark, with positive 1M, 3M and 1Y returns, but its longer-term picture is still not established because of the short history. Against the peer set shown here, its recent return is much lower, yet the fund also looks far less return-seeking than those silver-linked options. The portfolio is concentrated in a small number of underlying fund holdings, which can shape outcomes meaningfully. It is best viewed as a cautious, moderate-risk choice for investors who value stability over stronger upside.

Published on 16 September 2026 at 5:55 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.