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

NJ Arbitrage Fund Direct Growth Plan has a NAV of ₹13.142 as of 16 Sep 2026 and an AUM of ₹238 Cr. Its 1-year, 3-year and 5-year returns are 6.28%, 6.85% and 0% respectively, and the scheme sits in the Low Risk bucket. Our view is that this is more of a steady, lower-volatility option than a return-chasing one, with performance that has been resilient over the medium term but still modest in absolute terms.

It may suit investors who want conservative exposure and can accept that arbitrage-style returns tend to be limited when markets are calm. The fund’s portfolio and benchmark behaviour suggest a stable profile, but the long-term return history is still short because the scheme launched on 01 Aug 2022.

Quick facts

Particular	Details
NAV	₹13.142 as of 16 Sep 2026
AUM	₹238 Cr
Expense Ratio	0.26%
Launch Date	01 Aug 2022
Min SIP	₹100
Risk Category	Low Risk
Benchmark	Nifty 50
Fund Category	Hybrid
Exit Load	No exit load
Fund Managers	Dhaval Patel, Viral Shah, Jaimin Ilavia

The fund is managed by Dhaval Patel, Viral Shah and Jaimin Ilavia.

Source data date: as of 16 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.64%	-4.41%
3M	1.46%	-3.60%
1Y	6.28%	-7.76%
3Y	6.85%	5.74%
5Y	Data not available	Data not available

In the near term, the fund has stayed positive while the benchmark has been negative across 1 month, 3 months and 1 year. That contrast matters: the scheme has behaved defensively when the benchmark was weak, which is a useful trait for an arbitrage strategy.

The medium-term picture is still constructive. The 3-year return of 6.85% is above the benchmark’s 5.74%, but the margin is not large, so the advantage looks gradual rather than dramatic. That fits a low-volatility product where the goal is usually consistency rather than sharp upside.

The 5-year figure is not available because the scheme has not been around long enough for a full five-year track record. For a fund launched in August 2022, the available history is long enough to study behaviour, but not long enough to treat the shorter record as a complete market cycle.

The daily path also points to a relatively contained pattern, with small moves rather than large swings. Our view is that the recent return profile and the 3-year number tell a similar story: the fund has generally preserved stability, with performance that is steady rather than aggressive.

Source data date: as of 16 Sep 2026

Should you BUY or HOLD NJ 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
NJ Arbitrage Fund Direct Growth Plan	6.28%	6.85%	Data not available
Quant Arbitrage Fund Direct Growth Plan	7.61%	Data not available	Data not available
WOC Arbitrage Fund Direct Growth Plan	7.17%	Data not available	Data not available
Franklin India Arbitrage Fund Direct Growth Plan	7.03%	Data not available	Data not available
Motilal Oswal Arbitrage Fund Direct Growth Plan	6.94%	Data not available	Data not available
Invesco India Arbitrage Fund Direct Growth Plan	6.84%	7.49%	7.02%

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

The fund’s 1-year return trails the stronger peer figures in this set, including 7.61%, 7.17% and 7.03%. That said, the gap is not extreme, and the fund still sits in the same low-volatility return band as the other arbitrage schemes.

On longer numbers, the comparison is mixed. The fund’s 3-year return of 6.85% is below Invesco India Arbitrage Fund Direct Growth Plan’s 7.49%, but the same peer set has many unavailable longer-term figures, so the available evidence is limited. The short-term picture and the longer-term comparison do not point in exactly the same direction, which is why this fund looks more like a consistent but slightly muted performer than a standout return leader.

Source data date: as of 16 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Kotak Mahindra Bank Limited	Bank	7.91%
Bharti Airtel Limited	Telecom	7%
Reliance Industries Limited	Crude Oil	6.85%
Vodafone Idea Limited	Telecom	6.61%
Sun Pharmaceutical Industries Limited	Healthcare	4.51%
Adani Enterprises Limited	Trading	3.93%
Clearing Corporation of India Ltd	Cash & Cash Equivalents and Net Assets	3.69%
Canara Bank	Bank	3.3%
HDFC Bank Limited	Bank	3.28%
ICICI Bank Limited	Bank	2.82%

The top 10 holdings account for approximately 49.9% of the portfolio.

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

The largest position is Kotak Mahindra Bank Limited at 7.91%, which is meaningful but not dominant. From there, the weights step down fairly gradually, with only a modest gap between the largest and the tenth holding at 2.82%.

That pattern suggests the visible part of the portfolio is spread across several positions rather than tied to a single holding. The top 10 together make up about half the portfolio, while 44 holdings are disclosed in total, so the scheme may have a reasonably broad tail beyond the biggest names.

In our view, this kind of mix could reduce reliance on any one position, although the largest holdings still likely have greater influence on near-term outcomes. The presence of banks, telecom, healthcare and cash-like assets also points to a diversified collection of exposures within the disclosed bucket.

Source data date: as of 16 Sep 2026

Who should invest

This fund is suited to investors who are comfortable with low-risk positioning and who want relatively stable returns rather than high growth. The 1-year, 3-year and available benchmark comparisons suggest a steady profile, but not one that is designed to outpace equity-style returns.

A longer horizon can still make sense, especially for investors using arbitrage funds as a parking or balancing tool. The main trade-off is that lower volatility usually comes with limited upside, so the fund may appeal more to those who value smoother behaviour and modest consistency than to those seeking meaningful capital appreciation.

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.

Source data date: as of 16 Sep 2026

Frequently asked questions

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

The current NAV is ₹13.142 as of 16 Sep 2026.

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

The fund’s 1-year return is 6.28% and its 3-year return is 6.85%. The 5-year return is not available because the scheme does not have a full five-year track record yet.

How does the fund compare with its benchmark?

It has held up better than the benchmark in the short term, with positive 1-month, 3-month and 1-year returns while the benchmark was negative in those periods. Over 3 years, the fund’s return is also ahead of the benchmark.

How does it compare with peer funds on available return data?

Its 1-year return trails several peer returns in the comparison set, while its 3-year return is below Invesco India Arbitrage Fund Direct Growth Plan’s 7.49%. Some peer longer-term figures are not available, so the comparison is more complete on 1-year data than on 3-year and 5-year numbers.

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 Dhaval Patel, Viral Shah and Jaimin Ilavia. There is no exit load.

Bottom line

NJ Arbitrage Fund Direct Growth Plan has shown a steadier short-term pattern than its benchmark and a reasonable 3-year track record, but its recent return level is a little softer than the stronger peer figures in the comparison set. The risk profile is Low Risk, which fits the fund’s defensive behaviour. The portfolio is spread across multiple holdings, with the top 10 making up about half of the disclosed book. That combination makes it more suitable for investors who want stability and controlled movement than for those looking for aggressive upside.

Published on 17 September 2026 at 3:16 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.