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

Parag Parikh Arbitrage Fund Direct Growth Plan currently has a NAV of ₹12.1444 as of 17 September 2026 and an AUM of ₹2,798 Cr. Its 1-year, 3-year and 5-year returns are 6.4%, 0% and 0% respectively, and the fund sits in the Low Risk category.

Our view is that this is a conservative, lower-volatility option for investors who want an arbitrage-oriented hybrid fund and can accept that the recent 1-year outcome has been steady rather than standout. The benchmark has been weaker over the same stretch, while the portfolio is built around financials, a liquid fund holding and a mix of cash-like and equity positions, which supports the fund's defensive profile.

Quick facts

Particular	Details
NAV	₹12.1444 as of 17 Sep 2026
AUM	₹2,798 Cr
Expense Ratio	0.3%
Launch Date	02 Nov 2023
Min SIP	₹1,000
Risk Category	Low Risk
Benchmark	Nifty 50
Fund Category	Hybrid
Exit Load	0.25% on or before 30D, Nil after 30D
Fund Managers	Rajeev Thakkar, Raunak Onkar, Rukun Tarachandani, Raj Mehta

The fund is managed by Rajeev Thakkar, Raunak Onkar, Rukun Tarachandani and Raj Mehta.

Source data date: as of 17 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.46%	-3.66%
3M	1.53%	-3.71%
1Y	6.4%	-7.13%
3Y	Data not available	Data not available
5Y	Data not available	Data not available

In the short run, the fund has held up better than the benchmark. Both the 1-month and 3-month periods show positive fund returns while the benchmark stayed negative, which points to a steadier path for this strategy when markets have been uneven.

The 1-year figure matters more for a fund that has only been live since November 2023, and here too the fund has stayed positive while the benchmark has been below zero. That spread suggests the fund has done what a conservative arbitrage-style allocation is expected to do: limit drawdowns rather than chase strong upside.

There is little evidence of a sharp swing in behaviour across the available periods. The return pattern is modest and controlled, which is useful for investors who prefer consistency over volatility, but it also means the fund has not produced a high-growth profile in the recent window.

Because the scheme has not completed 3 years or 5 years yet, those longer-horizon figures are not available. For now, the most useful comparison is the 1-year and shorter-term record, and on that basis the fund has been ahead of the benchmark while staying in a narrow performance band.

Source data date: as of 17 Sep 2026

Should you BUY or HOLD Parag Parikh 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
Parag Parikh Arbitrage Fund Direct Growth Plan	6.4%	Data not available	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 is below the best figures in this comparison set, though it still remains comfortably positive. In the available longer-horizon data, only Invesco India Arbitrage Fund Direct Growth Plan shows 3-year and 5-year figures, and those are stronger than this fund can currently show simply because this scheme is too young for those periods.

That means the short-term comparison and the longer-term comparison tell different stories. On the one hand, the fund has been stable and positive; on the other, some peers with available longer records show that arbitrage funds can also compound at a firmer pace over time.

Source data date: as of 17 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Parag Parikh Liquid Fund- Direct Plan- Growth	Domestic Mutual Funds Units	10.47%
ICICI Bank Limited	Bank	5.97%
HDFC Bank Limited	Bank	5.85%
Canara Bank	Bank	5.51%
Axis Bank Limited	Bank	4.7%
Reliance Industries Limited	Crude Oil	4.41%
Bharti Airtel Limited	Telecom	4.33%
Kotak Mahindra Bank Limited	Bank	4%
Small Industries Dev Bank of India (11/06/2027)	Certificate of Deposit	3.38%
Bharat Heavy Electricals Limited	Capital Goods	3.15%

The top 10 holdings account for approximately 51.77% of the portfolio.

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

The largest holding, Parag Parikh Liquid Fund- Direct Plan- Growth, is 10.47%, which is meaningful but not dominant. The gap from the first holding to the tenth is fairly controlled, with the list easing from just above 10% into the 3% range, so the portfolio does not appear to rely on a single oversized position.

The mix also suggests a spread across financials and a few non-bank names, alongside one liquid fund holding and a certificate of deposit. That structure may help the fund keep a lower-volatility profile, although each individual position could still influence returns at the margin.

With 41 disclosed holdings and just over half of the portfolio shown in the top 10, the remaining positions form a longer tail. That points to a portfolio that is not fully concentrated, but the listed core still carries enough weight to matter for near-term behaviour.

Source data date: as of 17 Sep 2026

Who should invest

This fund suits investors who want a low-risk hybrid allocation and are comfortable with modest, steadier returns rather than sharp upside. The recent 1-year record has stayed positive while the benchmark has been negative over the same periods, which supports its defensive profile.

It is better aligned with a shorter-to-medium horizon where capital stability and smoother movement matter more than aggressive growth. The main trade-off is that the portfolio's conservative structure and arbitrage-like behaviour may limit upside in stronger markets, even if it helps contain volatility.

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% on or before 30D, Nil after 30D.

Source data date: as of 17 Sep 2026

Frequently asked questions

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

The current NAV is ₹12.1444 as of 17 September 2026.

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

The fund's 1-year return is 6.4%, while the 3-year and 5-year returns are Data not available because the scheme has not completed those periods yet.

How does the fund compare with its benchmark?

It has done better than the Nifty 50 over the measured periods. The fund stayed positive over 1 month, 3 months and 1 year, while the benchmark was negative in those same windows.

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

Its 1-year return of 6.4% is below several peer figures in the table, while its 3-year and 5-year figures are not available because the fund is too new for those periods. That gives the comparison a clear short-term tilt.

What is the minimum SIP amount?

The minimum SIP amount is ₹1,000.

Who manages the fund and what is the exit load?

The fund is managed by Rajeev Thakkar, Raunak Onkar, Rukun Tarachandani and Raj Mehta. The exit load is 0.25% on or before 30D, and nil after 30D.

Bottom line

Parag Parikh Arbitrage Fund Direct Growth Plan has delivered a steadier recent run than its benchmark, but its longer-track record is still too short to judge on a 3-year or 5-year basis. Against peers with available data, its 1-year return is respectable but not the strongest shown, while one older peer also demonstrates better longer-horizon compounding. The portfolio looks anchored by financials and other relatively defensive exposures, which fits the Low Risk label and makes the fund more suitable for investors prioritising stability over aggressive return chasing.

Published on 18 September 2026 at 10:07 AM 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.