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

Sundaram Arbitrage Fund Direct Growth Plan has an NAV of ₹16.4989 as of 18 Sep 2026 and an AUM of ₹553 Cr. Its 1-year, 3-year and 5-year returns are 7%, 7.29% and 6.41% respectively, and the scheme sits in the Low Risk bucket. Our view is that this is better suited to conservative investors who want steadier return behaviour than an equity-style path, while still accepting that the fund has stayed well below the benchmark in recent periods.

The portfolio is built for an arbitrage-style mandate, with a meaningful allocation to cash-like instruments and a spread across large listed names. That mix can help keep day-to-day swings lower, but it also means the return profile is typically modest rather than growth-oriented.

Quick facts

Particular	Details
NAV	₹16.4989 as of 18 Sep 2026
AUM	₹553 Cr
Expense Ratio	0.17%
Launch Date	21 Apr 2016
Min SIP	₹100
Risk Category	Low Risk
Benchmark	Nifty 50
Fund Category	Hybrid
Exit Load	Nil upto 25% of units and 0.25% for remaining units on or before 15D, Nil after 15D
Fund Managers	Rohit Seksaria, Kumaresh Ramakrishnan

The fund is managed by Rohit Seksaria and Kumaresh Ramakrishnan.

Source data date: as of 18 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.5%	-3.73%
3M	1.63%	-3.14%
1Y	7%	-5.31%
3Y	7.29%	6.3%
5Y	6.41%	5.79%

The recent pattern is steady rather than dramatic. Over 1 month and 3 months, the fund has stayed positive while the benchmark was negative, which points to the kind of downside moderation investors often look for in an arbitrage strategy. That does not make the path smooth every day, but it does suggest the fund has recently behaved more defensively than the benchmark.

On a 1-year view, the gap is even clearer: the fund’s 7% return contrasts with a negative benchmark return. This is useful for investors who want returns that are less exposed to broad equity swings, although it also means the benchmark comparison is not a simple apples-to-apples growth story. The fund has captured the period better than the benchmark, but the absolute return remains moderate.

Over 3 years and 5 years, the fund’s returns remain positive and slightly ahead of the benchmark, which supports a stable compounding profile. The 3-year figure of 7.29% is above the benchmark’s 6.3%, while the 5-year figure of 6.41% also edges ahead of 5.79%. Our view is that the longer-run pattern is consistent with a lower-volatility mandate: modest but persistent gains, rather than sharp upside or deep drawdowns.

The short-term and longer-term pictures do not conflict. Both point to the same core feature: the fund has been able to keep compounding in a restrained way while the benchmark has been more variable, especially over the latest 1-year window. That is the kind of profile conservative allocators usually want to understand before committing money for a short or medium holding period.

Source data date: as of 18 Sep 2026

Should you BUY or HOLD Sundaram 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.

Already holding Sundaram Arbitrage? Thinking of investing now?

Get your portfolio analysed for FREE by SEBI-registered Investment Adviser (RIA) through Univest MF Premium

Peer comparison

Fund	1Y return	3Y return	5Y return
Sundaram Arbitrage Fund Direct Growth Plan	7%	7.29%	6.41%
Quant Arbitrage Fund Direct Growth Plan	7.6%	Data not available	Data not available
WOC Arbitrage Fund Direct Growth Plan	7.3%	Data not available	Data not available
Franklin India Arbitrage Fund Direct Growth Plan	7.27%	Data not available	Data not available
Motilal Oswal Arbitrage Fund Direct Growth Plan	7.25%	Data not available	Data not available
ITI Arbitrage Fund Direct Growth Plan	7.02%	7.45%	6.27%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On the latest 1-year figures, this fund sits a little below several peers, although the gap is not large. The longer view is more balanced: its 3-year and 5-year returns are ahead of ITI Arbitrage Fund Direct Growth Plan, while the 1-year comparison remains close to the pack rather than materially separated.

That split matters because it suggests the fund has been more dependable over longer holding periods than in the most recent year relative to some peers. At the same time, the peer set does not deliver a single, uniform story: several funds have slightly higher 1-year numbers, but only one peer in this set offers comparable 3-year and 5-year figures, and on those horizons this fund is ahead. Our view is that the short-term comparison looks a touch softer, while the longer-term comparison is more constructive.

Source data date: as of 18 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Sundaram Money Market Fund-Direct Plan – Growth *	Domestic Mutual Funds Units	9.27%
Reliance Industries Ltd	Crude Oil	8.28%
HDFC Bank Ltd	Bank	7.9%
Ashok Leyland Ltd	Automobile & Ancillaries	6.64%
Bajaj Finance Ltd	Finance	6.6%
ICICI Bank Ltd	Bank	5.64%
364 Days – T Bill – 25/02/2027*	Treasury Bills	5.27%
Bharti Airtel Ltd	Telecom	4.43%
TREPS	Cash & Cash Equivalents and Net Assets	4.41%
Sundaram Liquid Fund – Direct Growth*	Domestic Mutual Funds Units	3.62%

The top 10 holdings account for approximately 62.06% of the portfolio.

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

The biggest holding is 9.27%, which is not oversized for this kind of strategy, but it is still large enough to matter. From there, the weights step down gradually rather than collapsing sharply, with the tenth holding at 3.62%. That pattern points to a portfolio where the leading positions can influence outcomes, yet the exposure is not concentrated in a single name.

Because the top 10 holdings together account for 62.06% of the portfolio and the scheme discloses 32 holdings in total, the fund appears to keep a meaningful tail beyond the largest positions. That may help diversify individual-name impact, while still leaving the listed top positions relevant to short-term movement. In our view, this is a moderately spread portfolio rather than a very tightly concentrated one.

The mix of mutual fund units, large-cap financials, a treasury bill and cash-equivalent exposure also fits the low-volatility profile. It may reduce the pressure on any one stock to drive performance, although it also means the return engine is likely to be incremental rather than aggressive.

Source data date: as of 18 Sep 2026

Who should invest

This fund fits investors who are comfortable with low-risk market behaviour and who want a calmer path than an equity-heavy scheme. The 1-year, 3-year and 5-year figures show steady positive compounding, but the returns are modest, so the main trade-off is accepting a lower upside in exchange for a more controlled ride.

It can suit a shorter to medium horizon where capital stability matters more than chasing high growth. The benchmark comparison and the portfolio’s cash-like and arbitrage-style holdings reinforce that this is more of a stability-first holding than a return-maximising one.

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 applies as follows: Nil upto 25% of units and 0.25% for remaining units on or before 15D, Nil after 15D.

Source data date: as of 18 Sep 2026

Frequently asked questions

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

The current NAV is ₹16.4989 as of 18 Sep 2026.

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

The fund’s returns are 7% over 1 year, 7.29% over 3 years and 6.41% over 5 years.

How has the fund performed versus the benchmark?

It has outpaced the benchmark across the listed periods. The 1-year benchmark return is negative, while the fund is positive, and the fund also stays slightly ahead on the 3-year and 5-year figures.

How does it compare with peer funds on 1-year returns?

Its 1-year return of 7% is a little below several peers in the comparison set, including Quant Arbitrage Fund Direct Growth Plan at 7.6% and WOC Arbitrage Fund Direct Growth Plan at 7.3%.

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 Rohit Seksaria and Kumaresh Ramakrishnan. The exit load is nil up to 25% of units and 0.25% for the remaining units on or before 15 days, and nil after 15 days.

Bottom line

Sundaram Arbitrage Fund Direct Growth Plan has shown a steady profile over 1, 3 and 5 years, with the latest year holding up better than the benchmark and the longer view remaining modest but positive. Against peers, the 1-year result is a touch softer for some comparisons, while the 3-year and 5-year figures are more constructive. The low-risk tag, broad though not fully diffuse portfolio, and cash-like elements make this a stability-focused option rather than a high-growth one.

Published on 21 September 2026 at 11:02 AM IST

Explore mutual funds with Univest

Review mutual fund data, compare performance and explore fund insights on Univest.

Explore Univest

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.