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

Tata Arbitrage Fund Direct Growth Plan currently has a NAV of ₹16.3304 as of 15 September 2026 and a scheme AUM of ₹24,949 Cr. Its 1-year, 3-year and 5-year returns are 6.71%, 7.49% and 6.79%, respectively, and it is placed in the Low Risk bucket.

Our view is that this is a steadier option for conservative investors who want an arbitrage-style hybrid fund with modest but persistent compounding. The return pattern has been more stable than the benchmark, and the portfolio mix points to a cash-and-equity-linked structure that may suit investors prioritising lower volatility over aggressive upside.

Quick facts

Particular	Details
NAV	₹16.3304 as of 15 Sep 2026
AUM	₹24,949 Cr
Expense Ratio	0.32%
Launch Date	18 Dec 2018
Min SIP	₹150
Risk Category	Low Risk
Benchmark	Nifty 50
Fund Category	Hybrid
Exit Load	0.25% on or before 30D
Fund Managers	Sailesh Jain

The fund is managed by Sailesh Jain.

Source data date: as of 15 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.52%	-4.81%
3M	1.57%	-3.63%
1Y	6.71%	-8.27%
3Y	7.49%	5.59%
5Y	6.79%	5.58%

The fund has stayed positive across every tracked period, including the recent one-month and three-month windows. That matters because the benchmark has been negative over those same short stretches, which tells us the fund behaved with much less drawdown than the index.

Over one year, the fund’s 6.71% return stands well above the benchmark’s -8.27%. This gap is not just a short-term effect; it reflects a profile that has generally been more defensive than the benchmark while still producing positive carry. For investors who want smoother performance, that is an important characteristic.

The longer picture is also constructive. The 3-year return of 7.49% is ahead of the benchmark’s 5.59%, while the 5-year return of 6.79% is also ahead of the benchmark’s 5.58%. The fund’s longer-term path suggests steady compounding rather than sharp swings, which fits an arbitrage-oriented approach.

Recent behaviour and medium-term behaviour are broadly aligned. The fund has not relied on a strong rebound from a weak base; instead, it has maintained a fairly even return profile while the benchmark has moved through more volatile phases. That makes the return stream easier to place in a conservative allocation.

Source data date: as of 15 Sep 2026

Should you BUY or HOLD Tata 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 Tata 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
Tata Arbitrage Fund Direct Growth Plan	6.71%	7.49%	6.79%
Quant Arbitrage Fund Direct Growth Plan	7.6%	Data not available	Data not available
WOC Arbitrage Fund Direct Growth Plan	7.08%	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 the recent one-year horizon, the fund sits below some peers that have posted slightly stronger returns, especially Quant Arbitrage Fund Direct Growth Plan at 7.6% and WOC Arbitrage Fund Direct Growth Plan at 7.08%. Even so, the gap is not large, and the fund remains in a tight cluster around the mid-6% to 7% range.

On longer periods where figures are available, the picture is more mixed but still steady. The fund’s 3-year return of 7.49% is marginally below Invesco India Arbitrage Fund Direct Growth Plan at 7.5%, while its 5-year return of 6.79% trails Invesco’s 7.04%. That suggests the fund has been competitive, though not the strongest among the peers with full long-term figures available.

The short-term and long-term peer comparisons tell a slightly different story. In the short run, the fund looks comfortably near the peer cluster; over three and five years, it is close but a bit behind the better long-term peer outcomes that are available. For investors, that usually points to a fund that is more about consistency than standout upside.

Source data date: as of 15 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Tata Money Market Fund	Domestic Mutual Funds Units	11.79%
HDFC Bank Ltd	Bank	7.8%
Axis Bank Ltd	Bank	2.84%
** – Small Indust Devlop Bank of India – CD – 23/10/2026	Certificate of Deposit	1.99%
Reliance Industries Ltd	Crude Oil	1.89%
Bharti Airtel Ltd	Telecom	1.67%
Vodafone Idea Ltd	Telecom	1.6%
** – NABARD – CD – 28/01/2027	Certificate of Deposit	1.46%
Steel Authority India Ltd	Iron & Steel	1.42%
** – National Bank for Financing Infrastructure and Development – CD – 12/03/2027	Certificate of Deposit	1.35%

The top 10 holdings account for approximately 33.81% of the portfolio.

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

The largest disclosed holding is Tata Money Market Fund at 11.79%, followed by HDFC Bank Ltd at 7.8%. That drop is meaningful, because the biggest position is much larger than the rest of the list and is likely to have greater influence on the fund’s near-term profile than any single equity holding below it.

The decline in weights from the first holding to the tenth is fairly sharp, moving from 11.79% to 1.35%. That suggests the portfolio is not built around one dominant equity idea, but around a small cluster of meaningful positions and a longer tail of smaller exposures.

With 33.81% across the top 10 holdings and 55 disclosed holdings in total, the fund appears moderately spread out rather than tightly concentrated. The visible allocation pattern may help limit the impact of any single position, while still leaving enough weight in larger positions to shape returns.

Source data date: as of 15 Sep 2026

Who should invest

This fund suits conservative investors who want a Low Risk hybrid allocation and can stay invested long enough to let small but steady gains accumulate. The positive 1-year, 3-year and 5-year returns, together with the benchmark’s weaker behaviour over the same horizons, make it easier to view this as a smoother-return option rather than a market-chasing fund.

The main trade-off is that the fund aims for stability and consistency, not aggressive upside. Investors who are comfortable with relatively modest returns, and who value a return pattern that has stayed ahead of the benchmark in the periods available, may find it more relevant than someone looking for higher growth potential.

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 0.25% if units are sold on or before 30 days, and there is no exit load after that holding period.

Source data date: as of 15 Sep 2026

Frequently asked questions

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

The current NAV is ₹16.3304 as of 15 September 2026.

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

The fund’s 1-year return is 6.71%, its 3-year return is 7.49%, and its 5-year return is 6.79%.

How has the fund performed against the benchmark?

It has stayed ahead of the benchmark across the available periods. The benchmark’s 1-year return is -8.27%, its 3-year return is 5.59%, and its 5-year return is 5.58%.

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

It is close to the peer cluster on 1-year returns, but some peers have posted slightly higher figures. On the longer horizons where numbers are available, it is competitive, though Invesco India Arbitrage Fund Direct Growth Plan is a bit ahead on both 3-year and 5-year returns.

What is the minimum SIP amount?

The minimum SIP amount is ₹150.

Who manages the fund and what is the exit load?

Sailesh Jain manages the fund. The exit load is 0.25% if units are sold on or before 30 days, and there is no exit load after that holding period.

Bottom line

Tata Arbitrage Fund Direct Growth Plan has shown a steadier return pattern than its benchmark, with positive numbers over 1, 3 and 5 years and a Low Risk profile that suits conservative investors. Against peers, it is competitive but not the strongest across the available longer-term figures. The portfolio also looks moderately spread out, with the largest disclosed holding still standing well above the rest. For investors who prioritise stability, this fund may fit better than those seeking sharper upside.

Published on 16 September 2026 at 9:43 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.