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

Zerodha Arbitrage Fund Direct Growth Plan has a NAV of ₹10.0451 as of 16 Sep 2026 and a scheme AUM of ₹34 Cr. Its 1-year, 3-year and 5-year returns are 0%, 0% and 0%, and it sits in the Low Risk bucket. Our view is that this is a conservative arbitrage-oriented option for investors who want lower volatility, but the short track record means the return profile is still too new to judge over a full market cycle.

With an expense ratio of 0.0% and a portfolio anchored in cash equivalents, Treasury bills and select large banks, the fund is built more for stability than for chasing equity-like upside. That makes it most relevant for investors who value steadier behaviour and are comfortable with returns that may stay close to benchmark-style short-term movements.

Quick facts

Particular	Details
NAV	₹10.0451 as of 16 Sep 2026
AUM	₹34 Cr
Expense Ratio	0.0%
Launch Date	18 Aug 2026
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	Kedarnath Mirajkar

The fund is managed by Kedarnath Mirajkar.

Source data date: as of 16 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.45%	-4.41%
3M	Data not available	Data not available
1Y	0%	0%
3Y	0%	0%
5Y	0%	0%

The one-month reading is the only live performance figure available, and it shows the fund holding positive ground while the benchmark moved lower over the same stretch. That kind of behaviour is consistent with an arbitrage-style strategy that is meant to dampen daily swings rather than magnify them.

The longer-dated rows do not yet give a meaningful cycle view because the scheme was launched on 18 Aug 2026. For now, the important point is that the fund has not shown drawdown-like behaviour in the limited period available, while the benchmark has been more volatile over the same window.

Our view is that this makes the fund easier to read as a stability-led allocation than as a return accelerator. Investors looking for a smoother path may appreciate that, but they should also note that the return history is still too short to draw strong conclusions about how it behaves through different market regimes.

Source data date: as of 16 Sep 2026

Should you BUY or HOLD Zerodha 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
Zerodha Arbitrage Fund Direct Growth Plan	0%	0%	0%
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 current fund has a much softer recent return profile than the peer funds with available 1-year figures, so the short-term comparison is clearly weaker. The longer-horizon comparison is still limited by the fund’s very recent launch, while Invesco India Arbitrage Fund Direct Growth Plan is the only peer here with available 3-year and 5-year data and shows steady multi-year outcomes. In other words, the peer set tells a stronger history for established schemes, while this fund’s story is still mostly about its first few weeks.

Source data date: as of 16 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Clearing Corporation of India Limited	Cash & Cash Equivalents and Net Assets	14.39%
364 Days Treasury Bill 12-Aug-2027	Treasury Bills	13.65%
HDFC Bank Limited	Bank	5.97%
Net Receivable / Payable	Cash & Cash Equivalents and Net Assets	4.34%
Crompton Greaves Consumer Electricals Limited	Consumer Durables	4.23%
IDFC First Bank Limited	Bank	3.67%
Axis Bank Limited	Bank	3.27%
Indus Towers Limited	Telecom	3.23%
ICICI Bank Limited	Bank	3.22%
AU Small Finance Bank Limited	Bank	3.13%

The largest holding, Clearing Corporation of India Limited, is 14.39%, which is meaningful but not extreme for a cash-aware arbitrage structure. The drop from the first holding to the tenth is also fairly gradual, ending at 3.13%, so the top sleeve does not look dominated by one single position.

The top 10 holdings account for approximately 59.1% of the portfolio, and the fund discloses 28 holdings in total. That combination suggests a portfolio that is spread across several positions rather than being tightly concentrated in a very small number of names, even though cash equivalents and Treasury bills remain a clear anchor.

Because more holdings are disclosed beyond the table, the longer tail may still matter for day-to-day balance, but the largest positions are likely to have greater influence on the fund’s overall positioning. The current mix also shows a noticeable tilt toward banks alongside cash-like instruments, which may help keep the structure aligned with its low-volatility objective.

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

Source data date: as of 16 Sep 2026

Who should invest

This fund fits investors with a conservative risk tolerance who want a low-volatility allocation rather than a growth-heavy equity substitute. The limited live history and the low-risk classification suggest that it is better viewed over a short-to-medium holding period where capital stability matters more than chasing high returns.

The main trade-off is simple: steadier behaviour usually comes with modest return expectations. Investors who want exposure that can sit alongside equity funds, debt funds or cash management needs may find the structure useful, but those looking for strong upside or a long multi-year return record may want a different profile.

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 16 Sep 2026

Frequently asked questions

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

The current NAV is ₹10.0451 as of 16 Sep 2026.

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

The fund’s 1-year, 3-year and 5-year returns are 0%, 0% and 0%.

How has it done against the benchmark?

The fund’s 1-month return is 0.45%, while the benchmark return is -4.41%. The limited live history is still too short for a full-cycle comparison.

How does it compare with peer funds on recent returns?

Its 1-year return is lower than the peer funds with available 1-year figures in this set. The longer-term comparison is limited because this scheme is newly launched.

What is the minimum SIP amount?

The minimum SIP amount is ₹1,000.

Who manages the fund and what is its exit load?

The fund is managed by Kedarnath Mirajkar. The exit load is 0.25% on or before 30D, and NIL after 30D.

Bottom line

Zerodha Arbitrage Fund Direct Growth Plan is still in its earliest stage, so its recent behaviour matters more than any longer-horizon pattern. The limited return trail looks steadier than the benchmark over the latest month, but peer schemes with available 1-year data show stronger numbers. Its low-risk label, cash-and-T-bill heavy top positions and broad set of disclosed holdings point to a stability-first structure, which suits investors who want modest, defensive exposure rather than a long record of compounding.

Published on 17 September 2026 at 5:14 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.