ArbitrageLowVR Rating
₹69,951 Cr.
None
| Name | 1Y Return | VR Rating | 1Y Rank | 3Y Rank | 5Y Rank | Alpha | NAV(₹) |
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Kotak Arbitrage Fund(G) is an open-ended arbitrage fund designed for investors seeking relatively stable returns with lower volatility by taking advantage of price differences between the cash and derivatives markets. Arbitrage funds primarily aim to generate returns through arbitrage opportunities while maintaining a debt and cash allocation for liquidity management. As per SEBI’s mandate, the fund needs to invest minimum of 65% in equity and equity related instruments.
As of 1 Apr 2026 ,Kotak Arbitrage Fund(G) manages ₹69951 crore in assets. The fund currently holds 178 stocks, and the top 10 stocks contribute 21.00% of the portfolio, an important “quick check” for how concentrated (or diversified) the fund is.
The investment objective of Kotak Arbitrage Fund(G) is to generate income by predominantly investing in arbitrage opportunities available in the cash and derivatives segments of the equity markets along with debt and money market instruments. The fund seeks to provide relatively low-risk returns while maintaining high liquidity. Investors can typically invest and redeem on business days (subject to scheme cut-off timings and applicable exit load).
The current NAV of the scheme is ₹39.31 as on 29 May 2026, and the risk level is Low.
Kotak Arbitrage Fund(G) was launched on 29 Sep 2005 and is benchmarked against [Nifty 50 Arbitrage]. The scheme is managed by Hiten Shah who has been managing the fund since 3 Oct 2019 and the fund is also managed by . The exit load of the fund is 0.25% on or before 30D, Nil after 30D
Kotak Arbitrage Fund(G) invests in equity arbitrage positions, debt instruments, and cash equivalents. As of , the portfolio is allocated to Certificate of Deposit (7%).
A quick way to read this: higher arbitrage exposure generally means the fund is actively capturing spread opportunities between spot and futures markets, while debt and cash allocations help manage liquidity and stability.
As of 1 Apr 2026, in terms of the entire equity allocation, the exposure to Large Cap is 51% , Mid Cap is 16% and Small Cap is 2%.
A quick way to read this: arbitrage funds usually prefer highly liquid large-cap stocks because they offer better trading volumes and more efficient arbitrage opportunities.
The top 5 holdings of the fund are HDFC BANK LTD. (3.3%), SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA (1.6%), NATIONAL BANK FOR AGRICULTURE & RURAL DEVELOPMENT (1.%), BANK OF BARODA (0.9%), CANARA BANK (0.3%)
In arbitrage funds, top holdings are generally highly liquid large-cap companies along with treasury bills, commercial papers, and other short-term money market instruments.
The top sector exposures are Bank Sector Allocation (%) "Bank 24% Finance 6% Telecommunication 4% Power Generation/Distribution 4% Pharmaceuticals & Drugs 3%
.
Sector allocation in arbitrage funds mainly reflects where arbitrage opportunities are available and tends to be concentrated in highly traded sectors.
Kotak Arbitrage Fund(G)’s recent CAGR returns are {{3m_return}}% (3 months), {{6m_return}}% (6 months) and 5.5% (1 year). These returns are as of 31 May 2026
Against the full Arbitrage Fund peer set, the scheme is ranked {{3mrank}} over 3 months, {{6m_rank}} over 6 months, 10/32 over 1 year period.
If you had invested ₹1,00,000 in Kotak Arbitrage Fund(G) then you would have got:
| Duration | Annualized Returns (%) | Current Total Value | Current Total Profit |
|---|---|---|---|
| 1 Year | 5.5% | ₹105500.00 | ₹5500.00 |
| 3 Year | 6.9% | ₹106900.00 | ₹6900.00 |
| 5 Year | 6.1% | ₹106100.00 | ₹6100.00 |
Note: These are historical returns and they may not repeat in the future.
Always check exit load before investing in any fund.
As of 1 Apr 2026 , the fund’s Beta is 1.
The fund’s Standard Deviation was 0%.
Similarly, Alpha was 0.
Also, Sharpe ratio was 0.
As of 29 May 2026, the fund’s YTM is 7%. A rising YTM often means the portfolio is earning at higher prevailing short-term rates, while a falling YTM can indicate either softer rates or a more conservative portfolio tilt. YTM (Yield to Maturity) is also one of the best forward-looking indicators for what returns may look like going ahead (not a guarantee, but a useful expectation gauge).
The fund’s Modified Duration was 219 years . Modified duration is basically a sensitivity meter: in general, lower duration = lower interest-rate sensitivity.
It may suit investors who want to:
It offers a few practical benefits: relatively lower volatility compared to pure equity funds, potential tax efficiency, high liquidity, and reduced interest-rate sensitivity compared to many debt funds. Arbitrage funds also tend to perform better when market volatility creates wider arbitrage spreads.
These funds are relatively low risk but not risk-free. Returns depend heavily on the availability of arbitrage opportunities in the market. During periods of low market volatility or compressed spreads, returns may moderate. Investors should also track exit loads, taxation, and short-term return expectations carefully.
Since this fund is treated as an equity-oriented fund (Equity > 65%):
Tax rules are subject to change as per regulations.
Kotak Arbitrage Fund(G) is positioned as a relatively low-volatility investment option that seeks to generate stable returns through market arbitrage opportunities while maintaining liquidity and tax efficiency
A simple way to track whether it is doing its job is to follow three indicators: consistency of short-term returns, the spread environment in the market, and how efficiently the fund captures arbitrage opportunities while managing liquidity. The strength of arbitrage funds lies in disciplined execution and efficient spread capture rather than directional equity market performance.
Choose from 1800+ schemes across AMCs with Ventura
To invest a lumpsum amount in Kotak Arbitrage Fund(G) with Ventura: Access the Mutual funds section by logging in to Ventura through your browser/mobile app Select Kotak Arbitrage Fund(G) from the list, the amount to be invested & make the payment.
To start a SIP (Systematic Investment Plan) in Kotak Arbitrage Fund(G) with Ventura: Access the Mutual funds section by logging in to Ventura through your browser/mobile app Select Kotak Arbitrage Fund(G) from the list, the amount to be invested & date of deduction. Pay the first instalment towards your SIP. Set the autopay mandate to enable regular investment of future SIP instalments, directly from your bank account. And you're done. Note: Remember to keep your bank account funded with the amount for regular SIPs for your mutual fund investment in Kotak Arbitrage Fund(G).
It will take up to one trading day for the invested Kotak Arbitrage Fund(G) units to reflect in your portfolio. For example, If you have made the investment in Kotak Arbitrage Fund(G) on Monday before the cut-off time, the units will be allotted to you by Tuesday or the next working day if it is followed by a holiday. The NAV (Net Asset Value) for the units allotted will be as of the day you place your trades.
Yes, mutual funds can be bought or redeemed after market hours through the Ventura web platform or mobile application. However, the execution of these orders depends on the mutual fund's cutoff time for processing transactions.
