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Best Arbitrage Hybrid Funds in 2025

What are Hybrid: Arbitrage funds?


Funds Included All Fund Returns
(3Y annualised)		 Top 5 fund Returns
(3Y annualised)
35 7.6% 7.89%

This fund category is an example of Hybrid Scheme funds.

Hybrid funds invest in a mix of equity and debt instruments to balance risk and return. The proportion of each asset class determines the fund’s risk level—aggressive hybrid funds hold more equity, while conservative hybrid funds hold more debt. These funds offer potential capital appreciation from equity exposure along with income stability from debt. Suitable for investors seeking moderate risk with balanced growth potential.

Trailing returns for Hybrid: Arbitrage funds

These are average returns over the indicated period.

Monthly trailing returns:
Returns Oct-2025 Sep-2025 Aug-2025 Jul-2025
Value 0.54% 0.38% 0.43% 0.54%

Quarterly trailing returns:
Returns 2025Q3 2025Q2 2025Q1 2024Q4
Value 1.35% 1.67% 1.86% 1.85%

Yearly trailing returns:
Returns 2024 2023 2022 2021
Value 7.92% 7.47% 4.53% 3.95%

Fundwise SIP and SWP returns


Rolling SIP returns
Fund Any 1Y SIPAny 3Y SIPAny 5Y SIP
Bandhan Arbitrage Fund6.93%6.73%6.4%
Nippon India Arbitrage Fund7.11%6.94%6.56%
HDFC Arbitrage Fund6.81%6.37%6.13%
Aditya Birla Sun Life Arbitrage Fund6.89%6.71%6.44%
Kotak Arbitrage Fund6.91%6.75%6.55%
ICICI Prudential Equity Arbitrage Fund6.96%6.72%6.39%
Invesco India Arbitrage Fund6.83%6.64%6.54%
JM Arbitrage Fund6.49%6.01%5.63%
UTI Arbitrage Fund6.81%6.65%6.39%
HDFC Arbitrage Wholesale Fund6.53%6.29%5.79%
Edelweiss Arbitrage Fund6.9%6.82%6.26%
Axis Arbitrage Fund6.85%6.79%6.07%
PGIM India Arbitrage Fund6.4%5.89%5.42%
DSP Arbitrage Fund6.68%5.48%6.29%
Bank Of India Arbitrage Fund5.55%4.63%5.48%
Tata Arbitrage Fund6.87%6.41%6.84%
LIC MF Arbitrage Fund6.03%6.18%6.42%
Union Arbitrage Fund6.24%6.33%6.58%
ITI Arbitrage Fund4.54%6.24%6.36%
Mirae Asset Arbitrage Fund7.08%7.53%7.05%
Mahindra Manulife Arbitrage Fund6.14%6.38%5.98%
Sundaram Arbitrage Fund7.56%7.48%0%
Baroda BNP Paribas Arbitrage Fund7.81%7.76%0%
NJ Arbitrage Fund7.41%6.98%0%
HSBC Arbitrage Fund7.75%0%0%
Bajaj Finserv Arbitrage Fund7.21%0%0%
Parag Parikh Arbitrage Fund7.17%0%0%
Whiteoak Capital Arbitrage Fund7.13%0%0%
Franklin India Arbitrage Fund6.97%0%0%
Samco Arbitrage Fund0%0%0%
Motilal Oswal Arbitrage Fund0%0%0%
Quant Arbitrage Fund0%0%0%
Trustmf Arbitrage Fund0%0%0%
The Wealth Company Arbitrage Fund0%0%0%
Old Bridge Arbitrage Fund0%0%0%
SIP Calculator


Rolling SWP returns
Fund Any 1Y SWPAny 3Y SWPAny 5Y SWP
Bandhan Arbitrage Fund6.98%6.67%6.37%
Nippon India Arbitrage Fund7.13%6.85%6.59%
HDFC Arbitrage Fund6.86%6.2%5.91%
Aditya Birla Sun Life Arbitrage Fund6.87%6.62%6.34%
Kotak Arbitrage Fund6.91%6.67%6.38%
ICICI Prudential Equity Arbitrage Fund6.96%6.63%6.32%
Invesco India Arbitrage Fund6.81%6.57%6.25%
JM Arbitrage Fund6.55%5.78%5.35%
UTI Arbitrage Fund6.82%6.59%6.31%
HDFC Arbitrage Wholesale Fund6.57%6.14%5.76%
Edelweiss Arbitrage Fund6.91%6.72%6.34%
Axis Arbitrage Fund6.88%6.56%6.22%
PGIM India Arbitrage Fund6.4%5.82%5.43%
DSP Arbitrage Fund6.58%5.52%5.3%
Bank Of India Arbitrage Fund5.47%4.19%4.16%
Tata Arbitrage Fund6.7%5.54%5.61%
LIC MF Arbitrage Fund5.77%5.04%4.85%
Union Arbitrage Fund6.0%4.99%5.03%
ITI Arbitrage Fund4.28%3.98%4.1%
Mirae Asset Arbitrage Fund6.88%5.49%5.44%
Mahindra Manulife Arbitrage Fund6.0%4.83%4.65%
Sundaram Arbitrage Fund7.55%6.73%0%
Baroda BNP Paribas Arbitrage Fund7.91%7.25%0%
NJ Arbitrage Fund7.56%7.22%0%
HSBC Arbitrage Fund7.99%0%0%
Bajaj Finserv Arbitrage Fund7.44%0%0%
Parag Parikh Arbitrage Fund7.44%0%0%
Whiteoak Capital Arbitrage Fund7.67%0%0%
Franklin India Arbitrage Fund7.16%0%0%
Samco Arbitrage Fund0%0%0%
Motilal Oswal Arbitrage Fund0%0%0%
Quant Arbitrage Fund0%0%0%
Trustmf Arbitrage Fund0%0%0%
The Wealth Company Arbitrage Fund0%0%0%
Old Bridge Arbitrage Fund0%0%0%

SIP and SWP returns with step-up


Rolling SIP returns with 10% step-up
Fund Any 1Y SIPAny 3Y Step-up SIPAny 5Y Step-up SIP
Bandhan Arbitrage Fund6.93%6.74%6.45%
Nippon India Arbitrage Fund7.11%6.94%6.6%
HDFC Arbitrage Fund6.81%6.38%6.18%
Aditya Birla Sun Life Arbitrage Fund6.89%6.71%6.5%
Kotak Arbitrage Fund6.91%6.75%6.58%
ICICI Prudential Equity Arbitrage Fund6.96%6.72%6.45%
Invesco India Arbitrage Fund6.83%6.65%6.57%
JM Arbitrage Fund6.49%6.01%5.7%
UTI Arbitrage Fund6.81%6.65%6.44%
HDFC Arbitrage Wholesale Fund6.53%6.28%5.78%
Edelweiss Arbitrage Fund6.9%6.82%6.3%
Axis Arbitrage Fund6.85%6.8%6.07%
PGIM India Arbitrage Fund6.4%5.91%5.39%
DSP Arbitrage Fund6.68%5.53%6.38%
Bank Of India Arbitrage Fund5.55%4.68%5.58%
Tata Arbitrage Fund6.87%6.46%6.92%
LIC MF Arbitrage Fund6.03%6.23%6.5%
Union Arbitrage Fund6.24%6.38%6.66%
ITI Arbitrage Fund4.54%6.31%6.46%
Mirae Asset Arbitrage Fund7.08%7.54%7.1%
Mahindra Manulife Arbitrage Fund6.14%6.39%6.02%
Sundaram Arbitrage Fund7.56%7.48%0%
Baroda BNP Paribas Arbitrage Fund7.81%7.76%0%
NJ Arbitrage Fund7.41%6.95%0%
HSBC Arbitrage Fund7.75%0%0%
Bajaj Finserv Arbitrage Fund7.21%0%0%
Parag Parikh Arbitrage Fund7.17%0%0%
Whiteoak Capital Arbitrage Fund7.13%0%0%
Franklin India Arbitrage Fund6.97%0%0%
Samco Arbitrage Fund0%0%0%
Motilal Oswal Arbitrage Fund0%0%0%
Quant Arbitrage Fund0%0%0%
Trustmf Arbitrage Fund0%0%0%
The Wealth Company Arbitrage Fund0%0%0%
Old Bridge Arbitrage Fund0%0%0%

Rolling SWP returns with 10% step-up
Fund Any 1Y SWPAny 3Y Step-up SWPAny 5Y Step-up SWP
Bandhan Arbitrage Fund6.98%6.68%6.34%
Nippon India Arbitrage Fund7.13%6.85%6.57%
HDFC Arbitrage Fund6.86%6.21%5.89%
Aditya Birla Sun Life Arbitrage Fund6.87%6.62%6.31%
Kotak Arbitrage Fund6.91%6.67%6.35%
ICICI Prudential Equity Arbitrage Fund6.96%6.63%6.29%
Invesco India Arbitrage Fund6.81%6.57%6.23%
JM Arbitrage Fund6.55%5.79%5.31%
UTI Arbitrage Fund6.82%6.59%6.3%
HDFC Arbitrage Wholesale Fund6.57%6.15%5.72%
Edelweiss Arbitrage Fund6.91%6.72%6.29%
Axis Arbitrage Fund6.88%6.55%6.17%
PGIM India Arbitrage Fund6.4%5.83%5.4%
DSP Arbitrage Fund6.58%5.5%5.36%
Bank Of India Arbitrage Fund5.47%4.18%4.21%
Tata Arbitrage Fund6.7%5.53%5.64%
LIC MF Arbitrage Fund5.77%5.06%4.87%
Union Arbitrage Fund6.0%5.02%5.06%
ITI Arbitrage Fund4.28%4.01%4.16%
Mirae Asset Arbitrage Fund6.88%5.55%5.52%
Mahindra Manulife Arbitrage Fund6.0%4.88%4.72%
Sundaram Arbitrage Fund7.55%6.76%0%
Baroda BNP Paribas Arbitrage Fund7.91%7.28%0%
NJ Arbitrage Fund7.56%7.23%0%
HSBC Arbitrage Fund7.99%0%0%
Bajaj Finserv Arbitrage Fund7.44%0%0%
Parag Parikh Arbitrage Fund7.44%0%0%
Whiteoak Capital Arbitrage Fund7.67%0%0%
Franklin India Arbitrage Fund7.16%0%0%
Samco Arbitrage Fund0%0%0%
Motilal Oswal Arbitrage Fund0%0%0%
Quant Arbitrage Fund0%0%0%
Trustmf Arbitrage Fund0%0%0%
The Wealth Company Arbitrage Fund0%0%0%
Old Bridge Arbitrage Fund0%0%0%

Note:N.A. in returns indicate that the fund does not have sufficient history.

How are Hybrid: Arbitrage funds taxed on selling?

Hybrid Funds
Tax for FY2025-26		 STCG Rate LTCG Eligibility LTCG Rate
Bought Anytime 20% After 1Y 12.5% (above 1.25L)
w 31Jan18 exemption

Note:

  • Dividends from mutual funds (called IDCW or Income Distribution cum Capital Withdrawal funds), are added to the income of the investor and taxed at their highest applicable (slab) rate.
  • Cess and surcharge (if applicable) is to be applied to taxes from mutual funds from selling and dividends.
  • Switches, SWP and selling any lump sum amount are taxable as per the table above.

Articles regarding Hybrid: Arbitrage funds

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Disclaimer: Mutual fund investments are subject to market risks, read all scheme related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of distributable surplus. Investors are requested to review the prospectus carefully and obtain expert professional advice with regard to specific legal, tax and financial implications of the investment/participation in the scheme.

Note: NAVs and returns updated on 23-Nov-2025.

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