I have searched the last 5 year returns of arbitrage funds on value research. The Top 5 arbitrage funds are the followings:<\/p>\n\n\n\n

1. Edelweiss Arbitrage Fund<\/li>
2. ICICI Prudential Equity Arbitrage Fund<\/li>
3. Kotak Equity Advantage Fund<\/li>
4. Nippon India arbitrage Advantage Fund<\/li>
5. Aditya Birla Sun Life Arbitrage Fund<\/li><\/ol>\n\n\n\n

   Most of the funds have been launched in 2007 and 2008. Most of the funds have expense ratio of less than 1% and a sound track record of past performance.<\/p>\n\n\n\n

   <\/figure>\n\n\n\n

   The 5 year return of all the funds is in line with debt funds and around 6%. All the funds are available to invest directly also. You will get more benefit when you invest in a direct mutual fund.<\/p>\n\n\n\n

   Take an example of ICICI Prudential Equity Arbitrage Fund whose expense ratio for direct fund is 0.45% vs 0.98% in case of regular fund. The 3 year return of this fund is 6.2% for direct plans and 5.6% for regular plans. So you have clear advantage of 0.6% more return for a direct fund investment.<\/p>\n\n\n\n

   Final Words<\/h3>\n\n\n\n

   The return from arbitrage funds very much dependent on market volatility. Sometimes it is difficult to get return as the market is less volatile. Hence 6 months to 1 year span is good for investing in the arbitrage funds. <\/p>\n\n\n\n

   Moreover, fixed deposit is good for a very short period of time and for the individuals who are in 5% tax bracket. Person in the 30% tax bracket may invest in in arbitrage funds and to have a better post tax return.<\/p>\n\n\n\n

   Liked the article. Share it with others.<\/p>\n","protected":false},"excerpt":{"rendered":"

   Arbitrage fund is a type of mutual fund which generates value for the investor with the differences of price across the markets. Typically an equity mutual fund buys a stock and sells a stock in the same market when it grows to a higher price. The arbitrage funds buy stocks from a market and sell in another market and makes profit. The returns are dependent on the volatility of the underlying asset. Here We will know how arbitrage funds work, taxation, whether you should invest or not and 5 best arbitrage funds to invest. How Arbitrage Funds Work Arbitrage funds <\/p>\n","protected":false},"author":1,"featured_media":2359,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[64,17,50],"class_list":["post-2349","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mutual-fund","tag-equity","tag-mutual-fund","tag-stock-market","has_thumb"],"yoast_head":"\n