Kotak Arbitrage Fund
This is the Direct plan of Kotak Arbitrage Fund — bought from the fund house, with no distributor commission in its expense ratio. Income is retained in the fund, so it shows up as NAV rather than as a payout.
NAV history
Scorecard
★★★☆☆3/5 vs 26 of 39 Arbitrage Fund peers- Performance 60%
- Risk 15%
- Cost 10%
- Downside 15%
How this is computed
Each verdict is computed from this fund's own metrics against its sub-category — the number behind it is shown, not a black-box rating. The stars weight the same ground 60/15/10/15 (performance/risk/cost/downside) across every fund in the peer group. Ranked within Arbitrage Fund (same plan and option). 26 of the 39 Arbitrage Funds in this cohort carry the full record the stars need, so they are the ones ranked against.
3Y CAGR +7.46% · ranks 3 of 26 Arbitrage Funds
Volatility 1.1% vs 1.3% category avg
2.3% expense vs 1.5% category avg
100% of rolling 3Y windows were positive
Strengths & concerns
Generated from this fund's own numbers against its sub-category — each point names the figure behind it.
Strengths
- Stronger risk-adjusted returns — Sharpe 0.89 vs 0.63 Arbitrage Fund average
- Less volatile than its Arbitrage Fund peers (1.1% vs 1.3%)
- Consistent — positive in 100% of rolling 3-year windows
Concerns
- High expense ratio (2.32%) vs the Arbitrage Fund average of 1.48%
Key Metrics
Scheme Info
DefinitionsPeriod returns (<1Y, absolute — not annualized)
DefinitionsAnnualized returns (≥1Y — CAGR)
DefinitionsAdvanced metrics — risk
Fund vs category average (Arbitrage Fund)
| Period | Fund | Category avg. | Diff |
|---|---|---|---|
| 1M abs | +0.67% | +0.72% | -0.05% |
| 3M abs | +1.58% | +1.56% | +0.02% |
| 6M abs | +3.27% | +3.18% | +0.09% |
| 1Y CAGR | +6.79% | +6.64% | +0.15% |
| 3Y CAGR | +7.46% | +7.19% | +0.27% |
| 5Y CAGR | +6.97% | +6.65% | +0.32% |
Category average across peers in Arbitrage Fund (up to 39 funds with data), same plan and option, excluding this fund. Under-1-year figures are absolute; 1Y and beyond are annualised (CAGR).
Not sure what a figure means? The glossary explains every metric, and the methodology shows the formulas.
Category rank
Vs 39 peers in Arbitrage Fund
Backtest this fund
What a SIP or one-time investment would have grown to over this fund’s real NAV history.
60 monthly installments of ₹10,000 into Kotak Arbitrage Fund, valued at the latest NAV. XIRR annualizes for each installment’s timing.
Calendar-year returns
What the fund actually returned in each year, not the smoothed average.
| Year | Fund | |
|---|---|---|
| 2026part | +5.11% | |
| 2025 | +7.06% | |
| 2024 | +8.47% | |
| 2023 | +8.01% | |
| 2022 | +5.14% | |
| 2021 | +4.56% | |
| 2020 | +4.91% | |
| 2019 | +6.59% | |
| 2018 | +6.83% | |
| 2017 | +6.34% |
January–December, from this fund's NAV history. Absolute return, not annualised. “part” marks a year the fund didn't run end to end — its first year, the current year so far, or one it stopped reporting in.
Taxation
Taxed as equityThis is an equity-oriented fund (≥65% in Indian equities), so gains get the concessional capital-gains rates below — they do not add to your income-tax slab.
Flat, on the whole gain
On gains above ₹1.25 L per financial year
Applies to capital gains on redemption. Excludes IDCW/dividend tax, STT, surcharge and cess, and pre-2018 equity grandfathering. For research only — consult a tax advisor before filing.
Asset allocation
As on 31 Aug 2026 · AMC disclosure- Equity74.26%
- Other18.17%
- Debt6.92%
- Cash & Equivalents0.65%
Cash & cash-like: 9.68% — the 0.65% above plus treasury bills, certificates of deposit, commercial paper and TREPS, which the allocation files under Debt but the market counts as cash-equivalent.
Fund size over time
Quarterly average AUM · AMFIAt or near its largest, ₹70,833Cr in January - March 2026. Size matters most where the mandate is narrow — a large small-cap or a very large flexi-cap book is harder to move without moving the price.
Net flow is an estimate: AMFI publishes a quarterly average AUM, not a closing balance, and it covers every plan and option of this scheme together, so it is a read on direction and rough size rather than a cash-flow statement.
AMC Profile
Kotak Mahindra Mutual Fund is run by Kotak Mahindra Asset Management, part of the Kotak Mahindra Bank group, and has been in the business since 1998. It was the first Indian fund house to launch a dedicated gilt scheme, and today runs one of the country's larger equity and debt line-ups.
Fund Managers
HSHiten ShahStart date not disclosed
Equity Fund Manager and Dealer
Master of Management studies from Mumbai University & BCOM
Mr. Hiten Shah, is a MMS in Finance with over 16 years of work experience. Prior to joining Kotak Mahindra Mutual fund, he was associated with Edelweiss Asset Management for more than 8 years as a Co-Fund manager and Chief dealer in equities segment. Mr. Hiten Shah was also associated with Edelweiss securities Ltd. as low risk arbitrage trader for more than
Fund manager, benchmark and dealing terms from this scheme's SEBI-filed Scheme Information Document on AMFI. Each manager's qualifications and role are reconciled across every filing this fund house makes for them, including its Statement of Additional Information. Total AUM via AMFI.
Explore from here
Kotak Mahindra in the news
Headlines about the fund house, not this scheme in particular — highlights only; tap through to read the full story at the source.
Kotak Mahindra MF introduces Nifty 500 Index Fund
Investment Guru India · 5h ago
Ola Electric promoter Bhavish Aggarwal pledges 4.32% stake to fund rights issue subscription
IndiaIPO · 15h ago
Mutual funds now offer nearly 2,000 schemes; passive funds account for one-third of the shelf
Cafemutual · 3d ago
Kotak Short Term Plan Growth - Regular - Latest NAV [ ₹55.2317 ], Returns, Performance, Portfolio & Returns 2026
ClearTax · 3d ago
Kotak Multi Sector Omni FOF - Direct (G)
Multibagg AI · 3d ago
Avalon Tech block deal: Promoters divest 6% stake worth Rs 871 crore
inkl · 5d ago
TPG sells Rs 114 crore Shadowfax shares; Kotak Mahindra AMC buys 3.59% stake in Avalon Technologies
Moneycontrol.com · 5d ago
Avalon Technologies Promoters Dilute 6% Stake for Rs 871 Cr
Rediff MoneyWiz · 5d ago
Returns and risk are computed from NAV history and may differ slightly from other portals due to methodology (rolling vs point-to-point, dividend treatment). For research only — not investment advice.
About Arbitrage funds
Arbitrage funds profit from small price gaps between the cash and futures markets rather than from market direction. Returns are usually modest and cash-like, but they are taxed as equity.
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Frequently asked questions
What is the NAV of Kotak Arbitrage Fund?
As of 05 Oct 2026, the NAV of Kotak Arbitrage Fund is ₹43.42 per unit. NAV (net asset value) is the fund's per-unit price, published once each business day.
What returns has Kotak Arbitrage Fund delivered?
Kotak Arbitrage Fund has returned +6.79% over 1 year, +7.46% per year over 3 years, +6.97% per year over 5 years and +7.07% per year since inception. Figures beyond one year are annualised (CAGR) and are computed from AMFI NAV history, so they may differ slightly from other portals.
What is the expense ratio of Kotak Arbitrage Fund?
Kotak Arbitrage Fund charges an expense ratio of 2.32% per year. This annual fee is already deducted from the NAV, so the returns you see are net of it.
What are the top holdings of Kotak Arbitrage Fund?
Kotak Arbitrage Fund's largest holdings are Kotak Money Market Fund Direct Growth (9.7%), Kotak Savings Fund Direct Growth (4.5%), AXIS BANK LTD. (3.5%), HDFC BANK LTD. (2.9%) and Kotak Low Duration Fund Direct Growth (2.8%). Holdings are disclosed monthly and change over time.
How risky is Kotak Arbitrage Fund?
Kotak Arbitrage Fund is rated moderately high on SEBI's risk-o-meter, its trailing-3Y volatility (annualised) is 1.1% and its worst peak-to-trough fall in our sample was -0.6%. Higher volatility means the NAV swings more; the drawdown shows how far it has fallen from a peak historically.
What does the Sharpe ratio of 0.89 mean?
The Sharpe ratio is return earned per unit of total risk, above a 6.5% risk-free rate. Kotak Arbitrage Fund's 0.89 means it has rewarded its volatility with excess return. Higher is better.
What is the benchmark of Kotak Arbitrage Fund?
Kotak Arbitrage Fund is benchmarked against the Nifty 50 Arbitrage. Its alpha and beta on this page are measured against that index.
Who manages Kotak Arbitrage Fund?
Kotak Arbitrage Fund is managed by Hiten Shah at Kotak Mahindra.
How is Kotak Arbitrage Fund taxed?
Kotak Arbitrage Fund is an equity-oriented fund, so its capital gains get concessional rates: short-term gains (units held under 1 year) are taxed at 20%, and long-term gains (held 1 year or more) at 12.5% above a ₹1.25 lakh per-year exemption. These rates apply on redemption and don't add to your income-tax slab.