HSBC Arbitrage Fund
This is the Regular plan of HSBC Arbitrage Fund — bought through a distributor, whose commission is paid out of its expense ratio. Income is retained in the fund, so it shows up as NAV rather than as a payout.
NAV history
Scorecard
★★★★☆4/5 vs 26 of 38 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 38 Arbitrage Funds in this cohort carry the full record the stars need, so they are the ones ranked against.
3Y CAGR +6.52% · ranks 14 of 26 Arbitrage Funds
Volatility 1.1% vs 1.3% category avg
2.1% expense vs 2.2% 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
- Less volatile than its Arbitrage Fund peers (1.1% vs 1.3%)
- Consistent — positive in 100% of rolling 3-year windows
Concerns
No significant concerns identified.
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 | +0.17% | +0.19% | -0.02% |
| 3M abs | +1.31% | +1.31% | 0.00% |
| 6M abs | +2.81% | +2.79% | +0.02% |
| 1Y CAGR | +5.98% | +5.85% | +0.13% |
| 3Y CAGR | +6.52% | +6.48% | +0.04% |
| 5Y CAGR | — | +5.93% | — |
Category average across peers in Arbitrage Fund (up to 38 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 38 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.
36 monthly installments of ₹10,000 into HSBC 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 | +4.38% | |
| 2025 | +6.23% | |
| 2024 | +7.33% | |
| 2023 | +7.07% | |
| 2022part | +0.70% |
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- Equity70.32%
- Other17.69%
- Debt10.36%
- Cash & Equivalents1.63%
Cash & cash-like: 15.76% — the 1.63% 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, ₹2,652Cr in April - June 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
HSBC Mutual Fund is the Indian arm of HSBC Asset Management and has operated here since 2002. It roughly tripled in size by acquiring L&T Mutual Fund in 2022 and merging the two line-ups.
Fund Managers
PAPraveen AyathanStart date not disclosed
SVP & Head Dealing Equities
B.Sc (Mathematics)
Over 33 years of experience in areas of research and Fund Management. HSBC Asset Management (India) Private Limited SVP and Head Dealing – Equity (Since November 26, 2022) Prior Assignments: L&T Investment Management Limited Chief Dealer – Equity from July 2012 to November 25, 2022 Kotak Mahindra Asset Management Company Limited Head – Equity Dealing from September 2005 to July 2012 Dalal & Broacha stock broking Private Limited Institutional Head – Equity from May 2000 to September 2005
MCMahesh ChhabriaManaging since 02 Jul 2015
VP Fund Management Fixed Income
Masters in Management Studies (M.M.S)
Over 15 years of experience HSBC Asset Management (India) Private Limited as SVP - Fund Management - Fixed Income (Since March 01, 2024) as VP - Fund Management - Fixed Income (from November 26, 2022 – February 28, 2024) Prior Assignments: L&T Investment Management Ltd Fixed Income – Fund Manager from November 25, 2021 to November 25, 2022. L&T Investment Management Ltd Dealer in Fixed Income since June, 2015 till November 24, 2021 Edelweiss Securities Ltd Fixed Income dealer from October 2013 - June 2015 Derivium Traditions Pvt. Ltd. Fixed Income dealer from February 2013- October 2013 L&T Investment Management Ltd. Associate in Investment Operations from November 2012 – February 2013. FIL Fund Management Pvt. Ltd. Associate in Investment Operations from August 2010 – November, 2012 Edelweiss Securities Limited as Equity dealer from March 2007 to May 2014. Karvy Stock Broking Limited as Equity dealer from June 2005 to March 2007
- HSBC Balanced Advantage Fund
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MRMohd Asif RizwiManaging since 03 Feb 2001
VP Dealing Fixed Income
PUBLIC PGDM from IIM Calcutta & B. Tech (Chemical Engineering) from IIT Bombay
Over 16 years of experience HSBC Asset Management (India) Private. Limited as SVP - Fund Management - Fixed Income (Since January 16, 2024) as SVP - Dealing - Fixed Income (from March 1, 2023 to January 15, 2024) as VP - Dealing - Fixed Income (from November 26, 2022 to February 28, 2023) Prior Assignments: L&T Investment Management Ltd. as Senior Dealer in Fixed Income since May 11, 2020 to November 25, 2022 Yes Bank Ltd as Executive Vice President from April 2020, 2015 to May 08, 2020. ICICI Bank Ltd. as Senior Manager from May 9, 2012 to April 18, 2015. Deutsche Bank Global Markets Centre as Senior Analyst from July 2007 to May 2010.
- HSBC Balanced Advantage Fund
- HSBC Banking and PSU Debt Fund
- HSBC Conservative Hybrid Fund
- HSBC Corporate Bond Fund
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- HSBC CRISIL IBX 50:50 Gilt Plus SDL Apr 2028 Index Fund
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- HSBC Short Duration Fund
- HSBC Short Term Fund
- HSBC Ultra Short to Short Term Fund
Fund managers from the AMC's filed Scheme Summary — its most recent filing for this scheme. Benchmark and dealing terms from it and 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.
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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.
Frequently asked questions
What is the NAV of HSBC Arbitrage Fund?
As of 01 Oct 2026, the NAV of HSBC Arbitrage Fund is ₹20.37 per unit. NAV (net asset value) is the fund's per-unit price, published once each business day.
What returns has HSBC Arbitrage Fund delivered?
HSBC Arbitrage Fund has returned +5.98% over 1 year, +6.52% per year over 3 years and +6.71% 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 HSBC Arbitrage Fund?
HSBC Arbitrage Fund charges an expense ratio of 2.07% 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 HSBC Arbitrage Fund?
HSBC Arbitrage Fund's largest holdings are HSBC Money Market Fund - Direct Growth (15.8%), HDFC Bank Limited (5.0%), Steel Authority of India Limited (3.9%), ICICI Bank Limited (3.9%) and Canara Bank (3.5%). Holdings are disclosed monthly and change over time.
How risky is HSBC Arbitrage Fund?
HSBC 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 -0.3%. 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 0.02 mean?
The Sharpe ratio is return earned per unit of total risk, above a 6.5% risk-free rate. HSBC Arbitrage Fund's 0.02 means it has rewarded its volatility with excess return. Higher is better.
What is the benchmark of HSBC Arbitrage Fund?
HSBC Arbitrage Fund is benchmarked against the Nifty 50 Arbitrage Index. Its alpha and beta on this page are measured against that index.
Who manages HSBC Arbitrage Fund?
HSBC Arbitrage Fund is managed by Praveen Ayathan, Mahesh Chhabria and Mohd Asif Rizwi at HSBC.
How is HSBC Arbitrage Fund taxed?
HSBC 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.