Zerodha Arbitrage Fund
This is the Direct plan of Zerodha 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
Not ratedHow 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. Not rated — this fund has no full year of NAV history yet. A rating needs at least a 1-year return to rank its performance against peers.
Not enough Arbitrage Fund peers to rank yet
Volatility 2.1% vs 1.3% category avg
2.3% expense vs 1.5% category avg
Not enough history for a rolling 3Y view
Strengths & concerns
Generated from this fund's own numbers against its sub-category — each point names the figure behind it.
Strengths
No standout strengths identified.
Concerns
- More volatile than its Arbitrage Fund peers (2.1% vs 1.3%)
- High expense ratio (2.31%) 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 | +0.69% | +0.72% | -0.03% |
| 3M abs | — | +1.56% | — |
| 6M abs | — | +3.18% | — |
| 1Y CAGR | — | +6.65% | — |
| 3Y CAGR | — | +7.20% | — |
| 5Y CAGR | — | +6.66% | — |
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.
Backtest this fund
What a SIP or one-time investment would have grown to over this fund’s real NAV history.
Pick a longer period to plot the path.
1 monthly installments of ₹10,000 into Zerodha Arbitrage Fund, valued at the latest NAV. XIRR annualizes for each installment’s timing.
Recent changes
Expense-ratio, fund-manager, exit-load and minimum-investment changes we've picked up in the last 30 days.
- Expense ratio down: 3.83% → 2.31%02 Oct 2026
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- Equity67.62%
- Cash & Equivalents18.72%
- Debt13.65%
AMC Profile
Zerodha Mutual Fund, which operates as Zerodha Fund House, is a joint venture between the broker Zerodha and smallcase. It launched its first schemes in 2023 and runs index funds and ETFs only — no active equity schemes.
Fund Managers
KMKedarnath MirajkarStart date not disclosed
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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
Zerodha 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.
Mutual fund NFOs: 2 new funds will open for subscription this week. Check dates and key details
The Economic Times · 15d ago
Mutual fund NFOs: 12 new funds are open for subscription now. Check details
The Economic Times · 04 Sep 2026
Zerodha Fund House Launches Life Cycle Fund 2031
Passionate In Marketing · 28 Aug 2026
Zerodha Fund House Nearly Triples Assets as FY26 Loss Narrows
CXO Digitalpulse · 27 Aug 2026
Mutual fund NFOs: 12 funds open for subscription now. Check key details
The Economic Times · 27 Aug 2026
Zerodha Life Cycle Fund 2031 Direct-Growth (₹ 9.81) - NAV, Reviews & asset allocation
The Economic Times · 26 Aug 2026
Zerodha Fund House Revenue Rises 79% Losses Narrow 38%
bwdisrupt.com · 26 Aug 2026
Zerodha Fund House FY26: Revenue Up 79% YoY To ₹17 Cr, Loss Narrows
inc42.com · 26 Aug 2026
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.
From the blog
Frequently asked questions
What is the NAV of Zerodha Arbitrage Fund?
As of 05 Oct 2026, the NAV of Zerodha Arbitrage Fund is ₹10.08 per unit. NAV (net asset value) is the fund's per-unit price, published once each business day.
What returns has Zerodha Arbitrage Fund delivered?
Zerodha Arbitrage Fund has returned +0.83% 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 Zerodha Arbitrage Fund?
Zerodha Arbitrage Fund charges an expense ratio of 2.31% 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 Zerodha Arbitrage Fund?
Zerodha Arbitrage Fund's largest holdings are 364 Days Treasury Bill 12-Aug-2027 (13.7%), HDFC Bank Limited (6.0%), Crompton Greaves Consumer Electricals Limited (4.2%), IDFC First Bank Limited (3.7%) and Axis Bank Limited (3.3%). Holdings are disclosed monthly and change over time.
How risky is Zerodha Arbitrage Fund?
Zerodha Arbitrage Fund is rated moderately high on SEBI's risk-o-meter, its trailing-3Y volatility (annualised) is 2.1% 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 is the benchmark of Zerodha Arbitrage Fund?
Zerodha Arbitrage Fund is benchmarked against the Nifty 50 Arbitrage Index TRI - As per AMFI Tier I Benchmark. Its alpha and beta on this page are measured against that index.
Who manages Zerodha Arbitrage Fund?
Zerodha Arbitrage Fund is managed by Kedarnath Mirajkar at Zerodha.
How is Zerodha Arbitrage Fund taxed?
Zerodha 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.