Returns as of: 27 October 2026
- ₹10,000 put in three years ago is worth ₹12,400 now
- 1-year return: 6.82%, higher than the category average of 6.64%
- 3-year return: 7.43% a year, higher than the category average of 7.17%
- Expense ratio (Direct plan): 2.32%, higher than the category average of 1.56%
- Assets: ₹75,275 crore at 30 September 2026
- Largest holding: Kotak Money Market Fund Direct Growth, 9.78% of the fund; the top ten are 37.43%
- Volatility over three years: 1.11% a year
The Kotak Arbitrage Fund returned 6.82% over the past year, while ₹10,000 put into this Hybrid – Arbitrage Fund three years ago is worth ₹12,400 now. The expense ratio is 2.32% and assets were ₹75,275 crore at 30 September 2026.
Kotak Arbitrage Fund: key details
| Fund house | Kotak Mahindra Mutual Fund |
| Category | Hybrid – Arbitrage Fund |
| Benchmark | Nifty 50 Arbitrage |
| Expense ratio (Direct plan) | 2.32% |
| Assets | ₹75,275 crore (30 September 2026) |
| Minimum investment | ₹100 |
| Minimum SIP | ₹100 |
| Exit load | 0.25% on or before 30D, Nil after 30D |
| Fund managers | Hiten Shah |
Kotak Arbitrage Fund: returns
| Period | Fund return | Category average | Rank in category |
|---|---|---|---|
| 1 week | 0.21% | – | – |
| 1 month | 0.61% | – | – |
| 3 months | 1.70% | – | – |
| 6 months | 3.33% | – | – |
| 1 year (a year) | 6.82% | 6.64% (34 funds) | 8 of 34 |
| 3 years (a year) | 7.43% | 7.17% (26 funds) | 2 of 26 |
| 5 years (a year) | 6.99% | – | – |
The 1-year return of 6.82% is higher than the category average of 6.64%. Over three years, the fund returned 7.43% a year, which is higher than the category average of 7.17%.
Assets over recent months
| Month | Assets (₹ crore) |
|---|---|
| 30 April 2026 | 69,951 |
| 31 May 2026 | 72,079 |
| 30 June 2026 | 72,409 |
| 31 July 2026 | 74,399 |
| 31 August 2026 | 75,712 |
| 30 September 2026 | 75,275 |
Volatility and largest fall
| Measure | Fund | Category median |
|---|---|---|
| Volatility (annualised) | 1.11% | 1.11% |
| Largest fall from a high (3 August 2026 to 6 August 2026) | −0.46% | −0.44% |
The fund experienced a volatility of 1.11% a year, which is the same as the category median. Its largest fall from a high was −0.46%, which is larger than the category median of −0.44%.
Portfolio: top holdings
| Holding | Sector | Weight | Value (₹ crore) |
|---|---|---|---|
| Kotak Money Market Fund Direct Growth | – | 9.78% | 7,364 |
| Kotak Savings Fund Direct Growth | – | 4.98% | 3,751 |
| ICICI BANK LTD. | Banks | 4.17% | 3,139 |
| Kotak Ultra Short to Short Term Fund | – | 3.86% | 2,905 |
| Kotak Liquid Direct Growth | – | 3.13% | 2,353 |
| RELIANCE INDUSTRIES LTD. | Petroleum Products | 3.06% | 2,305 |
| AXIS BANK LTD. | Banks | 2.94% | 2,216 |
| HDFC BANK LTD. | Banks | 2.03% | 1,529 |
| HDFC BANK LTD.** | – | 1.94% | 1,463 |
| Tata Steel Ltd. | Ferrous Metals | 1.53% | 1,151 |
| Sector | Weight |
|---|---|
| Banks | 14.40% |
| Finance | 5.69% |
| Petroleum Products | 4.64% |
| Pharmaceuticals and Biotechnology | 4.22% |
| Power | 3.89% |
| IT – Software | 3.77% |
| Type | Weight |
|---|---|
| Domestic Equities | 71.14% |
| Domestic Mutual Funds Units | 21.75% |
| Certificate of Deposit | 5.79% |
| Cash & Cash Equivalents and Net Assets | 1.33% |
| Change | Holding | Weight |
|---|---|---|
| Added | SWIGGY LTD | 0.75% |
| Added | Laurus Labs Ltd | 0.18% |
| Added | KEI Industries Ltd. | 0.14% |
| Added | ETERNAL LIMITED | 0.13% |
| Added | SIEMENS ENERGY INDIA LTD | 0.04% |
| No longer held | COCHIN SHIPYARD LTD | 0.11% before |
| No longer held | Oracle Financial Services Software Ltd | 0.05% before |
| No longer held | Tata Elxsi Ltd. | 0.00% before |
| Weight rose | ICICI BANK LTD. | 2.47% to 4.17% |
| Weight rose | RELIANCE INDUSTRIES LTD. | 1.99% to 3.06% |
| Weight fell | Adani Ports and Special Economic Zone Limited | 0.89% to 0.04% |
| Weight fell | HDFC BANK LTD. | 2.85% to 2.03% |
| Weight fell | Apollo Hospitals Enterprise Ltd. | 1.01% to 0.35% |
The ten largest holdings account for 37.43% of the portfolio. The largest holding is Kotak Money Market Fund Direct Growth at 9.78%. Since the previous month, the weight of ICICI BANK LTD. rose to 4.17% while the weight of HDFC BANK LTD. fell to 2.03%.
Objective
The scheme states its objective as follows.
To generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market, and by investing the balance in debt and money market instruments
Fund managers
| Name | Role | Experience |
|---|---|---|
| Hiten Shah | Fund Manager | 8 Years |
Kotak Arbitrage Fund: FAQs
What would ₹10,000 in the Kotak Arbitrage Fund be worth today?
₹10,000 put into the Direct Growth plan on 27 October 2023 would have been worth ₹12,400 on 27 October 2026. This is what happened over those three years, not a forecast.
What is the return of the Kotak Arbitrage Fund?
The Direct Growth plan returned 6.82% over one year to 27 October 2026, higher than the category average of 6.64%. Over three years it returned 7.43% a year.
What is the expense ratio of the Kotak Arbitrage Fund?
The expense ratio of the Direct plan is 2.32%; the average for 40 Direct plans in the category is 1.56%.
How large is the Kotak Arbitrage Fund?
Its assets were ₹75,275 crore at 30 September 2026.
What are the top holdings of the Kotak Arbitrage Fund?
At 30 September 2026 the largest holdings were Kotak Money Market Fund Direct Growth (9.78%), Kotak Savings Fund Direct Growth (4.98%), ICICI BANK LTD. (4.17%). The top ten made up 37.43% of the fund.
Who manages the Kotak Arbitrage Fund?
The fund is managed by Hiten Shah.
What is the minimum investment in the Kotak Arbitrage Fund?
The minimum investment is ₹100. The minimum SIP is ₹100.
What is the exit load of the Kotak Arbitrage Fund?
The scheme states its exit load as: 0.25% on or before 30D, Nil after 30D
What is the benchmark of the Kotak Arbitrage Fund?
The scheme’s benchmark is the Nifty 50 Arbitrage.
NAV, expense and portfolio data: Accord Fintech. Calculations: ThePip. For information only; not investment advice.