LIC MF Arbitrage Fund Direct Growth

LIC MF Arbitrage Fund Direct Growth is a hybrid fund. This fund was started on 25 January, 2019. The fund is managed by Sumit Bhatnagar. This fund gives you the benefit of diversification.

1. LIC MF Arbitrage Fund Direct Growth has ₹217 Cr worth of assets under management (AUM) as on Mar 2025 and is less than category average.
2. The fund has an expense ratio 0.3.
   

LIC MF Arbitrage Fund Direct Growth has given a CAGR return of 5.85% since inception. Over the last 1, 3 and 5 years the fund has given a CAGR return of 7.47%, 7.02% and 5.73% respectively.

LIC MF Arbitrage Fund Direct Growth has allocated its funds majorly in Cash Equivalent, Financial Services, Tech, Industrial, Consumer Cyclical, Basic Materials, Utilities, Corporate, Energy, Real Estate, Government, Consumer Defensive, Communication, Health.

As it is a arbitrage fund mutual fund the taxation is as follows:
If the fund is equity oriented i.e. asset allocation of more than 65% in equity instruments:
For short term (less than a year) capital gains will be taxed at 20%
For long term (more than 1 year) capital gains will be taxed at 12.5% without indexation benefit
Long term gains up to Rs 1 lakh are exempt from taxation (more than 12 months).

The investment objective of the scheme is to generate income by taking advantage of arbitrage opportunities that potentially exists between cash and derivative market and within the derivative segment of the equity market along with investments in debt securities & money market instruments.However, there is no assurance that the investment objective of the Schemes will be realized.

Minimum investment for lump sum payment is INR 5000.00 and for SIP is INR 200.00. LIC MF Arbitrage Fund Direct Growth has no lock in period.