Parag Parikh Arbitrage Fund

Parag Parikh Arbitrage Fund is a hybrid fund. This fund was started on 23 October, 2023. The fund is managed by Raj Mehta, Rajeev Thakkar, Tejas Soman, Rukun Tarachandani, Raunak Onkar, Aishwarya Dhar. This fund gives you the benefit of diversification.

1. Parag Parikh Arbitrage Fund has ₹2144 Cr worth of assets under management (AUM) as on Feb 2026 and is more than category average.
2. The fund has an expense ratio 0.3.
   

Parag Parikh Arbitrage Fund has given a CAGR return of 7.09% since inception. Over the last 1 year the fund has given a CAGR return of 6.57%.

Parag Parikh Arbitrage Fund has allocated its funds majorly in Cash Equivalent, Financial Services, Corporate, Industrial, Consumer Cyclical, Basic Materials, Communication, Energy, Real Estate, Tech, Utilities, Consumer Defensive, Government, 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 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. However, there is no assurance that the investment objective of the Scheme will be realized and the Scheme does not assure or guarantee any returns.

Minimum investment for lump sum payment is INR 1000.00 and for SIP is INR 1000.00. Parag Parikh Arbitrage Fund has no lock in period.