Fundalysisby DARKHORSESTOCKS

Scheme

HSBC Arbitrage Fund

Holds 144 companies worth ₹2,509 Cr in Sept 2026.

  • Fund house

    HSBCThe fund house that runs this scheme.

  • AUM

    ₹3,633 CrHSBC Arbitrage Fund's AUM at the end of 30 Sept 2026, as AMFI reports it. Up 10.5% on Aug 2026, ₹3,288 Cr.

  • Largest holding

    ICICI BankICICI Bank is 5.3% of this scheme's NAV.

  • Fund manager

    Praveen AyathanRuns it since 30 Jun 2014, as the fund house dates it. With Mahesh Chhabria (fund manager), Mohd. Asif Rizwi (fund manager).

Overview(16 Sept 2026)

Fund managers3

  1. Praveen AyathanFund manager · Jun 2014 · 34y
  2. Mahesh ChhabriaFund manager · Jul 2023 · 15y · MMS
  3. Mohd. Asif RizwiFund manager · Feb 2025 · 16y · PGDM B.Tech
  1. Hitesh GondhiaOct 2023 – Jun 2025
  2. Kapil PunjabiMay 2024 – Apr 2025

Key facts

Benchmark
Nifty 50 Arbitrage Index
Risk
Low
Expense
Regular 2.09% · Direct 1.47%
Exit load
0.25% within 1 month
Started
30 Jun 2014
Minimum
₹5,000

Source.Its Scheme Summary Document as of 16 Sept 2026 at AMFI.

What changed(11 changes)

Mar 2026

1 change
  1. Expense ratio
    11 MarRegular 0.92% → 0.91%Direct 0.3% → 0.29%

Jan 2026

1 change
  1. Expense ratio
    13 JanRegular 0.93% → 0.92%Direct 0.28% → 0.3%

Sept 2025

1 change
  1. Expense ratio
    10 SeptRegular 0.92% → 0.93%Direct 0.27% → 0.28%

Source.Its filings at NSE, since Sept 2024.

Fund managers over time(Jun 2014 – now)

  1. Praveen Ayathan
  2. Mahesh Chhabria
  3. Mohd. Asif Rizwi
  4. Hitesh Gondhia
  5. Kapil Punjabi
MainCoSlice201520172019202120232025
Fig. 1.Who ran it when: each manager from the date the fund house gives, or the first document listing them where it gives none, to when they left. A slice is part of it: overseas, gold and silver, or arbitrage.

Costs(Sept 2024 – Sept 2026)

Every change to the expense ratio, newest first.
9 changesRegularDirectΔ pt
11 Mar 20260.91%0.29%0.01
13 Jan 20260.92%0.30%0.02
10 Sept 20250.93%0.28%0.01
9 Aug 20250.92%0.27%0.04
7 Jul 20250.90%0.23%0.01
1 Apr 20250.91%0.24%0.01
10 Feb 20250.92%0.25%0.01
12 Nov 20240.93%0.26%0.01
16 Sept 20240.94%0.27%–
Direct plan, 11 Mar 2026
0.29%
Regular plan 0.91% · Exit load 0.25% within 1 month
Fig. 1.Total expense ratio a year, each plan's, as its Scheme Summary Documents state it, filing by filing at NSE. A change holds until the next.

Objective and risk(16 Sept 2026)

Objective

The investment objective of the Scheme is to seek to generate reasonable returns by predominantly investing in arbitrage opportunities in the cash and derivatives segments of the equity markets and by investing balance in debt and money market instruments. There is no assurance that the objective of the Scheme will be realised and the Scheme does not assure or guarantee any returns.

Risk, type and benchmark

Riskometer
Low
At launch
Low
Type
An open ended scheme investing in arbitrage opportunities. No investment in InvITs is permitted.
Benchmark
Nifty 50 Arbitrage Index

Asset allocation it may hold% of NAV

  1. Equity and equity related securities and equity derivatives
    Allowed65–90%Holds69.0%
  2. Debt instruments in CDs, government securities with maturities upto 1 year, mutual fund units of liquid, money market or schemes having Macaulay duration less than 1 year for meeting liquidity and margin requirements
    Allowed10–35%

Holds in Sept 2026.69.0% equity · 31.0% debt and cash

How to invest(16 Sept 2026)

Buying

To start
₹5,000, then in multiples of ₹1
To add
₹1,000, then in multiples of ₹1
Systematic
SIP - Daily (All Business Days from Monday to Friday), Weekly (Any Day from Monday to Friday), Monthly, Quarterly SWP - Monthly, Quarterly, Half Year, Annual STP - Weekly, Monthly, Quarterly, Fortnightly, Daily (Business Days)
Dates
SIP - Daily (Daily SIP will be processed from Monday to Friday. In case of a non-business day falling between Monday to Friday (both days inclusive) then the daily SIP installment for that day will not be processed on the next business day.); Weekly - Any day from Monday to Friday; Other than daily and weekly - Any Date, SWP and STP - Any Dates
Minimum
SIP - 500 Daily 6; 500 Weekly 6; 500 Monthly 6; 1500 Quarterly 4; Minimum Aggregate Amount: Rs. 6,000/- in multiples of Re.1. SWP - 500 STP - 500;The minimum amount required under the source scheme for registering STP is Rs. 6,000., then in multiples of ₹1
Instalments
SIP - Daily 6; Weekly 6; Monthly 6; Quarterly 4 SWP - 12 STP - 6

Selling and switching

To redeem
₹500 or 50 units
Switch minimum
₹5,000

Scheme details(16 Sept 2026)

What it is

Category
Open Ended-Hybrid - Arbitrage
Offer
26 Jun 2014
Started
30 Jun 2014
Reopened
2 Jul 2014
Plans
HSBC Arbitrage Fund - Direct Plan - Growth · HSBC Arbitrage Fund - Direct Plan - Monthly IDCW · HSBC Arbitrage Fund - Regular Plan - Growth · HSBC Arbitrage Fund - Regular Plan - Monthly IDCW · HSBC Arbitrage Fund - Regular Plan - Quarterly IDCW · HSBC Arbitrage Fund - Direct Plan - Quarterly IDCW
Face value
₹10
Listed
No

How it is run

Swing pricing
No
Side-pocketing
No
Custodian
HDFC Bank Limited
Auditor
M/s. Price Waterhouse, Chartered Accountants LLP
Registrar
Computer Age Management Services Limited
SEBI code
LTMF/O/H/ARB/14/06/0024