{"id":11171,"date":"2026-07-16T13:14:00","date_gmt":"2026-07-16T07:44:00","guid":{"rendered":"https:\/\/tradebrains.in\/money\/?p=11171"},"modified":"2026-07-16T13:00:10","modified_gmt":"2026-07-16T07:30:10","slug":"top-5-arbitrage-mutual-funds-with-the-highest-1-year-returns-in-2026-do-they-outperform-fixed-deposits","status":"publish","type":"post","link":"https:\/\/tradebrains.in\/money\/top-5-arbitrage-mutual-funds-with-the-highest-1-year-returns-in-2026-do-they-outperform-fixed-deposits\/","title":{"rendered":"Top 5 Arbitrage Mutual Funds with the Highest 1-Year Returns in 2026: Do They Outperform Fixed Deposits?"},"content":{"rendered":"\n
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Synopsis: <\/strong>Arbitrage mutual funds are really popular with investors who want to make some money without taking a lot of risk and also want to save on taxes. This article will look at the 5 arbitrage mutual funds that did the best over the past year and see if they are better than putting money in a fixed deposit.<\/em><\/p>\n<\/blockquote>\n\n\n\n

What Are Arbitrage Mutual Funds?<\/strong><\/h2>\n\n\n\n

Arbitrage mutual funds are a type of equity hybrid fund, they try to make money by using price differences of the stock in different markets. For example they use the cash market and the futures market in which the fund managers sell the same stock at the same time. They lock in the price difference, this helps them make some return without taking risk and they do not depend on which way the market is going.<\/p>

\"scapia<\/a><\/div>\n\n\n\n

When there are not that good arbitrage chances these funds put some money in short-term debt and money market tools,<\/strong> this helps keep their money liquid and makes some return. Arbitrage funds keep at least 65%<\/strong> of their money in equity and equity-related things<\/strong>, so they are taxed like equity funds<\/strong>. <\/p>\n\n\n\n

How Do Arbitrage Funds Work?<\/strong><\/h2>\n\n\n\n

Arbitrage funds make money by using price differences, between the cash market and the futures market. For example if a stock costs \u20b91,000 in the cash market and \u20b91,015 in the futures market, the fund manager buys the stock in the cash market and then they sell it in the futures market at the same time and make a profit from the difference, these funds use this method to make money.<\/p>\n\n\n\n

The fund earns the price difference as profit when the prices become the same at the end of the futures contract.This profit happens no matter what the overall market is doing, when there are no arbitrage chances the fund puts some of its money into short-term debt and money market instruments.This helps keep the fund liquid and makes returns, Arbitrage funds are less risky than equity funds because of this strategy.<\/p>

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Top 5 Best-Performing Arbitrage Mutual Funds in 2026<\/strong><\/h2>\n\n\n\n

1. Quant Arbitrage Fund<\/strong><\/h3>\n\n\n\n