Zerodha Arbitrage Fund

1. What is the Zerodha Arbitrage Fund?
   It is an open ended scheme investing in arbitrage opportunities.
   
   

2. What is the Investment Objective of this fund?

The investment objective of the Scheme is to generate income and capital appreciation by investing in arbitrage opportunities in the cash and derivatives segments of the equity market, including opportunities within the derivatives segment, and by investing the remaining portion in debt and money market instruments.

There is no assurance that the investment objective of the scheme would be achieved.

3. What is the benchmark index?
   The fund tracks the NIFTY 50 Arbitrage Index TRI. This index measures performance of portfolio involving investment in equity and equivalent short positions equity futures, short-term debt market investments and cash.
   
   

4. New Fund Offer (NFO) Period

New fund offer opens on August 12, 2026 and closes on August 14, 2026.

5. What is the risk profile of this fund?

Risk-o-meter of the Scheme and the Benchmark (Nifty 50 Arbitrage Index TRI) is labelled as Low Risk.

6. Who is this fund suitable for?
   This fund is suitable for investors who are seeking short term parking of funds.
   
   

7. Where will the scheme invest?

• Equity and Equity related instruments including derivatives.

• Debt and Money Market Instruments, cash and cash equivalents, including units of Mutual funds.
  
  

8. What is the minimum investment amount for this fund?
   During the NFO: You can invest a minimum of ₹5000 and in multiples of any amount thereafter.

After the NFO (Ongoing Offer Period):

• Lumpsum: Minimum ₹5000 and in multiples of any amount thereafter.

• SIP: Minimum ₹1000 and in multiples of any amount thereafter.
  
  

9. Can I start an SIP in this fund?

Systematic Investment Plans (SIP) are available during the ongoing offer period across multiple frequencies starting from a minimum instalment amount of ₹1000.

10. What is the minimum redemption amount?
    The minimum redemption amount shall be any amount or any number of units as requested by the investor at the time of redemption.
    
    

11. What are the scheme specific risk factors?

The specific risk factors related to the scheme include, but are not limited to the following:

• Risks associated with Equity and Equity Related Instruments.

Investments in equity and equity related instruments involve a degree of risk and investors should not invest in the Scheme unless they can afford to take the risk of losing their investment.

• Risks associated with Debt and Money Market Instruments or Fixed Income Securities.

Debt and Money Market Instruments or Fixed Income Securities are subject to the risk of an issuer’s inability to meet interest and principal payments on its obligations and market perception of the creditworthiness of the issuer.

• Risk factors associated with processing of transactions through Stock Exchange Mechanism.

Transactions conducted through the Stock Exchange mechanism shall be governed by the operating guidelines and directives issued by respective recognized Stock Exchange(s). Accordingly, there could be negative impacts to the investors such as delay or failure in allotment / redemption of units. The Fund and the AMC are not responsible for the negative impacts.

• Risk associated with Securities Lending

There are risks inherent in securities lending, including the risk of failure of the other party, in this case the approved intermediary to comply with the terms of the agreement. 

• Risks associated with segregated portfolio

  • The investors holding units of the segregated portfolio may not be able to liquidate their holdings till the time of recovery of money from the issuer.

  • The security comprising the segregated portfolio may not realize any value.

The unit holders may note that no redemption and subscription shall be allowed in the segregated portfolio. However, in order to facilitate exit to unit holders in the segregated portfolio, the AMC shall enable listing of units of segregated portfolio on the recognized stock exchange.

• Risk associated with Equity Derivatives

The risks associated with the use of derivatives are different from or possibly greater than, the risks associated with investing directly in securities and other traditional investments.

• Risk associated with Debt Derivatives

The risks associated with the use of debt derivatives are different from or possibly greater than the risks associated with investing directly in debt and money market instruments. Key risks include:

• Basis Risk

• Counterparty Risk

• Interest Rate Risk

• Valuation Risk

• Risk associated for investments in Mutual Fund Schemes.

Movements in the Net Asset Value (NAV) of these Schemes may impact the performance. Redemptions by in these Schemes would be subject to applicable exit loads.

12. How can I invest in the Zerodha Arbitrage Fund?

The Zerodha Arbitrage Fund is available on Zerodha Fund House “WhatsApp”, Coin by Zerodha, Groww, Kuvera, Paytm Money, IND Money, CAMS Online, MFU and MFC and other such platforms.

13. What is the Total Expense Ratio (TER) for this fund?

The Total Expense Ratio (TER) will be available once the fund reopens for subscription.

14. What is the Exit Load for this fund?

• For redemptions / switch outs within 30 days from the date of allotment - 0.25% of the applicable NAV.

• For redemptions / switch outs after 30 days from the date of allotment - Nil.
  
  

15. How will my investment in this fund be taxed?

• Long-Term Capital Gain(LTCG): Applicable if the holding period exceeds 12 months; taxed at 12.5%.

• Short-Term Capital Gain(STCG): Applicable if the holding period is 12 months or less; taxed at 20%.
  
  

16. What is the current NAV of Zerodha Arbitrage Fund?

The allotment NAV during NFO is fixed at ₹10, subject to stamp duty. NAV on a daily basis will be available once the fund reopens for subscription.