Have you ever wondered how a small monthly investment could quietly grow into a big corpus over time?
This real-life example shows how disciplined investing through SIP (Systematic Investment Plan) can work wonders—even with low-risk mutual fund strategies.
SIP Calculator
According to Value Research, a monthly SIP of ₹10,000 in the Aditya Birla Sun Life Arbitrage Fund has grown to approximately ₹32.24 lakh over 16 years, while the total amount invested was ₹19.20 lakh.
That means—without any stress, market timing, or active trading—you could have earned over ₹13 lakh in returns.
👉 Annualized Returns: ~6.16%
👉 Total Investment: ₹19.20 lakh
👉 Maturity Value: ₹32.24 lakh
This performance has caught the attention of long-term investors who are seeking stability over market excitement.
How Does This Fund Work?
The Aditya Birla Sun Life Arbitrage Fund follows a low-risk arbitrage strategy.
It invests primarily in:
- Equity stocks and derivatives (to profit from price differences in cash vs. futures market)
- High-quality debt instruments (to ensure liquidity and steady income)
Fund Managers: Lovelish Solanki and Mohit Sharma
Asset Size: ₹20,646 crore (as of June 30, 2025)
Expense Ratio: ~1.03% (Regular Plan)
Because it hedges equity positions, the fund behaves more like a balanced hybrid—offering the tax benefits of equity with the peace of debt-like stability.
What Do Experts Say?
While this fund has performed well historically, experts suggest being realistic and goal-focused:
Ideal for: Short to medium-term goals (2–5 years), people who want low-volatility returns with equity tax benefits
Not suitable for: Those expecting high growth like aggressive equity funds
Caution: Arbitrage returns depend on available price spreads. These may reduce sharply during market downturns or low volatility periods.
Should You Invest?
This fund isn’t a jackpot machine—but if you’re looking for a low-risk SIP route, especially as a parking option for short-term goals or large future expenses, it could fit into your plan.
Always consult a certified financial planner before investing, especially when planning for goals like child education, home down payments, or emergency funds.
SIP: The Power of Consistency Over Time
This case reminds us that wealth creation doesn’t require big money—it needs big discipline.
Whether you invest in an aggressive fund or a low-risk one like this, the formula remains the same:
Disclaimer: The returns, opinions, or insights shared above are based on historical performance and expert analysis. Always do your own due diligence or speak to a financial advisor before investing.