BARODA BNP PARIBAS ARBITRAGE FUND DIRECT PLAN QUARTERLY IDCW Option

BARODA BNP PARIBAS ARBITRAGE FUND DIRECT PLAN QUARTERLY IDCW Option lags behind most of its peers in the Arbitrage Fund category, currently carrying a 2-star rating. Returns have been soft relative to what the category has offered — worth checking if this is a temporary phase or a longer pattern. TopFund's composite Health Score, which weighs rating, 3-year CAGR, expense ratio and fund size, puts it at 42/100.

Cost: At 0.06%, the expense ratio is meaningfully cheaper — about 85% below the Arbitrage Fund category average of 0.4% (based on 60 comparable funds). Lower costs compound in your favour over long holding periods.

Risk-adjusted performance: Over the trailing 1-year period, the fund shows a negative Sharpe ratio of -1.97 — over the past year, returns haven't kept pace with the volatility involved, even before accounting for the risk-free rate. Separately, annualised volatility of 3.34% is on the lower side, suggesting a comparatively smoother ride.

Who should invest: This fund is best suited to investors whose goals and risk appetite align with a Hybrid fund.