Motilal Oswal Arbitrage Fund-Regular Plan-Growth

Motilal Oswal Arbitrage Fund-Regular Plan-Growth holds up reasonably well within the Arbitrage Fund category, backed by a 4-star rating. TopFund's composite Health Score, which weighs rating, 3-year CAGR, expense ratio and fund size, puts it at 74/100.

Cost: At 1.0%, the expense ratio runs 150% above the Arbitrage Fund category average of 0.4%. That gap is worth weighing against the fund's actual performance versus cheaper peers before committing to a long SIP.

Risk-adjusted performance: Over the trailing 1-year period, the fund shows a negative Sharpe ratio of -0.44 — 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 0.91% 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.